World Bank2012-03-192012-03-192009-11https://hdl.handle.net/10986/3132Malaysia is emerging from one of the worst export slumps in its economic history as manufacturing and exports have started growing again. With East Asia leading the recovery and advanced economies showing progressive improvement, the Malaysian economy is projected to grow at 4.1 percent in 2010, following a contraction of 2.3 percent in 2009. The medium-term outlook remains promising with growth reaching 5.6 and 5.9 percent in 2011 and 2012, respectively, though that will depend on sustained global recovery from the crisis. The overriding medium-term challenge is for the Malaysian economy to join the select group of high-income countries. Malaysia has experienced solid growth over the last decades, but has relied on an economic model predominantly based on capital accumulation, although private investment rates never recovered from their 20 percentage point fall after the Asian 1997/98 crisis and are now among the lowest in the region. For Malaysia to climb the next step up the income ladder, it needs to focus on improving the investment climate to raise investment rates and focus on productivity growth. Against this backdrop, the authorities are developing a 'new economic model,' which will be squarely centered on boosting productivity. Promising reforms have already been announced in the areas of services and foreign direct investment, which will help revitalize private investment.CC BY 3.0 IGOACCOUNTINGADVANCED ECONOMIESADVERSE IMPACTAGGREGATE DEMANDAGRICULTUREANNUAL GROWTHANTI-COMPETITIVE PRACTICESASSET POSITIONASSET PRICEASSET PRICESASSET QUALITYASSETSBALANCE SHEETSBANK LENDINGBANKING INSTITUTIONSBANKING SECTORBANKING SYSTEMBANKRUPTCYBILLSBOND ISSUANCESBUFFERCAPITAL ACCOUNTCAPITAL ACCUMULATIONCAPITAL ADEQUACYCAPITAL FLOWSCAPITAL GOODSCAPITAL MARKETSCAPITAL OUTFLOWSCENTRAL BANKCOMMODITY PRICECOMMODITY PRICESCOMPETITIVENESSCONFIDENCE INDEXCONSOLIDATIONCONSUMER CONFIDENCECONSUMER PRICE INFLATIONCONSUMPTION EXPENDITURECONSUMPTION GOODSCONSUMPTION GROWTHCORPORATE DEBTCREDIBILITYCREDIT ENHANCEMENTCREDIT GUARANTEESCREDIT POLICIESCURRENCYCURRENT ACCOUNTCURRENT ACCOUNT SURPLUSCURRENT ACCOUNT SURPLUSESDEBTDEBT RESTRUCTURINGDEBT SERVICEDEFAULTERSDEFLATIONDEMAND FOR CREDITDEPOSITSDEPRECIATIONDISBURSEMENTDISBURSEMENTSDISPOSABLE INCOMEDOMESTIC CAPITALDOMESTIC CAPITAL MARKETSDOMESTIC DEMANDDOMESTIC LIQUIDITYDURABLEDURABLE GOODSECONOMIC CONDITIONSECONOMIC CONTRACTIONECONOMIC CRISISECONOMIC DEVELOPMENTSECONOMIC HISTORYECONOMIC MODELECONOMIC OUTLOOKEMERGING ECONOMIESENABLING ENVIRONMENTEQUITIESEQUITY INVESTMENTSEQUITY MARKETSEQUITY SECURITIESEXCHANGE CONTROLSEXCHANGE RATEEXCHANGE RATE SYSTEMEXPENDITUREEXPENDITURESEXPORT GROWTHEXPORTSEXPOSUREEXPOSURESEXTERNAL ASSETSEXTERNAL DEMANDEXTERNAL SHOCKSFINANCIAL CONTAGIONFINANCIAL CRISISFINANCIAL DISTRESSFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MARKETFINANCIAL SHOCKFINANCIAL SUPPORTFINANCIAL SYSTEMSFISCAL BURDENFISCAL DEFICITFISCAL POLICYFIXED INVESTMENTFLOATING EXCHANGE RATEFLOW OF CREDITFOOD PRICEFORECASTSFOREIGN ASSETFOREIGN ASSET POSITIONFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE CONTROLSFOREIGN EXCHANGE RESERVESFOREIGN INVESTORSFOREIGN RESERVEFOREIGN RESERVESGDPGDP PER CAPITAGLOBAL DEMANDGLOBAL SLOWDOWNGLOBAL TRADEGOLDGOVERNMENT BONDGOVERNMENT BOND YIELDSGOVERNMENT EXPENDITUREGOVERNMENT INTERVENTIONSGOVERNMENT REVENUEGROWTH RATEGUARANTEE FUNDSHIGH-INCOME COUNTRIESIMPORTIMPORT CONTENTIMPORT DEMANDIMPORT GROWTHIMPORTSINCOMEINCOME EFFECTINCOME GROUPSINCOME INEQUALITYINCOME TAXESINFLATIONINFLATION RATESINFLATIONARY PRESSURESINFORMATION TECHNOLOGYINSURANCEINTERNATIONAL BANKINTERNATIONAL RESERVESINVENTORIESINVENTORYINVESTMENT CLIMATEINVESTMENT EXPENDITUREINVESTMENT PROJECTSINVESTMENT RATESINVESTMENT STRATEGYISLAMIC FINANCEKNOWLEDGE ECONOMYLABOR FORCELABOR MARKETLABOR MARKETSLIBERALIZATIONLIQUIDITYLOAN APPLICATIONSLOAN APPROVALSM1MARKET CONDITIONSMARKET PARTICIPANTSMATURITYMONETARY FUNDMONETARY POLICYMONEY SUPPLYMULTINATIONAL CORPORATIONSMULTIPLIER EFFECTSNATIONAL INCOMENET EXPORTSNOMINAL WAGESNONPERFORMING LOANNPLOIL PRICEPENSIONPORTFOLIOPORTFOLIO INVESTMENTPOSITIVE SPILLOVERSPOTENTIAL OUTPUTPRICE INDEXPRICE SUBSIDIESPRIVATE CONSUMPTIONPRIVATE FINANCEPRIVATE INVESTMENTPRODUCTIVITY GROWTHPRUDENTIAL STANDARDSPUBLIC FINANCESPUBLIC INVESTMENTPUBLIC SECTOR DEFICITPUBLIC SPENDINGREAL EXPORTSREAL GDPRECESSIONREMITTANCEREMITTANCESRESERVERESERVE REQUIREMENTRESERVESRETURNRETURN ON ASSETSRETURNSSAFETY NETSSECURITIESSHORT-TERM EXTERNAL DEBTSTOCK MARKETSTOCK MARKET INDEXSTOCK MARKETSSTOCKSSUPPLY SIDETAXTAX EXEMPTIONSTAX INCENTIVESTOTAL EXPORTSTOTAL RESERVESTRADE SURPLUSTRADINGTRADING PARTNERSTROUGHTURNOVERUNCERTAINTIESUNCERTAINTYUNEMPLOYMENTUNEMPLOYMENT RATEVALUE INDEXWAGESWEALTHWITHDRAWALWORKING CAPITALMalaysia Economic Monitor, November 2009World BankRepositioning for Growth10.1596/3132