Key Findings
- Malaysia’s economy expanded to 5.1 percent in 2011. GDP growth exceeded earlier estimates because the Government stepped up public consumption spending towards the end of the year and also because of higher investments by public and private companies.
- GDP is expected to continue to expand healthily in 2012 by 4.6 percent in 2012 and, assuming the global economic recovery picks up, 5.1 percent in 2013.
- Inflation has started to decline, with stabilizing food prices and falling transport costs.
- Unemployment held steady at low levels. Job creation was healthy, accommodating new workers and a higher participation rate.
- Jobs lie at the core of a strategy to achieve Malaysia‘s objective of becoming a high-income economy that benefits all Malaysians. In this regard, Malaysia needs to create more “modern jobs” and modernize its labor markets.
- ‘Modern jobs’ involve a higher and more diverse set of skills such as communication, problem-solving, and proficiency in modern information technology. Modern firms in a high-income economy derive their competitiveness from the productivity and talent of their workers, not low wages.
