2019 OECD ECONOMIC SURVEY OF MALAYSIA Reducing skills imbalances to foster productivity growth Putrajaya, 24 July 2019 http://www.oecd.org/economy/malaysia-economic-snapshot/ @OECDeconomy @OECD
Growth is projected to be resilient, though with downside risks 2017 2018 2019 2020 Real GDP 5.7 4.7 4.7 4.8 Private consumption 6.9 8.0 6.3 6.5 Exports of goods and services 8.7 2.2 0.8 1.6 Imports of goods and services 10.2 1.3 1.6 1.9 Consumer price index 3.7 1.0 1.7 2.1 Federal government fiscal -2.9 -3.7 -3.4 -3.0 balance Current account balance 2.9 2.3 2.2 1.9 Source : OECD calculations. 2
With further reforms, Malaysia could soon become a high-income economy Per capita GDP, relative to the OECD average, computed at 2011 USD PPP OECD = 100 OECD = 100 100 100 Korea 90 90 Malaysia Thailand 80 80 China 70 70 Indonesia Philippines 60 60 Viet Nam 50 50 40 40 30 30 20 20 10 10 0 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Source : World Bank, World Development Indicators database . 3
Public debt scenarios call for fiscal reform % of GDP % of GDP 80 80 Scenario 1. Government consolidation 75 75 Scenario 2. No consolidation Scenario 3. Scenario 2 + contingent liabilities materialising 70 70 Scenario 4. Scenario 3 + growth slowdown 65 65 60 60 55 55 50 50 45 45 40 40 35 35 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source : OECD calculation based on various databases. 4
Malaysia needs to fully implement anti-corruption plans Corruption perceptions index 100 2018 2014 90 80 70 60 50 40 30 20 10 0 Viet Nam Philippines Thailand Indonesia China Malaysia Korea OECD Singapore Source : Transparency International , Corruption Perception Index. 5
Skills imbalances are substantial A. Inadequately educated workforce as B. Qualification mismatch an obstacle Percentage of mismatched workers, 2017 or Per cent latest available year 50 50 45 Under-qualification 45 40 Over-qualification 40 35 35 30 30 25 20 25 15 20 10 15 5 10 0 No obstacle Minor obstacle Moderate Major obstacle Very severe obstacle obstacle 5 0 EU CHL USA CAN MYS MEX TUR Source: World Bank (2015), Enterprise Surveys: Malaysia 2015 - Country profile , The World Bank Group; OECD, Skills for Jobs database. 6
Enrolment in education has been on the rise but quality remains a concern Gross enrolment rates PISA mean score in mathematics, 2012 Per cent 650 110 1990 2017 100 600 90 550 80 500 70 60 450 50 400 40 350 30 300 20 Indonesia Malaysia Thailand Viet Nam Japan Macao-China Korea Chinese Taipei Hong Kong-China Singapore Shanghai-China 10 0 Preprimary Primary Secondary Tertiary Source: World Bank, World Development Indicators database. 7
Few adults participate in training Training provision by employers 2015 or closest data available Per cent Per cent 100 100 Per cent Per cent % of firms offering training 1 100 90 90 % of firms offering training 0.9 90 % of workers offered training 80 80 % of workers offered training 0.8 80 0.7 70 70 70 0.6 60 60 60 0.5 50 0.4 40 50 50 0.3 30 40 40 0.2 20 0.1 10 30 30 0 0 0 0 0 0 0 0 0 20 20 10 10 0 0 Indonesia Thailand Malaysia Viet Nam East Asia & Upper-middle Philippines Pacific income countries Source: World Bank (2015), Enterprise Surveys: Malaysia 2015 - Country Profile , The World Bank Group. 8
Women’s skills are not put to full use Labour force participation rate by gender, 2018/2017 Per cent Per cent Men Women 100 100 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 Total 15- 20- 25- 30- 35- 40- 45- 50- 55- 60- Total 15- 20- 25- 30- 35- 40- 45- 50- 55- 60- 19 24 29 34 39 44 49 54 59 64 19 24 29 34 39 44 49 54 59 64 Malaysia . OECD average Source: Department of Statistics Malaysia, Table A1.1; OECD, Labour Force Statistics database. 9
For more information Disclaimers: The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. http://www.oecd.org/economy/malaysia-economic-snapshot/ OECD Economics OECD 10
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