KUALA LUMPUR: The World Bank has again revised downward its projection for Malaysia’s 2018 gross domestic product (GDP) to 4.7% from 4.9% after taking into account factors such the rigorous rationalisation of expenditure by the government and slowdown in private and public investment.
It had slashed the country’s GDP growth forecast to 4.9% in October from 5.4%.
As for 2019, economist at the World Bank Group Shakira Teh Sharifuddin expects the economic growth to remain flat at 4.7%, with external factors such as current trade tensions and increased volatility in the financial and commodity markets are expected to weigh on the overall economy.
On another note, the World Bank stressed on the need for Malaysia to accelerate the development of its human capital if it wishes to join the ranks of a high income nation.
While Malaysia, which ranked 55 out of 157 countries in the Human Capital Index (HCI), fared well in some areas, there is room for improvement in certain areas, according to the World Bank’s Malaysia Economic Monitor on Realising Human Potential Report launched today.
In terms of education, the 12.2 years spent by Malaysians in school only equates to the 9.1 years learning outcome of school goers in the highest performing system. This leaves a learning gap of 3.1 years.