Malaysia could become high-income nation by 2029 as tech drives exports, says deputy minister

GEORGE TOWN, Aug 14 — Malaysia has the potential to reach high-income nation status within the next two to three years, according to Deputy Investment, Trade and Industry Minister Sim Tze Tzin. The country is currently classified as upper middle-income, but recent economic developments, such as trade performance, suggest a positive trajectory.

In the first half of 2026, Malaysia's trade increased by 22.4 per cent, reaching RM1.79 trillion. Exports grew by 27.5 per cent to RM971.6 billion, while imports totaled RM824.44 billion, resulting in a trade surplus of RM147.15 billion. Sim, also a member of Parliament for Bayan Baru, noted that trade in June hit RM340.88 billion, the highest monthly figure ever recorded.

Over half of Malaysia's exports in the first six months of this year comprised technology-based products, with electrical and electronic (E&E) products accounting for 42.5 per cent and machinery and equipment making up 12.6 per cent. This shift towards a technological economy, with E&E, machines, and high-tech products representing more than half of total exports, is a significant accomplishment for Malaysia.

Sim emphasized that the progress should inspire Malaysians to maintain their patriotic spirit and unity to further accelerate the country's development. He highlighted that in the seven decades since independence, Malaysia has undergone a major transformation from an economy reliant on traditional sectors to one with growing technological capabilities.