Malaysia Edges Closer to High-Income Status

PUTRAJAYA, July 28 – Malaysia is now only 7.1% short of the World Bank’s high-income threshold, following a 5.8% economic expansion in the second quarter of 2026, Economy Minister Akmal Nasrullah Mohd Nasir announced. He said the government’s priority is to ensure growth translates into higher productivity, quality jobs, and stronger purchasing power for Malaysians.

Malaysia’s gross national income (GNI) per capita rose to RM57,200 (US$13,351) in 2025, compared to the high-income benchmark of US$14,375. Inflation remained contained at 1.9%, while unemployment stood at 3.0%. Akmal stressed that crossing the threshold is not the ultimate goal: “What matters is whether growth delivers better wages, more quality jobs and stronger purchasing power for Malaysians.”

High-Income

The OECD Economic Surveys: Malaysia 2026 highlighted structural challenges, including skill-related underemployment among 35.6% of tertiary graduates. Under the 13th Malaysia Plan (2026–2030), the government will expand technical and vocational education (TVET), Academy in Industry (AiI), and upskilling in semiconductors, AI, and the digital economy.

Fiscal consolidation also remains a priority, with the deficit reduced from 5.5% of GDP in 2022 to 3.7% in 2025, and a target of 3% or lower by 2030. The Iltizam Act 2025 aims to cut regulatory burdens by 25% over three years, improving efficiency and accountability.

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