Malaysia Economic Monitor, June 2014 : Boosting Trade Competitiveness

World Bank

Bangkok

关键词: ADVANCED ECONOMIES;    ANNUAL GROWTH;    ASSET SALES;    BANK OFFICE;    BANKING SECTOR;   

RP-ID  :  89102

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This economic update provides anoverview for 2013 and early 2014 in Malaysia and an analysisof structural trends in trade competitiveness. The economyovercame a weak start in 2013 to experience GDP growththrough 2014. The improved performance was driven mainly bya recovery in exports, including of the long-ailingelectrical and electronics sector. The outlook remainsfavorable and GDP is expected to continue growing through2015. Growth will be sustained by positive externalconditions, with foreign demand outweighing headwinds indomestic demand. Investment and imports of capital goodswill remain robust as large projects move forward.Medium-term fiscal consolidation remains on track and thedebt-to-GDP ratio has stabilized, but additional spendingmeasures are needed for the Government to meet its 2014deficit target. The central bank has signaled that it mayhave to tighten policy to avoid the build-up of financialimbalances. Labor markets are healthy, and Malaysia hasenjoyed higher employment levels, real wage gains, andhigher labor incomes. External risks to the economic outlookhave receded, but the high share of Malaysia's foreigndebt means it is sensitive to international volatility.Boosting exports to fully leverage the improved externalenvironment will be critical for sustained growth. Thereport's analysis of Malaysia's tradecompetitiveness focuses on its ability to grow exports andthe domestic value-added. Malaysia's exports had beenfaltering since before the Global Financial Crisis. The coreelectrical and electronics sector declined in the 2000s, andMalaysia's domestic value-added is relatively low dueto limited domestic linkages. Exports of services have alsolagged and remain an area of significant potential.Restrictive Government policies play a role in hinderingexport growth, although the Government has recently embarkedon a liberalization of service sectors. Improving domesticvalue-added tasks will require addressing skill gaps.Finally, Malaysia's upcoming chairmanship in ASEANoffers concrete avenues to boost trade competitiveness.