Article: Overcoming economic challenges with a restructured & united Malaysia

#GlobalPerspective

Overcoming economic challenges with a restructured & united Malaysia

As Malaysia celebrates 56th Malaysia Day today, it plans to focus on new growth sources that include the digital economy, aerospace industry, and smart farming.
Overcoming economic challenges with a restructured & united Malaysia

"History proves that Malaysia is able to overcome any challenge if its people are united and jointly overcoming the adversities," said Trustee of Malaysia Unity Foundation, Tan Sri Lee Lam Thye.

Also known as 'Hari Malaysia', the Malaysia Day celebrates the establishment of the Malaysian federation. On 16th September 1963, former British colony of Singapore and the East Malaysian states of Sabah and Sarawak joined the Federation of Malaya to create the Malaysian Federation.  

While Singapore moved out soon after two years, others remained and till date celebrate their freedom and unity. 

Unity is what has helped Malaysia pull back from the difficult challenges back in history, and unity is what the government expects will help them face the current obstacles as well. 

The fear of possible global recession

"If the trade war continues to worsen, then the probability of recession (in Malaysia) will rise,” Steve Cochrane, Chief APAC Economist at Moody’s Analytics told The ASEAN Post.

However, amidst a global economic slowdown, Malaysia's economy seems to be doing better than many other nations. Last month, Malaysia’s central bank, Bank Negara Malaysia (BNM) announced that the country’s economy grew by 4.9 percent in the second quarter of 2019. 

The growth was supported by higher net exports, increased household spending and private investment. The manufacturing sector has also grown marginally with improved performance of domestic-oriented industries and as the services sector continues to expand amid sustained growth in the wholesale and retail trade sub-sector. 

While the economy's current situation looks on track, this doesn't mean it should not prepare for the global level uncertainties that can impact Malaysia as well. 

Even in terms of the labor market, Malaysia’s economy remains operating at full-employment condition as jobless rate is at a low level of 3.3 percent. 

The escalating US-China trade war is expected to impact open economies such as Malaysia’s, and eventually affect its employment numbers as well and the country must prepare for the upcoming challenges. 

Restructuring the economy & becoming future ready

Malaysia plans to focus on new growth sources that include the digital economy, aerospace industry, smart farming and supporting services for the digital era. Further, the existing industries that contribute to economic growth will be given a new shot in the arm. 

With a sustainable, high-technology and inclusive growth the ministry plans to improve the country's economy further and be better prepared for the challenges that might emerge in the future as well. 

Facing the uncertain challenges with social harmony and unity

Lee believes that Malaysia’s diversity is an asset that the nation should be proud of and everyone could see the advantages and the beauty of diversity in this country. 

In much of the developing world, economic power is largely concentrated in the hands of a “market-dominant” ethnic minority. And in Malaysia as well such inequality has been on the elements holding the economy back. Hence, besides introducing policies and taking measures to cut these socio-economic gaps, the government celebrate Malaysia Day today and encourages all Malaysians to join hands to make the country more united and prosperous. 

As for any company, or country to prosper, behavioural and cultural transformation is imperative, even Malaysia requires all the diverse groups to come together and build a better nation. 

 

Image Credits: malaymail.com

Topics: #GlobalPerspective, Technology

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