Malaysia is now 7.1 percent below the World Bank’s threshold for high-income country status, Deputy Minister in the Prime Minister’s Department (Economy) Akmal Nasrullah Mohd Nasir said, as reported by The Star.
The figure, based on the latest gross national income (GNI) per capita data, brings the country closer to the benchmark than in previous years. The Star noted that the gap has narrowed steadily, though it did not specify the exact GNI figure or the threshold amount.
According to The Sun Malaysia, the country is “closing in” on the status, but the OECD has urged fresh reforms to strengthen fiscal sustainability and boost productivity, The Star also reported. The OECD said Malaysia’s Budi95 fuel subsidy program is a step in the right direction, but that subsidies should be phased out entirely, according to The Edge Malaysia.
Meanwhile, the New Straits Times reported that the government is prioritizing wage growth over reintroducing a goods and services tax (GST). This suggests policymakers are focusing on income-side improvements before considering new consumption taxes.
The narrowing gap is a positive signal, but the OECD’s call for sustained reform highlights the work still needed to secure high-income status permanently.
