UCSI's Malaysia's Economic Model Forum -Malaysia: Where do we go from here?-

14 October 2017


  • Malaysia's economic management in perspective
  • Malaysia's economy: Now and prospects
  • But, there are risks to the macro story
  • Conclusion

Key messages


Malaysia remains resilient to external challenges

  • Domestic demand remains the dominant driver of growth
  • Unrelentingly consumer spending
  • Private investment growth supported by public and private initiated projects

Macroeconomic fundamentals remain supportive of growth

  • Diversified sources of growth
  • Diversified export and product markets
  • Stable labor market conditions and young demographic dividends
  • Conducive investment destination for FDI
  • Strong and stable financial system

Malaysia faces challenges in a position of strength

  • The Malaysian economy is gaining ground but growth remains vulnerable
  • Step-up structural policy actions to boost growth potential and productivity
  • Address as well as contain vulnerabilities to build economic resilience




  1. The global economy is in a synchronized expansion of economic activities. It is a mutual reinforced economic upswing in both advanced and emerging economies.
  2. Policy uncertainty will remain in 2018, and the risks include unexpected changes in monetary policies and the shrinking of the Fed’s balance sheet, the financial-sector uncertainty in major economies, as well as geopolitical tensions. Pressures for protectionism are building up.
  3. The Malaysian economy remains on track for expansion, firing on twin engines (2017E: 5.5%; 2018F:5.1%).
  4. Strengthening policy space, addressing vulnerabilities, and enhancing international competitiveness by promoting investment, services, high-end manufacturing and FDI would also boost economic resilience and improve growth prospects.
  5. Reaping digital technologies dividend requires the right policy mix and investments such as software and hardware investment, soft skills and the right ecosystem to harness information, communications and technology (ICT) and e-commerce to deliver increased productivity and growth.

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