Impact of urbanization toward economic growth in Malaysia / Nuramirah Ghazali

Urbanization is one of the causes of economic growth of the country. Population of people that live in urban areas are increasing and it is expected to keep increasing. People tend to move from rural to urban area that in order to improve their life. Arguably, the two processes are interdependent. For example, development cannot take place without urbanization and vice versa. According to the World Bank (2015), the expected number of people living in cities will rise to six billion by 2045, an increase of two billion urban inhabitants. With over 80 percent of global GDP will be generated in cities, urbanization will contribute to the sustainable growth if the increasing productivity will be well managed, thus enabling innovation and implementation of new ideas.