What do Malaysian experts think about Australia’s development program? To find out, the Lab spoke to 40+ top development and foreign policy experts. Here’s what we found.
A short guide to the Pulse Check x Malaysia for policymakers
There are a number of big disruptions underway, and these will drastically affect development in every country.
You have 100 points. Allocate your points according to which of the below disruptions are most critical to address in your country.
Things like: the impact on livelihoods, infrastructure and people’s quality of life as the climate changes, the global push to reach net zero and beyond, biodiversity health and resource usage, disaster resilience
Things like: competing powers and their impact on things like trade and economic growth.
Things like: the rapidly growing digital and data economy, and the rise of artificial intelligence and advanced autonomous systems.
Things like: shifting demographics across age, education and healthcare, and rising inequality, gender equality, disability inclusion.
Things like: rapidly changing markets, trade conditions, stability and resilience to shocks, changing job opportunities and emerging industries.
Things like: shifting international norms and state structures, effective functions of the state, and disruptions to the international rules based order.
Things like: global stability and instability, internal conflict, humanitarian crises, external interference, maritime disputes.
Malaysian respondents identify several socioeconomic trends that they believe threaten the nation’s cohesion and future growth. Racial intolerance and disparities in economic opportunity emerge as persistent issues that foment distrust and polarisation. Some experts also criticise the nation’s political environment as one that suppresses public debate and ultimately impairs Malaysia’s ability to address complex challenges effectively.
‘Growing religious fundamentalism and racial intolerance is a cause for concern in Malaysia, which the government is doing little to resolve.’
At the same time, participants warn of the potential for demographic trends—such as Malaysia’s ageing population and women’s increasingly limited workforce participation—to hinder inclusive economic growth and the cultivation of a skilled and competitive workforce.
An ageing population is highlighted as a challenge that may stoke intergenerational tensions resulting from economic burdens on younger generations and may strain the nation’s already expensive and underresourced healthcare system.
Climate change is identified as the second-most significant disruption to address in Malaysia. Participants highlight extreme weather events, such as floods and droughts, as increasingly severe disruptions that undermine agricultural productivity and exacerbate rural poverty and food insecurity. Some were critical of what they regard as a slow and uncoordinated response by their government to these challenges. According to these experts, disaster preparedness and response systems remain underfunded, while deforestation and unsustainable resource use are inadequately managed.
Participants also note that the net-zero transition adds complexity and uncertainty within fossil-fuel dependent industries, which are integral to Malaysia’s economy. There is concern that without clear policies, strategic planning and security for investors, Malaysia’s transition to a sustainable energy future may destabilise the economy and jeopardise livelihoods.
Survey respondents highlight geopolitics as a significant disruption to Malaysia’s trade and security landscape. Tensions in the South China Sea—a key trade route for a trade-dependent nation—are a primary concern for participants. Pulse Check participants see Malaysia’s susceptibility to global market disruptions as a major challenge to its export-reliant economy. Consistent with Pulse Check findings from economies as diverse as Cambodia, Laos and Timor-Leste, these participants are alive to the current and future disruptions of geopolitical rivalry on their economy.
Global conflicts, including those in Ukraine and Gaza, complicate global supply chains and Malaysia’s ability to maintain balanced diplomatic relations. Some underscore the need for Malaysia to carefully navigate these dynamics, particularly as the rivalry between the United States and China intensifies.
‘Global conflicts have indirect but critical consequences for Malaysia’s economic and foreign policy.’
Consistent with insights from Pulse Check participants in Indonesia, the rise of artificial intelligence (AI) and financial technology is seen as a transformative yet disruptive step In Malaysia’s economy. Experts note that automation in the manufacturing and service industries has already displaced workers and created a mismatch between job availability and workforce skills. Cybersecurity risks and a lack of critical infrastructure are noted as slowing the uptake of digital technologies.
We know that to achieve social and economic development, an effective and accountable state is critical - and this is something that Australia is committed to working with partners on.
You have 100 points. Allocate your points according to where you would focus efforts to enhance social and economic development in your country, using the State Effectiveness Framework.
For example, commercial policy, private sector development, intervention by the state when the market experiences failure or crisis.
For example, a balanced security environment, when police, military and other security institutions are bound by the law and guidelines.
For example, public utilities - including water, electricity and roads.
For example, strong adherence to both formal and informal rules, high levels of predictability and stability of the enforcement of rules, and governance arrangements.
For example, investment in the citizens of a state through education and public health.
For example, strong and transparent forms of public financial management, effective public borrowing, and fiscal management.
For example, addressing barriers to equal opportunities through citizens rights which cut across gender, race, ethnicity, religion, class and location.
For example, state assets (including natural resources [water, land, the environment, extractives] and other intangible benefits [licenses and permits]).
For example, preparedness for disasters, state resiliency against crises such as drought, famine, and catastrophic weather.
For example, public sector management, uniform rules and guidelines, strong reforms to prevent corruption.
Malaysian experts name governance as the most critical state function for achieving social and economic development. Participants identify transparency and anti-corruption measures as key priorities for reform, hoping that such measures would not only bolster public trust but also unlock resources for reinvestment in critical sectors, such as healthcare, education and infrastructure.
A central focus among Malaysian experts is the need for sustained and expanded investments in education and healthcare. They note that more must be done to prepare the workforce for an increasingly competitive global economy and to improve equity of access to education and healthcare services.
Where education reforms are concerned, participants want to see a better alignment of workforce skill development with the demands of high-tech and service-oriented industries. Some also see ‘brain drain’ (the departure of skilled workers) as a significant issue, attributing it to systemic racism and limited career advancement opportunities in Malaysia.
When it comes to healthcare, participants were most interested in seeing a path forged toward universal access to healthcare, especially in rural and remote regions, where infrastructure and resources are often lacking. They stress that a strong healthcare system would not only improve quality of life but also ensure a healthier, more productive workforce capable of driving economic growth.
‘Equitable access to healthcare and education is key to reducing social disparities and fostering national progress.’
Citizen engagement was identified by Malaysian experts as a cornerstone of sustainable social and economic development, with greater public participation in governance being key to ensuring the alignment of policy with citizens’ needs, strengthening public trust, reducing inequalities and creating a more inclusive and cohesive society. Reducing social divisions is seen as a crucial objective, as many participants are concerned by trends of lower social cohesion in Malaysia.
Australia's new development policy wants to foster connection between your country and ours. How is this best done within development?
You have 100 points. Allocate your points according to where you think efforts are best placed to bring our countries together through development cooperation.
Support from Australia to back your country's aspirations on things like gender equality, health assistance, rural development and education.
Support from Australia to back your country's aspirations on things like trade, market growth, regulatory reform, small-to-medium enterprise (SME) development and development finance.
Support from Australia to back your country's aspirations on things like peace and security, effective governance, food security, digital and cyber security, law and justice.
Support from Australia to back your country's aspirations on things like remittances, labour mobility, job creation, social and economic policy reform.
Support from Australia to back your country's aspirations on things like scholarships, policy dialogue, cultural exchange and institutional partnerships.
Support from Australia to back your country's aspirations on things like climate adaptation and mitigation, global health crises, transnational crime, joint cooperation in regional and multilateral fora, unregulated migration flows and major demographic changes.
Malaysian experts prioritise connecting with Australia through knowledge sharing. Experts see joint research collaboration and grants as essential to addressing shared challenges, such as climate change, technology and public health, as well as to facilitating pathways for Australian and Malaysian researchers, institutions and universities to collaborate.
Participants also advocate for more opportunities for Malaysian students to study in Australia and participate in exchange programs, seeing these opportunities as vital to strengthening bilateral ties and cultivating a deep understanding of global and regional issues among future leaders in both nations.
Pulse Check participants highlight the importance of leveraging trade agreements, such as the Malaysia–Australia Free Trade Agreement, to enhance market access and regulatory alignment. They believe that these measures can strengthen economic ties and cooperation between the two nations, as well as empower Malaysian small and medium-sized enterprises (SMEs) to thrive in competitive markets. Many participants were vocal about the sectors in which they would most like to see Australian investment increase: green energy, agriculture, mining and infrastructure.
‘Australia could strengthen trade relations to increase market access for Malaysian goods and services, boosting local economies and job creation.’
Malaysian survey respondents share a strong interest in enhancing livelihoods, with a focus on job creation and workforce development, and see scope for Australian businesses operating in Malaysia to provide employment and foster cross-cultural understanding and economic integration. Supporting rural development projects and empowering SMEs are also seen as vital strategies for reducing regional disparities and promoting equitable economic growth and employment opportunities.
Respondents emphasise vocational education and training (VET) programs as essential for bridging skill gaps. Tailored programs can address skill mismatches and prepare Malaysia’s youth for dynamic industry demands. Meanwhile, postgraduate exchange programs in which Malaysian students work in Australian companies are seen as a mechanism for professional growth and skills transfer.
Australia works with your country through development cooperation in a variety of ways. What would you like to see here?
Australia works with Malaysia through regional development cooperation. How would you re-allocate Australia's regional development spending in Malaysia across these categories using your 100 points?
Including policy and research to support economic growth, emerging industries and job markets, banking and financial services.
Including transport and storage, larger water, communications.
Including agriculture, fisheries and forestry, industry and mining and mineral resources.
Including policy and enabling markets.
Including governance programming, policy reforms, civil society strengthening, social protection measure and infrastructure.
Including support for feminist organisations and movements, support for disability organisations and services.
Including basic, secondary and higher education and scholarships.
Including basic health, infrastructure and basic water and sanitation.
Including climate mitigation and adaptation, energy infrastructure, environmental protection and management.
Including emergency response, disaster prevention and preparedness .
Malaysian experts identify governance as the key area in which Australia has a comparative advantage as a development partner. Respondents believe Australia can contribute its expertise in policy reform, particularly in protecting human rights, strengthening macroeconomic policies and promoting transparency and accountability. These strengths, according to respondents, make Australia an ideal partner to support Malaysia in building strong institutions and effective governance frameworks. Programs that target anti-corruption measures, civil society strengthening and efficient public service delivery are viewed as critical for Malaysia’s development trajectory.
Social security system reform and strengthening social protection mechanisms are also areas in which Australia’s inclusive governance approaches are seen as beneficial. Malaysian respondents emphasise the value of policy dialogues and official exchanges between the two nations as platforms to share best practices and foster institutional development. These collaborations can help Malaysia modernise its governance structures, ensuring long-term development benefits.
Education is consistently highlighted by Malaysian experts as an area in which they want to see greater development cooperation with Australia. Respondents commend Australia’s globally recognised education system and the value of scholarships and higher education programs for Malaysian students, to improve access to high-quality learning opportunities, foster closer bilateral ties and contribute to Malaysia’s human capital.
'Expanding educational partnerships and exchange programs can enrich the academic and professional landscapes, benefiting students and professionals alike.’
Professional exchange programs and university partnerships are in demand. Many Pulse Check experts see the opportunity in pursuing joint research initiatives and faculty exchanges can enhance academic environments in Malaysia while addressing shared global challenges like climate change. Furthermore, respondents see Australia’s inclusive education policies as a model for Malaysia, particularly in promoting gender and disability equity in education systems.
Survey respondents view climate adaptation as an area in which Australian expertise can complement existing efforts in Malaysia. Australia’s perceived strengths in adaptive and sustainable agriculture, such as precision farming and efficient water resource management are in demand, as experts hope they can contribute to managing food security and promoting agricultural resilience in the face of climate change.
‘Working together on climate adaptation strategies can help both countries mitigate the impacts of climate change and build more resilient communities.’
Aligning closely with their desire to better connect with Australia for investment, Malaysian participants regard trade as another domain in which Australia’s interests align closely with Malaysia’s economic growth ambitions. They underscore the importance of trade agreements to lower tariffs and improve market access. These agreements are seen as pivotal for enhancing Malaysia’s global trade competitiveness and fostering stronger economic ties.
Some note the value of Australia’s expertise in trade negotiations, financial regulation and investment policy and highlight the potential for technical assistance in these areas to bolster Malaysia’s trade capabilities and attract more foreign investment.
Alongside what is included in Australia's development cooperation with your country, we're interested in your views on how Australia delivers partnership.
You have 100 points. Allocate your points according to where you think Australia should focus to enhance its partnership with your country as part of regional development cooperation.
Working in selective sectors where Australia can best assist your country, and doing it well. Perhaps operating in a less visible way, and much more impact-oriented.
Working at the forefront of development challenges and working with partners to get ahead of big, new challenges to development. Developing specific capabilities in response to development disruptions decades ahead.
Working with partners to leverage Australian expertise, and knowledge, and working with your country's knowledge ecosystem to solve the most difficult development challenges.
Connected to your communities, not just your Government. Australia as a whole-of-nation partner that connects across different levels: for example universities, businesses, and organisations. Squarely focused on delivering development outcomes for people and communities.
Working to back Australia's development partner's aspirations through things like ASEAN, multilateral arenas, and through bilateral arrangements.
Malaysian experts want to see Australia be a people partner, which means strengthening ties beyond ties with the government, including those with universities, businesses, NGOs and local communities. Experts highlight that such a strategy ensures that development initiatives are not confined to top-down government measures and instead engage directly with grassroots organisations and marginalised populations, creating a more inclusive approach to development.
Community-driven projects and grassroots initiatives, supported by Australian expertise, are particularly valued for empowering local communities and addressing local needs effectively while promoting social equity. Meanwhile, cultural exchange programs, such as the New Colombo Plan, are also considered to play a crucial role in Australia’s effectiveness as a people partner, strengthen people-to-people ties and create long-lasting relationships at different societal levels. Initiatives such as arts, sports and educational exchanges are viewed as instrumental in fostering mutual understanding and building trust between the two nations.
Many Pulse Check experts want to see a partnership with Australia that better leverages Australian expertise and works within Malaysia’s knowledge ecosystem to solve difficult development challenges. According to these experts, priority areas include areas such as urban planning, higher education, sustainable agriculture, renewable energy and climate adaptation.
Beyond providing expert insights, experts saw educational exchanges and scholarship programs in Australia to equip Malaysians with advanced knowledge and technical skills in high-demand areas.
Consistent with findings from every other surveyed country in Southeast Asia, Malaysian participants deprioritise a partnership model wherein Australia places a greater focus on engagement in forums like ASEAN for the purpose of backing their state’s social and economic aspirations. While some experts see the value in Australia consistently engaging with regional architecture, many are unconvinced that this was the best pathway for supporting development outcomes or that Australia has the reach, access and influence necessary to do so.
