Holistic growth model needed


Diop said Malaysia has a very well established ecosystem in some key manufacturing sectors such as electronics and even medical equipment and so on but with some reforms, especially on investment climate reforms, it would be able to capture some of those FDI flows helped by political stability.

PETALING JAYA: The World Bank Group (WBG) says Malaysia needs to revive capital investments and encourage growth convergence of lagging states to raise its gross domestic product (GDP) growth potential beyond the 4% level.

The international financial institution forecasts Malaysia’s GDP to grow by 4% in 2023 but believes it should review the performance of growth corridors and encourage further participation of women in the workforce to grow above its potential growth rate due to its narrow fiscal space.

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