QR Code Link : Type : Newspaper Clipping Main Author : Faiqah Kamaruddin Title : Malaysia's growth model may be losing momentum

Place of Production : Pekan Faculty : New Straits Times Year of Publication : December 18, 2025 HTTP Link : Click to view web link JPG Related Image : Click to view Image file

Full Text :

KUALA LUMPUR: Malaysia's economic success since independence, which lifted millions out of poverty and transformed society, may be losing steam as the country moves into its next phase of development, a new academic study said. A chapter published by Oxford University Press said the development model that helped Malaysia grow rapidly in its early years may now be reaching its limits.   The chapter, titled Fragmented Personalistic Capitalism in Malaysia, appears in the book Southeast Asia's Development: Towards Liberal Individualism and Inclusive Governance. The 40-page Chapter 3 is written by Dr Carmelo Ferlito, chief executive officer of the Center for Market Education, together with Benedict Weerasena and Imran Shamsunahar. Malaysia has evolved from a commodity-based economy, where primary goods made up almost 80 per cent of exports in 1960, into a diversified upper-middle-income country. However, several long-standing challenges remain, the study said.   These include continued reliance on foreign investment, limited growth of local entrepreneurs, the strong presence of government-linked companies, and ongoing weaknesses in skills and education. The authors said these issues are not only economic in nature, as political and institutional factors also shape how quickly reforms can take place, making change slow and complicated. They said weaker productivity growth and limited innovation are linked to the way Malaysia's economy is organised, where business activity often depends on personal connections and close networks.   While this system helped provide stability in the past, the study said it may now be holding back competition, business expansion and the move into higher-value industries. To address these issues, the authors called for gradual reforms, including stronger industry consolidation, more open and competitive markets, and deeper integration with global trade.

This material may be protected under Copyright Act which governs the making of photocopies or reproductions of copyrighted materials. You may use the digitized material for private study, scholarship, or research.

Back to previous page

Installed and configured by Perpustakaan Universiti Malaysia Pahang Al-Sultan Abdullah
If you have enquiries with this repository, kindly contact us at umplibrary@ump.edu.my or +609 431 5035