@@strafniki1080 thanks for the comment. State owned enterprises can be a broad brush. Interestingly we'll be discussing more about eastern european state owned enterprises in our next video!
Your videos are so informative about the economies of different countries especially in countries in southeast asia(I'm filipino)... I genuinely hope that this channel grows in the youtube sphere...But you should add a sprinkle of humour and passion in your videos because there are some people that have a short attention span which they get bored easily and specially when it is about economics, speaking from experience. Have a Happy New Year
@@AltSimplified im not mad i just want to know. Do you that Singapore is not kick out of Malaysia. I am not mad i just to know if you knew about this and again im not mad
That's actually the case for every countries in the world. Looking at my country which is Thailand, all the ruling class are old, straight men rarely any women and are all are highly conservative and religious.
We had soooo much potentials. Rich lands, diversed people, beautiful landscapes but all of these have not been fully optimised due to our political instability.
@@illuminaticomfirmed6948 well if it was then explain Singapore? Diversity is our strongest point. One country that has both Chinese and Indians which can expand our skills and bussinesses to these huge markets. We speak really good English compared to our close neighbours. Diversity is our strong suit but has been exploited for political gain. If we can see each other as Malaysians first, this country could honestly, from the bottom of my heart, can be on the international stage. Sad we wont be for a longgg time
@@Vimalanvijay Um yeah thats why they mass migrate Han Chinese people into Singapore to maintain the Han majority? www.researchgate.net/publication/309039667_Racial_Hegemony_and_Immigration_Policy_in_Singapore Our country is corrupt, stuck in the middle-income trap, and lacks unity. I don't exactly thing warm feelings are gonna fix its problems.
It's hard for a middle income economy based on manufacturing to become a high income without home-grown technology or innovation brand. Taiwan has got Asus, Acer, TSMC, Foxconn and Korea has got Samsung, LG, Hyundai, Kia etc. Even China has managed to build their own global brands like Huawei, Geely, Xiaomi, Oppo etc. However, the middle income economies in Southeast Asia still does not have any of these companies that has made it to global level.
You are wrong, i think in southest asian only indonesia has the based on the manufacturing, we have own product like polytron,maspion for the electronic product, we have foreign invest like LG still build their company in java. And then we also apple company asembly in batam it was working
Tun Mahathir dah plan semuanya untuk macam mana malaysia jadi macam korea, jepun, tapi PM yg selepasnya tak seperti yg dirancang. Dulu proton ditubuhkan supaya rakyat malaysia jadi terlatih dalam bidang engineering. Supaya boleh cipta teknologi sendiri & capai wawasan 2020.
Malaysia only needs a Prime Minister and a wise Cabinet member in the economy. I think Politics is ruining everything 😬 a drastic step needs to be taken by the Government to curb the country's economic problems. Instead of acquiring greenery in Malaysia other fields should also be taken into account just take the closest example of electronics and manufacturing.
Agreed. If only our government can put aside greed and corruption, genuinely give their love to the country and people, Malaysia will be a nation be move forward progressively and be very competitive. Will be nice to see all races and culture working hand in hand for our common goal. Sad to say, this is not so. Sometimes I wonder how our ministers can afford to be so wealthy. With their monthly income and their accumulated wealth, it just doesn't goes to show how they can reach that level of comfort...Well, end of the day, we will still need to fend for ourselves! Just pray that the government will set and lead a good example for the country and people instead of bickering for power and greed for themselves.
Malaysia need to fix their education so that it can drive innovation. If Southeast Asian want to became developed countries, they must build their own manufacturing companies.
Current education system is just pushing bright minds to Singapore and other western and euro countries. Hope that the education revolution happens quick
They (Fed state) fk'd up Sarawak's education system. (used to be self governed and not 'standardised' ) Dropping the standard so that it is 'inclusive'. (everyone can 'pass' now)
Malaysian here. Honestly, because we're not a financial center/port like HK/Singapore, we need to have our own "Asus/Foxconn/Samsung/Hyundai". We're quite good but just not good enough.
@@SaretGnasoh Is this a joke? You really wanted Mainland China's influence to spread across our country? Neither do I wanted America's influence in our country. So why wouldn't you think twice before commenting? Communist fanboy.
This is classic example of someone who doesn't understand economics. It is not about working or how hard you work, if it's about working, people in Bangladesh, Vietnam, and India would be richer than Americans or Europeans. Productivity gains doesn't come from how hard you work.
At least Malaysia doesn't have a fast sinking capital like other SouthEast Asian nations. Aside from our capital, which does not only suffer from flooding but also worst traffic... Many parts of my country (Philippines) are experiencing Flooding and it is SERIOUSLY getting worst. My country are made up of 7,000+ islands-take note: they're spread out.
Thanks for the very accurate analysis. The delay from Middle Income to High Income has benefitted the economic leveraging in the rural areas, though. Despite all this, the World Bank and IMF believes Malaysia should be a high income nation by 2023. Which maybe is a better thing as it allows the rural areas to sustain and survive better.
@@chongjunxiang3002 The water issue is not due to shortage or lack of infrastructure. In fact Malaysia is the only country in South East Asia that has full water sufficiency besides Singapore. The problem with water is due to poor management by the local water company and not a national issue. The problem is limited to one location only and not the entire country. The question the previous person asked is can Malaysia hit high income by 2023. Yes, it can. Because Malaysia is almost at USD12,000 which is the threshold to high income. So yes, it will hit by 2023 or before. The question should be, what would be the next focus of Malaysia's economy? Would it be manufacturing, R&D, technology or the services industries? On innovation efforts are one the way to develop R&D as the next phase of the Malaysian economy, especially in areas such as nano-technology and high precision electronics, which Malaysia and Singapore has entered earlier than most other countries in Asia.
no chance of 2023 with such high unemployment rates now.. we need to re-open the economy asap and stabilize the blardy government.. nobody would want to invest in a country that has a possibility to change their PM on monthly basis.
i truly hope malaysia can become upper-income developed country. after all asean prosperity is necessary to counter major forces of the world. - support from indonesia
Likewise we also support Indonesia to prosper in the future! Imagine if Malaysia and Indonesia create an economic block. Nobody would want to mess with us, militarily and economically, and that's only from ID/MY block. Imagine if its ASEAN military block.
@@HKChineseCanadian well, there is one chinese proverb : One mountain can't accomodate two tigers. Until China finally surpass USA, no asia country want to be dominated.
Excellent . Those are he important points, especially number 2. It keeps back the economy to grow faster. It should be more inclusive of all races and cultures and all peoples.
@@frozzytango9927 You're right... That's why it has to start from the top, if the bottom-half is the only one being productive, that would be modern slavery.
@@volterwoo Doesnt matter.. the rich profit by just investing on values that appreciate while the bottom buy things that depreciates over time, the rich will invest on property and stocks and exploit inflation, hurt the bottom class, increase economic disparity, its even worst if you invite overseas to invest in the country, then only a few benefit and wont need the domestic market anymore.. thats what happening to many countries around the world. Malaysia economy is slow and steady,not like a balloon, so people dont appreciate how easy things are here and it doesnt need to be harder. Its just that people dont flaunder their money around at poor people like Vietnam most of the time.
@@frozzytango9927 There is a thing called work life balance and that's what being meant with being productive. The one you're implying is modern day slavery which is what sadly our country is known for today.
Malaysian generally lives in moderation... no need to win but also no need to lose... what's the point of being high developed country if the people stuck in depression only to work and work.. life needs to be balanced.. what's the point?? to earn people's admiration?? sooner or later, Malaysia will achieve that high income status, no need to rush..
Exactly. What is the point become high income country/high developed country if our people live in depression, no time for family because too busy getting money and suicide rate among the people is also high. Slowly but steadily..
It's becoming clearer than ever that Malaysia DOES have what it takes to rival the competitiveness of other Asian countries like South Korea, Taiwan, Japan and China. But it's also worth mentioning that we still have a lot of work to do. Keep up the good work people. We'll get there.
well, the laid back culture compensates the slower growth of Malaysian economy. As a Malaysian myself, i prefer just how it is, we are progressing at our own pace. We dont want to be super rich country but in the end of the day you got nothing in your life as you dedicate all your times to the so called "productivity"
Well that’s one simple way to look at it, yes there is a fine line between achieving a high income economy whilst maintaining high quality of life for ordinary citizens in contrast to that of a worked population with less “leisure time” but is the current economical situation of Malaysians as it is now make it okay to be complacent? Almost half a million are living below the revised poverty rate while millions more are scraping by with their current level of “productivity”. Remember that the stagnating growth of the nation’s economy is a clear warning when compared to neighbours who are making attractive policies to increase FDI and nurturing their own native industries to higher levels which also impact the whole tier of the Malaysian economy, not just at the very bottom but especially the middle income group, which depends heavily on the competitiveness of industries & simultaneously from government help (through economic stimulus, healthcare, subsidies, etc).Important thing to note, not all high income nations end up like Japan or S.Korea, in fact they are the minority, the life prospect for everyday people could range drastically according to locale.
@@InternetsToughestGuy US does not have a balanced work-life. People are also overworked the salaries are stagnating, except for the billionaires of course, but the cost of living is going up reducing a lot of the middle class.
I like your closing sentence. Until we able to increase our productivity and growth thru innovation. I'm not supporting corruption but to be fair, there are many advanced economy that has serious corruption incidents too. It's just hard to battling human greed. But innovation is something that we can develop.
I remember Malaysia have various of manufacturing companies even I was shocked to know about, computer motherboard, face mask, gloves, condom, electronic and many more
Does not matter, even at a low salary rate per labour, msia still cannot attract investments and money to support the services. Production but for export to richer countries that profit from the sales of the products, not the manufacturer (Which is own by the name brands.)
I am shocked too learn Malaysia has big defence industry such as truck and tank manufacturing, naval & merchant shipbuilding, aerospace & drone manufacturing, missile & rockets engineering etc
Yes, Malaysia had a great potential into becoming a high income nation status at least by the year 2020. In my opinion, Malaysia and its government leadership and administration between the year 1960-1990 were already making huge progress into becoming an exporter of manufacturing goods which involved the development of new technologies. However, the innovation and development of new ideas and technologies were limited to a certain sectors or industries only such as agricultural, construction, oil and gas, entertainment, Islamic banking and finance, cultural and tourism, logistics, manufacturing and automotive industries. From these industries, very few industries have grown really fast while the rest were growing slowly in terms of registering new patents and such... From what I have seen and experienced as a young Malaysian adult, I believe that our government had actually seen these risks and have already reformed our education system and higher-education system in terms of the syllabus, diversity of subjects offered in schools, creative and critical thinking development, entrepreneurship development programs, leadership camps, science and innovation, arts and cultures and many more. I truly and honestly believe that the government, government servants especially teachers and lectures, local agencies and many others have worked really hard for years into making sure that the directions set for our country will meet its goals by their specific targeted years. Sadly, progression is still too slow and delayed due to multiple factors occurred within the 60+ years after Malaysia Independence such as corruption among political leaders, racial tensions, disparities in distribution of wealth and education growth, geographical disadvantages, and the relaxed nature of its people (a large minority I feel) that affects productivity. Certainly there are probably other things that can be said more but I think for now, this is my final opinion. Thanks!
Jamil, ‘Young Malaysian adult’, Very well written and good insight....but the main points are not addressed. I understand, as it will tread into sensitive issues.
Malaysia was strategic hub for business.. surrounding by Thai, Indonesia, Philippines, Singapore. It the best place to stay and invest for High-tech, Property and others resources.
There is that one new building in Cheras that was meant to attract global companies to set up their hub here but I'm not sure how that plan is coming along nowadays
@@Cybernaut21J I mean that's just a blanket excuse, pretty much can use it on any country / growth. We do acknowledge that it happens but we also got to move on.
ahhh no...investors rather invest in more progressive countries like Vietnam, Thailand, Indonesia and the Philippines. Malaysia is overphased with internal problems, its a bad indicator for investors. So i say Malaysia close SHOP.
@@waldorfwsc2580 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
When Malaysia pegged the RM to USD , there were downsides to that action. No investments can come in to Malaysia with that pegging. Its only in 2006, when PM Abdullah Badawi unpegged the RM to USD and later PM Najib Razak which help attract investments from all over the world.
@GOSWK TV Yes you are totally right! Najib's BN managed to grow Malaysia economy by 6.2 % nationally in 2017 and in Sabah it was 8.2% only for PH to drop this to almost zero after taking over in 2018. What a waste!
@GOSWK TV it wasn't PH that took over and destroyed Malaysia. Its Tun that took over and destroyed Malaysia's economy. if Anuar took over as intended with PH running properly, rather than being obstructed by Tun, things might have been different
@@TTt-gp7mr DAP, Anwar and Mahathir are ones proven to be corrupt, power crazy and the real racists and thiefs. Till today NOT even a single evidence to prove Najib steal a single sen. Just a political motivated conviction on Najib base on lies by PH cronies using Jho Low name but cannot find Jho low anywhere in the world. So if you are NOT stupid, Najib was simply frame by PH just because he wants to help the rakyat more. but you are too blind to see it.
What is important is that low income earners have food on the table rather than focus on higher income status. Already food and homes are getting too expensive.
@Tdan Kendros Not actually true for northern europe,those countries are at the top of the happiest people in the world when comparing between countries...
Malaysians think their cost of living is high, they should come and live in Singapore then they know its so much expensive. Singaporeans have no choice but to eat cook meals more than eating out to lower their cost of living and take public transport or live in public housing.
@Tdan Kendros Reminds me of the frogs in the well. They have everything’s they need in the well. They are very happy with what they have, not knowing the world is changing, outside the well.
From what my friend told me, Malaysian govt is very protective of local malays. If open a business in Malaysia, a certain percentage of work force and management must be local Malay. This creates a certain mindset of "why work so hard if I'll get paid anyways", lowering productivity. Not sure if it's true though
in private sector business, mostly owned by chinese, management must be chinese even though they don't fit the requirements needed.. like a dumb kid who did complex adult things.. they even put chinese language requirement to work in a (national language - Malay) country.. what are they thinking, are their language are so special above others??.. national language first..
This is what the British did to us when they in power, divide and rule. When most Government sector the Malay were employed , the Private & Bussiness sector were Chinese. The Malaysian leader still use the same method when they are making policies
@@graxie89 the government did this to balance economy disparity between the poor and the rich.. and the poor ones are unfortunately native Malays due to British unjust preferential treatment.. If this policy is not implemented back then, then there will be a bigger gap of wealth today like India where you can find slums near high end cities.. this policy is not perfect but it does work in narrowing the population wealth gap efficiently.. if the British didn't start giving the outsiders, the economic headstart.. this policy will not even exist in the first place..
Sadly this was the reason my Holland-based tech company CEO told me , ended in KL and moved to Singapore... I still love that company but they cnt accept me in Singapore due to the Singaporean first policy...While he was telling this I was standing like a dumb!!! I was in a place not to comment!!!
Can the next economic video be on Bhutan, as an Indian I am always quite curious in this country, the country that doesn't care much about being rich but wants every citizen of it to be happy, and so a video on its economics would be pretty interesting
They're anti globalisation and focus more on people then economy. That's why their debt to gdp is very high. Great country but different way to develop
@@hemanshuchudasama3535 We are already caring about ourselves. He is just curious so he asked a question, what's your problem with that ? Racist dumb. You started speaking bullshit just because he is Indian and if he was not Indian or say from Burundi, you wouldn't have said anything.
@@kanekiken2002 the only thing indians care about is Pakistan The whole of India could be crumbling right in front of them and they will still only care about Pakistan Indians are obsessed with Pakistan Iam not Pakistani so I don't care about them
As a Malaysian, I would say talent development and retention is a major gap. Sadly, most employers don't invest enough in training and growth. Entry level jobs especially are deeply underpaid. Outside of a handful of large firms, majority of businesses still position themselves as low cost producers rather than moving up the chain, global brand building etc. Funnily enough, households spend more on foreign maids vs. entry level staff. Minimum wage would be a positive change but fundamentally, businesses need to break out of the low cost segment for productivity to increase. As mentioned, innovation is key but it's not just about R&D. Businesses need to be more creative and bold in their offerings.
One of the issues is employers prefer low wage foreign workers than hiring locals so it kept from wages from rising and the government support such move. The other problem is politicians cutting people who are rising. You can see how malaysian actually thrive when they go to other countries like Singapore, HK or UK.
@@AltSimplified does your metrics say that 15 mins is better than 20 mins? it seems most people in your comments are very appreciative of your thorough content
@@morganangel340 that would certainly happen when he reaches 400-700k due to lack of economics inspired viewers demand also when he runs out of countries lol
@@CookieeMonstarr666 the federal civil court provides justice for all. Don’t say it like the shariah court is the only system that provides justice rights to Malaysians. In fact it is heavily biased to the males in this flawed system.
I personally think that Malaysians should independently consider and vote for political parties/leaders that can contribute in the following areas: #1. Actively Combat Corruption #2. Peaceful and Harmonious Society #3. Safe Residential Community #4. Fair Policy for all Races #5. Focus on Economy #6. Focus on Education #7. Talent Governance #8. Transparent Platform: e.g. Public tender for all government projects Those who can achieve the above (not 100% of course), will get our vote. As a return, politicians should get a good salary, bonus, and retirement pension.
Agreed about your observations. According to the IMF, Malaysia is the highest nation in the middle income bracket and next in line to be a developed nation by 2023-2024. Which is just 2-3 years away. In hindsight, the Covid and other delays have been a good thing for Malaysia to increase domestic spending in 2020 to the highest level. It has ensured that the Malaysian growth in 2021 would be around 6.5 to 6.7%. Job creation has also been boosted late 2020, with unemployment falling to 4.5% from 5%, previously.
@@limcharles9730 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
@Keyboard Emperor The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
1. Malaysian politicians still aruging on 60 years old topic. 2. Kid's talent still determined by grade not creative and independent mindset. 3. Corruption everywhere. 4. SMEs or business owner is not been supported by goverment or policy. 5. Malaysian policy always is pumping money for cashflow but never educate the public how economics works.
It's quite sad really. I plan on studying overseas for my Master's in a few years. But I doubt I'll leave Malaysia forever. Unfortunately, I have several cousins who've long been adamant to leave and never come back. I've not seen them in years. Such a disappointment
I'm really interested in the economy of South East Asia (Malaysia, Philippines, Vietnam and Indonesia) because of this channel. Can you do Thailand next? (The only Tiger Cub Economy you haven't covered)
Thailand's economic and political system is very messy and unstable... The military has so much power and they are very corrupt... The military is backed by the king, and now the king is given billions of dollars every year from tax payers. That's why King Vachiralongkorn is the richest monarchy/ruler in the world (assets more than 60 billion USD now)... Right now thai people are protesting against the king and the military alliance. III #WhatsHappeningInThailand
@@aimanharith5817 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
OMG, this is one of the best content i ever watched! Thank you for highlighting our weakness and show us how to overcome it. 👍👍👍 Insyallah we can overcome this trap in the near future. Thank you admin ❤️ from Malaysia.
Those Malaysians who are working in Singapore are already high-income citizens, even those working as Security Officers there. And they are many of them working there hence generating the economy of Johor especially with their income to buy houses, cars, etc.
You're talking about merely 300k migrant workers working in Singapore versus 22.3mil working population in Malaysia. The income of this size would not make Malaysia a high income nation.
@@Georgeklee not just simply add it together. Taiwan in 1980 are also a middle income country, but after we implement a series of policy that recruiting Taiwanese overseas, TSMC was born. after the foundation of science park in hsinchu, we became a important manufacturing hub of semiconductor. So these few people sometimes can change a entire country.
@@Georgeklee The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
Bla bla bla... Malaysian here who have lived in 4 continents. Hujan emas di negara orang. High income country? Like what? What goodness does it bring? Living in cramped houses like those in Tokyo or London? Can’t afford a car like in Singapore? Paying 3Euro for a glass of Coca-Cola like in a Germany? Or be afraid for your life because of the expensive medical fees like the jobless Americans? We can afford to own houses and drive our own cars, eat out almost everyday, our public hospital treats us for minimal charge. We are relatively safe. We don’t need to be in the so called ‘high income’ category. We are living better than them in many ways. I’ve seen my friend who earns 3000usd living in Tokyo. Trust me I’d rather be earning RM3000 living in Penang.
I see a lack of emphasis on innovation in this comment section. All I see is government is bad, Gen Y is bad, and Malaysia is good but almost no one emphasis on innovation which proves the video's point: Malaysians doesn't know how to innovate!
They even use "state of emergency" as excuses to hold on power..don't have initiative to bring Malaysia to higher level..plus the backdoor government issue last year cause by politician is truly disgrace Malaysia democracy shame for what Malaysian have right now..
@@ismailmazlan5703 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
What do you think of the book ‘How Asia Works’ by Joe Studwell? Seems like there’s some divergences between your diagnoses and his (mainly the point about the way Malaysia’s moved from an agricultural-based economy to a manufacturing one which I assume you think was done well while he believes Malaysia would have done a lot better with comprehensive land reform after independence), but there are also some overlaps (namely the over-reliance on foreign capital). Studwell also makes the point that the growth of manufacturing was mishandled due to the lack of export disciplining and industry culling, which has perpetuated a practice of rent-seeking behaviour over innovation - ultimately a holdover from colonialism
Thanks for the comment! We have a lot of time for How Asia works. Especially the distinctions made between the Asian economies i.e. not homogenising them. Effective land reform is a central tenant of Joe's explanation and rightly so. Malaysia's land reform were cash crop focused and often at the expense of smaller farmers. Export discipline and culling were important factors, as was parts of NEP agenda. Often select industries would be excessively targeted to the detriment of the wider industrial base. Relatively to S. Korea, Taiwan et al, the limited support industries and low level of innovation can't be emphasised enough 👍
Malaysia is horrifically undeveloped despite being the richest SE Asian country in natural resources. Many provinces don't even have properly paved roads
even the Malaysian Chinese & Malaysian Indian always condemn Malaysia when they migrate or travel overseas.. Malaysia is still there. Malaysia is still growing.. Malaysia is still developing.
@@berrybear2465 not a failure.. just a country of steadily increasing economy growth.. I mean, look at its growth rate.. saying it as a failure seems like you're the one with hatred..
@@berrybear2465 who denies their achievements, they are great, yeah.. but saying Malaysia is a failure without checking its economy data is kinda ignorant.. Kiasu means selfish, right? yes Singaporean s are kiasus...
" 7 out of 10 cars are Proton " Yeah because our car prices is so high that's basically unaffordable(except local made cars by Proton and Perodua, our 2nd national car brand)
Stuck in middle income trap has benefit Malaysian people a lot. For example land ownership in Malaysia is very strict. Foreigners could not buy expensive properties in Malaysia when Ringgit fall. Rural people migrate to cities and become majority. When Ringgit rise again, rural people that become urbanised sell their land to foreigners at premium price. English used to be main language in Malaysian cities when foreigners dominate them. Now, it's no longer the case since 80% already urbanised and speak their own dialect.
Please also make a piece on Australia and how despite being a high income country, it doesn't have a substantial manufacturing base. Second point could be its dependence on China for exports. I think it will turn out to be a very interesting piece
Malaysia suppose to be a high income nation by 2020 or 2021 the covid19 pretty much set things back a bit... But yeah, we are still behind on a lot of things...
Wow, I learned a lot from this video. Yes, I agree that Malaysia has stuck in the middle-income trap. At the ground, wages for graduates have stagnated for almost 20 years. The minimum wage was only revised in recent years and mostly benefited foreign workers. In terms of governance, implementation and enforcement are key. 1. Ensure strict compliance for knowledge & technology transfer by investors and not just using Malaysia as a low-cost manufacturing hub; 2. Higher allocation for R&D, especially in agrotech, since we still export commodities such as palm oil & rubber. However, in biotech & food, we are severely behind our neighbouring countries. 3. We must not be afraid to penalise high-ranking officers and impose worse punishments for corruption charges. Time and time again, we have seen that current legal provision has not been able to act as a deterrent. 4. The government must also look at the wage structure as a whole and not just the minimum wage. There is a wage gap between the T20 and M40; wage and wealth must be better distributed. 5. Balance the ease of doing a business and starting a business so that more people can start their enterprise and enjoy the piece of the economy cake.
All countries in ASEAN will be eventually middle-income trapped, except SG. Takes a bit of miracle to jump from developing to developed. It's more than just GDP per capita
I 100% disagree, Malaysia is already US$13,000 which is already high income by Atlas method, in 2-3 years it will be US$15,000 by World Bank standard. Thailand will be next maybe by 2030 - 2035.
@@leealex24 High income isn't developed yet....still categorized as "developing high-income". Or....both are just high-income among developing countries. Relative to true developed countries, TH and MY are still considered mid-income.
Malaysia's challenges can be summed up in one word: corruption When you are a business but you are aware that a portion of your revenue has to go towards corrupted officials, there are a few ways you can respond A) Absorb the cost. But unfortunately, businesses aren't charities, businesses exist to turn a profit, so absorbing the cost is out of the question. Which leads you to B) Pass the cost on. This is what many businesses in the country do, passing on the cost of corruption onto their customers. When you pay for something in Malaysia, understand that more often than not, corruption has been factored into the price tag. But businesses cannot hike their prices indefinitely, so very frequently they will also need to find another way to deal with the cost of corruption. Which leads to C) Cost cutting. If businesses have to bear the cost of corruption, and there is a limit to how much they can pass on to their customers, then that just means they will have to cut their costs somewhere else. Spend less on R&D. Depress employee wages. Hire cheaper foreign labour. Etc It's not that Malaysia isn't capable of developing highly productive industries. It's just that industries and businesses in Malaysia are often shackled with a hidden cost of doing business. It's difficult to innovate and compete when something like 10-30% of your revenue goes towards dead weight, corrupt officials. And no, it's not just the government, corruption is endemic in the private sector as well
That's the sad reality in Msia, the rich and the powerful politicians and civil servants can get away with almost any bizzare things they do with a population so poor that they will vote in anybody who can do a meagre handouts
@@desloh1 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
@@tangbesitangbesi7009 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
@@pentastarshipz493 if the minorities are able to take up almost 72% of the economy cake with the majority still enjoying the privileges from the government, does the not mean that yall are just incompetent or am I missing something here?
@@pentastarshipz493 excuse me, do the minorities ruling the country for years? who to blame? I thought we have soooooo many tongkat policies to "help"?
all other country is fighting to reach 5G, 3NM Semiconductors, Electric Cars, space industries but malaysia fight for prime minister, racial issues and politics ..... this is sad and tiring
Singapore, though small and has no resources, has a robust financial service industry. Also they actually have high tech firms and have many software companies. Not to mention logistic hub etc. That is why they can be such a high income nation. Their leaders are constantly thinking of moving forward, to compete with the world. In Malaysia, the leaders are constantly harping on race and religion to consolidate political power. A lot of the people with great skills already left Malaysia for Australia, NZ, Singapore etc. Doesn't need a genius to figure out why Malaysia is stuck.
Siapa yg pro dalam bahasa inggeris to bahasa melayu, tlg translate kan video ni dan share kpd seluruh rakyat Malaysia supaya kita berjaya di masa hadapan utk semua masyarakat sama ada yg susah atau yg senang. Allah bless you all
Ok meh aku cuba.. Video ni ckp negara kita masih mempunyai pendapatan yang sederhana kerana kita ni kekurangan produktiviti dalam sektor perindustrian. Kalau negara kita nk tingkatkan produktiviti, kita kenalah ada macam sesuatu inovasi baharu yang kemudian produknya boleh dikeluarkan secara besar-besaran untuk didagangkan pada tahap antarabangsa. Lagipun, kita dah banyak guna produk luar negara. Tapi secara keseluruhan, aku rasa negara kita ni ok je xterlalu miskin xterlalu kaya berbanding negara lain.
Lagi satu kalau ambil kira covid-19 ni telah membuatkan sektor perniagaan kecil-kecilan, sektor pelancongan dan lain-lain semakin susah untuk dilakukan. Kita kena basmi dulu si covid-19 sambil menjaga kualiti hidup orang-orang yang menghadapi cabaran pandemik ni. Lepastu baru negara kita boleh pulih.
@Zerevv You need to read history. Even Indonesian language comes from Malay language. They just renamed it. In Malaysia some also call the Malay language as the Malaysian language.
As a Singaporean I actually envy Malaysians for many things, such as culture and people and the ability to be trilingual. Maybe if the politics are better or if there was a lky there then Malaysia would have been so much better and I see Malaysia as a place of economic potential. Malaysia boleh!
@@WoBuXihuan we have to stop generalising ppl. It's not fair when ppl say all Chinese carry coronavirus. Look at how Western countries r mocking or attacking Chinese ppl.
@@jesusnotgod5635 I appreciate the hot weather more, EPF is a very robust pension fund, here in UK, employee pays only 3%, employers pay 5% whereas in msia it's 11% and 13%, roads and accessibility are good, gov hospitals esp University Hospital are well managed n equipped, food is rich and authentic, it's more family oriented, children are more innocent, houses are better built (I have been to so many expensive houses here n it's so disappointing)
Middle income trap is not real. In the next 20 or so years a lot of countries like Turkey, Malaysia, Thailand, Romania, China, Kazakhstan, Mexico and such will enter the high income bracket. Development takes time and many countries simply only had a chance to develop and industrialize once the imperialists were kicked out. Comparing Malaysia which only began mass scale industrialising after 1957 to Germany which began in the 1870s and UK which began in the 1840s is pointless. Japan and South Korea didn’t do anythinf extraordinary to get rich. Japan began idustrialising in the 1890s and it also industrialised and developed Korea starting in 1910s. Countries like Malaysia had to start from 0 because of imperialism and they have come a very long way since independence. Korea and Taiwan had high literacy, railways, industry, universal education and many other traits that simply no other ex colony had the fortune of having. Malaysia was an illiterate, agrarian peasant economy that was built around being nothing more then a sustainable plunder zone for the Anglos to profit from.
Malaysian economy lack of productivity due to the government lack in interest of human developments and ethics not only as muslim but as a sane human. As recently the IGP shocked the nation by uncovered the ugly truth of Malaysian administration (where most people knew way before) every single corruption in Malaysia was link to the ministers, the corruption was so bad that police unable to contain it. We trapped in the middle income class because people that benefited from the economy are the small amount of the population that practice corruption, the idea of 'to success you must have a "inside connection/cable/etc"' are a clear evidence that these past 20 years corruption has mixed-well with us yet we can't come to realise that this is wrong, We even make joke out of this. But, when the concern are shown as Malaysian protest to the street call upon a cleaner election and administration, some people failed to realise that these "malay elites" done more harm than good to the country and economy, these people try to save their "religion and culture" as stated by certain political parties when in reality it's "to save the politicians and the elites" not us the middle income class of B40s. Yet politicians who preached about malays, bumiputras, Islam the one that do the most of the corruption, now they stolen our democratic voice by suspended the legislative, they buy our elected representatives and causing some stupid MP to be a "frog" jumping to different side. Thus, how to improve our productivity when these small group of elites snatched most of the benefits and left us struggling with life, when they bought 30k bicycle whlie many of us are struggling to feed our families in the middle of world pandemic? How to improve our productivity when the current government are litarally took power unethically? How to improve our productivity when the current government betrayed the people's trust and collapsed the legal elected government? How to improve our productivity when we the middle income class struggle to hold the economy together, while they sucked our guts and hard work to live theirs luxurious and lavish dream? How to improve our productivity and performance when they are above the laws and orders, while us the middle income class and the poors are subjected to the laws and be given penalty on the spot while they were been investigated for a period of time, double standards? We will never able to escape this middle income trap as long as corruption are high, double standard, selfishness of the politicians, stupid ministers, weak ledership etc.
It's important to have stable and clean govt, because mistake will always happen. With Stable and clean govt, the people won't easily lost faith and the leadership will have competent human resource to fix the mistakes.
We, Malaysian still stuck in racial barrier problems. We have to tear these down. Why racial and not cultural and religious barrier? Till now, I can said most of Malaysian have great understanding in cultural and religious. Malaysian still stuck in the "race-based pride" which still be the great wall that stopping us from integrate into "national pride". Malaysian shall understand what is the "race-based pride" that I mentioned.
@@chongsinglim3183 We got no racial barrier. The news and politician will always play this sickening racial issue. Especially the news that support certain political party and at the same time they want to get more views by creating racial issue. If you look deeper and globally you can see how politician allie with media to get own profit. Always playing racial/religious issue and not to forget the escape plan, the scapegoat.
Reading comments , I see most people agree that politics is Malaysia greatest problem. However, politics exist in all country, why specifically Malaysia? Yes, you guess it, the Brits, the colonials.
The growth was accelerated by the proceed from oil and gas contributed by Sarawak and Sabah since the seventies.. Today it is still the backbone of Malaysia's economy.
Malaysian will never reach high income by 2024. The objectives of the New Economic Policy (NEP) is noble but its becomes a failure because it was hijacked by the ruling Malay politicians to ensure that they are in power and make themselves rich. The general Malays are kept poor so that the Racist policy will continue. The proof is this for 60 years this racist policy had been carried out and until today the Malays are still poor. How can this be when hundred of millions are budget yearly for them yet they are still poor. According to official statistics the Chinese and Indians are now equally poor but are stifle from development opportunities by licensing requirements and quotas. Malaysia had fallen behind Thailand, Vietnam and Indonesia. Its hard to see Malaysia progressing to high income level. Unless and until the racist policy are scrap. Btw nowhere in the world has a majority race in a country needs legislation favoring the majority from a minority.
Low productivity stems from lack of innovation and quality workforce. Innovation and creativity is discouraged from the current affirmative education system which does not promote meritocracy, competitiveness and in turn, drives all potential great talents away to SG, AUS or Taiwan when they are not favoured in the Malaysia local education system if they are not from a particular race. There you have it why Malaysia is still stuck in middle income trap today behind other Asian powerhouse.
we have been lucky so far, expending our natural resources to compensate while our economy plateaued. Hell, Proton flourish because we have heavy taxes on import cars, even doubling the price of some of them, its more like we have no choice but to buy local cars if you want affordable cars, its creating artificial demand for local cars. Our standards of living and quality of life decreased every year, but how long do you think we can get away until our natural resources dry up, especially oil ? Many benefits we have currently are subsidized by oil revenue, when it all dries up, we would implode
lmao, i don't like if a country being over populated, but i think they need more population (not as high as Philippines, perhaps) and make sure the HDI can still be controlled. i mean, more men power will help a country, from the economy to military. South Korea even has more population than Malaysia.
Yes , but external debt of Malaysia is much higher than the Philippines taken that The Philippines has More population, Malaysia has 58 percent Debt against GDP while the Philippines has only 38 percent Debt against GDP, you see good population is a factor,you could research on malaysias GDP against it's debt and other ASEAN countries for comparison
population rate in malaysia is low i guess ? everythings is so damn expensive now, even you want to have a child you had to think wisely. The income never growth, but everythings else is growth like sky rocket.
What're you talking about? 32 million is just the right amount. Developed countries like Canada and Poland are around the same range. Australia's population is only 24 million for such a massive land size. Singapore with a population of 5 million is 6 times richer than Malaysia. Population is definitely not a key factor for a country's growth.
@@commander1044 That's not a problem at all. East Malaysia's population is around 6 million. That is a very good amount of population. It's the inefficient state government that's the problem.
Malaysia is in a shit crisis even worse than 1997. People are starting to beg for food on the streets, goverment still delusional. WE ARE DOWN! Malaysians becoming like banglas going overseas to kutip sampah, UM graduate some more.....
@@waldorfwsc2580 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
@@kairadaud2298 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
The frustrations of Malaysians in the comments section is understandable but as a Ghanaian who's country attained independence the same year as Malaysia ( 1957) , I must confess that I'm incredibly impressed by the progress Malaysia has made this far and in Ghana which is still a struggling lower middle income country, Malaysia is often touted as a success story over here.
@@PendKrMustar The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
@@jesusnotgod5635 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
Malaysia need to invest more in RnD. Innovations takes a lot of time , energy and resources but it will be paid off with the right orientation and technique. Have more patents and support small company that are in IT and innovations
The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
Singapore was a great loss for Malaysia. Maybe at the time of formation, Malaysian leaders thought that Singapore might be a burden. Now Singapore is one of the wealthiest countries in the world.
there’s nothing to be proud of when 67% of your workforce came from abroad rather homegrown.. plus they were just like Monaco and Swiss where runs by mostly offshores account ....
@@pentastarshipz493 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
Thanks for watching! ❤️ You can subscribe and see all our videos here 👍 ruclips.net/channel/UCLiRGHCMGB14Pw0yEqLM2fQ
So they succeeded because of state owned industries and in east europe we failed :d
@@strafniki1080 thanks for the comment. State owned enterprises can be a broad brush. Interestingly we'll be discussing more about eastern european state owned enterprises in our next video!
Your videos are so informative about the economies of different countries especially in countries in southeast asia(I'm filipino)... I genuinely hope that this channel grows in the youtube sphere...But you should add a sprinkle of humour and passion in your videos because there are some people that have a short attention span which they get bored easily and specially when it is about economics, speaking from experience. Have a Happy New Year
@@AltSimplified im not mad i just want to know. Do you that Singapore is not kick out of Malaysia. I am not mad i just to know if you knew about this and again im not mad
@@AltSimplified how can Malaysians be a higher income earners
Actually it's simple, old politician should retire and give space to younger generation in the government
That's actually the case for every countries in the world. Looking at my country which is Thailand, all the ruling class are old, straight men rarely any women and are all are highly conservative and religious.
The people were stupid too. Thanks to democracy voting in an old fart dr. Ma into office..
Same in philippines
Yeah,we don't old horses
The conservatives are holding the place back from becoming a great nation.
We had soooo much potentials. Rich lands, diversed people, beautiful landscapes but all of these have not been fully optimised due to our political instability.
Diversity is one of our biggest weaknesses.
@@nur-azhar not really, it's politic, they use religion for their own use
@@Sarah-yg8kt 200% agree. Religion for own gain.
@@illuminaticomfirmed6948 well if it was then explain Singapore? Diversity is our strongest point. One country that has both Chinese and Indians which can expand our skills and bussinesses to these huge markets. We speak really good English compared to our close neighbours. Diversity is our strong suit but has been exploited for political gain. If we can see each other as Malaysians first, this country could honestly, from the bottom of my heart, can be on the international stage. Sad we wont be for a longgg time
@@Vimalanvijay Um yeah thats why they mass migrate Han Chinese people into Singapore to maintain the Han majority?
www.researchgate.net/publication/309039667_Racial_Hegemony_and_Immigration_Policy_in_Singapore
Our country is corrupt, stuck in the middle-income trap, and lacks unity. I don't exactly thing warm feelings are gonna fix its problems.
It's hard for a middle income economy based on manufacturing to become a high income without home-grown technology or innovation brand. Taiwan has got Asus, Acer, TSMC, Foxconn and Korea has got Samsung, LG, Hyundai, Kia etc. Even China has managed to build their own global brands like Huawei, Geely, Xiaomi, Oppo etc. However, the middle income economies in Southeast Asia still does not have any of these companies that has made it to global level.
How about some countries in europe, e.g. ireland
@@jesrielalsonado3767 ireland is not manufacturing income based, it is service income based.
You are wrong, i think in southest asian only indonesia has the based on the manufacturing, we have own product like polytron,maspion for the electronic product, we have foreign invest like LG still build their company in java. And then we also apple company asembly in batam it was working
Tun Mahathir dah plan semuanya untuk macam mana malaysia jadi macam korea, jepun, tapi PM yg selepasnya tak seperti yg dirancang. Dulu proton ditubuhkan supaya rakyat malaysia jadi terlatih dalam bidang engineering. Supaya boleh cipta teknologi sendiri & capai wawasan 2020.
@@roneeysole2905 That is still a foreign based technology tho, not home grown.
Malaysia only needs a Prime Minister and a wise Cabinet member in the economy. I think Politics is ruining everything 😬 a drastic step needs to be taken by the Government to curb the country's economic problems. Instead of acquiring greenery in Malaysia other fields should also be taken into account just take the closest example of electronics and manufacturing.
Agreed. If only our government can put aside greed and corruption, genuinely give their love to the country and people, Malaysia will be a nation be move forward progressively and be very competitive. Will be nice to see all races and culture working hand in hand for our common goal. Sad to say, this is not so. Sometimes I wonder how our ministers can afford to be so wealthy. With their monthly income and their accumulated wealth, it just doesn't goes to show how they can reach that level of comfort...Well, end of the day, we will still need to fend for ourselves! Just pray that the government will set and lead a good example for the country and people instead of bickering for power and greed for themselves.
Agreed
The answer is to get rid of Chinese monopoly and their economic subversion.
@@frozzytango9927 without the Chinese, the country's economy would've been dead long ago. Look at Singapore and you'll know.
@@frozzytango9927 lmao just saw your previous comments. You're actually a fucking dumbass. No use talking to a Conservative Malay and racist.
Your channel is a perfect compliment to Economics Explained.
Glad you think so!
@@AltSimplified seriously. what does the name mean though?
@I have a name alt stands for alternatives / alternative concepts etc. Contemporary question as we're reviewing actually!
You could add Unlearning Economics to that list too!
@@AltSimplified alternative to Economic Explained hehe..JK
Malaysia need to fix their education so that it can drive innovation. If Southeast Asian want to became developed countries, they must build their own manufacturing companies.
This👆
Current education system is just pushing bright minds to Singapore and other western and euro countries. Hope that the education revolution happens quick
R&D is the king eventually
They (Fed state) fk'd up Sarawak's education system. (used to be self governed and not 'standardised' ) Dropping the standard so that it is 'inclusive'. (everyone can 'pass' now)
Indonesia have many manufacturing company but still developing country
Malaysian here. Honestly, because we're not a financial center/port like HK/Singapore, we need to have our own "Asus/Foxconn/Samsung/Hyundai".
We're quite good but just not good enough.
Get Huwei smic others to in est in chip factories here
@@yang5159 Do you want Malaysia to turn into a communist hell-scape?
Need to focus in technology/electronics manufacture
@@namelessvi9515 western brainwashed victim 😂😂😂
@@SaretGnasoh Is this a joke? You really wanted Mainland China's influence to spread across our country? Neither do I wanted America's influence in our country. So why wouldn't you think twice before commenting? Communist fanboy.
"Malaysia's productivity index is lower than South Korea's and Taiwan"
- Me, watching this when I should be working o___o
Dont compare Korea with Country like Taiwan. Taiwan is far behind Korea in every index. They have much much lower income thann South Korea.
@@alliesstar822 yes I am sure, but I'm confused as to how you arrived at the conclusion that I was comparing Korea and Taiwan from my statement above.
hahahaah lol, relatable
This is classic example of someone who doesn't understand economics. It is not about working or how hard you work, if it's about working, people in Bangladesh, Vietnam, and India would be richer than Americans or Europeans. Productivity gains doesn't come from how hard you work.
At least Malaysia doesn't have a fast sinking capital like other SouthEast Asian nations.
Aside from our capital, which does not only suffer from flooding but also worst traffic...
Many parts of my country (Philippines) are experiencing Flooding and it is SERIOUSLY getting worst. My country are made up of 7,000+ islands-take note: they're spread out.
In a nutshell, Malaysia have all potential to become global power house.
Culture and politic are the hurdle for that.
basically like other countries too..
Why culture if i may ask?
@@azzatazizi they prefer depressed workaholic and suicide culture..
And playing the racial card every so often worsen the situations too..
@@MrJusonKhaw that's politic for ya
Thanks for the very accurate analysis. The delay from Middle Income to High Income has benefitted the economic leveraging in the rural areas, though. Despite all this, the World Bank and IMF believes Malaysia should be a high income nation by 2023. Which maybe is a better thing as it allows the rural areas to sustain and survive better.
Would the 2023 projection still hold after the Covid economy setbacks?
While no water supply for certain part of Malaysia like in desert or something.
@@chongjunxiang3002 The water issue is not due to shortage or lack of infrastructure. In fact Malaysia is the only country in South East Asia that has full water sufficiency besides Singapore. The problem with water is due to poor management by the local water company and not a national issue. The problem is limited to one location only and not the entire country. The question the previous person asked is can Malaysia hit high income by 2023. Yes, it can. Because Malaysia is almost at USD12,000 which is the threshold to high income. So yes, it will hit by 2023 or before. The question should be, what would be the next focus of Malaysia's economy? Would it be manufacturing, R&D, technology or the services industries? On innovation efforts are one the way to develop R&D as the next phase of the Malaysian economy, especially in areas such as nano-technology and high precision electronics, which Malaysia and Singapore has entered earlier than most other countries in Asia.
no chance of 2023 with such high unemployment rates now.. we need to re-open the economy asap and stabilize the blardy government.. nobody would want to invest in a country that has a possibility to change their PM on monthly basis.
I truly agree with your point that "the delay from Middle Income to High Income has benefitted the economic leveraging in the rural areas".
When you feel rich, there are those who are richer than you.
when you feel strong, there is something stronger than you.
-Esha Ihya-
Love for Malaysia from Singapore. We are always rooting for you
Wish I could go there
So many scary place
Knew it from MJ 12
Ignorance is bliss.
i truly hope malaysia can become upper-income developed country. after all asean prosperity is necessary to counter major forces of the world.
- support from indonesia
Likewise we also support Indonesia to prosper in the future! Imagine if Malaysia and Indonesia create an economic block. Nobody would want to mess with us, militarily and economically, and that's only from ID/MY block. Imagine if its ASEAN military block.
@Jao Bai Dun EU, US & China. let's not make this region their playground to mess with.
@@rehanfauzan4623 China is physically and racially tied to ASEAN. This region will thrive with China. I hope Malaysia realizes this fact.
@@splendid96 if only ASEAN is simillar to europe union, maybe there is 1 extra power besidr USA, China and EU
@@HKChineseCanadian well, there is one chinese proverb : One mountain can't accomodate two tigers. Until China finally surpass USA, no asia country want to be dominated.
Some hindering factors:
1. Bad Politics and corruption
2. Racial-based policies
3. Lay back mentality
Excellent . Those are he important points, especially number 2. It keeps back the economy to grow faster. It should be more inclusive of all races and cultures and all peoples.
Most not hardworking, mainly Chinese hardworking
@@yang5159 that's just generalisation, gen Y companies in KL region now are equally multicultural
@@yang5159 There you go. Typical supremacist mentality. You probably study in SJKC and work in Hong Leong bank, don't you?
@@yang5159 stereotype , people are changing and malays and indians (young gen) are getting more hardworking!
As a Malaysian, we really need to be productive in every sectors
That would mean more stress and unhappiness for the working class. The ones will be happy are the managerial, bureaucratic and investor class.
@@frozzytango9927 You're right... That's why it has to start from the top, if the bottom-half is the only one being productive, that would be modern slavery.
@@volterwoo Doesnt matter.. the rich profit by just investing on values that appreciate while the bottom buy things that depreciates over time, the rich will invest on property and stocks and exploit inflation, hurt the bottom class, increase economic disparity, its even worst if you invite overseas to invest in the country, then only a few benefit and wont need the domestic market anymore.. thats what happening to many countries around the world. Malaysia economy is slow and steady,not like a balloon, so people dont appreciate how easy things are here and it doesnt need to be harder. Its just that people dont flaunder their money around at poor people like Vietnam most of the time.
@@frozzytango9927 There is a thing called work life balance and that's what being meant with being productive. The one you're implying is modern day slavery which is what sadly our country is known for today.
This is truly one of the statements
Malaysian generally lives in moderation... no need to win but also no need to lose... what's the point of being high developed country if the people stuck in depression only to work and work.. life needs to be balanced.. what's the point?? to earn people's admiration?? sooner or later, Malaysia will achieve that high income status, no need to rush..
The great convergence in action!
Exactly. What is the point become high income country/high developed country if our people live in depression, no time for family because too busy getting money and suicide rate among the people is also high. Slowly but steadily..
@Tdan Kendros thank you for choosing malaysia. 🇲🇾 where do you live btw? (just asking)
@Tdan Kendrosthank you 💖
I think i agree about this.
It's becoming clearer than ever that Malaysia DOES have what it takes to rival the competitiveness of other Asian countries like South Korea, Taiwan, Japan and China. But it's also worth mentioning that we still have a lot of work to do. Keep up the good work people. We'll get there.
well, the laid back culture compensates the slower growth of Malaysian economy. As a Malaysian myself, i prefer just how it is, we are progressing at our own pace. We dont want to be super rich country but in the end of the day you got nothing in your life as you dedicate all your times to the so called "productivity"
Well that’s one simple way to look at it, yes there is a fine line between achieving a high income economy whilst maintaining high quality of life for ordinary citizens in contrast to that of a worked population with less “leisure time” but is the current economical situation of Malaysians as it is now make it okay to be complacent? Almost half a million are living below the revised poverty rate while millions more are scraping by with their current level of “productivity”. Remember that the stagnating growth of the nation’s economy is a clear warning when compared to neighbours who are making attractive policies to increase FDI and nurturing their own native industries to higher levels which also impact the whole tier of the Malaysian economy, not just at the very bottom but especially the middle income group, which depends heavily on the competitiveness of industries & simultaneously from government help (through economic stimulus, healthcare, subsidies, etc).Important thing to note, not all high income nations end up like Japan or S.Korea, in fact they are the minority, the life prospect for everyday people could range drastically according to locale.
You said it better than I could ever have.
you can do both, it isn’t either/or
Instead of looking towards Japan/S Korea as the ideal advanced economy, we should emulate the more balanced ones(work-life) like the US/Germany.
@@InternetsToughestGuy US does not have a balanced work-life. People are also overworked the salaries are stagnating, except for the billionaires of course, but the cost of living is going up reducing a lot of the middle class.
I like your closing sentence. Until we able to increase our productivity and growth thru innovation. I'm not supporting corruption but to be fair, there are many advanced economy that has serious corruption incidents too. It's just hard to battling human greed. But innovation is something that we can develop.
Necessity is mother of invention.
as a malaysian computer science researcher in uk, theres 0 incentives for us to go bak to set up an innovation
Give the Chinese and Indians a chance to control the government
I love Malaysia!!! i had friends from Malaysia, who studied at university in Korea. They were positive and studied hard.
I remember Malaysia have various of manufacturing companies even I was shocked to know about, computer motherboard, face mask, gloves, condom, electronic and many more
Does not matter, even at a low salary rate per labour, msia still cannot attract investments and money to support the services. Production but for export to richer countries that profit from the sales of the products, not the manufacturer (Which is own by the name brands.)
Face mask, gloves and condom were using migrant workers, not really helping local worker income.
I am shocked too learn Malaysia has big defence industry such as truck and tank manufacturing, naval & merchant shipbuilding, aerospace & drone manufacturing, missile & rockets engineering etc
@Si degil Comel ahahahahaha
@@iamgreat1234 of course you're malaysian
Malaysia is going to be the CAPITAL OF ISLAMIC FINANCE!
Last time I went to Malaysia, I saw Islamic Banks scattered all across the country
Alhamdulillah
Malaysia get the highest mark in the world for Islamic finance in 2019 ...the second is UAE...
@@ayahpinkofficial2769 Aik? Ayah pin🤣👌👍
Ofc islamic bank hahahah😂
Riba
I love these videos, I really appreciate it. Very informative even for a person who's not well versed with economics like me.
Thanks for watching!
Yes, Malaysia had a great potential into becoming a high income nation status at least by the year 2020.
In my opinion, Malaysia and its government leadership and administration between the year 1960-1990 were already making huge progress into becoming an exporter of manufacturing goods which involved the development of new technologies.
However, the innovation and development of new ideas and technologies were limited to a certain sectors or industries only such as agricultural, construction, oil and gas, entertainment, Islamic banking and finance, cultural and tourism, logistics, manufacturing and automotive industries. From these industries, very few industries have grown really fast while the rest were growing slowly in terms of registering new patents and such...
From what I have seen and experienced as a young Malaysian adult, I believe that our government had actually seen these risks and have already reformed our education system and higher-education system in terms of the syllabus, diversity of subjects offered in schools, creative and critical thinking development, entrepreneurship development programs, leadership camps, science and innovation, arts and cultures and many more.
I truly and honestly believe that the government, government servants especially teachers and lectures, local agencies and many others have worked really hard for years into making sure that the directions set for our country will meet its goals by their specific targeted years.
Sadly, progression is still too slow and delayed due to multiple factors occurred within the 60+ years after Malaysia Independence such as corruption among political leaders, racial tensions, disparities in distribution of wealth and education growth, geographical disadvantages, and the relaxed nature of its people (a large minority I feel) that affects productivity.
Certainly there are probably other things that can be said more but I think for now, this is my final opinion. Thanks!
Thanks for the insight Muhammad! Great additional insight 👍
Jamil, ‘Young Malaysian adult’,
Very well written and good insight....but the main points are not addressed.
I understand, as it will tread into sensitive issues.
@@tanchye1720 huh?
Good summary. Political & social harmony sometimes takes precedence over progress, especially in Malaysia's case.
"Relaxed nature of its people-a large minority" care to explain the f*** you are trying say with this sentence
Malaysia was strategic hub for business.. surrounding by Thai, Indonesia, Philippines, Singapore. It the best place to stay and invest for High-tech, Property and others resources.
Still is.
There is that one new building in Cheras that was meant to attract global companies to set up their hub here but I'm not sure how that plan is coming along nowadays
@@Cybernaut21J I mean that's just a blanket excuse, pretty much can use it on any country / growth. We do acknowledge that it happens but we also got to move on.
ahhh no...investors rather invest in more progressive countries like Vietnam, Thailand, Indonesia and the Philippines. Malaysia is overphased with internal problems, its a bad indicator for investors. So i say Malaysia close SHOP.
@@waldorfwsc2580 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
When Malaysia pegged the RM to USD , there were downsides to that action. No investments can come in to Malaysia with that pegging. Its only in 2006, when PM Abdullah Badawi unpegged the RM to USD and later PM Najib Razak which help attract investments from all over the world.
Woah, u know ah. Good one la.
@GOSWK TV Yes you are totally right! Najib's BN managed to grow Malaysia economy by 6.2 % nationally in 2017 and in Sabah it was 8.2% only for PH to drop this to almost zero after taking over in 2018. What a waste!
@GOSWK TV it wasn't PH that took over and destroyed Malaysia. Its Tun that took over and destroyed Malaysia's economy. if Anuar took over as intended with PH running properly, rather than being obstructed by Tun, things might have been different
@@TTt-gp7mr DAP, Anwar and Mahathir are ones proven to be corrupt, power crazy and the real racists and thiefs. Till today NOT even a single evidence to prove Najib steal a single sen. Just a political motivated conviction on Najib base on lies by PH cronies using Jho Low name but cannot find Jho low anywhere in the world. So if you are NOT stupid, Najib was simply frame by PH just because he wants to help the rakyat more. but you are too blind to see it.
Agreed. Rindu zaman Najib. Everything fell apart after that.
What is important is that low income earners have food on the table rather than focus on higher income status. Already food and homes are getting too expensive.
@Tdan Kendros Not actually true for northern europe,those countries are at the top of the happiest people in the world when comparing between countries...
Malaysians think their cost of living is high, they should come and live in Singapore then they know its so much expensive. Singaporeans have no choice but to eat cook meals more than eating out to lower their cost of living and take public transport or live in public housing.
@Tdan Kendros
Reminds me of the frogs in the well.
They have everything’s they need in the well.
They are very happy with what they have, not knowing the world is changing, outside the well.
@Tdan Kendros you are correct .
@@jameslim3850 I think most Malaysians know the cost of living in Singapore.
From what my friend told me, Malaysian govt is very protective of local malays. If open a business in Malaysia, a certain percentage of work force and management must be local Malay. This creates a certain mindset of "why work so hard if I'll get paid anyways", lowering productivity. Not sure if it's true though
in private sector business, mostly owned by chinese, management must be chinese even though they don't fit the requirements needed.. like a dumb kid who did complex adult things.. they even put chinese language requirement to work in a (national language - Malay) country.. what are they thinking, are their language are so special above others??.. national language first..
This is what the British did to us when they in power, divide and rule. When most Government sector the Malay were employed , the Private & Bussiness sector were Chinese. The Malaysian leader still use the same method when they are making policies
@@graxie89 the government did this to balance economy disparity between the poor and the rich.. and the poor ones are unfortunately native Malays due to British unjust preferential treatment.. If this policy is not implemented back then, then there will be a bigger gap of wealth today like India where you can find slums near high end cities.. this policy is not perfect but it does work in narrowing the population wealth gap efficiently.. if the British didn't start giving the outsiders, the economic headstart.. this policy will not even exist in the first place..
Very true
Sadly this was the reason my Holland-based tech company CEO told me , ended in KL and moved to Singapore... I still love that company but they cnt accept me in Singapore due to the Singaporean first policy...While he was telling this I was standing like a dumb!!! I was in a place not to comment!!!
Can the next economic video be on Bhutan, as an Indian I am always quite curious in this country, the country that doesn't care much about being rich but wants every citizen of it to be happy, and so a video on its economics would be pretty interesting
They're anti globalisation and focus more on people then economy. That's why their debt to gdp is very high. Great country but different way to develop
Lol Indian should care about their own economy which is worst than Malaysia
@@hemanshuchudasama3535 We are already caring about ourselves.
He is just curious so he asked a question, what's your problem with that ?
Racist dumb.
You started speaking bullshit just because he is Indian and if he was not Indian or say from Burundi, you wouldn't have said anything.
@@hemanshuchudasama3535 lol what
Fyi
Malaysia's gdp - 356 billion
Mumbai's gdp - 368 billion
How can India's economy be worse than Malaysia?
@@kanekiken2002 the only thing indians care about is Pakistan
The whole of India could be crumbling right in front of them and they will still only care about Pakistan
Indians are obsessed with Pakistan
Iam not Pakistani so I don't care about them
Thank you for this great analysis!
As a Malaysian, I would say talent development and retention is a major gap. Sadly, most employers don't invest enough in training and growth. Entry level jobs especially are deeply underpaid. Outside of a handful of large firms, majority of businesses still position themselves as low cost producers rather than moving up the chain, global brand building etc. Funnily enough, households spend more on foreign maids vs. entry level staff.
Minimum wage would be a positive change but fundamentally, businesses need to break out of the low cost segment for productivity to increase. As mentioned, innovation is key but it's not just about R&D. Businesses need to be more creative and bold in their offerings.
TBH, the responsibility of "training" should have been local uni's.
You are over qualified
One of the issues is employers prefer low wage foreign workers than hiring locals so it kept from wages from rising and the government support such move. The other problem is politicians cutting people who are rising. You can see how malaysian actually thrive when they go to other countries like Singapore, HK or UK.
Malaysia is great
h
You're everywhere!
Do we always watch the same video...
Betulnya! :)
great country, shit politicians
Finally, good and very accurate fact about Malaysia 💪
Glad you think so. Sadly not as long as we'd have liked, but always room for improvement 👍
@@AltSimplified does your metrics say that 15 mins is better than 20 mins? it seems most people in your comments are very appreciative of your thorough content
You will hit 100k very soon!
By August 2021, you will be around 102k, my calculations say :)
Haha we love an optimist! 👍
Noice
Noice (2)
@@AltSimplified just don't get stuck in the middle subscribers number trap.
@@morganangel340 that would certainly happen when he reaches 400-700k due to lack of economics inspired viewers demand
also when he runs out of countries lol
Thanks from Malaysia!!
Mixing religions with politics will always be a disaster recipe.
Exactly
YEP. Got cucked so hard by mixing them.
Cough cough* PASSSS
Not really, shariah is needed in politics to prevent corruptions and also to do justice with the rights of the citizens.
@@CookieeMonstarr666 the federal civil court provides justice for all. Don’t say it like the shariah court is the only system that provides justice rights to Malaysians. In fact it is heavily biased to the males in this flawed system.
I personally think that Malaysians should independently consider and vote for political parties/leaders that can contribute in the following areas:
#1. Actively Combat Corruption
#2. Peaceful and Harmonious Society
#3. Safe Residential Community
#4. Fair Policy for all Races
#5. Focus on Economy
#6. Focus on Education
#7. Talent Governance
#8. Transparent Platform: e.g. Public tender for all government projects
Those who can achieve the above (not 100% of course), will get our vote. As a return, politicians should get a good salary, bonus, and retirement pension.
I’m sure your channel will explode like how Atlas Pro’s channel did.
Agreed about your observations. According to the IMF, Malaysia is the highest nation in the middle income bracket and next in line to be a developed nation by 2023-2024. Which is just 2-3 years away. In hindsight, the Covid and other delays have been a good thing for Malaysia to increase domestic spending in 2020 to the highest level. It has ensured that the Malaysian growth in 2021 would be around 6.5 to 6.7%. Job creation has also been boosted late 2020, with unemployment falling to 4.5% from 5%, previously.
Sadly msia deserves better... bu 2023, china might even surpass msia on a per capita basis
@Afix nah I don't think so,EU has been quite cooperative with china these last few months
@Justin Xie 别和印度阿三浪费口舌，他们都是神经病。
@@limcharles9730 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
@Keyboard Emperor The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
1. Malaysian politicians still aruging on 60 years old topic.
2. Kid's talent still determined by grade not creative and independent mindset.
3. Corruption everywhere.
4. SMEs or business owner is not been supported by goverment or policy.
5. Malaysian policy always is pumping money for cashflow but never educate the public how economics works.
As an Indian , I can relate . We are facing all those same problem
@@mdhasmatalimondal1216 yay..i agree..that's happen to most of the Asian country..
Can't really achieve high-income status when the best and brightest mind are leaving in droves in what we call a "Brain drain "
It's quite sad really. I plan on studying overseas for my Master's in a few years. But I doubt I'll leave Malaysia forever. Unfortunately, I have several cousins who've long been adamant to leave and never come back. I've not seen them in years. Such a disappointment
The brain drains are aliens not even a native
@@pooja350 When your own country cannot help you. You have no choice but to look elsewhere
@@jackeytam7700 that's also true. But don't forget that those who do are usually from well off families. What about the rest?
@@pooja350 If they are lucky they can find a scholarship. If not then they are the unfortunate victims of a failed educational system...
I'm really interested in the economy of South East Asia (Malaysia, Philippines, Vietnam and Indonesia) because of this channel.
Can you do Thailand next? (The only Tiger Cub Economy you haven't covered)
Thailand's economic and political system is very messy and unstable... The military has so much power and they are very corrupt... The military is backed by the king, and now the king is given billions of dollars every year from tax payers. That's why King Vachiralongkorn is the richest monarchy/ruler in the world (assets more than 60 billion USD now)... Right now thai people are protesting against the king and the military alliance. III #WhatsHappeningInThailand
Thanks for the comment! We will be covering Thailand in the next few videos ;)
In terms of purchasing power and HDI Malaysia ranks very high. It’s GDP per nominal is the issue.
Yes
Malaysia need more people. We nees to start agrarian revolution so that we can feed more people and make our highly overpopulated.
@@aimanharith5817 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
OMG, this is one of the best content i ever watched! Thank you for highlighting our weakness and show us how to overcome it. 👍👍👍 Insyallah we can overcome this trap in the near future. Thank you admin ❤️ from Malaysia.
Those Malaysians who are working in Singapore are already high-income citizens, even those working as Security Officers there. And they are many of them working there hence generating the economy of Johor especially with their income to buy houses, cars, etc.
You're talking about merely 300k migrant workers working in Singapore versus 22.3mil working population in Malaysia. The income of this size would not make Malaysia a high income nation.
Meanwhile 3 million documented Indonesian live and work in Malaysia.
@@iamgreat1234 Please include rohingya also. Now i see the potential rohingya be the fourth major race in our country. we will see in future👍
@@Georgeklee not just simply add it together.
Taiwan in 1980 are also a middle income country, but after we implement a series of policy that recruiting Taiwanese overseas, TSMC was born. after the foundation of science park in hsinchu, we became a important manufacturing hub of semiconductor.
So these few people sometimes can change a entire country.
@@Georgeklee The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
Remove Malay supremacy. Remove the Prince of the earth title. Remove entitlement. Remove institutionalised racism. And we have a good start.
Definitely, too many help from the government make the major race weak to compete.
Bla bla bla...
Malaysian here who have lived in 4 continents. Hujan emas di negara orang. High income country? Like what? What goodness does it bring? Living in cramped houses like those in Tokyo or London? Can’t afford a car like in Singapore? Paying 3Euro for a glass of Coca-Cola like in a Germany? Or be afraid for your life because of the expensive medical fees like the jobless Americans?
We can afford to own houses and drive our own cars, eat out almost everyday, our public hospital treats us for minimal charge. We are relatively safe. We don’t need to be in the so called ‘high income’ category. We are living better than them in many ways. I’ve seen my friend who earns 3000usd living in Tokyo. Trust me I’d rather be earning RM3000 living in Penang.
I see a lack of emphasis on innovation in this comment section. All I see is government is bad, Gen Y is bad, and Malaysia is good but almost no one emphasis on innovation which proves the video's point: Malaysians doesn't know how to innovate!
Well we have one innovation
FOODS
HAHAHAHA
most are too narrow minded
Nice video and great channel !
Malaysian politicians: write that down write that down!
Nahhhhhhh it will be at the end of their list behind corruption and more corruption
More like just tidur
They even use "state of emergency" as excuses to hold on power..don't have initiative to bring Malaysia to higher level..plus the backdoor government issue last year cause by politician is truly disgrace Malaysia democracy shame for what Malaysian have right now..
Hahah trust me. Malaysian politicians are all useless
@@ismailmazlan5703 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
What do you think of the book ‘How Asia Works’ by Joe Studwell? Seems like there’s some divergences between your diagnoses and his (mainly the point about the way Malaysia’s moved from an agricultural-based economy to a manufacturing one which I assume you think was done well while he believes Malaysia would have done a lot better with comprehensive land reform after independence), but there are also some overlaps (namely the over-reliance on foreign capital). Studwell also makes the point that the growth of manufacturing was mishandled due to the lack of export disciplining and industry culling, which has perpetuated a practice of rent-seeking behaviour over innovation - ultimately a holdover from colonialism
Thanks for the comment! We have a lot of time for How Asia works. Especially the distinctions made between the Asian economies i.e. not homogenising them. Effective land reform is a central tenant of Joe's explanation and rightly so. Malaysia's land reform were cash crop focused and often at the expense of smaller farmers.
Export discipline and culling were important factors, as was parts of NEP agenda. Often select industries would be excessively targeted to the detriment of the wider industrial base. Relatively to S. Korea, Taiwan et al, the limited support industries and low level of innovation can't be emphasised enough 👍
Malaysia is horrifically undeveloped despite being the richest SE Asian country in natural resources. Many provinces don't even have properly paved roads
even the Malaysian Chinese & Malaysian Indian always condemn Malaysia when they migrate or travel overseas.. Malaysia is still there.
Malaysia is still growing.. Malaysia is still developing.
Compared to Singapore, Malaysia is a failure.
@@berrybear2465 not a failure.. just a country of steadily increasing economy growth.. I mean, look at its growth rate.. saying it as a failure seems like you're the one with hatred..
@@saizan3193 Singapore dont have natural resources and land, Malaysia has. Although Singapore are kiasu, but you cannot deny their achievements
@@berrybear2465 who denies their achievements, they are great, yeah.. but saying Malaysia is a failure without checking its economy data is kinda ignorant..
Kiasu means selfish, right? yes Singaporean s are kiasus...
@@saizan3193 ya but they rich tho
" 7 out of 10 cars are Proton "
Yeah because our car prices is so high that's basically unaffordable(except local made cars by Proton and Perodua, our 2nd national car brand)
Stuck in middle income trap has benefit Malaysian people a lot. For example land ownership in Malaysia is very strict. Foreigners could not buy expensive properties in Malaysia when Ringgit fall. Rural people migrate to cities and become majority. When Ringgit rise again, rural people that become urbanised sell their land to foreigners at premium price. English used to be main language in Malaysian cities when foreigners dominate them. Now, it's no longer the case since 80% already urbanised and speak their own dialect.
Please also make a piece on Australia and how despite being a high income country, it doesn't have a substantial manufacturing base. Second point could be its dependence on China for exports. I think it will turn out to be a very interesting piece
Malaysia suppose to be a high income nation by 2020 or 2021 the covid19 pretty much set things back a bit... But yeah, we are still behind on a lot of things...
by 2021 ? not really
@@yihtorng Vision 2020
@Avinaash Subramaniam actually Pak Lah. Things pick up again with Najib. Then Covid struck
@@talhahabdullah8980 you mean the guy who stole billions from his own people? You're funny.
Malaysia will never ba a high income nation with the way races work over there.
Wow, I learned a lot from this video. Yes, I agree that Malaysia has stuck in the middle-income trap. At the ground, wages for graduates have stagnated for almost 20 years. The minimum wage was only revised in recent years and mostly benefited foreign workers.
In terms of governance, implementation and enforcement are key.
1. Ensure strict compliance for knowledge & technology transfer by investors and not just using Malaysia as a low-cost manufacturing hub;
2. Higher allocation for R&D, especially in agrotech, since we still export commodities such as palm oil & rubber. However, in biotech & food, we are severely behind our neighbouring countries.
3. We must not be afraid to penalise high-ranking officers and impose worse punishments for corruption charges. Time and time again, we have seen that current legal provision has not been able to act as a deterrent.
4. The government must also look at the wage structure as a whole and not just the minimum wage. There is a wage gap between the T20 and M40; wage and wealth must be better distributed.
5. Balance the ease of doing a business and starting a business so that more people can start their enterprise and enjoy the piece of the economy cake.
Malaysia is such a beautiful name. I might name my daughter Malaysia
Please Malaysians, WE CAN DO THIS. We need to grow better. Increase our productivity internationally
Yes lets work hard together for our country
All countries in ASEAN will be eventually middle-income trapped, except SG. Takes a bit of miracle to jump from developing to developed. It's more than just GDP per capita
Need extra effort, other developed countries Will not happy if there is developed countries again
Uhm. Hw bout Brunei? 🤔
Brunei dumb
I 100% disagree, Malaysia is already US$13,000 which is already high income by Atlas method, in 2-3 years it will be US$15,000 by World Bank standard. Thailand will be next maybe by 2030 - 2035.
@@leealex24 High income isn't developed yet....still categorized as "developing high-income". Or....both are just high-income among developing countries.
Relative to true developed countries, TH and MY are still considered mid-income.
Malaysia's challenges can be summed up in one word: corruption
When you are a business but you are aware that a portion of your revenue has to go towards corrupted officials, there are a few ways you can respond
A) Absorb the cost. But unfortunately, businesses aren't charities, businesses exist to turn a profit, so absorbing the cost is out of the question. Which leads you to
B) Pass the cost on. This is what many businesses in the country do, passing on the cost of corruption onto their customers. When you pay for something in Malaysia, understand that more often than not, corruption has been factored into the price tag. But businesses cannot hike their prices indefinitely, so very frequently they will also need to find another way to deal with the cost of corruption. Which leads to
C) Cost cutting. If businesses have to bear the cost of corruption, and there is a limit to how much they can pass on to their customers, then that just means they will have to cut their costs somewhere else. Spend less on R&D. Depress employee wages. Hire cheaper foreign labour. Etc
It's not that Malaysia isn't capable of developing highly productive industries. It's just that industries and businesses in Malaysia are often shackled with a hidden cost of doing business. It's difficult to innovate and compete when something like 10-30% of your revenue goes towards dead weight, corrupt officials. And no, it's not just the government, corruption is endemic in the private sector as well
Agreed!!
That's the sad reality in Msia, the rich and the powerful politicians and civil servants can get away with almost any bizzare things they do with a population so poor that they will vote in anybody who can do a meagre handouts
@@desloh1 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
@@tangbesitangbesi7009 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
I love this kind of videos, thank you so much 😘🇲🇾
You’re welcome 😊
RACIAL DISCRIMINATIONS RUNS DEEPLY. SMART AND WORTHY ARE BE BEING SIDELINED. BRAIN DRAIN IS PERENNIAL.
agreed.. so much so that the minorities take up almost 72% of the economy cake... disparity to the max... XD
@@pentastarshipz493 if the minorities are able to take up almost 72% of the economy cake with the majority still enjoying the privileges from the government, does the not mean that yall are just incompetent or am I missing something here?
@@JC-vj3pk truth, but some people couldn't take the burn 😂😂😂
@@pentastarshipz493 excuse me, do the minorities ruling the country for years? who to blame? I thought we have soooooo many tongkat policies to "help"?
Especially during the ph government rule but only lasted 22 months which saved the majority.
all other country is fighting to reach 5G, 3NM Semiconductors, Electric Cars, space industries but malaysia fight for prime minister, racial issues and politics ..... this is sad and tiring
Malaaaaaysia truly Asia. That and got stuck in my head.
Thank you for the vlog. I've learnt a lot on macro economic related topics. Done subscribe. I hope more viewers to support your channel.
Thank you for the sub! Looking forward to exploring more of the world together!
Singapore, though small and has no resources, has a robust financial service industry. Also they actually have high tech firms and have many software companies. Not to mention logistic hub etc. That is why they can be such a high income nation. Their leaders are constantly thinking of moving forward, to compete with the world.
In Malaysia, the leaders are constantly harping on race and religion to consolidate political power.
A lot of the people with great skills already left Malaysia for Australia, NZ, Singapore etc.
Doesn't need a genius to figure out why Malaysia is stuck.
I left malaysia in 1981 with my family for good and had enjoyed every minute since...................wat da u waiting for?
I agree. The Malays and their religion greatly hampering our economic growth.
Siapa yg pro dalam bahasa inggeris to bahasa melayu, tlg translate kan video ni dan share kpd seluruh rakyat Malaysia supaya kita berjaya di masa hadapan utk semua masyarakat sama ada yg susah atau yg senang. Allah bless you all
Ok meh aku cuba.. Video ni ckp negara kita masih mempunyai pendapatan yang sederhana kerana kita ni kekurangan produktiviti dalam sektor perindustrian. Kalau negara kita nk tingkatkan produktiviti, kita kenalah ada macam sesuatu inovasi baharu yang kemudian produknya boleh dikeluarkan secara besar-besaran untuk didagangkan pada tahap antarabangsa. Lagipun, kita dah banyak guna produk luar negara. Tapi secara keseluruhan, aku rasa negara kita ni ok je xterlalu miskin xterlalu kaya berbanding negara lain.
Lagi satu kalau ambil kira covid-19 ni telah membuatkan sektor perniagaan kecil-kecilan, sektor pelancongan dan lain-lain semakin susah untuk dilakukan. Kita kena basmi dulu si covid-19 sambil menjaga kualiti hidup orang-orang yang menghadapi cabaran pandemik ni. Lepastu baru negara kita boleh pulih.
@Zerevv But Bahasa Melayu and Bahasa Indonesia have a lot of similarities, so we can understand a bit.
@Zerevv kerana maksud dalam Indonesia merosakkan bahasa melayu yang sedia ada...
@Zerevv You need to read history. Even Indonesian language comes from Malay language. They just renamed it. In Malaysia some also call the Malay language as the Malaysian language.
Whatever criticism we have of msia, there's good things there. Until i have lived overseas, I didn't appreciate msia.
Tell me more about it
As a Singaporean I actually envy Malaysians for many things, such as culture and people and the ability to be trilingual.
Maybe if the politics are better or if there was a lky there then Malaysia would have been so much better and I see Malaysia as a place of economic potential.
Malaysia boleh!
Don't forget the mentality of the students. Malay students are very lazy compared to Chinese
@@WoBuXihuan we have to stop generalising ppl. It's not fair when ppl say all Chinese carry coronavirus. Look at how Western countries r mocking or attacking Chinese ppl.
@@jesusnotgod5635 I appreciate the hot weather more, EPF is a very robust pension fund, here in UK, employee pays only 3%, employers pay 5% whereas in msia it's 11% and 13%, roads and accessibility are good, gov hospitals esp University Hospital are well managed n equipped, food is rich and authentic, it's more family oriented, children are more innocent, houses are better built (I have been to so many expensive houses here n it's so disappointing)
I think this is the final outcome of most of the fast developing economies we see today
Middle income trap is not real. In the next 20 or so years a lot of countries like Turkey, Malaysia, Thailand, Romania, China, Kazakhstan, Mexico and such will enter the high income bracket. Development takes time and many countries simply only had a chance to develop and industrialize once the imperialists were kicked out. Comparing Malaysia which only began mass scale industrialising after 1957 to Germany which began in the 1870s and UK which began in the 1840s is pointless. Japan and South Korea didn’t do anythinf extraordinary to get rich. Japan began idustrialising in the 1890s and it also industrialised and developed Korea starting in 1910s. Countries like Malaysia had to start from 0 because of imperialism and they have come a very long way since independence. Korea and Taiwan had high literacy, railways, industry, universal education and many other traits that simply no other ex colony had the fortune of having. Malaysia was an illiterate, agrarian peasant economy that was built around being nothing more then a sustainable plunder zone for the Anglos to profit from.
Malaysian economy lack of productivity due to the government lack in interest of human developments and ethics not only as muslim but as a sane human. As recently the IGP shocked the nation by uncovered the ugly truth of Malaysian administration (where most people knew way before) every single corruption in Malaysia was link to the ministers, the corruption was so bad that police unable to contain it. We trapped in the middle income class because people that benefited from the economy are the small amount of the population that practice corruption, the idea of 'to success you must have a "inside connection/cable/etc"' are a clear evidence that these past 20 years corruption has mixed-well with us yet we can't come to realise that this is wrong, We even make joke out of this. But, when the concern are shown as Malaysian protest to the street call upon a cleaner election and administration, some people failed to realise that these "malay elites" done more harm than good to the country and economy, these people try to save their "religion and culture" as stated by certain political parties when in reality it's "to save the politicians and the elites" not us the middle income class of B40s. Yet politicians who preached about malays, bumiputras, Islam the one that do the most of the corruption, now they stolen our democratic voice by suspended the legislative, they buy our elected representatives and causing some stupid MP to be a "frog" jumping to different side. Thus, how to improve our productivity when these small group of elites snatched most of the benefits and left us struggling with life, when they bought 30k bicycle whlie many of us are struggling to feed our families in the middle of world pandemic? How to improve our productivity when the current government are litarally took power unethically? How to improve our productivity when the current government betrayed the people's trust and collapsed the legal elected government? How to improve our productivity when we the middle income class struggle to hold the economy together, while they sucked our guts and hard work to live theirs luxurious and lavish dream? How to improve our productivity and performance when they are above the laws and orders, while us the middle income class and the poors are subjected to the laws and be given penalty on the spot while they were been investigated for a period of time, double standards? We will never able to escape this middle income trap as long as corruption are high, double standard, selfishness of the politicians, stupid ministers, weak ledership etc.
Good. I believe Malaysia has a strong enough economy but I blame for their lack of vision. Otherwise Malaysia should have been a tiger.
Malaysia been a cub for so long.
We could've been what Singapore is now
It's important to have stable and clean govt, because mistake will always happen.
With Stable and clean govt, the people won't easily lost faith and the leadership will have competent human resource to fix the mistakes.
We, Malaysian still stuck in racial barrier problems. We have to tear these down.
Why racial and not cultural and religious barrier?
Till now, I can said most of Malaysian have great understanding in cultural and religious.
Malaysian still stuck in the "race-based pride" which still be the great wall that stopping us from integrate into "national pride". Malaysian shall understand what is the "race-based pride" that I mentioned.
@@chongsinglim3183
The only way to remove the racial barrier is to ignore the politicians on both sides
@@rrsharizam Yes, agree.
@@chongsinglim3183 We got no racial barrier. The news and politician will always play this sickening racial issue. Especially the news that support certain political party and at the same time they want to get more views by creating racial issue.
If you look deeper and globally you can see how politician allie with media to get own profit. Always playing racial/religious issue and not to forget the escape plan, the scapegoat.
Agree.....tutup sekolah jenis kebangsaan...sekolah kebangsaan diperkasakan.....tiru seperti negara jiran...thailand n indonesia
Reading comments , I see most people agree that politics is Malaysia greatest problem. However, politics exist in all country, why specifically Malaysia? Yes, you guess it, the Brits, the colonials.
The growth was accelerated by the proceed from oil and gas contributed by Sarawak and Sabah since the seventies.. Today it is still the backbone of Malaysia's economy.
Terengganu has contributed nothing? LMAO...
@@pentastarshipz493 when did he say terengganu contributed nothing?
I love Malaysia and I can't wait to visit again.
Malaysian will never reach high income by 2024. The objectives of the New Economic Policy (NEP) is noble but its becomes a failure because it was hijacked by the ruling Malay politicians to ensure that they are in power and make themselves rich. The general Malays are kept poor so that the Racist policy will continue. The proof is this for 60 years this racist policy had been carried out and until today the Malays are still poor. How can this be when hundred of millions are budget yearly for them yet they are still poor. According to official statistics the Chinese and Indians are now equally poor but are stifle from development opportunities by licensing requirements and quotas. Malaysia had fallen behind Thailand, Vietnam and Indonesia. Its hard to see Malaysia progressing to high income level. Unless and until the racist policy are scrap. Btw nowhere in the world has a majority race in a country needs legislation favoring the majority from a minority.
Low productivity stems from lack of innovation and quality workforce.
Innovation and creativity is discouraged from the current affirmative education system which does not promote meritocracy, competitiveness and in turn, drives all potential great talents away to SG, AUS or Taiwan when they are not favoured in the Malaysia local education system if they are not from a particular race.
There you have it why Malaysia is still stuck in middle income trap today behind other Asian powerhouse.
we have been lucky so far, expending our natural resources to compensate while our economy plateaued. Hell, Proton flourish because we have heavy taxes on import cars, even doubling the price of some of them, its more like we have no choice but to buy local cars if you want affordable cars, its creating artificial demand for local cars.
Our standards of living and quality of life decreased every year, but how long do you think we can get away until our natural resources dry up, especially oil ? Many benefits we have currently are subsidized by oil revenue, when it all dries up, we would implode
.
Fantastic video!
In my fictional world, Malaysia is one of the richest country, has higher economy and one of the superpower country in the world
Interesting!May new Malaysian Politicians from a revolutionised youth can bring forwards new policies and improvements.
lmao, i don't like if a country being over populated, but i think they need more population (not as high as Philippines, perhaps) and make sure the HDI can still be controlled. i mean, more men power will help a country, from the economy to military. South Korea even has more population than Malaysia.
But the population concentrated to much on the peninsula which makes it unhealthy in the long run
Yes , but external debt of Malaysia is much higher than the Philippines taken that The Philippines has More population, Malaysia has 58 percent Debt against GDP while the Philippines has only 38 percent Debt against GDP, you see good population is a factor,you could research on malaysias GDP against it's debt and other ASEAN countries for comparison
population rate in malaysia is low i guess ? everythings is so damn expensive now, even you want to have a child you had to think wisely. The income never growth, but everythings else is growth like sky rocket.
What're you talking about? 32 million is just the right amount. Developed countries like Canada and Poland are around the same range. Australia's population is only 24 million for such a massive land size. Singapore with a population of 5 million is 6 times richer than Malaysia. Population is definitely not a key factor for a country's growth.
@@commander1044 That's not a problem at all. East Malaysia's population is around 6 million. That is a very good amount of population. It's the inefficient state government that's the problem.
I am glad that we did not took loan from the IMF on the Asia Financial Crisis 1997, please dont ever resort to IMF for borrowing.. 👍
Malaysia is in a shit crisis even worse than 1997. People are starting to beg for food on the streets, goverment still delusional. WE ARE DOWN! Malaysians becoming like banglas going overseas to kutip sampah, UM graduate some more.....
@@waldorfwsc2580 as a Malaysian I agree with you, Malaysia is decline, it falling. I have no hope for this country.
@@waldorfwsc2580 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
@@kairadaud2298 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
supporting local economy is not developed enough compare to thailand and singapore
Malaysia has a very bright future, if only the leaders and politicians put the people first rather than thinking of their own pockets.
If not for the abundance of natural resources in Malaysia, the amount lost through corruption would already cause some serious problems in Malaysia.
You didn't include in this video that Malaysia is also one of the countries in ASEAN who has a heavy external debt even against GDP
Where do you get your facts from? PH propaganda again? Do you know Singapore and Japan have more debts than Malaysia?
@@jameslim3850 no the facts are from google , would you mind to research first before reacting here at the comment section
Even rich country have debt stupid
@@muhammada2445 it mostly depend if its internal debt or external ,most developed countries have internal debt which doesn't harm them in serious way
The frustrations of Malaysians in the comments section is understandable but as a Ghanaian who's country attained independence the same year as Malaysia ( 1957) , I must confess that I'm incredibly impressed by the progress Malaysia has made this far and in Ghana which is still a struggling lower middle income country, Malaysia is often touted as a success story over here.
Malaysia independence : 31/8/1957
Ghana independence : ?????
@@PendKrMustar The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
@@jesusnotgod5635 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
Love the video!
wad missed out: racial issues & aftermath of Proton initial success
Malaysia need to invest more in RnD. Innovations takes a lot of time , energy and resources but it will be paid off with the right orientation and technique.
Have more patents and support small company that are in IT and innovations
The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.
Now Bangladesh also launched new proton saga sedan model with the help of Malaysia..
Was it a JV with Bangladesh local automotive?
Can you tell us more?
pakistan also
What...can u tell abt that
Malaysia NEEDS to invest in tourism!!! Kuala Lumpur is INCREDIBLY UNDERRATED
Look at KLIA and see how many Malaysian brands shops are there. Mostly foreign luxury brands, doesn’t help Malaysia’s image much
Tourism?
Do you know something called "Covid-19 Global Pandemic"?
Even we dont invest in tourism, we always have visitors from Indonesia or Philippines
@@iamgreat1234
Malaysia don't invest on the tourism, ehh!!! What's up with that "Truly Asia" slogan?
Honestly, innovation is being made but not being recorded, recognize, or even talked about.
True. Local talent & ingenuity largely ignored & misplaced.
Singapore was a great loss for Malaysia. Maybe at the time of formation, Malaysian leaders thought that Singapore might be a burden. Now Singapore is one of the wealthiest countries in the world.
there’s nothing to be proud of when 67% of your workforce came from abroad rather homegrown.. plus they were just like Monaco and Swiss where runs by mostly offshores account ....
No, we didn't drop Singapore. Singapore asked to be separated from Malaysia due to certain reason on that time, and we're just okay with it.
@@meeratasworld2925 Above All Malaysia supplies 250 Million Gallons of Raw Water per day from the Johor River to Singapore.
@@rmazim500 Malaysia also supplies 300k daily cheap labour across Johor causeway every morning
@@pentastarshipz493 The solution to solve Malaysia's problem is extremely simple yet so hard to achieve the past 60 years, well all because of the corrupt, selfish and racist leaders who don't deserve to be called leaders at all. Firstly, just need to see everyone as MALAYSIAN and appreciate the cultural diversity/difference between them. Secondly, affirmative action (Perhaps, allocate 30% of money/efforts of government resources) should be based on needs ALONE, nothing else. The rest, the market will react and calibrate accordingly.