By Professor Dato Dr Ahmad Ibrahim
Managing the nation’s economy is a big job. The Department of Statistics Malaysia, DOSM, provides key data and numbers, together with the relevant analysis to help navigate economic decision making. For decades, Gross Domestic Product (GDP) has stood tall as the world’s dominant indicator of economic progress. National statisticians painstakingly compile figures on production, consumption, investment, and trade, distilling a country’s complex economic activity into a single, crisp number. Politicians trumpet GDP growth as proof of success, while downturns trigger policy overhauls and public anxiety. But as the world careens into an era marked by climate shocks, resource depletion, biodiversity loss, and widening inequality, one thing has become glaringly clear: GDP is no longer enough. In fact, it might be leading us down a dangerous path. As the saying goes, what we cannot measure, we cannot manage. And if we only measure GDP, we are managing for economic quantity without regard to social quality or environmental stability.
We live in an age of compounding crises: aquifers draining, forests burning, topsoil vanishing, and cities choking. Yet most national statistics departments still operate with 20th-century spreadsheets, meticulously counting widgets sold and jobs added while the planet’s vital signs flicker toward collapse. If “what gets measured gets managed,” our failure to measure ecological reality is a form of collective blindness—one with existential stakes. It’s time to redefine economic management for the new era. GDP measures the market value of all goods and services produced within a country. It’s a useful gauge of economic activity, but it says nothing about whether that activity benefits people or harms the planet. A country can see its GDP soar from deforestation, fossil fuel extraction, or rebuilding after natural disasters — all while the natural environment deteriorates and social disparities widen. Worse, GDP ignores the unpaid economy: the care of children, the elderly, and volunteer work — contributions without which society would collapse. Nor does it capture the depletion of natural resources or the costs of pollution. In essence, GDP can rise while the foundations of long-term well-being erode.
Broader measure matters. Consider Malaysia, a country rich in natural capital, from rainforests to coral reefs. Rapid economic growth has come at a heavy environmental price: deforestation, river pollution, coastal degradation, and climate vulnerability. If our statistical systems only measure GDP, we risk ignoring the true costs of these losses until it’s too late. Globally, the climate crisis, biodiversity loss, and growing inequality call for a more nuanced understanding of progress — one that balances economic prosperity with ecological sustainability and social equity. This is where national statisticians have a pivotal role to play.
What then should we also measure? Several frameworks already offer alternatives or complements to GDP. The United Nations’ Sustainable Development Goals (SDGs) provide a multidimensional template for tracking health, education, equality, environmental health, and institutional quality alongside economic metrics. Tools like the Inclusive Wealth Index attempt to measure a nation’s wealth by accounting for natural, human, and produced capital. Genuine Progress Indicators (GPI) adjust GDP by factoring in social and environmental costs, while carbon footprints and ecological footprints quantify a country’s pressure on the planet. Statistical offices should systematically integrate these dimensions into the national measurement. Imagine quarterly reports not just on GDP, but also on national carbon emissions, forest cover changes, air and water quality, poverty rates, and mental health indicators. These figures would give policymakers, businesses, and the public a more honest account of national well-being.
Of course, measurement is never neutral. What a nation chooses to count reflects its values and priorities. GDP rose to prominence because it was simple, politically convenient, and served post-war economic agendas. Expanding our measurement frameworks requires political will, public engagement, and sometimes, confronting uncomfortable truths about who benefits and who pays in our current economic systems. But difficult truths are better faced than ignored. The future demands it. If Malaysia, and the world, hopes to chart a path toward genuine, sustainable progress, we must measure what truly matters. GDP will remain a useful tool, but it must be one among many. National statisticians are not just record-keepers; they are guardians of our collective story. And it’s time for that story to be told in full. As the adage reminds us: what we cannot measure, we cannot manage. If we wish to manage for a liveable planet, equitable societies, and resilient economies, we need to measure them too. We cannot afford not to.
The author is affiliated with the Tan Sri Omar Centre for STI Policy Studies at UCSI University and is an associate fellow at the Ungku Aziz Centre for Development Studies, Universiti Malaya. He can be reached at ahmadibrahim@ucsiuniversity.edu.my.