KUALA LUMPUR, Oct 11  -- The formulation of action plans to achieve the objectives of the Shared Prosperity Vision 2030 (WKB2030) requires an understanding of how the world and Malaysia would look like in 2030.

In the Economic Outlook report, the Ministry of Finance said the country has to be mindful of other factors shaping its future as the world is undergoing a transformation in terms of population growth, demand for natural resources, globalisation trend and climate change. 

It noted that the world is in the middle of a dramatic transition, and the most critical transformation was the shift in both economic and political power, hence an understanding of the global population and emerging trends. 

Although 2030 is 11 years away, clear megatrends are shaping the world, presenting both challenges and opportunities. 

The current global economy is facing a confluence of risks, including an escalation of trade disputes, an abrupt tightening of global financial conditions and intensifying climate risks, which could disrupt economic activities and jeopardise long-term development prospects, said the report. 

WKB2030 sets a new economic direction to ensure prosperity for all Malaysians and aims for sustainable development with equitable distribution, inclusive at every level of the supply chain, ethnicity and region to create a sense of harmony and political stability among Malaysians. 

There are four global forces that shape the world today, namely demography, natural resources, globalisation and climate change.

The four forces are expected to have similar effects on Malaysia. 

The report said globalisation has enabled a gradual change in economic power, citing that in 2000, advanced economies generated 57 per cent of global output, measured by Purchasing Power Parity (PPP). 

By 2024, according to a forecast by the International Monetary Fund (IMF), the share of advanced economies on global out will fall to 37 per cent.

And by 2030, China’s economic growth at PPP is projected to increase to US$38 trillion, retaining its position as the largest economy, followed by the United States and India with Malaysia is expected to rise to 25th position from 27th.

Citing a study, the report said the relative position of countries in terms of performance depends on various factors such as the emergence of an inward-looking policy, which may result in a slowdown or even reversal of globalisation.  

Malaysia it said, is also approaching an ageing nation status by 2030 as projection showed that 15 per cent of the population will be over 60 years old compared to 10 per cent in 2019. 

The National Population and Family Development Board envisage three main challenges of an ageing population, namely inadequate saving by the elderly, poor health condition and the state of loneliness. 

-- BERNAMA