
contributed whitepaper
about this paper
Malaysia stands at a pivotal crossroads in its journey from a resource-driven economy to a knowledge-based, innovation-led future. Once a beacon of transformation in Southeast Asia, the country has reached upper-middle-income status within a single generation. Yet, it now faces rising internal and external pressures, from intensifying global competition and geopolitical challenges to structural issues like rising debt and income inequality. This whitepaper delves into these complexities, offering a forward-looking narrative on how Malaysia can overcome these hurdles by embracing technological advancements, fostering local talent, and leveraging its unique strengths to seize emerging opportunities in the global economy.
The whitepaper explores Malaysia’s current economic challenges and presents actionable strategies for sustainable growth and resilience. Adopting the TEAM framework (Technology and innovation focused, Ecosystem approach, Asset revitalisation, and Mindset shift), it highlights the importance of transitioning from commodity reliance to a knowledge-driven economy, with a focus on high-value industries like semiconductors, AI, and green technologies. With Malaysia chairing ASEAN in 2025 and positioning itself as a key player in global trade shifts, the country has a critical window to redefine its trajectory. By building a foundation of inclusivity, innovation, and sustainability, Malaysia can forge a future where economic prosperity uplifts all and positions itself as a leader in the modern global economy.
This whitepaper was co-authored by Tan Sri Andrew Sheng, Distinguished Fellow at ICMR; Alea Nasihin, Vice President, Research & Development at ICMR; and Ali Azmi, Research Associate at Georgetown Institute of Open and Advanced Studies.
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