We’re used to writing off Japan as a population that is not only aging but shrinking. At the other end of the spectrum, Malaysia, with a fertility rate of 2.58 is supposed to have all the wonderful demographics.

But consider this perspective – economic output is not generated by the size of the population, but by the number of people who are actually in employment or self-employed.

On this score, Malaysia is shockingly deficient.

There are only 13.2m employed people in Malaysia out of a total population of 29.9m or 44%. These figures include the official foreigner population of 2.6m.

In contrast, there are 63.5m employed people in Japan out of a total population of 127.1m or 50%. These figures also include the official foreigner population of 2.1m.

David Fuller's view

Here is Bernard Tan's report:

Having read Bernard Tan’s full report, I get the distinct impression that Malaysia is falling behind the Asean region, in terms of competitiveness. 

The KLCI stock market is also underperforming, having fallen back sharply from the higher side of its approximately two-year trading range. It has steadied recently near prior support in the 1700 region from the September 2013 and December 2014 lows.  However, there is now additional overhead supply and the 200-day (40-week) MA has turned downwards once again.  So far, KLCI has not rebounded with the same vigour as seen following the two previous dips below 1700, and a weekly close beneath this range would open the door to a test of at least 1600.