『Economic Development Strategies: Insights from Malaysia on Overcoming the ‘Middle-Income Trap’』（sakuhinsya　2023）

Satoru Kumagai
（Senior Researcher, Economic Geography Studies Group, Development Studies Center, IDE-JETRO）
Masashi Nakamura
（Senior Researcher, Economic Geography Studies Group, Development Studies Center, IDE-JETRO）
We are deeply honored to receive the prestigious Masayoshi Ohira Memorial Prize, an award steeped in a rich history and tradition. We would like to express my sincere gratitude to the esteemed members of the Masayoshi Ohira Memorial Foundation and the committee who graciously dedicated their time to evaluate and judge this award.

The publication we honor today undertakes a comprehensive examination of Malaysia’s economic evolution over the past five decades, providing insights through the dual lenses of political and economic analyses. It strives to elucidate pathways to overcome the ‘middle-income trap’ ? a challenge that has vexed many nations. Historically, the role models of economic development have been the East Asian economies of Japan and South Korea. These nations have experienced an extraordinary period of remarkably high growth, often hailed as an ‘economic miracle,’ swiftly ascending to the status of high-income economies. However, their success was uniquely forged within a context of country specific characteristics that is advantageous to economic development, like significant racial and linguistic homogeneity, rendering their experiences challenging to emulate for many others.

Malaysia, in stark contrast, stands as a multi-ethnic nation, comprising three primary ethnic groups ? Malays, Chinese, and Indians ? and is a major producer of semiconductors, as well as a diversified producer of primary products such as oil, natural gas, and palm oil. As a nation with characteristics that are standard by global norms, Malaysia has achieved modest yet steady economic development, now poised on the cusp of becoming a high-income country. Its journey holds invaluable lessons for other developing nations, and it is with this perspective that we have authored this book.

A salient feature of our research lies in the collaborative effort between political and economic scholars, providing a comprehensive analysis of a nation’s economic development. Historically, discussions surrounding the ‘middle-income trap’ have often cited constraints such as inadequate human resources, a lack of skilled small and medium-sized enterprises, and underdeveloped infrastructure. However, overcoming these challenges necessitates the presence of a political system and a resolute incentive to address them. In this context, it is truly remarkable to witness how Malaysia responded to the diverse policy challenges it encountered at various stages of economic development, accompanied by concomitant political reforms.

We believe that this work was a culmination of fortuitous coincidences and connections, and the invaluable cooperation and guidance of numerous individuals. As we reflect upon the illustrious names of past winners and award recipients, we are humbled by the weight of this prestigious honor. Emboldened by this recognition, we shall persevere in our research endeavors, furthering our understanding of the interaction between political and economic factors in developing countries.

Satoru Kumagai Profile
Satoru Kumagai, born in Shimane Prefecture, Japan in 1971, has been a researcher at the Institute of Developing Economies since 1996, specializing in economic integration in East Asia and Malaysia’s economic development. He earned his master’s degree in media and governance from Keio University in 1996 and his MSc in Global Market Economics from the London School of Economics and Political Science in 2004. Recently, he has authored “Malaysia in the Post-Mahathir Era: How Politics and Economy Changed” (IDE-JETRO, 2018) and “The Middle-Income Trap in the ASEAN-4 Countries from the Trade Structure Viewpoint” (Emerging States at Crossroads, 2019).

Masashi Nakamura Profile
Senior Researcher, Area Studies Center, Institute of Developing Economies.
Education:
[B.A.] Tokyo University of Foreign Studies (1992), [M.A.] Tokyo University of Foreign Studies (1994), [Ph.D.] University of Tokyo, (2014).
Major Works:
Masashi Nakamura, Power Sharing: Taminzoku Kokka Malaysia no Keiken (Power Sharing in Malaysia), University of Tokyo Press, 2015.
Masashi Nakamura and Satoru Kumagai eds, Post Mahathir Jidai no Malaysia: Seiji to Keizai ha Dou Kawatta ka (Malaysia in the Post-Mahathir Era: Changes in the Politics and the Economy), Institute of Developing Economies, 2018.