The World Bank's lead economist for Malaysia, Apurva Sanghi, highlighted that Malaysia's remarkable success in lifting over 14 million people out of poverty is often overlooked, reducing the poverty rate from about 50% a decade after independence to just 6 in 100 today.
Malaysia has transformed its economy from simple commodity exports that comprised 95% of trade in the early 1960s to complex goods requiring advanced skills and technology, which now represent 70% of exports, significantly raising living standards across the nation.
According to Sanghi, Malaysia's GDP per capita now stands 3.6 times higher than the Philippines and nine times higher than Zambia, despite all three countries starting at similar economic positions around their independence periods.
The World Bank economist emphasized that Malaysia successfully achieved this poverty reduction without creating permanent slums, a challenge many developing nations face, and has quietly become a global leader in the halal economy beyond food, including cosmetics, logistics, tourism, and pharmaceuticals.
Sanghi noted that Malaysian certification and standards now set global benchmarks, demonstrating how the country has diversified its economy and escaped the resource curse that often traps commodity-dependent nations.
