KUALA LUMPUR, June 9 — Malaysian workers have substantially improved their productivity levels in the last 15 years and growth is anticipated to hit 1.8 per cent in the next 10 years.

In a statement, the Institute of Chartered Accountants in England and Wales (ICAEW) said the growth would be supported by urbanisation and growing number of residents in the prime working age.

ICAEW Economic Adviser and Oxford Economics Lead Economist, Priyanka Kishore, said the proportion of residents living in urban areas would grow six per cent and this would support the shift to higher value-added manufacturing and services activities.

ICAEW’s latest Economic Insight: Southeast Asia report said Malaysia is regarded as one of Asia’s success stories, however, its vulnerabilities have been exposed in the current economic climate.

“The local economy will continue to struggle in the near term as lower oil prices have resulted in a term-of-trade shock and lower government revenues while the household sector remains under pressure from rising debt service costs and slower employment growth,” it said.

Meanwhile, ICAEW Southeast Asia Regional Director, Mark Billington said training, development and skills upgrading must continue to play an essential role if Malaysia wanted to maintain its competitive edge.

“If Malaysia is to meet its goal of becoming a high income nation by 2020, it will need a highly skilled workforce, one which has reached a global standard of technical knowledge, business skills and innovation,” he added. — Bernama