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Home > Basic info of Malaysia > 2) Economic growth rate, inflation rate, post-Covid19 outlook

Basic info of Malaysia

2) Economic growth rate, inflation rate, post-Covid19 outlook

Below are the economic growth rates and inflation rates for the last eight years.

Year 2014 2015 2016 2017 2018 2019 2020 2021 2022
Growth rate 6.0% 5.0% 4.2% 5.9% 4.9% 4.4% -5.6% 3.1% 8.7%
Inflation rate 3.2% 2.1% 1.8% 3.6% 1.3% 0.7% -1.2% 1.5% 3.38%

The Malaysian economy can be characterized by its stable growth and low inflation.
The unemployment rate has also been stable within 3.5% for the past 15 years.
The unemployment rate reached a maximum of about 5.4% in the middle of 2020, when Covid-19 pandemic started to hit the country but it has shown downward trend and as of 2022, the official unemployment rate is 3.73%.

Another characteristic of Malaysia's economy is its active trade and long-term trade surplus.
The trade surplus has continued from 1996 to 2022, with the surplus in 2019 is about US$ 29.5 Billion.
The main export goods are from manufacturing industries such as electronic / semiconductor products and petrochemical products, crude oil and natural gas, and natural resources such as palm oil and wood. Malaysia is one of the important countries within the global semiconductor supply chain where many global semiconductor companies have set up production factories here.

Almost all Malaysian are multi-lingual ( English, Bahasa Malaysia ) which makes it conducive for foreign companies to invest in Malaysia.

In addition, the Malaysian government's economic policy is characterized by its recent income doubling plan.
Malaysia's GNP per capita is steadily rising to US $ 7,221-> 2013) $ 10,900-> 2019) $ 12,487, and will reach US $ 15,000, which has been a guideline for developed countries, by 2025.
The World Bank also acknowledges that this is achievable.

The Malaysian government is shifting its economic structure to high value-added IT, finance and high-tech semiconductor manufacturing in order to achieve a high-income nation.