Malaysia’s middle-income squeeze stems not just from rising costs, but from deep-rooted inefficiencies and corruption that drain the economy of growth potential, says Emir Research founder Dr Rais Hussin. Wage stagnation, rising debt, and falling savings reflect a political economy that fails to deliver high-value jobs or fair returns on public investment.
Msia Economy Needs Reform
Billions are lost through leakages and opaque procurement, while industrial complexity remains low. Rais warns that without reform—transparent spending, anti-corruption enforcement, and strategic investment—Malaysia cannot escape the middle-income trap. The squeeze is more than numbers; it’s a decline in financial resilience, upward mobility, and public trust.
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