MALAYSIA will look towards new industries and further diversification of its economy in its bid to become a high-income economy, the government said.

“We need a focused shift towards new industries. In particular, we must adapt to the global technology landscape and establish ourselves as experts in the application of breakthroughs in innovation and technology that will increase our productivity,” said Economic Affairs Minister Mohamed Azmin Ali today.

He said Malaysia must also reverse the drop in electrical and electronics exports, which used to make up 60% of the country’s output in the early 2000s to 40% in 2017.

“Commodities had risen from about 13% of exports to 20% in 2017,” said Azmin at the opening of the Khazanah Bhd Mega Trends Forum in Kuala Lumpur today.

 The second approach, said Azmin, was to diversify the economy via exports by being at the forefront of technology.

Malaysia’s per capita gross domestic product has fallen to US$9,944 in 2017 from a peak of US$11,183 in 2014.

He noted that the 1Malaysia Development Bhd scandal and the government debt of RM1 trillion, or debt-to-GDP ratio of 80%, have forced the new government to reprioritise high-cost projects, such as the High Speed Rail and East Coast Rail Link projects.

While more fiscal discipline was necessary, it also depressed growth, he added.

Azmin said the government will table the Mid-Term Review of the 11th Malaysia Plan in Parliament next week.

“Development challenges will be identified and steps to tackle them will be proposed.” – October 8, 2018.