Malaysia is nearing the transition to a high-income, developed economy, but several factors could stand in the way.
By Marta Chmielowicz
Despite the setbacks of COVID-19, Malaysia is likely to make the transition from an upper-middle-income economy to a high-income economy in the next five years. This transition is not an easy one; in the past 30 years, only 33 countries have transitioned to high-income status. Navigating the next stage of development offers an opportunity to assess the quality and sustainability of Malaysia’s economic growth and highlights the need for tough reforms and policy changes.