Nation’s high-income ambitions aim for inclusive growth across all communities

IN the Dewan Rakyat today, questions were raised over Malaysia’s drive to achieve high-income nation status before 2030, with concerns that persistent income inequality could undermine the goal of shared prosperity.

Tan Kok Wai (Cheras) asked the Minister of Economy to outline systematic policies that would ensure the country’s transition to high-income status delivers broad and inclusive benefits to all segments of Malaysian society.

In response, the Economy Minister Akmal Nasrullah Mohd Nasir highlighted that Malaysia’s Gross National Income (GNI) per capita — used by the World Bank to classify national income — stood at RM57,070 in 2025, approaching the high-income threshold of roughly RM60,000 (US$13,935) set for 2024.

The Minister emphasised that achieving high-income status is not solely about numerical targets.

“The measurement requires a broader approach, including the quality of growth, creation of skilled jobs, household income improvements, and the effectiveness of policies in reducing disparities between regions and vulnerable groups,” he said.

He explained that the government’s comprehensive approach under the MADANI Economy framework and the 13th Malaysia Plan (RMK13) is intended to address structural economic challenges and deliver sustainable growth.

The strategy prioritises enhancing productivity and economic diversification through high-value Malaysian-made products, with a focus on high-growth, high-value (HGHV) industries and strategic sectors such as artificial intelligence, semiconductor reform, and clean energy transition.

Labour market reforms will continue, the Minister added, including periodic reviews of minimum wages aligned with a living wage concept and the implementation of a Progressive Wage Policy.

“This is essential to ensure workers earn sufficient income to meet real living costs and improve quality of life alongside national income growth,” he said.

Education reforms are also central to the government’s strategy. Strengthening science, technology, engineering and mathematics (STEM) education, along with improving technical and vocational education and training (TVET) ecosystems, is intended to equip Malaysia’s workforce with competitive technical skills aligned with industry needs.

These measures are expected to close skills gaps and secure better, more dignified income opportunities for citizens.

The Minister further underscored government efforts to enhance overall well-being through integrated development across multiple dimensions, improving social mobility through measures that address living costs, poverty, inequality, and social protection over the short, medium, and long term.

Focus areas include education, healthcare, housing, quality employment, and household income growth.

“Taking into account a comprehensive approach through multiple priorities, strategies, and initiatives under RMK13, the government is confident that the high-income status to be achieved by the end of the plan’s implementation will provide broad benefits to all layers of Malaysian society,” he added.

The exchange in Parliament reflects a growing focus on ensuring that Malaysia’s economic ambitions translate into tangible, inclusive improvements in the lives of all citizens, rather than solely raising macroeconomic indicators. - February 24, 2026