BY SHAN SAEED
KUALA LUMPUR, June 14 — During my visit to Indonesia in April 2026, one observation became increasingly clear: the future prosperity of nations will be determined not merely by their natural resources, industrial capacity, or technological prowess, but by how effectively they develop and deploy their human capital—particularly that of women.
Across the developing world, poverty is not solely an economic challenge; it is fundamentally a human-capital challenge. The evidence is compelling. Nations that invest in female education consistently achieve stronger productivity growth, higher labour-force participation, greater social mobility, improved healthcare outcomes, and more resilient economic development.
In an era defined by demographic shifts, technological disruption, and intensifying global competition, investing in girls’ education may represent the highest-return development investment available to policymakers. Research from the World Bank, UNESCO, and leading academic institutions has repeatedly demonstrated that education remains one of the most powerful drivers of productivity, competitiveness, and long-term wealth creation.
The ASEAN experience provides compelling evidence.
Malaysia’s transformation into a diversified, upper-middle-income economy has been supported by decades of investment in education, skills development, and human-capital formation. Women today play increasingly prominent roles across finance, technology, healthcare, entrepreneurship, and public administration. Female labour-force participation has risen steadily, while poverty has fallen dramatically over the past generation.
Indonesia, Southeast Asia’s largest economy, continues to demonstrate significant long-term potential. While poverty has fallen substantially over the past two decades, female labour-force participation remains below its full potential. Further expanding educational attainment among women would strengthen household incomes, deepen the middle class, enhance productivity, and reinforce the country’s long-term growth trajectory.
Vietnam offers one of the most remarkable development success stories in modern economic history. Female literacy exceeds 95 per cent, while women play a pivotal role in the country’s manufacturing, technology, and export sectors. Vietnam’s rise underscores a simple but powerful economic reality: sustained prosperity is built upon human capital.
The lesson extends well beyond ASEAN. Countries such as South Korea, Singapore, and Finland demonstrate how sustained investment in education can transform economies, strengthen competitiveness, and create enduring national wealth. Education is not merely a social expenditure; it is a strategic economic asset and a long-term driver of national competitiveness.
The defining economic competition of the twenty-first century will not be between nations with the largest populations, the largest resource endowments, or the largest industrial bases. It will be between nations that most effectively develop, educate, and mobilise their human capital. In that competition, countries that fail to educate girls are voluntarily leaving a significant portion of their economic potential unrealised.
The implications for policymakers are profound.
More than 119 million girls worldwide remain out of school, representing one of the largest untapped sources of human capital in the global economy. Research indicates that an additional year of schooling can increase a girl’s future earnings by as much as 10 to 20 per cent. The World Bank estimates that limited educational opportunities for girls could cost the global economy between US$15 trillion and US$30 trillion in lost lifetime productivity and earnings. Few policy interventions offer a higher long-term return on investment.
Closing educational and workforce gender gaps would not only improve social outcomes but could unlock trillions of dollars in additional economic activity over the coming decades. Investing in girls’ education is therefore not simply a moral imperative—it is a strategic economic imperative.
Looking ahead, I remain constructive on the outlook for the MITPV economies—Malaysia, Indonesia, Thailand, the Philippines, and Vietnam. While trade integration, foreign direct investment, industrialisation, and capital formation remain important drivers of growth, the deeper foundation of long-term prosperity lies in education, workforce development, institutional capacity, and the empowerment of women.
Economic growth is ultimately a reflection of people. Societies that invest in their people tend to outperform those that do not.
Governments seeking sustainable and inclusive growth should focus on four strategic priorities: universal access to quality education for girls; expanded scholarships and vocational training; higher female labour-force participation; and greater integration of digital and financial literacy into national curricula. These initiatives should be viewed not as expenditures, but as long-term investments in national competitiveness.
If policymakers are serious about reducing global poverty over the coming generation, the solution is hiding in plain sight.
The greatest untapped resource in the global economy is neither oil, minerals, artificial intelligence, nor financial capital.
It is human capital.
More specifically, it is the potential of millions of girls whose talents, skills, and ambitions remain underdeveloped simply because educational opportunities are absent.
History demonstrates that nations rise when they invest in their people. The countries that educate and empower women today will build more productive economies, stronger institutions, larger middle classes, and more resilient societies tomorrow.
In the final analysis, educating girls is not merely a social policy. It is one of the most powerful economic strategies available to any nation seeking sustainable prosperity.
When a woman is educated, productivity rises, poverty recedes, and nations flourish.
- TNS NEWS