The short answer is No! With GDP expanding at 4% to 5% (at best) for this
year and next, per capita income will fall short of a high income nation.
The Government’s estimate for per capita income in 2020 is USD11,700. The
threshold by the World Bank is USD12,235. So much for transformation programmes
under Pemandu. A key weakness of the Malaysian economy is the low R&D
level. Israel and South Korea spend 4% of their GDP. Japan, Finland, Austria,
Sweden, Switzerland and Denmark spend more than 3%. And Malaysia spends 1.3% of
its GDP. If it is 4% of GDP, then we need to allocate USD14 billion for
R&D. And that could be in sectors we have a comparative advantage i.e.
resource based industries.
So when can we be a high-income nation? Probably 2024 and that depends on
a whole gamut of factors.
What about being a fully developed country? Well, that takes a lot more
effort – including meritocracy, being ethical, inclusive, just, progressive,
caring and competitive. We are not there yet – maybe high-income and
progressive reduction in inequality is a more achievable target for now.
References:
1. Cover
Story: Two years to 2020: High-income or developed nation? Edge Weekly, Kamarul
Azhar/The Edge Malaysia, January 11, 2018.
2. Malaysia
to achieve high-income status by 2024, P Prem Kumar & Alifah Zainuddin,
Malaysian Reserve.
Pic source: World Of Buzz
No comments:
Post a Comment