Malaysia's Per Capita Income Expected To Rise By One-Third By 2020

KUALA LUMPUR, March 8 (Bernama) -- Malaysia's per capita income is expected to increase by one third by 2020 on the back of its strong growth rates, says the Institute of Chartered Accountants in England and Wales (ICAEW). In its latest "Economic Insight: South East Asia", a quarterly publication by its economic partner, Centre for Economics and Business Research (Cebr), it said Malaysia's Gross Domestic Product (GDP) growth in 2013 and 2014 is expected to be healthy, with rising output supported by a thriving service sector and strong export earnings. However, Malaysia which is largely export-dependent, will likely be affected by continual weakness in the global economy through 2012, it said. For this year, it said Malaysia's GDP growth is estimated at 3.8 per cent due to the effects of falling commodity prices and a challenging global environment for the country's important electronics sector. The report also said GDP per capita rates across South East Asia are expected to grow over the course of the present decade. However, it said there could be wide discrepancies in living standards between Asean nations with the difference in annual GDP per capita between US$42,000 and US$54,000. It said high population growth in Malaysia, as well as, the Philippines may hinder higher per capita income growth rates. "Lower income economies, such as Laos, Cambodia and Vietnam, are expected to attain two thirds growth in GDP per capita by the end of the decade, with Vietnam achieving a similar per capita income level in 2020 as the Philippines now. "Asean nations will continue to do well by international standards, as investment and domestic consumption continue to fuel growth," said Douglas McWilliams, ICAEW chief economic advisor and chief executive of Cebr. -- BERNAMA