Malaysia's IMD ranking rise a stepping stone for more reforms: FMM
FMM president Tan Sri Soh Thian Lai said the improvement by 11 places to 23rd out of 69 economies in the IMD ranking signals progress in several important areas.
However, he highlighted that Malaysia remains 10th out of 14 Asia Pacific countries, lagging behind regional peers such as Indonesia and Thailand, indicating that more work is needed to narrow the gap.
"While the ranking is encouraging, it should not be seen as an end goal. It must serve as a platform for deeper reform," Soh said in a statement.
He said maintaining the momentum requires Malaysia to move beyond its traditional input-driven growth model, one dependent on labour, capital and natural resources, and to embrace a growth strategy centred on productivity and innovation.
This shift is not only timely but crucial for ensuring Malaysia stays competitive in high-value sectors and adapts effectively to the fast-changing global landscape.
"We believe a few focus areas require urgent attention. Firstly, investment in research and development must be scaled up significantly.
"But beyond funding, it is critical to ensure that research is aligned with industry needs and national priorities. Strengthening the links between academia and industry will ensure that ideas are commercialised and translated into meaningful outcomes," Soh said.
He noted that Malaysia's start-up ecosystem shows strong potential, particularly in the digital, green, and deep-tech industries.
With appropriate support such as streamlined regulations, improved funding access and enhanced mentorship, local entrepreneurs could play a significant role in driving economic transformation.
Soh said this year's improvement is a positive move towards achieving the national goal outlined in the Madani Economic Framework, to rank Malaysia among the world's top 12 most competitive economies by 2033.
"Achieving this goal will require sustained commitment to structural reforms, policy consistency and bold execution across all levels of government and industry.
"We applaud the government for this notable achievement. But to truly position Malaysia as a future-ready economy, we must stay focused on raising productivity, deepening innovation, and building long-term competitiveness," he added.
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