In 2017，Malaysia achieved impressive overall economic growth，at annual rate of 5.9%，with strong domestic demand，exports，low inflation and flexible exchange rate. The monetary policy was moderate and the risk of a sharp decline in the financial cycle was reasonably low. During this year，Malaysia’s fiscal policy was oriented around risk control while fiscal deficit and central government debt were further contained. In the year of 2018，driven by robust growth in service and manufacturing sectors，Malaysia continued with its growth momentum despite of some degree of moderation. Overall，Malaysia is making meaningful efforts to improve productivity by enhancing infrastructure，human capital and R&D. Through a series of structural reforms，Malaysia is on its path towards breaking free from the “middle income trap” in the near future.