Malaysia’s economy decelerated over the first half of 2011, with the GDP expanding by 4.4 percent. Private consumption growth continued at a healthy pace but solid domestic demand was not enough to offset a weakening external environment.
Malaysia’s highly open economy is expected to slow further during the remainder of 2011 and may pick up only in the second half of 2012. But, while Malaysia’s projected growth is slowing due to external factors, improvements can be made domestically, including by investing in smarter cities, says the November 2011 edition of the Malaysia Economic Monitor released today.
“Cities are central to Malaysia’s high income aspirations. Cities create proximity and facilitate the flow of knowledge that drives innovation,” says Annette Dixon, the World Bank’s Country Director for Malaysia.
“In order to achieve high income country status by 2020, Malaysia needs to start creating the environment for smart cities today”
“Decisions about city development today are locked in for many years to come”.
Malaysia’s goal to become a high income economy by 2020 can be supported, by coordinated policies addressed at making its cities smarter. Smart cities are skilled and innovative, green and sustainable and resilient to natural hazards. A key challenge for Malaysia going forward will be to increase the volume and quality of skilled workers in its cities.
This will require improving higher education and quality of life in cities to retain local talent and attract foreign skilled labour that can contribute to innovation. Reducing greenhouse gas emissions and improving solid waste management are also critical challenges to achieve sustainable growth in cities.Malaysian cities are sprawling, which poses significant obstacles to reducing greenhouse gas emissions and promoting public transportation.
Aside from being environment-friendly and livable, offering its inhabitants a good quality of life, smart cities also bring about many economic gains. Programs that reduce greenhouse gas emissions, for instance, generate downstream business opportunities. Meanwhile, demand for “green” products is growing with awareness of climate change and the competitiveness of Malaysia as an FDI destination may increasingly hinge on its ability to curb emissions.
Managing the risks of natural hazards and climate change is also essential to secure Malaysia’s quest for rapid growth.
“As cities concentrate a growing share of the national economy, it is imperative that they have systems to manage natural hazards and prevent them from becoming human and economic disasters,”
says Ms. Dixon.
“Malaysian cities are especially vulnerable to floods and landslides. To reduce the risks related to these hazards, Malaysia would benefit from environmental restoration and integration of risk reduction into development planning”.
The report notes that the 10th Malaysia Plan, which outlines the country’s push towards becoming a high income economy, recognizes the importance of density and cities to economic growth.“GDP growth is projected at 4.9 percent for 2012. This forecast hinges on the implementation of the government’s reform agenda as the global economic environment will offer little help,” says Frederico Gil Sander, the World Bank’s Senior Economist for Malaysia and lead author of the report.The report reiterates the World Bank’s support for Malaysia’s reform agenda under the Government Transformation Programme and the Economic Transformation Programme. It encourages steadfast implementation of the Strategic Reform Initiatives SRIs, the policy measures which will create an enabling environment for private investments.
Department of Foreign Trade (DFT) to organize Southern Trade Fair
The event will provide a platform for business negotiations and stimulate the economy, trade and investment in the three southern border provinces.
BANGKOK, 18 April 2019 (NNT) – The Department of Foreign Trade (DFT) will organize a Southern Border Trade Fair to provide knowledge to entrepreneurs in preparation for accessing the Malaysian market.(more…)
Hong Kong’s Star is Fading – Where Will Asia’s Next Financial Center Be?
Rising concerns over the interventionist policies of the Chinese government have led to Hong Kong losing its luster
Subscribe via Email
Thai baht becoming the region’s worst-hit currency in COVID pandemic
According to data from its tourism ministry as well as the World Bank, Thailand had only a little over 34,000...
Asia’s slow rate of vaccination is a thorn in the region’s economic recovery
Southeast Asia has been hit badly. Daily infections for Indonesia, Thailand, Vietnam are at their worst, on a seven-day moving...
TAT expects 850 billion baht ($25.7 bln) in tourism revenue after successful reopening
The Tourism Authority of Thailand (TAT) has set this year’s revenue target at 850 billion baht, 300 billion of which...
Download 1xBet mobile and play all over the world
Placing profitable bets or playing in a casino is now possible comfortably even without being tied to a computer. It...
3 ways Asia can recover from the COVID-19 pandemic faster
Countries in the East Asia and Pacific region will benefit from cooperation in three major areas: vaccine deployment, reviving sectors...