10th. Malaysia Plan 2011-2015 - Prime Minister's Office of Malaysia

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Chart 1-2
performance of private investments, which has fallen
from an average of close to 25% of GDP through
the 1990s to an average of about 10% of GDP over
the past decade. Achieving high-income status
by 2020 requires double digit growth in private
investments, which is ambitious compared to the
estimated growth of only 2% per annum over the
Ninth Plan Period. Over the past decade, Malaysia
also experienced a net outflow of capital—both in
terms of financial and human capital.
The issue of talent is critical given it is the most
important ingredient in Malaysia’s strategy to
become a high-income, knowledge intensive and
innovation-led economy. Intertwined with human
capital is the issue of productivity. Malaysia’s
labour productivity growth is falling behind. More
significantly, productivity levels are significantly
below that of high-income Asian economies, as
shown in Chart 1-3.
Malaysia’s transformation since independence,
from a poor country to an upper middle-income
country was, in itself, a noteworthy success