OECD ECONOMIC SURVEYS : malaysia 2021.

Description

Foreword Basic statistics of Malaysia, 2019 Executive summary COVID-19 suddenly disrupted Malaysia’s ascending development Macroeconomic policy should remain supportive The recovery needs to be more inclusive and greener Stimulating business dynamism is necessary for a strong recovery 1 Key policy insights The post-pandemic recovery needs to be more inclusive and sustainable A strong economic recovery needs supportive macroeconomic policies Strong and inclusive growth was suddenly interrupted Policy reactions were prompt when the pandemic struck Monetary policy should remain accommodative Financial stability has prevailed, but risks remain Fiscal policy should remain supportive Anti-corruption remains a priority The pandemic-hit labour market calls for more social protection A decade-long inclusive progress before the pandemic is being challenged Encompassing the self-employed would make social protection more inclusive of women Youth and less-educated people have been more affected by the pandemic Foreign workers account for a significant share in Malaysia’s labour market Malaysia needs to lower carbon emissions A more ambitious target is pertinent and achievable Renewable energy can be further promoted in tandem with market liberalisation Conserving forests pays off Better solid waste management is utmost urgent References Annex 1.A. Follow-up to past recommendations 2 Unleashing business dynamism for the post-COVID19 recovery Malaysia needs to re-boost its productivity growth once again Improving the business climate is crucial for the post-pandemic recovery Malaysia has strived to improve its business climate for years The ease of starting a new business has improved, but is still burdensome Further streamlining registration procedures can enhance Malaysia’s strong performance Simplifying licenses and permits could significantly reduce the burden on new start ups Improving the insolvency framework can also help improve business dynamism Reducing regulatory complexity can support competition and boost business dynamism Regulatory management reforms have been well advanced for the past decade Ensuring public consultation on new regulations can promote better regulatory outcomes Measures to reduce the burden of new and existing regulations could be strengthened Foreign investment needs to be stimulated further to boost post-pandemic recovery Regulatory barriers inhibit competition in some key sectors Reforming Malaysia’s transport sectors may help improve logistics Lowering restrictions in professional services is crucial to transition to services-driven growth Reducing restrictions in the retail can support the growth of Malaysia’s SMEs The pandemic calls for accelerating digitalisation Few SMEs are digitalised, but they are more productive Greater openness of digital trade would benefit SMEs Stimulating private sector dynamism is crucial for better network services Online platforms continue to be an important avenue to SMEs’ digitalisation Preventing the widening gaps is utmost important The pandemic has accelerated the transition to new forms of working Demand for higher skills will further intensify after the pandemic Preparing a better working environment is crucial – lessons from forced teleworking Preparing enabling conditions for teleworking is important after the pandemic Female workers could benefit more from teleworking References Annex 2.A. Demand fluctuation and productivity