Thanks for watching! ❤️ You can subscribe and see all our videos here 👍 kzfaq.info/love/LiRGHCMGB14Pw0yEqLM2fQ

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.

Actually it's simple, old politician should retire and give space to younger generation in the government

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.

Your channel is a perfect compliment to Economics Explained.

"Malaysia's productivity index is lower than South Korea's and Taiwan" - Me, watching this when I should be working o___o

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.

In a nutshell, Malaysia have all potential to become global power house. Culture and politic are the hurdle for that.

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.

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.

As a Malaysian, we really need to be productive in every sectors

Love for Malaysia from Singapore. We are always rooting for you

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.

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

When you feel rich, there are those who are richer than you. when you feel strong, there is something stronger than you. -Esha Ihya-

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.

Thank you for this great analysis!

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

I love these videos, I really appreciate it. Very informative even for a person who's not well versed with economics like me.

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..

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.

Some hindering factors: 1. Bad Politics and corruption 2. Racial-based policies 3. Lay back mentality

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.

Nice video and great channel !

You will hit 100k very soon! By August 2021, you will be around 102k, my calculations say :)

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.

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.

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

I’m sure your channel will explode like how Atlas Pro’s channel did.

Malaysian politicians: write that down write that down!

Fantastic video!

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.

Finally, good and very accurate fact about Malaysia 💪

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 from Malaysia!!

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.

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

I love this kind of videos, thank you so much 😘🇲🇾

I think this is the final outcome of most of the fast developing economies we see today

with Southeast Asian people, Malaysia still is a very rich country. Good infrastructure, education, life standard.....

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"

It's great to see how my country performs from outside perspective.

Damn. I wished EE did this earlier. Looks like you did it first! Great video!

Malaysia is such a beautiful name. I might name my daughter Malaysia

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.

Love the video!

I love Malaysia and I can't wait to visit again.

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)

" 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)

Great content! 👍🏻 and feedback on the comments section. Allot of passionate Malaysian and non-malaysian. We just need to direct our energy to a common goal. Advancement economically whiles preserving our cultural diversity. Sounds easier than said. Sadly ... no meme's in reference to kangkung vs. Big mac index. Great channel and lastly "Malaysia 🇲🇾 Masih Boleh".

Excellent Analysis.

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.

Please Malaysians, WE CAN DO THIS. We need to grow better. Increase our productivity internationally

Nice video!

Great work

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

I love this country MALAYSIA🇲🇾🤠

True, innovation as well as productivity may help in terms of changing from middle income status to higher income status.. The most obstacles by majority for Malaysia to achieve high income status is the corruption level within among Malaysian leaders. Since Malaysia diversify a lot of export products, to think that it too more than 40 years to achieve that is really something's unusual as well as not suppose to happen within Malaysia.. There are other factors as well why this is happening, one of them is just like you mentioned before around early 90s, there is very big money laundering occurred if I'm not mistaken during that time that involved more than 30 billion ringgit lost within less than 5 years. Because of that, world bank warning Malaysia for that particular situation..

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

Can't really achieve high-income status when the best and brightest mind are leaving in droves in what we call a "Brain drain "

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.

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.

Very nice. I love Malaysia. Miss it

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.

Interesting!May new Malaysian Politicians from a revolutionised youth can bring forwards new policies and improvements.

A proud Malaysian. I am very sure my country will shine bright like a star 🌟

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

Mixing religions with politics will always be a disaster recipe.

Malaaaaaysia truly Asia. That and got stuck in my head.

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.

Key pointer= innovation

Malaysia has a very bright future, if only the leaders and politicians put the people first rather than thinking of their own pockets.

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.

Love Malaysia. From Bangladesh 🇧🇩❤🇲🇾.

Thanks for the missing ingredients, now I know about it

You have a nice voice dude

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.

Honestly, innovation is being made but not being recorded, recognize, or even talked about.

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.

I wonder why GRAB, the unicorn of Malaysia went to Singapore haha~

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

With regards to innovation, we has lots of genius who creates great innovations but many of them ended up at other countries along with their works. This speaks something about our problem with retaining talents.

Thank you

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.

please make video about The Economy of Thailand

Malaysia NEEDS to invest in tourism!!! Kuala Lumpur is INCREDIBLY UNDERRATED

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 terms of purchasing power and HDI Malaysia ranks very high. It’s GDP per nominal is the issue.

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.

Good mister 👍

Without corruption,they hard to survive.Tq maamukutty.

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

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...

In Peninsular Malaysia, we have rubbers, tins, paddies, and others In Borneo Malaysia, we have irons, woods, and others

7:59 I'm sorry, but that little clip was hilarious

Now Bangladesh also launched new proton saga sedan model with the help of Malaysia..

Malaysia, Singapore and Indonesia have better position rather than Vietnam as a manufacturing hub, because relocating East Asia manufacturing can be boost their export to Africa, India, and middle East

idk when i was there i had the feeling that the fastest way from point A to B seem to go thru point C.

Great vid! But sadly Malaysia will never enter the high income bracket as long old fashion values remain.