By 2020 Malaysia will not only have the GNI per capita of a high-income economy, it will also have a number of the key characteristics of a high-income economy.
Specifically, the structure of the Malaysian economy will have changed significantly:
Services will account for a much greater share of the economy
By 2020, services will account for 65 percent of GDP, up from 58 percent in 2010;
Domestic consumption will be a key driver of growth
Domestic private-consumption will account for 59 percent of GDP by 2020, compared to 54 percent in 2009, bringing Malaysia in line with developed economies like Taiwan and New Zealand;
A more balanced economy will deliver more sustainable growth
Through the ETP, the structure of the economy will become more balanced with less dependence on resource-intensive industries such as oil and gas; and
Malaysia will become a more urbanised country
The share of the population living in urban areas will grow from 64 percent to 70 percent and much of this growth will be concentrated in Greater Kuala Lumpur/Klang Valley.
While Greater Kuala Lumpur/Klang Valley will be a primary engine of economic growth, there will also be growth opportunities elsewhere in the country such as the development of the solar industry in Sarawak, the development of a global biodiversity hub to attract more tourists to Sabah and the commercialisation of paddy farming and improvements in palm oil yields. In fact, every state and federal territory in Malaysia will be touched by the EPPs, as shown in Exhibit 2.
"As the structure of the economy changes, so will the profile of the business sector"
Malaysia will have grown a number of new national and regional champions by 2020. These companies will drive long-term growth in areas including financial services, business services and healthcare. In addition, SMEs will play a more significant role across the economy. For instance, in education, agriculture and electronics and electrical, SME participation will be actively encouraged through financial support, better access to research and technologies and improving infrastructure.