Research Paper Example: IMF and World Bank on Malaysia

Published: 2022-03-30
Research Paper Example: IMF and World Bank on Malaysia
Type of paper:  Research paper
Categories:  Economics Finance
Pages: 4
Wordcount: 1008 words
9 min read

Developing nations get a tremendous help in regards to political, financial and social advancements from loaning associations institutions like World Bank and IMF. The said loaning organizations additionally support the nations like Malaysia to the point of influencing them to increase their worldwide recognition. According to the information by Naguib and Smucker (2009), Malaysia's growth plan was substantially supported by World Bank which made a partnership with the Malaya federal government to help the country to achieve a sustainable and faster growth just after Malaya attained independence in 1957. This article seeks to analyze the support that the global institutions like IMF and The World Bank offered to developing countries like Malaysia, the impacts of the dependency on aid and whether the IMF and World Bank are essential or cause-effect to developing countries by taking Malaysia as the subject of study.

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The international bodies play the significant role in ensuring that there is economic growth, political and social developments in Malaysia and other developing countries. Pointwise, international lending organizations not only help developing countries in enhancing their planned projects but also re-establish most of the market economies in the states that show the extreme need of support (Naguib & Smucker, 2009). The IMF and World Bank's support assisted the Malayan government before it combined with North Borneo, Sarawak and Singapore in 1963 to form current Malaysia. IMF and World Bank made it possible for the former Malaya education sector, economy hydroelectric power project and Kuala Lumpur water project to realize a tremendous growth in its long-term and short-term plans (Sridhar, Strong & Winters, 2017). For instance, Malaysia through the former Malaya federal government was able to support 92 of its projects with the help of World Bank. The benefits that Malaysia obtained from the support that it acquired from World Bank is not limited to the current developments that the nation is enjoying at the moment. Malaysia was able to drop its poverty levels and engage in several economic activities that brought it to the point it is today.

IMF and World Bank helped Malaysia in the earlier decades of 20th century. However, the strict adherence to the IMF loans that subjected to countries like Greece made Prime Minister of Malaysia, Dr. Mahathir to reject the offer in 1997 of getting support from the fund. He opted to focus on strict measures to enhance growth in the country as a way of avoiding the harsh follow-up of repayment plans (Naguib & Smucker, 2009).

Regardless of the way that World Bank has extended its help from supporting projects to widening up of the economic base of the developing countries like Malaysia, the effects that IMF brings about to the nations frighten off any single developing nation from looking depending on IMF and World Bank Loans. As much as the establishments offer favorable circumstances and advantages to the countries, they can begin obligation issue which gives obstruction of a nation's social and monetary development. Regarding Pepinsky's (2009) study, the loaning organizations tend to compel governments to receive loans beyond their repayment ability hence making the nations to suffer huge debts that cause the countries to keep living below poverty line and keep living under constraints of deficits. Additionally, it influences the developing countries in a manner making them show overreliance on loans and henceforth sedating them behind.

Impacts of IMF and World Bank Loan on the health condition of a country

Any country that has healthy people record economic growth in the manner that it is characterized by high productivity levels hence strengthening the economy of the country. Also, for a healthy population, the country will record a direct improvement in production and quality services that will attract foreign trade. For instance, if AirAsia employees fall sick, then consumer services in the Malaysian country will be at a standstill hence the whole production process will be affected (Sridhar et al., 2017). The decrease in production will render the country to be at a negative production rate hence affecting the overall productivity of the nation.

Also, the wellbeing circumstance of a nation is critical in developing countries since it decreases the cost of social insurance and the assets could be wandered in schools, business, and transportation (Khan, Rasli, Hassan, Noordin and Aamir, 2017). A diminished incentive in therapeutic services will empower individuals in the nation to manage the cost of individual specialists for home visits hence the health of the country will be maintained. In Malaysia, World Bank enabled the support of health by enhancing the construction of Lumpur Water Project that supplied clean water to Malaysia thus protecting communities from effects of falling ill with water-borne diseases.

Malaysia was recently ranked to be the most impressive developing nation regarding its economic planning that it realized from the initial project, Kuala Lumpur Water Project that was earlier own funded by World Bank in the late 20th century. For that matter, it can be seen that World Bank and IMF have enhanced the operations of developing nations so long as the funds are used sparingly and on productive projects like Lumpur in Malaysia.


Gan, P. Y., & Li, Z. (2008). An econometric study on long-term energy outlook and the implications of renewable energy utilization in Malaysia. Energy Policy, 36(2), 890-899.

Khan, N. U., Rasli, A. M., Hassan, M. A., Noordin, N. F. M., & Aamir, M. (2017). Assessment of Imbalance among Environmental and Economic Performance within Malaysian Manufacturing Industry: A Sustainable Approach. International Journal of Energy Economics and Policy, 7(4), 149-155.

Menon, J. (2009). Macroeconomic management amid ethnic diversity: Fifty years of Malaysian experience. Journal of Asian Economics, 20(1), 25-33. Retrieved from

Naguib, R., & Smucker, J. (2009). When economic growth rhymes with social development: The Malaysia experience. Journal of Business Ethics, 89(2), 99-113. Retrieved from

Pepinsky, T. B. (2009). Economic crises and the breakdown of authoritarian regimes: Indonesia and Malaysia in comparative perspective. Cambridge University Press.

Sridhar, D., Strong & Winters, J., E. (2017). World Bank's financing, and lending & priorities for global health. Retrieved from

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