The $150 Trillion Global Economy in 2030

 

The $150 Trillion Global Economy in 2030

The world economy is projected to exceed $150 trillion by 2030 (it is $126.3 trillion today), with significant growth coming from emerging markets in Asia. The visualization shows countries projected nominal gross domestic product (GDP) in 2030, based on forecasts from the International Monetary Fund’s World Economic Outlook.

The three largest national economies in 2030 are projected to be the same as in 2026. The United States leads at $37.7 trillion (now $32.4 trillion), followed by China at $26 trillion (now $208 trillion) and Germany at a distant third with $6.2 trillion (now $5.4 trillion). Combined, these three economies are projected to add more than $10 trillion in economic output between 2026 and 2030, led by China. The race for third place is remarkably close. Germany is projected at $6.178 trillion in 2030, compared with $6.173 trillion for India, a difference of just $5 billion.

By 2030, Asia and the Middle East are projected to generate $55.7 trillion in economic output, accounting for more than a third of the global economy. Japan will be the region’s next-largest economy after China and India, at $5 trillion, followed by South Korea ($2.3 trillion) and Indonesia ($2.1 trillion).

Europe is projected to account for roughly a fifth of the global economy in 2030. Assuming no new additions or withdrawals, European Union member countries will reach a combined nominal GDP of $26.5 trillion, led by Germany, France ($4 trillion), and Italy ($3 trillion).

 

 

 Reference:

Post by Judah Westreich, The $150 trillion global economy in 2030, on LinkedIn

Budget 2027: Progressive Tax Measures to Strengthen Revenue

 

Malaysia's fiscal consolidation path remains on track, with the deficit projected to narrow from 3.8% of GDP in 2025 to 3.5% in 2026, and a medium-term target of 3% by 2028. Total revenue for 2026 is estimated at RM343.1 billion, but expenditure continues to outpace revenue growth. To sustain this trajectory without resorting to broad-based consumption taxes that would raise prices for ordinary Malaysians, Budget 2027 should introduce a suite of progressive levies targeting excess profits, high-value financial transactions, and top-tier incomes. These measures are designed to be narrowly targeted, administratively feasible, and explicitly ring-fenced to protect the B40 and M40 communities.

 

Source: https://belanjawan.mof.gov.my/ms/cadangan2027 

1. Tobin Tax on Daily Foreign Exchange Transactions 

A Tobin tax — a small levy on spot foreign exchange transactions — was first proposed by Nobel laureate James Tobin to discourage destabilising short-term currency speculation. For Malaysia, a rate of 0.1% to 1% per transaction would target high-frequency speculative flows while leaving long-term trade-related and investment flows largely unaffected. 

Malaysia has prior experience with capital flow management. During the 1997–1998 Asian Financial Crisis, the government-imposed controls on outflows that successfully stabilised the ringgit and restored investor confidence. A Tobin tax would represent a more moderate, rules-based instrument than outright capital controls. 

The critical caveat is unilateral implementation. If only Malaysia imposes such a tax, currency trading activity could migrate to offshore hubs such as Singapore, potentially thinning onshore liquidity. The tax would therefore need to be designed as a graduated levy — lower for transactions linked to genuine trade and direct investment, higher for purely speculative positions — and accompanied by coordination with regional central banks to minimise arbitrage. At a conservative 0.1% rate on an estimated daily onshore FX turnover of USD 10–15 billion, annual revenue could plausibly reach RM1–2 billion. The tax is paid by financial institutions, not by ordinary citizens, and would not affect remittances, travel money, or small-business FX needs. 

2. Graduated Excess Profit Tax on Banks and Oil Companies 

Malaysia already has a precedent for windfall taxation: the Cukai Makmur imposed during the pandemic taxed companies with extraordinary profits, and a Windfall Profit Levy remains in force on oil palm producers, with thresholds adjusted in January 2025 to RM3,150 per tonne in Peninsular Malaysia and RM3,650 per tonne in Sabah and Sarawak. Petroleum companies engaged in exploration and production are currently governed by the Petroleum Income Tax Act 1967 at a 38% rate, which is separate from the general Income Tax Act. 

A graduated excess profit tax would operate as a surcharge above a defined return-on-equity or profit-margin threshold, structured as follows: 

-Tier 1 (moderate excess returns): 2–3% surcharge on profits exceeding a baseline threshold calibrated to normalised industry returns.

-Tier 2 (significant excess returns): 5–7% surcharge on profits above a higher threshold.

-Tier 3 (extreme excess returns): 10% surcharge on profits exceeding a ceiling calibrated to windfall conditions. 

This structure avoids penalising normal profitability and targets only genuinely abnormal gains. For banks, the 2025 statutory corporate rate is 24%; a graduated surcharge would apply on top. For oil and gas companies already paying petroleum income tax at 38%, the excess profit element would need to be carefully ring-fenced to avoid double taxation. Revenue estimates would depend on prevailing commodity prices and banking sector returns, but a well-designed regime could yield RM2–4 billion annually in a normal year, rising during commodity upcycles. 

3. Super Tax on Individuals Earning Above RM1.5 Million 

Malaysia's current top marginal personal income tax rate is 30%, applying to chargeable income exceeding RM2 million. The proposed 35% rate on taxable income above RM1.5 million would broaden the top bracket and increase progressivity. 

This measure directly addresses the government's stated commitment to a "more targeted approach" for high-income groups. The Finance Ministry has already implemented a 2% dividend tax on annual dividend income exceeding RM100,000 effective YA 2025, explicitly targeting the T20 and upper M40 groups with substantial investment income. It has also introduced capital gains tax on unlisted shares and profit distribution taxes on LLPs. 

A 35% top rate would align Malaysia with regional peers and capture revenue from the very top of the income distribution. The number of individuals with chargeable income above RM1.5 million is small — likely in the low tens of thousands — so the direct revenue impact would be modest, perhaps RM500 million to RM1 billion annually. However, the measure carries strong signalling value for fiscal equity and would be difficult to circumvent for salaried top earners and resident directors. 

4. Additional Progressive Measures to Consider 

Beyond the three core proposals, several complementary measures could strengthen the revenue base without affecting the rakyat: 

(a) Carbon Tax on Heavy Industrial Emitters. A targeted carbon tax initially covering power generation, iron and steel, and petrochemicals at RM10 per tonne of CO₂e could generate approximately RM2.1 billion annually in the first five years, rising to RM3–5 billion as the rate increases to RM15–20 per tonne. Proceeds should be ring-fenced for renewable energy transition subsidies and direct cash transfers to vulnerable households to offset any indirect price effects. 

(b) Expanded Health Excises. Higher excise duties on sugar-sweetened beverages, tobacco, and vaping products generate near-term public health revenue while encouraging healthier consumption over time. These are consumption taxes on harmful products, not broad-based taxes on essentials. 

(c) Digital Tax Enforcement. Mandatory e-invoicing and greater cross-agency data integration between the Inland Revenue Board and Royal Malaysian Customs can improve real-time visibility of transactions, strengthening compliance without raising headline rates. This is a revenue-efficiency measure, not a new burden. 

Budget 2027 presents an opportunity to reshape Malaysia's tax architecture toward greater progressivity without imposing new burdens on ordinary households. The Tobin tax, graduated excess profit tax, and super tax on top incomes collectively represent a coherent package: each targets a distinct pool of excess or high-value activity, each is administratively feasible within existing institutional frameworks, and none directly affects the daily finances of the B40 or M40. When combined with carbon pricing, health excises, and digital enforcement, these measures could raise RM6–10 billion annually in additional revenue — a meaningful contribution to fiscal consolidation that upholds the principle of "shared prosperity" without asking the rakyat to pay more for essentials.

Malaysia Boleh at its Zenith

 

The Guinness Book of World Records may not track or have a category for three former premiers turning out on the same day in court for corruption cases. The coincidental simultaneous appearance of PM6 Datuk Seri Najib Razak, PM8 Tan Sri Muhyiddin Yassin and PM9 Datuk Seri Ismail Sabri Yaakob at the Kuala Lumpur Court Complex on Aug 27 is viewed by the media and political analysts as a striking unprecedented national event. We need a public holiday? How about National Corruption Day?

Source: https://en.wikipedia.org

Ismail Sabri was charged with failing to fully declare his assets to the Malaysian Anti-Corruption Commission (MACC). The 66-year-old former UMNO vice-president was accused of intentionally submitting a written asset declaration that failed to comply with a notice issued under Section 36(1)(a) of the MACC Act 2009. The omitted items allegedly include millions in local and foreign currencies (such as ringgit, Singapore dollars, US dollars, Euros and Japanese yen) alongside physical valuables like five 1kg gold bars, a silver bar and a gold coin.

The Bera MP who holds the record for shortest premiership stint of only 15 months (Aug 21, 2021, to Nov 24, 2022) pleaded not guilty at the Kuala Lumpur Sessions Court and was granted bail of RM300,000 which was settled by his son. The case scheduled for mention on Sept 29.

Najib was next to arrive followed by Bersatu president Muhyiddin who faces four charges of abusing his position to obtain RM232.5 million in gratification for his party and three money laundering charges involving RM200 mil.

The 79-year-old who administered the country via the so-called backdoor Perikatan Nasional (PN) government from March 2020 to August 2021 continued his trial on seven charges linked to the Jana Wibawa programme, an initiative introduced to support businesses and stimulate the economy during the COVID-19 pandemic.

Of the trio, probably the most seasoned of them all is Najib – the former 10-term Pekan MP who reigned from April 2009 to May 2018 – who is currently serving a prison sentence since August 2022 following his conviction in the SRC International case though he later had its jail term and fine reduced by the Pardons Board.

The 73-year-old Bossku was convicted in late 2025/early 2026 on abuse of power and money laundering charges in the main 1MDB criminal trial. As it is, Najib continues to attend hearings for massive civil suits such as the on-going US$5.64 bil suit brought by 1MDB and its subsidiaries to recover misappropriated funds

Malaysia Boleh is not just in sports or construction but corruption as well. What an example! And all three of them were (or are) from the same party and it is a testimony of its failing?

 

Reference:

Malaysia Boleh at its zenith: 3 ex-PMs in the dock on the same day for separate graft trials, Focus Malaysia, 28 August 2026

 

Is Job Hopping Among Malaysian Gen Z Driven by Poor Quality, Not Work Ethic?

 

Job hopping among young Malaysians is mainly caused by poor job quality, including underemployment and low starting wages, and not changing work ethics, according to PNB Research Institute (PNBRI). 

A PNBRI article titled “Job Hopping and Early Career Instability” found that many job changes are due to low pay, limited career growth, and jobs that do not match qualifications. 

In the third quarter of 2025, 74.3% of workers aged 15-24 were in roles below their qualification level, much higher than the national average of 35.5%, and this gap has been widening since 2017. Among workers aged 25–34 (older Gen Z and younger Millennials), skill-related underemployment is still high at 41%, above the national average, but lower than for the youngest group. PNBRI said this suggests that underemployment tends to decrease as workers get older. 

It added that it also reflects a long-term structural issue, as fewer skilled jobs are being created while more graduates enter the workforce. PNBRI also noted that real entry-level wages have fallen over time, dropping by 10% for degree holders and 28% for master’s degree holders between 1997 and 2022. 

The estimated minimum cost of living in Kuala Lumpur is about RM2,400 for a single person and RM3,970 for a household, while some government-linked companies set the living wage at RM3,100. However, most graduates earn below these levels. About 66.3% of degree holders and 93.1% of diploma holders earn less than RM3,000. Even more concerning, 30.6% of degree holders and 66.3% of diploma holders earn below RM2,000, which is far under the basic living cost. 

Although some graduates do progress over time, many still begin their careers in low-paying jobs despite their qualifications. As a result, young workers often change jobs out of necessity to find better pay and opportunities, rather than personal preference. Job changes are normal early in careers but happen more often when jobs are unstable and lack clear career growth. With lower wages, many workers in jobs below their qualifications, and unclear career paths, switching jobs can be a reasonable choice. The main issue is whether early-career jobs are good enough for young people to stay. 

The institute warned that unstable early careers can lead to long-term effects such as slower skill development and weaker earnings growth. To address this, PNBRI called for three core pillars to be included in policy: strengthening wage and job quality foundations to support stable early-career pathways; strengthening school-to-work and job matching through work-based learning and structure; and strengthening lifelong learning systems to support career growth without frequent job changes. 

Reference:

Job hopping among Malaysian Gen Z driven by poor job quality, not work ethic — PNB Research Institute, Jazlin Zakri, theedgemalysia.com, 28 May 2026

Frozen Inheritance Assets in Malaysia Hit RM90 Billion!

 

According to a report by the Asia News Network, Malaysia currently has an estimated RM90 billion in inherited property, shares, and savings sitting frozen in legal limbo. This is on top of a separate RM13 billion languishing in unclaimed money, dormant bank accounts, unclaimed salaries, insurance payouts, and forgotten deposits. That's not a hypothetical number sitting in a spreadsheet somewhere. That's real land, real savings, real family homes, stuck because someone passed away without leaving clear instructions, and the people left behind had no legal way to move forward cleanly.

 

Image from The Star 

The report points to something that struck a nerve: a lot of younger professionals and middle-income earners genuinely believe wills are only for the wealthy or the elderly. Here's the part that doesn't get explained often enough. Without a will, your estate doesn't just sort itself out according to what everyone assumes you would have wanted. For non-Muslims, the Distribution Act kicks in and applies a fixed legal formula regardless of your actual wishes, your actual relationships, or who was genuinely depending on you. 

Before anything gets distributed at all, someone has to apply for a Grant of Probate, or Letters of Administration if there's no will, a court process that can take months or years depending on how complicated the estate is and how many parties are involved. 

The unclaimed money side of this is almost sadder, because at least frozen inheritance assets are visibly disputed. Unclaimed money just sits there, silently, because nobody knew to go looking. Old bank accounts, insurance payouts nobody followed up on, deposits from jobs or transactions long forgotten. 

The good news is that checking is genuinely simple. The eGUMIS portal, run by the national accountant general's department, lets anyone search using an IC number, free of charge, with no time limit on claims and no minimum amount required. It takes minutes to search. 

If you have children, aging parents, or even one piece of property with your name on it, you already have enough to justify writing a will this month, not someday. 

Reference:

Frozen inheritance assets in Malaysia hit RM90 billion, Kamarul Azwan, Newswave,
30 August 2026

Budget 2027: Outcomes or Headlines

 

The Pre-Budget Statement 2027 identifies many of the right priorities, from easing cost-of-living pressures to creating better jobs and building a more productive economy. Malaysia has made progress in strengthening economic growth, attracting investment and improving its fiscal position.

 

Budget 2027 should be judged not only by how much the government allocates, but by the difference it makes to people’s lives. Cost of living must remain the immediate priority. Food, housing, healthcare, education, childcare and transport must consume a substantial share of household income.

 

Source: https://belanjawan.mof.gov.my/en

 

Programmes such as Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) remain important for vulnerable households. But Malaysia cannot rely indefinitely on cash assistance to offset weak income growth. A more durable solution lies in raising productivity and real wages. Tackling the structural drivers of household costs through stronger food supply chains, reliable public transport, affordable healthcare and childcare, and housing located closer to employment centres are the strategies.

 

Middle-income households also deserve greater attention. Many earn too much to qualify for substantial assistance but continue to struggle with housing, education, healthcare and caregiving costs. Reviewing personal income tax reliefs to better reflect family size, location and caregiving responsibilities would help address those pressures.

 

Malaysia must move beyond treating minimum wage increases as the primary measure of income growth. The bigger goal should be creating jobs that offer meaningful wage progression, career development and economic security. Business incentives should reward productivity improvements, employee training and skilled job creation. Likewise, investment should be judged not only by approved project values, but by whether projects are implemented, transfer knowledge to local firms and create well-paying employment. The same principle applies to support for small and medium enterprises. Assistance for digitalisation, artificial intelligence, automation, financing and exports should help businesses become more productive and competitive, rather than simply helping them survive.

 

Budget 2027 rightly emphasises TVET, STEM, artificial intelligence and stronger links between education and industry. But success cannot be measured by enrolment or graduate numbers alone. Graduate salaries, underemployment, skills matching and career progression provide more meaningful indicators of whether education is delivering economic opportunity. There are 2.1 million graduates under-employed. Every year we produce 300,000 fresh graduates.

 

Universities should also receive stronger support for research that addresses Malaysia’s technological, economic and social challenges, helping retain talented Malaysians by creating opportunities for innovation and professional growth. Our R&D expenditure is below 1% of GDP.

 

Housing policy should focus not simply on building more homes, but on ensuring they are genuinely affordable relative to household incomes and located near jobs, transport and essential services.

 

Malaysia needs to prepare seriously for an ageing population by strengthening preventive healthcare, retirement savings, elderly care services and support for family caregivers, while creating opportunities for older Malaysians who wish to remain economically active.

 

Fiscal consolidation, better-targeted subsidies and stronger revenue collection remain necessary for long-term sustainability. However, reforms must be carefully sequenced to avoid worsening cost-of-living pressures. If a broader consumption tax is considered, essential goods should remain protected while lower-income and vulnerable households are adequately cushioned.

 

Malaysians should be able to see whether difficult reforms are producing tangible improvements, from shorter hospital waiting times and better schools to stronger household incomes and more reliable public transport. Ultimately, Budget 2027 does not need to be bigger but better targeted, more transparent and more accountable.

 

Economic reform will succeed only when Malaysians experience its benefits through stronger purchasing power, better wages, quality employment and public services that genuinely improve everyday life.

 

Reference:

Budget 2027 should be judged by household outcomes, not headlines, Dr Paul Anthony Maria Das, Focus Malaysia, 25 August 2026

The Ten Things Malaysians Cannot Live Without!

 

There are things that Malaysians may not put on a tourism poster but remove them from our lives and there would be an immediate national complaint.

 

1. Air-conditioning

Malaysia is hot. We know this. Yet every year we behave as though the weather has personally betrayed us. Walk into an air-conditioned shopping centre and watch the transformation. Within seconds, everyone looks happier. The humble air-conditioner may be one of Malaysia’s modern necessities.

 

2. The plastic bag

We are trying to reduce them, and quite rightly. But Malaysians have spent decades perfecting the art of using one plastic bag to carry another plastic bag containing smaller plastic bags. Somewhere in almost every Malaysian kitchen there is a mysterious collection of bags that nobody remembers keeping. Throw them away and, six months later, you will need one. This is the law of Malaysian household physics.

 

Source: https://en.wikipedia.org

 

3. The WhatsApp family group

No Malaysian family is complete without one. Good morning pictures. Religious reminders. Recipes. Health warnings. Fake news. Birthday wishes. Somebody forwarding something from somebody who knows somebody. And then there is the relative who sends a seven-minute video at 6.43am. Nobody asked for it. Everybody watches it.

 

4. The parcel arriving

Online shopping has changed us. There was a time when buying something meant getting into the car, finding parking, walking around a shop and actually speaking to another human being. Now we press a few buttons and wait. For a brief moment, even if we ordered something completely unnecessary, life feels wonderful.

 

5. The favourite parking space

Malaysians will drive around a car park for five minutes to find a parking space that is approximately six metres closer to the entrance. We know it makes little sense. We do it anyway. And when someone pulls into “our” space just before us? That person has committed an offence against the entire nation.

 

6. The five-minute rain

There are few things more Malaysian than leaving the house under a blazing sun and returning in what appears to be the aftermath of a tropical disaster. The rain arrives without invitation. Roads flood. Shoes become swimming pools. Motorcyclists disappear under ponchos. And someone inevitably says: “Good for the plants.” Ten minutes later the sun is back.

 

7. The discount

Tell a Malaysian something costs RM100 and nobody reacts. Tell them it is now RM79.90 and suddenly there is interest. Put the words SALE, PROMOTION or LAST DAY next to it and we become completely different people. We may not need the thing. But we certainly need it at 30 per cent off.

 

8. The familiar shopkeeper

There is something comforting about walking into a shop and hearing: “Usual one?” It means somebody remembers you.

 

In an increasingly digital world of QR codes, apps and automated messages, being recognised by another human being has become surprisingly valuable. The coffee may be ordinary. The relationship isn’t.

 

9. The ability to complain — together

This deserves recognition. Malaysians can turn almost anything into a group discussion.

Traffic? Discuss.

Prices? Discuss.

Weather? Discuss.

Parking? Discuss.

 

But underneath the complaining is something rather endearing. We like sharing experiences. A Malaysian rarely suffers an inconvenience silently when there are three other people nearby who can be invited into the conversation.

 

10. “Never mind, lah.”

Perhaps this is our most important national survival mechanism.

-Plans change.

-The restaurant is full.

-The rain starts.

-The car won’t start.

-Someone is late.

-Something doesn’t work.

 

Eventually comes the Malaysian response: “Never mind, lah.” It does not necessarily mean we are happy. It means we have decided that being angry is probably more exhausting than carrying on. And perhaps that is the real secret of Malaysia. We have learned to live with contradiction. We complain about the heat but complain when it rains. We complain about traffic but still drive everywhere. We complain about prices but hunt for the next promotion. We complain about WhatsApp messages and then send them ourselves. We are an imperfect, slightly chaotic, occasionally exasperating country. But it is our chaos. And perhaps the things we hold dear are not the grand national symbols at all. They are the little everyday rituals that make an ordinary Tuesday in Malaysia feel unmistakably Malaysian. Even if that Tuesday involves sweating, traffic, a WhatsApp video from Auntie and a parcel that we did not need.

 

 

Reference:

The Ten Things Malaysians Secretly Cannot Live Without, The Daily Durian, Newswav,
30 August 2026