Malaysia is 43rd most prosperous country
By Boo Su-Lyn, The Malaysian Insider
KUALA LUMPUR, Oct 27 — Malaysia came in 43rd in a list of the most prosperous nations released this week, trailing Singapore, coming in at 17th, but still ahead of other Asean neighbours.
The Legatum Prosperity Index, compiled by the London-based analytical centre, saw Norway top the list of 110 countries while Zimbabwe came in last.
Norway also topped the previous year’s list.
“The Prospdrity Index seeks to understand how economic fundamentals, health, freedom, governance, safety, education, entrepreneurial opportunity and social capital influence a country’s economic growth and the happiness of its citizens,” said the Legatum Institute.
Europe dominates the top 10 countries on the list in taking six of the spots.
The United States, Canada, Australia and New Zealand make up the rest of the top 10.
Eight of the bottom nations are from Africa,
Other Asia Pacific countries that made the top 20 were Japan – 18 and Hong Kong – 20.
Malaysia scored ahead of its neighbours like Thailand – 52, Vietnam – 61, Philippines – 64, Indonesia – 70, and Cambodia – 95.
Malaysia snagged a “strong” ranking in the economy sub-sector at number 21, reflecting Prime Minister Datuk Seri Najib Razak’s attempts to spur the economy and achieve an annual growth of six per cent.
According to Budget 2011, Southeast Asia’s third-largest economy is expected to grow five to six per cent in 2011 after a seven per cent expansion this year and a 1.7 per cent contraction in 2009.
“Malaysia’s economy performs well and there is a high level of public confidence in the financial sector,” said the report.
The country enjoyed a below average inflation rate of 5.4 per cent and a high gross domestic savings rate of 42.2 per cent, indicating a stable and flourishing economy.
Malaysia’s gross domestic product (GDP) growth per capita also increased by an average of 3.9 per cent per year between 2004 and 2008.
The Najib administration aims to transform the country into a high-income nation by 2020 through a slew of projects, as documented in the Economic Transformation Programme (ETP).
The Performance Management and Delivery Unit (Pemandu) has identified investments worth RM1.38 trillion over 10 years for the Economic Transformation Programme (ETP), of which 60 per cent would come from the private sector, 32 per cent from government-linked corporations and eight per cent from the government.
The investment aims to double Malaysia’s per capita income and push the country into the ranks of “developed” nations by 2020, rebalancing Asia’s third-most export-driven economy towards domestic demand and the service sector.
Analysts, however, have said that Putrajaya’s focus on mega construction projects instead of key reforms in its economic plans will hamper the country’s goal of becoming a high-income nation.
The ETP includes big-ticket items like the RM64 billion KL mass rapid transit (MRT) project and high-speed rail (HSR) linking Penang, Kuala Lumpur and Singapore, a nuclear power plant and hydroelectric dams which will cost more than RM20 billion each, and the RM26 billion KL International Financial District. Other plans include a RM1.2 billion hotel and residence in KL Sentral to be managed by St Regis, a RM150 million mixed development township called Johor Premium Outlets that will feature, among others; a hotel, international water theme park and retail outlets, and a RM486 million complex at the KL International Airport.
Despite Malaysia’s positive ranking in the economy sub-sector, the country scored the 45th position in the education sub-sector.
“Limited enrolment at high levels means Malaysian workers are relatively poorly educated,” said the report.
The Malaysian workforce is not well-educated by global standards as they only possess on average 1.8 years of secondary education and 0.8 years of tertiary education.
Gross enrolment also fell to a below average 69 per cent at the secondary level and 30 per cent at the tertiary level, placing Malaysia 80th and 64th on these respective variables.
Analysts have stressed that human capital development was crucial to achieve Vision 2020 amid a growing brain drain problem, where about 700,000 Malaysians are currently living abroad, with half of them in Singapore, while the rest can be found mostly in Australia, Britain and the United States.
Malaysia scored a “weak” ranking on the personal freedom and social capital sub-sectors at the 90th spot each.
“The government affords Malaysian citizens relatively low levels of civil liberty,” said the report.
