Malaysia

The Malaysian economy has shown resilience and continues to perform well. A peaceful political transition following the May 2018 elections demonstrated the strength of Malaysia’s institutions. Although vulnerabilities exist, capital outflows have been manageable. The new government has launched multiple initiatives to address governance weaknesses and corruption. Policy priorities are governance reforms and fiscal consolidation while safeguarding growth and financial stability. Structural reforms are needed to boost productivity and help further rebalancing growth towards domestic demand.