As dawn approaches,
Cries of jubilation,
Echoed throughout.
As Malaysians await,
The founding of the country,
To be celebrated.

Sometimes, I wonder to myself. Which one is the real independence in Malaysia? 31 August or 16 September? For many in West Malaysia, 31 August seems like the bigger occasion. For those in Sabah and Sarawak, Malaysia Day matters more.

But I realized at the end of the day, it doesn’t matter because … they are holidays! Haha, I think that’s the humour I always tell myself instead of thinking too much about it.

Anyway, Happy 60^th birthday, Malaysia! You have changed a lot since then and I figure it will be best to highlight what has changed.

Furthermore, holding a crystal ball, I detail what my view is for Malaysia moving forward!

Malaysia Transitioned from a Commodity-based Economy to a Near High-Income Nation

Have you heard of the Dutch Disease? You see, the Netherlands was an economy that discovered a lot of oil and that’s how Shell came into existence. Most of the industries developed around oil & gas to the point that other industries were neglected. Hence, that’s how the Dutch Disease was coined.

Back in the first half of the 1900s, Malaysia was predominantly a commodity-based economy. The British encouraged the widespread planting of rubber and subsequently the mining of tin. Most of the companies were established based on these key economic activities.

In 1960, agriculture accounted for 43.7% of Malaysia’s gross domestic product (GDP). That percentage has since declined to 8.9% in 2022.

In its place, both services and manufacturing sectors rose to replace these commodity-based sectors. Services in particular grew in significance to 51% in 2022, while manufacturing make up about 30%.

Since 1960, Malaysia’s economy has grown by an average of 6.1% every year, pushing Malaysia into the territory of a high-income nation. Malaysia currently has a gross national income per capita of US$12,000, just slightly off the World Bank standard of US$13,200.

Healthcare and Education Are Widely Available, and Poverty Declined Significantly

Healthcare and education are two of the most important things for Malaysians to function in society. Life expectancy has risen from only 57 years old in 1960 to 75 in 2021. Meanwhile, the mortality rate (the rate at which babies pass away) has significantly declined from 68 per 1,000 in 1960 to only 7 per 1000 in 2021.

On the education front, the secondary school enrollment rate has risen to 72% in 2018 from 37% in 1970, paving the way for an educated workforce.

This was all made possible with the policy to provide public education and healthcare. Of course, there is still a general distrust towards public services with criticisms such as low quality and overcrowdedness being valid. However, they are widely available to all Malaysians.

Because of the achievements from these two main fields, the poverty rate has also declined considerably from about 50% in 1970 to 6.2% in 2022. Education enables Malaysians to get higher-paying jobs and pay for the whole family while healthcare enables them to be healthy and live longer.

A Healthy Two-Party Political System

A system with no checks and balances relies on the benevolence of Big Brother. And absolute power corrupts absolutely. 2018 represented the year when Malaysia broke free of the one-party rule spanning from independence.

The Barisan Nasional hegemony was broken surprisingly by Tun Mahathir – once the leader of that same party. Now, we have Anwar as the prime minister and we finally have a two-party system keeping each other in check.

Why is this important? The dominance of one party for long periods inevitably leads to politicians erecting policies that favor them without opposition from the common people. Having another party to contend with, increases the likelihood that politicians need to serve the people.

When one party is not serving the people, they can elect another party. And this cycle will repeat until the power lies back in the ordinary Malaysians’ hands.

A Sustainability-Focused Economy Will Emerge Moving Forward

Environment, Social and Governance (ESG) are all the craze these days. But what do they mean? You see, as people get more and more aware of the impact of their actions and also larger policies in general, there is a need to ensure that the successive generation of humans survives and thrives.

How does Malaysia fit into this? Malaysia is one of the countries that have committed to the net zero carbon emission target by 2050. I think we will be able to achieve that given that we can replace our primary energy source with electricity through hydroelectric and solar.

Right now, our energy mix is dominantly being generated by fossil fuels such as natural gas, coal, and oil. Tenaga Nasional already has plans to bring in more hydropower and solar energy. However, this might prove to be hard considering that Malaysia still relies on and exports a lot of crude oil and natural gas.

Remember that Dutch Disease? Malaysia might have that problem if it is addicted to the revenue from the exports of fossil fuels and neglects the development of renewable energy.

Conclusion

Much has changed since 1963. Malaysia has grown to become an almost high-income nation, and widely available healthcare and education services. While things are not perfect, let’s take a moment to appreciate how far Malaysia has come.

Happy Birthday, Malaysia!