KUALA LUMPUR: The World Bank has again revised downward this year's forecast for Malaysia’s economic growth to 4.7 per cent from 4.9 per cent after factoring in rigorous cuts in government spending and slowdown in private and public investment.
"The outlook for the Malaysian economy remains resilient in the near term despite considerable external and domestic headwinds,” said World Bank country director for Brunei, Malaysia, the Philippines and Thailand Dr Mara Warwick.
She stressed on the need for the country to accelerate the development of its human capital so as to join the ranks of a high income nation.
Human capital development means more attention into the health and education of the average Malaysian.
Two months ago, prior to Malaysia’s Finance Minister Lim Guan Eng tabling Budget 2019 in Parliament, World Bank had slashed the country’s economic growth forecast to 4.9 per cent from a higher forecast of 5.4 per cent.
As for 2019, World Bank economist Shakira Teh Sharifuddin foresees the economic growth to remain flat at 4.7 per cent, as current trade tensions, possible recession in the US economy and increased volatility in the financial and commodity markets are expected to weigh on Malaysia's overall economy.
Today, the World Bank’s Malaysia Economic Monitor on Realising Human Potential Report, ranked Malaysia 55 out of 157 countries in the Human Capital Index (HCI), fared well in child and adult survival.
The report, however, pointed out 20 per cent of children under five years old is malnourished. “This rate in Malaysia is higher than that of other countries at similar levels of income.
“We formulated our findings based on the information gathered in Malaysia's Health Ministry 2016 Morbidity Survey,” said World Bank programme leader Dr Gabriel Demombynes.
On the topic of education, he noted the 12.2 years spent by Malaysians in school only equates to the 9.1 years learning outcome of school goers in the highest performing system. This leaves a learning gap of 3.1 years.
“There's a need to improve on the learning assessment systems in the schools, which would then yield better learning outcomes,” he said.
In conclusion, World Bank recommended the Malaysian government to prioritise improvement in child nutrition, enhance learning and continued social welfare programme such as the ‘Bantuan Sara Hidup’ cash aid for low income earners.