Malaysia’s Gross National Income (GNI) per capita grew at an impressive rate of 6.4 percent a year between 1962 and 2024. The workforce is increasingly educated, with the share of the workforce with tertiary education growing from 23 percent in 2010 to almost 36 percent in 2023. Healthcare improvements have led to a steady increase in life expectancy, from 59 years in the 1960s to more than 75 in 2024.

Malaysia also slashed poverty, reducing the share of households living below the national poverty line of RM 2,589 a month (around $11 in 2017 purchasing power parity [PPP]) to 6.2 percent. Measured using the international upper-middle-income line of $6.85 in 2017 PPP dollars a day, the poverty headcount rate stood at 2.3 percent in 2021. With a Gini index of 39, however, income inequality in Malaysia is higher than the average for both recently transitioned (mean of 31) and established high-income countries (mean of 30).

Malaysia is more open to trade than nearly 90 percent of countries in the world, surpassing many of its regional peers. Its openness to trade and investment has driven employment creation and income growth, with approximately 40 percent of jobs linked to export activities.

These achievements can be attributed to strategic development policies focusing on outward-oriented, labor-intensive growth; investments in human capital; and credible economic governance to ensure macroeconomic stability.

As Malaysia advances toward its high-income transition, it is presented with new opportunities for growth and reform. While economic expansion has moderated, the country has a strong foundation to build on. By further boosting high-skilled employment, accelerating wage and productivity growth, strengthening tax collection and social protection, enhancing environmental stewardship, and deepening efforts against corruption, Malaysia can unlock its full potential and ensure that prosperity is both sustainable and inclusive.