Malaysia and the World Bank

Malaysia received its first loan from the IBRD in 1958.[5] The proposed loan expected the IBRD to provide 70% of financing, or around US$51.2 million.[6] These funds were commissioned for the Cameron Highlands District, approximately 100 miles of Kuala Lumpur, as a part of a comprehensive plan to develop energy infrastructure. The hydroelectric power station created as a result of the loan channeled the several local waterways that flowed through the plateau-region. Project completion resulted in diversion tactics, new power stations, and a concrete damn. The project represented the needs greater power demand in the state.

The first HSBC Bank Malaysia

Throughout the 1990s Malaysia continued to receive World Bank loans meant to assist the state's development and diversify the growth of its predominantly agricultural and commodity-based economy.[7] Following its receipt and use of IBRD loans, Malaysia choose to seek relations via a reimbursable advisory services framework (RAS). Malaysia now interacts with the World Bank Group as an upper-middle income economy as a member of the IDA.

Although Malaysia was afflicted by the 1997 Asian financial crisis, its economy bounced back with an average growth rate of 5.4% and is on a current upward trajectory.[8] Malaysia's resilience to the financial crises and successive growth was attributed to the presence of well established foreign banks, among these HSBC and Standard Chartered.[9] The presence of foreign banks allowed the state to develop comprehensive data sets regarding the local economy, to the benefit of Malaysian domestic banks. In tandem with the success of Malaysia post-crisis was the growth of physical capital stock.[10] Policies in Malaysia continued to facilitate the flow of foreign direct investment and improved import relations with foreign states.

The creation of the green sukuk, or green Islamic bond, is an innovation catalyzed by the World Bank. The bond has identified as a Climate Finance tool for cities and low-carbon infrastructure projects meant to stimulate private sector investment.[12] This innovation was particular significant given that green bonds appeal to both private and public sector actors.[13] Green bonds are typically create to generate sustainable investment and as a prerequisite, projects must also be green. These bonds will typically incentivize the relevant stakeholders to utilize them, in contrast with use of regular bonds that my not offer the same lending terms. The creation of the sukuk expects to build on the growth of sustainable investment asset use in Malaysia and its near abroad.[14]

Less than 1% of the nation exists at extreme poverty. In addressing the state of poverty in Malaysia, the government has turned to the lower 40% tier who remain vulnerable to economic disturbance.[15] Knowledge developed from the Hub is meant to address key concerns in these areas. Past studies map the ability of Malaysia's poor to transition to higher-income status. The New Economic Policy in Malaysia presented strategies meant to address economic growth.[16] As a result, the poverty rate fell from 52.4% in 1970 to 3.8% in 2009.[17] Malaysia seeks to address poverty at the micro-level and has produced a New Economic Model and framework in the Tenth Malaysia and Eleventh Malaysia Plans to address this.[18][19]