2019 OECD ECONOMIC SURVEY OF MALAYSIA Reducing skills imbalances to - - PowerPoint PPT Presentation

2019 OECD ECONOMIC SURVEY OF MALAYSIA

Reducing skills imbalances to foster productivity growth Putrajaya, 24 July 2019

@OECD @OECDeconomy

http://www.oecd.org/economy/malaysia-economic-snapshot/

2017 2018 2019 2020 Real GDP 5.7 4.7 4.7 4.8 Private consumption 6.9 8.0 6.3 6.5 Exports of goods and services 8.7 2.2 0.8 1.6 Imports of goods and services 10.2 1.3 1.6 1.9 Consumer price index 3.7 1.0 1.7 2.1 Federal government fiscal balance

• 2.9
• 3.7
• 3.4
• 3.0

Current account balance 2.9 2.3 2.2 1.9

2

Growth is projected to be resilient, though with downside risks

Source: OECD calculations.

3

With further reforms, Malaysia could soon become a high-income economy

Per capita GDP, relative to the OECD average, computed at 2011 USD PPP

Source: World Bank, World Development Indicators database.

10 20 30 40 50 60 70 80 90 100 10 20 30 40 50 60 70 80 90 100 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 OECD = 100 OECD = 100 Korea Malaysia Thailand China Indonesia Philippines Viet Nam

4

Public debt scenarios call for fiscal reform

35 40 45 50 55 60 65 70 75 80 35 40 45 50 55 60 65 70 75 80 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 % of GDP % of GDP Scenario 1. Government consolidation Scenario 2. No consolidation Scenario 3. Scenario 2 + contingent liabilities materialising Scenario 4. Scenario 3 + growth slowdown

Source: OECD calculation based on various databases.

5

Malaysia needs to fully implement anti-corruption plans

Source: Transparency International, Corruption Perception Index.

10 20 30 40 50 60 70 80 90 100 Viet Nam Philippines Thailand Indonesia China Malaysia Korea OECD Singapore

Corruption perceptions index

2018 2014

6

Skills imbalances are substantial

5 10 15 20 25 30 35 40 45 50 No obstacle Minor obstacle Moderate

• bstacle

Major obstacle Very severe

• bstacle

Per cent

• A. Inadequately educated workforce as

an obstacle

5 10 15 20 25 30 35 40 45 50 EU CHL USA CAN MYS MEX TUR

• B. Qualification mismatch

Percentage of mismatched workers, 2017 or latest available year

Under-qualification Over-qualification

Source: World Bank (2015), Enterprise Surveys: Malaysia 2015 - Country profile, The World Bank Group; OECD, Skills for Jobs database.

7

Enrolment in education has been on the rise but quality remains a concern

10 20 30 40 50 60 70 80 90 100 110 Preprimary Primary Secondary Tertiary Per cent 1990 2017

Gross enrolment rates

Source: World Bank, World Development Indicators database.

300 350 400 450 500 550 600 650 Indonesia Malaysia Thailand Viet Nam Japan Macao-China Korea Chinese Taipei Hong Kong-China Singapore Shanghai-China

PISA mean score in mathematics, 2012

8

Few adults participate in training

10 20 30 40 50 60 70 80 90 100 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Per cent Per cent % of firms offering training % of workers offered training

10 20 30 40 50 60 70 80 90 100 10 20 30 40 50 60 70 80 90 100 Indonesia Thailand Malaysia Viet Nam East Asia & Pacific Upper-middle income countries Philippines Per cent Per cent % of firms offering training % of workers offered training

Training provision by employers

2015 or closest data available Source: World Bank (2015), Enterprise Surveys: Malaysia 2015 - Country Profile, The World Bank Group.

9

Women’s skills are not put to full use

10 20 30 40 50 60 70 80 90 100 10 20 30 40 50 60 70 80 90 100 Total 15- 19 20- 24 25- 29 30- 34 35- 39 40- 44 45- 49 50- 54 55- 59 60- 64 Total 15- 19 20- 24 25- 29 30- 34 35- 39 40- 44 45- 49 50- 54 55- 59 60- 64 Malaysia . OECD average Per cent Per cent Men Women

Labour force participation rate by gender, 2018/2017

Source: Department of Statistics Malaysia, Table A1.1; OECD, Labour Force Statistics database.

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For more information

http://www.oecd.org/economy/malaysia-economic-snapshot/

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