PUTRAJAYA: Malaysia can achieve a high income economy by 2026, if it can maintain a minimum of four to five per cent growth every year.

Economy Minister Rafizi Ramli said he was confident that the country will cross the high income threshold within the tenure of the current administration.

"InsyaAllah, we will definitely cross the high income status within this administration tenure, unless we face another Covid-19 (pandemic), which is out of our expectation," he said in a press conference here today.

He said there were two main factors; economic growth and foreign exchange rate, that could push the country to reach the status of average US$15,200 income.

Firstly, he said the Malaysian economy must report a minimum four to five per cent year-to-year growth until 2025.

Next, he said the strengthening of the Ringgit would expedite the process.

"If we can record higher economic growth, then we could reach the status earlier.

"Similarly, if our currency strengthen in the next one to two years, we can reach the status earlier as well," he said.

He said the country's annual gross domestic product (GDP) for 2022 was at 8.7 per cent.

Services sector reported 10.9 per cent growth, the highest in the country, followed by manufacturing at 8.1 per cent.

Mining and quarrying reported 3.4 per cent growth, construction at five per cent and agriculture at 0.1 per cent.

Despite the high GDP rate last year, he said that quarterly rate has been dipping from 3.8 per cent in first quarter, 3.5 per cent in second quarter, 1.9 per cent in third quarter, and -2.6 per cent in the final quarter.

"The global economic environment that is expected to moderate and grow at a slower rate in 2023 will affect the country's economic performance.

"World economic growth is expected to be slower at a rate of 2.9 per cent in 2023 compared to 3.4 per cent in 2022.

"Therefore, in a situation where global economic growth is expected to be slower in 2023 and quarterly growth has been slow for four consecutive quarters in 2022, the government is aware of the need to prepare for a more challenging economic environment," he added.

https://www.nst.com.my/news/nation/2023/02/880213/rafizi-malaysia-can-become-high-income-nation-2026