Topic > High Income Economy in Malaysia - 965

As stated in the New Economic Model (NEM) for Malaysia, the main objective is for Malaysia to become a developed economy that generates high levels of income resulting from growth that is inclusive and sustainable. In short, the government aims to reach $15,000 – $20,000 per capita by 2020. The government also wanted to enable all communities to fully benefit from the country's wealth to promote inclusion. Sustainability refers to the ability to meet current needs without compromising the needs of future generations. High Income Economy According to the World Bank's current definition of high income, the government defines high income as a per capita income of US$15,000 or RM48,000 in 2020, whereby Malaysia's current gross domestic product (GDP) is approximately RM23,700 or USD6,700. For our country to be classified as a high-income economy by 2020, Malaysia must achieve a GDP growth rate of 6% per annum. The government will especially develop the service sector, which will emphasize financial services, business services, tourism, healthcare and so on. For example, the services sector is expected to account for 65% of the economy by 2020, up from the previous 58% in 2010. Meanwhile, domestic demand, which usually accounts for 50 to 70% of GDP, it currently represents 53% and is expected to increase to 59% in 2020. This may be a result of the growth of the service sector and continued urbanization. Increasing domestic demand also indicates that a country is becoming less dependent on exports. As a result of structural changes, Malaysia's economy will decrease its dependence on primary... middle of paper... the government will need to ensure that environmental resources are fully utilized and that all development costs are reduced. taken into consideration before the development process begins. However, this does not mean that natural resources should not be used in the production process. This instead means that as new regulations are implemented, investment decisions should take into account the long-term implications for society, the economy and even the environment. The conventional method for measuring economic growth GDP does not include costs resulting from environmental deterioration. Recent development plans are moving towards a more environmentally friendly concept of economics, which allows for adequate consideration of the implications of growth on the environment and appropriate solutions and procedures to address these environmental concerns..