Malaysia is poised to attain high-income nation status as early as 2028, following a revised growth forecast from the World Bank that projects a 4.9 percent increase in 2024. This adjustment, up from a previous estimate of 4.3 percent, reflects stronger-than-expected economic performance and a strengthening currency, according to Apurva Sanghi, lead economist for Malaysia.
The country’s economy has expanded by 12 percent since the COVID-19 pandemic, positioning it ahead of all Southeast Asian nations except Singapore. Sanghi emphasized that while Malaysia is in a favorable economic position, reforms are essential to address issues like fuel subsidies and chronic underemployment affecting approximately 2 million Malaysians, many of whom are overqualified for their jobs.
With a current growth rate of 3.7 percent in 2023, the World Bank defines high-income countries as those with a gross national income per capita of $14,005 or higher. The ongoing economic improvements suggest that Malaysia could soon join this elite group, contingent on continued governmental reforms and favorable conditions.