The geopolitical landscape and human capital development in Malaysia

Balakrishnan Muniapan

Chapter 6 in Augmenting National and International Human Capital, 2026, pp 87-102 from Edward Elgar Publishing

Abstract: This chapter explores the complexity and multidimensional perspectives of Malaysia's human capital development in a changing geopolitical environment. Malaysia offers both possibilities and challenges in developing a competitive workforce because of its strategic location in Southeast Asia, politics, and multiethnic population. The chapter analyses major human capital development prospects, challenges, and strategies, within the areas of politics and political instability, systemic corruption, ethnic-based policies, educational misalignment, and ongoing brain drain, among others, based on developments from recent years. The chapter also explores systemic disparities in employment, digital infrastructure, and educational opportunities across income levels and geographical areas, highlighting the need for inclusive and flexible policy solutions. The chapter concludes by arguing that Malaysia needs to create a new social contract, modernise affirmative action, improve social protection, bridge regional gaps in human capital development, and use technology to transform into a resilient, innovation-driven, and inclusive high-income economy.

Keywords: Human Capital Development; Malaysia; Brain Drain; Talent Retention; Ethnic-Based Policies; Educational Policies (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035318278
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