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This special issue is devoted to building a more resilient and balanced economy by understanding developmental factors and challenges, and deriving policy lessons for Malaysia. Though the country has advanced economically over the years, its risks to outlook remain, originating from domestic and external sources. To increase its resilience and unlock further growth potentials, institutional quality, human capital and technological endeavours are vital. The slowdown of the manufacturing sector with the reduction in its net export surplus, is an indication of the stalling of industrial expansion in the country. Additionally, Malaysia is running the risk of balancing growth. The 2017 World Happiness Report showed that Malaysia’s average happiness score for 2014-2016 had declined compared with 2005-2007. Further, being a small and open economy that is well integrated into the world economy, Malaysia is also vulnerable to external economic shocks, the sword of protectionism hanging over global trade, and disruptive capital outflows. Specifically, the low commodity prices, weakening ringgit and rising non-tariff measures (NTMs) are some of the challenges that could eventually moderate growth.
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