Vision 2020? M'sia needs to boost per capita income by 65%

Among other things, Malaysia needs to improve its regulatory framework for the enforcement of contracts, the tax environment and insolvency related procedures.

TO achieve its stated ambition of becoming a high-income nation by 2020, Malaysia would have to boost gross national income per capita to US$15,000 (or 65%) in three years' time from US$9,096 in 2016. 

To do this, Malaysia would need to improve certain areas to boost growth, including by improving contract enforcement, speeding up digitalisation, and strengthening ties with Asean and China, says Mahamoud Islam, senior economist for Asia at Euler Hermes-Allianz Research.

According to him, the stars are aligning for Malaysia's export-oriented economy, with global trade value set to increase by 3.6% in 2017 (versus -2.4% in 2016). Commodity prices are now slowly improving, while demand from major trading partners, such as China and the US, is set to remain strong.