THE nation’s economic future depends not merely on generating employment but on creating better, higher-quality jobs that can sustain inclusive growth, according to Dr Apurva Sanghi, the World Bank’s lead economist for the country.
Addressing the Malaysian MADANI Scholars Forum Series 9 on “Driving Malaysia’s Economy: The Role of the Financial Sector and Structural Reforms in Facing Global Geopolitical Uncertainty,” Sanghi argued that the nation’s primary challenge has shifted.
The issue is no longer the sheer availability of jobs, but whether those jobs can deliver meaningful wages, high-value skills, and long-term career prospects.
“The question is how Malaysia can move from ‘jobs’ to ‘better jobs’. Part of the answer lies in skills, but that alone is not enough without businesses capable of offering high-quality employment,” he said.
The forum, moderated by Prime Minister Datuk Seri Anwar Ibrahim, also featured Finance Minister II Datuk Seri Amir Hamzah Azizan and Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour.
Sanghi highlighted that Malaysia benefits from a stable macroeconomic framework, low inflation, and well-coordinated fiscal and monetary policies between the government and central bank.
“This is not accidental but the result of long-standing structural reforms. Policy alignment between the government and the central bank is a major strength for Malaysia,” he explained.
Yet he cautioned that improving workforce skills alone will not suffice unless the private sector evolves to create demand for high-skilled positions.
Many local firms, he noted, face limited competition and lack sufficient incentives to invest in knowledge-intensive, high-value activities.
“The key issue is why not many Malaysian companies offer high-income, knowledge-intensive jobs. This is closely linked to market structure and competition levels,” he said, stressing that barriers to business entry, expansion, and exit stifle innovation and constrain job quality.
“Companies in Malaysia face difficulties entering the market, growing, and exiting, all of which increases costs and hinders innovation,” Sanghi added.
He also observed that Malaysia’s engagement in international markets remains modest compared with regional peers, partly because trade procedures are cumbersome and slow.
Sanghi further noted that entrepreneurship in Malaysia lags behind comparable nations, even though the talent and innovative potential of individuals is high.
“Malaysia does not lack talent, but the ecosystem supporting innovation is not yet robust enough,” he said, citing weaknesses in access to long-term financing, tolerance for failure, and research and development investment.
Sanghi argued that a holistic structural reform agenda is crucial to stimulate private sector growth, drive innovation, and generate more high-quality, knowledge-driven employment.
“If we truly want better jobs, we need not only a more skilled workforce but also firms with reasons to offer higher-quality employment,” he stated.
This opinion underscores the view that Malaysia’s economic sustainability relies as much on business and market reforms as on workforce development, suggesting that policy focus must shift from quantity to quality in employment strategies. - April 1, 2026
