Has Malaysia turned the corner economically?

Malaysia’s economy has been on a rollercoaster over the last decade, with political transitions, policy shifts, and external shocks all contributing to periods of instability. However, there is growing optimism that Malaysia is finally turning the corner. But has it really? To answer this question, it is crucial to reflect on the past, examine the present reforms under Prime Minister Datuk Seri Anwar Ibrahim’s leadership, and analyse what more needs to be done to secure Malaysia’s economic future.

Datuk Seri Najib Razak’s tenure as prime minister, spanning from 2009 to 2018, was marked by significant economic growth, but also by a recognition that Malaysia’s traditional economic model—one heavily reliant on oil and gas revenues—was unsustainable. Malaysia’s GDP during Najib's tenure grew from RM673bil in 2010 to RM1.36 trillion in 2018, doubling in size. GDP per capita increased from approximately US$8,400 in 2010 to over US$11,000 by 2018. Despite the broader economic progress, Najib faced critical fiscal challenges—primarily, the over-reliance on PETRONAS, Malaysia’s oil giant.