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동의어 포함

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Title page 1

Contents 5

Foreword 4

Basic statistics of Malaysia, 2025 8

Executive summary 9

1. Macroeconomic resilience and policies 18

1.1. Growth held up in the face of shocks but has begun to slow 19

1.2. Inflation came down from its 2022 peak 24

1.3. Growth is projected to remain solid 25

1.4. The monetary stance is broadly neutral and the exchange rate has appreciated 27

1.5. Financial sector risks seem to be contained 29

1.6. The need to press ahead with fiscal consolidation 31

1.7. Strengthening long-term growth prospects through reforms 42

References 44

2. Coping with Climate Change 46

2.1. Malaysia is exposed to significant climate-related hazards 47

2.2. Adapting to climate change 49

2.2.1. Developing a national climate change adaptation strategy 49

2.2.2. Improving climate risk information and data 50

2.2.3. Strengthening financial resilience to climate risks 51

2.2.4. Implementing and financing climate change adaptation measures 54

2.2.5. Nature-based solutions to climate change adaptation 56

2.3. Continuing mitigation efforts 57

2.3.1. Efforts to decrease greenhouse gas emissions should be strengthened 57

2.3.2. Decarbonising the energy mix 58

2.3.3. Pricing carbon properly 60

References 66

3. Boosting productivity through openness, smarter regulation and digitalisation 70

3.1. Productivity growth has fallen short of targets 71

3.2. Lifting remaining regulatory barriers at the border 73

3.3. Addressing domestic hurdles 76

3.4. Ensuring a more level playing field 78

3.5. Stepping up the digitalisation of government and healthcare 81

3.6. Streamlining public governance and combating corruption and money laundering 83

References 88

4. Improving skills, education and training 90

4.1. Building on progress in education reform to improve living standards 91

4.2. Early childhood education: the groundwork for better learning outcomes 96

4.2.1. An overview of early childhood education (ECE) in Malaysia 97

4.2.2. Expanding and improving early childhood education 99

4.2.3. Promoting equal opportunities through early childhood education 102

4.3. Primary and secondary schools 104

4.3.1. Learning outcomes in primary and secondary education can be improved 104

4.3.2. Moving towards longer mandatory schooling and a lower school entry age 108

4.3.3. Improving the quality of teaching and school leadership 109

4.3.4. Moving towards a less centralised education system 114

4.3.5. Making greater use of digital technologies 115

4.3.6. Education reforms can help provide more equal opportunities 116

4.4. Technical and vocational education and training and lifelong learning 118

4.4.1. Placing equal value on vocational and academic pathways 118

4.4.2. Promoting lifelong learning 121

4.5. Improving higher education in Malaysia 122

4.5.1. A declining share of young people is enrolling in tertiary education 123

4.5.2. Directions for reform to improve higher education 125

References 129

Tables 7

Table 1. Real GDP growth will remain solid 11

Table 1.1. Macroeconomic indicators and projections 25

Table 1.2. Low-probability events that could lead to major changes to the outlook 26

Table 1.3. Past recommendations on monetary and financial policies and actions taken 31

Table 1.4. Past recommendations on fiscal policy and actions taken 33

Table 1.5. Indicative fiscal revenues and costs 35

Table 1.6. Past recommendations on social policies and actions taken 38

Table 1.7. Illustrative impact of selected structural reforms on GDP per capita 42

Table 1.8. Macroeconomic policy recommendations 43

Table 2.1. Past recommendations on climate challenges 65

Table 2.2. Policy recommendations 65

Table 3.1. Past recommendations on MSMEs and GLCs and actions taken 80

Table 3.2. Past recommendations on strengthening governance and actions taken 85

Table 3.3. Policy recommendations 87

Table 4.1. Quantitative targets for education that are included in the Thirteenth Malaysia Plan 94

Table 4.2. Preschool is provided by government ministries and the private sector (2025) 99

Table 4.3. The nutritional status of children under age 5 has deteriorated 104

Table 4.4. Malaysia ranks in the middle in digital competitiveness, although its score has fallen 116

Table 4.5. The number of public TVET institutions by ministry (2024) 119

Table 4.6. Malaysia's higher education sector 123

Table 4.7. Policy Recommendations 128

Figures 6

Figure 1. Malaysia has outperformed peers 10

Figure 2. High fossil fuel subsidies run counter to carbon pricing effort 12

Figure 3. Productivity growth has trended down 13

Figure 4. Malaysia has a high share of low-performing students and few high-performing ones 15

Figure 1.1. Growth has been supported by the buoyancy of the tech cycle 20

Figure 1.2. Malaysia trades actively with the rest of the world 21

Figure 1.3. Labour market conditions have improved 23

Figure 1.4. CPI inflation has been subdued since 2024 24

Figure 1.5. The policy interest rate has remained close to 3% over the past three years 28

Figure 1.6. The real effective exchange rate has appreciated since 2024 29

Figure 1.7. The share of non-performing loans has remained low 30

Figure 1.8. Some fiscal consolidation has taken place but public debt is high 34

Figure 1.9. Demographic headwinds loom 34

Figure 1.10. Ageing pressures will call for spending and revenue measures 35

Figure 1.11. A comparatively large share of public spending takes the form of subsidies 36

Figure 1.12. Petrol prices are very low in Malaysia 37

Figure 1.13. Coverage of pension schemes is low 37

Figure 1.14. Corporate income tax accounts for a large share of total tax revenue 41

Figure 2.1. Floods are frequent and costly 47

Figure 2.2. Insurance penetration for natural hazards is very low across Asia and the Pacific 52

Figure 2.3. Insurance is more affordable than in peers but challenging for low-income earners 53

Figure 2.4. GHG emissions are driven by the energy sector 57

Figure 2.5. Fossil fuel dependence is high compared to peer countries 59

Figure 2.6. Fossil fuels dominate electricity generation 60

Figure 2.7. Fuel prices are very low 61

Figure 2.8. Malaysia does not yet price carbon emissions 62

Figure 2.9. Reaching net zero will require higher carbon prices 64

Figure 3.1. The level of productivity is higher than in most peer countries 71

Figure 3.2. Productivity growth has trended down 72

Figure 3.3. Malaysia has ample scope to make regulation more competition-friendly 73

Figure 3.4. The FDI regime is fairly restrictive, largely reflecting foreign equity restrictions 75

Figure 3.5. Restrictions on trade in computer services remain 76

Figure 3.6. The regulatory framework for market competition can be improved 77

Figure 3.7. Distortions induced by public ownership are high 79

Figure 3.8. Corruption perceptions 84

Figure 3.9. Anti-money laundering measures 86

Figure 4.1. Workers' mean years of schooling in Malaysia have risen rapidly 91

Figure 4.2. Gains in labour quality have made a large contribution to productivity growth 92

Figure 4.3. Government education spending is below OECD countries and some peers 95

Figure 4.4. Government expenditure per student is relatively low 96

Figure 4.5. Registered childcare centres are closing in parts of Malaysia 98

Figure 4.6. Preschool enrolment has risen significantly since 2010 99

Figure 4.7. Spending per child in preschool is low compared to primary and secondary students 101

Figure 4.8. Students from low-income quintiles are less well-prepared for primary school 103

Figure 4.9. Proficiency in reading and mathematics has fallen, but still exceeds some lower-income ASEAN countries 104

Figure 4.10. Malaysian students have fallen below the international average in the TIMSS 105

Figure 4.11. Malaysia's scores fell into the bottom one-third in the 2022 PISA 105

Figure 4.12. Malaysia's PISA scores have declined significantly 106

Figure 4.13. Malaysia has many low-performing students and few high-performing ones 107

Figure 4.14. The gap between private and public schools in PISA has widened 107

Figure 4.15. The share of students not enrolled in secondary school in Malaysia is high (2023) 109

Figure 4.16. A framework for dealing with consistently underperforming teachers 113

Figure 4.17. The impact of socio-economic factors on Malaysia's PISA scores was relatively high 117

Figure 4.18. The share of young people in TVET programmes is relatively low in Malaysia 119

Figure 4.19. The share of firms providing formal training in Malaysia exceeds the ASEAN average 122

Figure 4.20. The share of tertiary graduates in STEM programmes is exceptionally high 124

Figure 4.21. Malaysia's tertiary enrolment rate has fallen in recent years and is below its peers 125

Boxes 7

Box 1.1. Malaysia's New Industrial Master Plan 19

Box 1.2. Leveraging the global data centre boom and Malaysia's resource endowments 22

Box 1.3. Malaysia's exposure to the global energy price shock 27

Box 1.4. Cyber risks facing Malaysia's economy and financial system 32

Box 1.5. Leveraging PADU to improve targeting of social assistance and support fiscal consolidation 39

Box 1.6. Aiming support better in the face of energy price shocks 40

Box 2.1. The OECD ENV-Linkages modelling framework 63

Box 3.1. The OECD's product market regulation indicator 72

Box 3.2. Malaysia's policies to improve the economic status of Bumiputera 74

Box 3.3. Affirmative action without distortion in South Africa, Canada and Australia 81

Box 3.4. Digital health as a driver of efficiency: lessons from Estonia and Denmark 83

Box 4.1. The Thirteenth Malaysia Plan 2026-2030 focuses on education 93

Box 4.2. Poland: an example of reforms that led to a sharp rise in its PISA score 108

Box 4.3. Professional frameworks for teachers: Saudi Arabia, Singapore and Colorado, USA 110

Box 4.4. The Malaysia Education Blueprint 2013-2025: A strategy to improve the quality of teaching 111

Box 4.5. The power of incentives in education: Lessons from the Brazilian state of Ceará 112