Is Malaysia in the middle-income trap? symptoms, challenges and remedies

Kassim, Salina and Satar, Norizan and Zakariyah, Habeebullah (2020) Is Malaysia in the middle-income trap? symptoms, challenges and remedies. In: 2nd National Seminar on Contemporary Fiqh (NSCF 2020), 9th December 2020, Kuala Lumpur. (Unpublished)

	PDF - Published Version Restricted to Registered users only Download (304kB) | Request a copy
	PDF - Supplemental Material Restricted to Registered users only Download (298kB) | Request a copy

Abstract

While Malaysia, an upper middle-income country, can be proud of its achievement with strong economic growth year after year, many of its citizens can barely cope with the increasing cost of living in the country. Middle income trap (MIT) is defined as a situation where a country has achieved the middle-income level such as Malaysia, yet is unable to attain high-income status, with the citizens are facing the burden of the increasing cost of living due to the mismatch between the increase in income and that of the cost of living, thus affecting the standard of living of the citizens. In 2008, the World Bank suggested that only 13 out of the 101 middle-income nations have actually evolved to become high-income economies. This paper aims to explore the symptoms and challenges facing Malaysia as a middle income country in its efforts towards a high income nation. Is Malaysia facing the middle-income trap? If so, how can Malaysia fully utilised its economic potentials using the rich economic resources and places itself at the same level as countries such as South Korea, Singapore and Hong Kong? This paper finds that the factors that hinder the progress towards high-income nation include low total factor productivity due to no transition from input-driven to productivity-driven, lopsided execution of the new economic policy and brain drain.

Item Type:	Conference or Workshop Item (Plenary Papers)
Additional Information:	4600/87425 Presented via Zoom
Uncontrolled Keywords:	Middle-income trap (MIT), high cost of living, input-driven, productivity-driven, total factor productivity) TFP, brain drain, NEP
Subjects:	H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Prof. Dr. Salina Kassim
Date Deposited:	04 Jan 2021 12:52
Last Modified:	05 Jan 2021 17:21
URI:	http://irep.iium.edu.my/id/eprint/87425

Actions (login required)

View Item