A new report suggests that Malaysia’s nominal GDP per capita could surpass Japan’s within the next decade if current growth trends persist.
Malaysia’s GDP per capita growth
According to a report by Business Insider, Malaysia’s economic growth has shown remarkable strength in recent years, positioning the country closer to surpassing Japan’s nominal GDP per capita.
The report claims Malaysia’s nominal GDP per capita has seen significant improvements, largely due to consistent economic expansions across sectors like technology, manufacturing, and services.
It further highlights that Malaysia, which has been steadily increasing its per capita income, could be within striking distance of Japan by 2035.
As of 2024, Malaysia’s GDP per capita is comparable to Taiwan’s figures from around 2012, with projections showing that Malaysia might narrow the gap with Japan within the next 10 years if the current pace of economic growth continues.
Japan’s economic challenges
On the other hand, Japan, once a leader in Asia’s economic landscape, is facing economic stagnation and aging demographic concerns, factors that have hampered its growth rate.
In contrast, Malaysia’s growth is supported by its youthful population, burgeoning tech industry, and significant foreign direct investment (FDI).
Experts suggest that while Malaysia is still behind Japan in overall GDP, the rate at which it is growing could push it ahead of Japan’s GDP per capita in the coming years.
The current economic gap between the two countries, especially in terms of GDP per capita, may continue to narrow as Malaysia continues its industrial and digital transformation.
Government focus on economic growth
Malaysia’s government has placed significant emphasis on increasing its GDP per capita through investments in digital transformation, green technologies, and enhancing its labor force.
As Malaysia progresses with these reforms and increases its share of global FDI, its economic trajectory may allow it to surpass Japan, making it a significant player in Asia’s economic future.
Future outlook
Given Malaysia’s strategic investments and its favorable economic indicators, experts are optimistic that the country will continue to build on its economic momentum.
While Japan remains a large economy with its advanced infrastructure and global influence, Malaysia’s emerging economy and youthful demographic position it for faster growth in the future.
If Malaysia continues at its current growth pace, surpassing Japan’s GDP per capita by 2035 is increasingly likely,” it wrote.
The country’s dynamic economic policies and growth strategies will be key to realizing this ambitious goal.
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