Article

Brief Review of Malaysian Vs TamilNadu (India) Economy

KESH on 2024-08-19

A brief review of Malaysia Vs Tamilnadu (India)  Economy

                                                 Tamilnadu         Malaysia              Notes
Area – km2                         130,058             330,803           Msia is 2.5X bigger           
Population                             83mil                   34mil               TN is 2.4X more
Density – per km2             638                         101                TN is 6.3X more dense
GDP (2024) - Nom           300B                      445B              Msia much better
GDP (2024) - PPP         1,050B                  1,306B              Gap narrowing
GDP perCap-Nom           $3.3k                   $13.3k              TN still far away
GDP perCap-PPP           $11.5k                  $39.1k              Msian is 3.4X richer
GDP Growth                     8->10%              4.4->4.4%         TN growing fast
Exch rate to USD               83.8                        4.4                    1 MYR = 19 INR
Human Dev Index          0.700 Med        0.807 High       Msia better
Unemployment                  4.1%                      3.3%                  Msia better
 

Apparently, Malaysia (M'sia) is in better than TamilNadu (TN) in almost all index except the Growth part & the rate of purchasing power; PPP (3.5x to Msia's 3x)

TN in particular & India in general is chasing to double their GDP to $600B & $7T respectively by yr-2030 (in 5-6yrs time). At which time, M'sia is likely be hitting nominal (Nom) GDP of about $550-600B;  as the gap between TN & MY closing in.

Though not that glaring, with slower rate of economic progress, M'sian Indian as a race could be the 1st group closing the gap with people of TamilNadu (by yr-2039) . 

Btw, I forecast TN may outpace M'sia in the following timeline;
        Measure                                                         when                                    likely  performance quantum
1. In GDP by PPP ;                              in 4-5 years (yr 2028-29)    when GDP by PPP is around $1,566-1600B
2. In GDP Nominal;                           in 6-7 years (yr 2030-31)     when GDP by Nominal around $570-600B
3. In GDP per capita  by PPP       in 14-15yrs (yr 2038-39)     when per Capita by PPP is abt $56-62k
4. In GDP per capita by Nom      in 16-17yrs (yr 2040-41)     when per Capita by Nom is abt $19-21k

Having said it, there are more things can go wrong for TN, or India than for Malaysia making the whole timing delayed; otherwise, the direction of progress for India's remains assured.

Regards, KESH Muthu 
Cima (Uk) & Ceha (Sg) 
Chief Consultant, BizMerger 
3.    www.reuters.com/markets/asia/malaysias-economy-grows-42-yy-q1-beats-forecast-2024-05-17/

Further Notes 
*  Malaysia recorded an ave growth rate of 4.2% in the decade to 2022, still below the 4.4% ave for the Asia-Pacific region. 
*  Malaysia GDP for 2022 was $407B, a 8.88% increase from 2021. 
*  Malaysia's economy grew 3.8% in 2023. 
*  Malaysia has registered growth beyond expectations, with the country's GDP expanding by 5.8% in the 2nd qtr of 2024 
*  Malaysia's economy in the Yr-2024 April-June qtr grew 5.9% from a year earlier 
*  Forecasts for M'sia GDP growth in 2024 range from 4-5%  while India's at 6.75-7.00%

Malaysian ringgit will appreciate later this year, rising from RM4. 70/USD currently to RM4. 55/USD by end-2024. 

Breakdown of Malaysia by race; Bumiputera 62.5% (Malays and indigenous peoples, including Orang Asli, Dayak, Anak Negeri), Chinese 20.6%, Indian 6.2%, other 0.9%, non-citizens 9.8% (2019 est.) By World Factbook 

However, while ave growth rates are positive across all ethnic groups (Bumiputera 4.9 %, Indians 4.8 %, and Chinese 2.7 %), the highest growth of real income per adult accrued to the Bumiputera in the top 1 % (at 8.3 %), which sharply contrasts the much lower growth rate of the Indians (at 3.4 %) and negative income growth rates of the Chinese (at −0.6 %); though Malaysian Chinese remain the business sector's dominant players; equity ownership doubled from 22.8 percent in 1969 to 45.5 percent in 1990, and nearly all of Malaysia's richest people are Chinese.[135] 


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