Malaysia at A Crossroads: Diagnosing the Constraints to High-Income Status

Product Code: 9789671467701
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  • 2017. ISBN 9789671467701
  • (soft cover). 194 pages
  • Noor Azlan Ghazali, Mpumelelo Nxumalo & Jared Glanz-Berger

This book should encourage a broader public dialogue and alignment on policy priorities. It is if our interest that this should lead to new policies that will lift the nation’s competitiveness, efficiency and productivity.

Datuk Muhammad bin Ibrahim

Governor, Bank Negara Malaysia


The Growth Diagnostics tool is a radical departure to existing approach because it treats various determinants to economic growth as complements rather than substitutes. This is a very important insight, and its far reaching implications on the diagnosis of the impediments to growth and policy solutions are clearly demonstrated in the case of the Malaysian economy. Despite the novel approach, I find the ideas, analyses and arguments presented in the book to be accessible to a broad spectrum of readers.


Prof Dr Nor Ghani Md Nor

Universiti Kebangsaan Malaysia


The key contributions of this book are two-folds; one it argues critically but constructively on key constraints to achieve sustainable and inclusive economic growth, and two, it provides implementable policy solutions, drawing from other countries experiences in addressing those challenges. The latter is imperative to maintain social cohesion and unity in this multi-ethnic country. Undoubtedly, a must read for policymakers.


Dr Muhammed Abdul Khalid



The Growth Diagnostics framework identifies human capital as a major constraint to productivity and investment. The productivity constraint may not only be associated with lack of human capital but could be also attributed to policies which do not facilitate reallocation of scarce resources to the most productive firms. Overall, the recommendation to revive the manufacturing sector as the key engine of growth should be made with a caveat that, investments should be in areas which generates large productivity spillovers.


Dr Lay Lian Chuah

World Bank Malaysia


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