Malaysia’s economy minister says the country is now 7.1% below the World Bank’s high-income threshold, but a rival figure from another minister just days earlier tells a different story, one that leaves Malaysia further from the milestone than officials are suggesting.
Economy Minister Akmal Nasrullah Mohd Nasir said the gap had narrowed following 5.8% growth in the second quarter of 2026. He put Malaysia’s gross national income (GNI) per capita for 2025 at RM57,200 (US$13,351) under the World Bank Atlas method, against a threshold of US$14,375.
That figure does not match the one used by the human resources minister three days earlier. He had put GNI per capita at US$12,380, the highest since independence, and described Malaysia as one step from the threshold.
The World Bank’s own published 2025 figure for Malaysia is also US$12,380, which puts the country 16.1% short rather than 7.1%.
Both ministers are describing the same underlying growth trend. The difference between their numbers appears to stem from whether the latest quarter’s growth has been factored into the calculation.
Malaysia has been classified as upper middle income since 1992. High-income status was formally set as a national goal in 2010, with a 2020 deadline that came and went without the target being met.
Reaching the threshold may take longer than the headline figures imply. The bar itself rises by a few percent each year. Writing in The Star, analyst Pankaj C. Kumar calculated that if the threshold grows 3% annually and Malaysia’s GNI per capita grows 5% a year in dollar terms, the country would not cross the line until 2033.
What the label would actually mean
There is also a question of what high-income status would mean for ordinary earners. Median monthly salary in Malaysia stood at RM3,027 as of March 2026, around 36.5% below GNI per capita, a reminder that per capita averages do not reflect what most people actually earn.
Akmal Nasrullah made a similar point at the launch of the OECD Economic Surveys: Malaysia 2026.
“These are encouraging numbers, but crossing that threshold is not an end in itself. What matters is whether growth delivers better wages, more quality jobs and stronger purchasing power for Malaysians.”
He added that inflation remained contained at 1.9% and unemployment stood at 3.0%.
The OECD survey, the fifth of its kind since 2016, identified a related structural problem: 35.6% of tertiary-educated workers in Malaysia remain in jobs below their skill level.
“When 35.6% of tertiary-educated workers remain in jobs below their skill level, we cannot measure success by graduate numbers alone,” Akmal Nasrullah said, adding that education and training must lead to higher-value jobs and wages that reflect workers’ skills.
Under the 13th Malaysia Plan (2026 to 2030), the government plans to align curricula more closely with industry needs and expand technical and vocational training, along with upskilling programmes in semiconductors, artificial intelligence and the digital economy.
Fiscal position and business reforms
The minister also pointed to progress on the federal fiscal deficit, which narrowed from 5.5% of GDP in 2022 to 3.7% in 2025. The government is targeting 3% or lower by 2030 through better-targeted assistance and reduced leakages, while aiming to protect vulnerable groups.
“Fiscal consolidation is not about withdrawing support from the people; it is about ensuring that every ringgit is used more effectively for education, healthcare and infrastructure,” Akmal Nasrullah said.
Separately, the Government Service Efficiency Commitment Act 2025 sets a target of cutting unnecessary regulatory burdens by 25% over three years. Through the Special Task Force to Facilitate Business, known as Pemudah, the Economy Ministry will review high-impact business approvals with clearer service standards and stronger accountability for delays.
Malaysia is maintaining its full-year growth forecast of 4 to 5% for 2026, supported by domestic demand, private investment, exports and technology-intensive sectors including semiconductors and data centres.
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