Malaysia is on the path to achieving high-income nation status between 2028 and 2030, according to a joint report by the World Bank and Malaysia's Ministry of Economy. The report, titled "A Fresh Take on Reducing Inequality and Enhancing Mobility in Malaysia," emphasizes the need for continued progress in economic growth and poverty reduction to ensure widespread benefits.
The Minister of Economy, Dato’ Seri Rafizi Ramli, stated that addressing inequality requires "a holistic assessment, early intervention on opportunity gaps, and commitment to creating a dynamic labour market."
While Malaysia has made significant advancements in reducing poverty and improving living standards, inequality remains an issue. A survey conducted for the report indicates that opportunities diverge early in life, with more than half of those starting in the bottom 20 percent of income distribution remaining there over time.
Zafer Mustafaoğlu, World Bank Country Director for the Philippines, Malaysia, and Brunei remarked that "Malaysia has already done very well in terms of economic growth and poverty reduction. Now is the opportunity to make the economy more inclusive."
The report outlines five policy areas for consideration: enhancing opportunities through productivity boosts and quality education; strengthening social protection with increased spending; financing inclusive investments by expanding health and education investments; addressing spatial inequalities with place-sensitive policies; and monitoring inequality using various metrics.