Economy

Malaysia continued to post reasonably strong growth in 2012 despite its high exposure to trade amidst a soft global economic climate. The Economic Transformation Programme (ETP) championed by Prime Minister Najib Razak is taking hold, bringing increased expenditures on infrastructure and a growth in private sector investment. The ETP’s goal is to help Malaysia escape the “middle-income trap” and become an economy driven by advanced manufacturing, technology and financial services. Challenges to this project include a low level of talent and skills, rising cost of living and worrying increases in the national debt. This chapter includes interviews with Nor Mohamed Yakcop, Minister in the Prime Minister’s Department, Economic Planning Unit; Lord Powell, Chairman, Asia Task Force (ATF); and Jim O’Neill, Chairman, Goldman Sachs Asset Management.