Malaysia jumps 11 spots in world competitiveness ranking, best since 2020
The World Competitiveness Ranking (WCR), published annually by the Institute for Management Development in Switzerland, is a comprehensive report that assesses countries on their ability to create and sustain a business-friendly environment that drives long-term prosperity
Advancing from 34th place last year, the improved ranking reflects the strong momentum in Malaysia's economic recovery and reform efforts, according to a statement by the Investment, Trade and Industry Ministry.
The ranking reaffirms the country's path toward becoming one of the world's top 12 most competitive economies by 2033 outlined in the Madani Economic Framework.
The ministry said economic performance, government efficiency and business efficiency factors drove Malaysia's overall competitiveness performance.
Malaysia ranked 4th globally in economic performance, climbing four spots from 8th place last year, while both government efficiency and business efficiency factors saw an improvement of eight positions.
The international trade sub-factor increases 11 places to 6th, supported by strong export growth in goods and services, diversified markets and rising tourism receipts, strengthening Malaysia's trade surplus.
The ministry, through the National Competitiveness Committee - co-chaired with the Finance Minister II Datuk Seri Amir Hamzah Azizan – coordinates the strategic direction across ministries to enhance Malaysia's competitiveness.
At the operational level, the Special Taskforce on Agency Reform (STAR) – led by the chief secretary to the government Tan Sri Shamsul Azri Abu Bakar – ensures effective implementation of competitiveness initiatives.
This includes over 1,000 Reformasi Kerenah Birokrasi projects aligned to the Public Service Reform Agenda.
Investment, Trade and Industry Ministry Tengku Datuk Seri Utama Zafrul Aziz said the ranking reflects how bureaucracy-related reforms are closely intertwined with facilitating robust investment and industrial growth, both critical for enhancing Malaysia's attractiveness as a preferred investment destination.
"The government's whole-of-government approach under the Madani framework also demonstrates its commitment to holistic structural reforms," he added.
The ministry is confident that through strong governance, continuous commitment from the federal and state governments, along with close cooperation with the private sector, Malaysia is on the right path to position itself among the world's 12 most competitive economies by 2033.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
35 minutes ago
- The Star
Fiscal reforms still a strong focus for country
KUALA LUMPUR: While there is still no fixed date on when the rationalisation of the RON95 petrol subsidy might take effect, final details are currently being ironed out, says Second Finance Minister Datuk Seri Amir Hamzah Azizan. He said the goal remains the same – to ensure gaps are plugged and businesses as well as the wealthy contribute their fair share so that the nation has fiscal strength while providing financial subsidies for those that need it. 'The same approach applies to the expansion of the sales and service tax (SST). It diversifies revenue and is part of a prudent expenditure management. 'In turn, it allows for growth-enhancing investments which generate equitable economic advantages and benefits for all groups, including businesses and the general public,' he said during the Invest Asean-Malaysia 2025 Conference here yesterday. He added the initial target of RM10bil in revenue from the expanded SST is still what his ministry expects. 'At the moment, I am still confident and I think the government is fair enough to understand that we should adjust along the way,' he said. He revealed the government took into account ways to minimise the impact on small and medium enterprises as well as on the general population. According to Amir Hamzah, there are other separate reforms in the pipeline that are set to support economic growth, build credibility and set good examples. 'These include judicial and institutional reforms, fiscal and public sector reforms, social protection and inclusivity reforms, and digital and innovation-led reforms. 'Current global volatility makes reforms more urgent. Institutional strengthening, fiscal discipline, innovation and capacity building are components to sustainable, resilient economic expansion that is capable of weathering future global disruptions,' he added. With this in mind, Amir Hamzah said when the upcoming budget is being tabled, the government will have a pragmatic and sensible focus, aimed at driving continuity in the nation's progress. 'While it is too early to share details, I can say that it will be yet another effort in securing our economic future, responding where necessary to current economic categories and building a fairer, more equitable society,' he noted. Amir Hamzah said the commitment to Malaysia's fiscal consolidation remains in sharp focus. He pointed out that in 2024, the country achieved a budget deficit of 4.1% to the gross domestic product, better than the official target of 4.3%. 'This year, we are targeting 3.8%, while staying consistent with the target in the Public Finance and Fiscal Responsibility Act to reduce the deficit to 3% in the middle term. 'This has not been an easy journey, but we have made huge strides when we compare it with what we started off in 2022 at a 6.4% deficit,' he said. He noted that this will be accomplished through revenue enhancing measures, tax system efficiency and taxpayer compliance. 'These various sources of revenue provide the fiscal space to invest in building capacity in the nation's infrastructure, talent and cost-effectiveness which corporates and businesses rely on. In many ways, it is an equitable partnership that drives shared progress,' he said. Meanwhile, Bursa Malaysia Bhd chief executive officer Datuk Fad'l Mohamed said the current strength of Malaysia's economy is no coincidence, but is the outcome of forward-looking policies. He said the stock exchange has continued to strengthen regional collaborations and enhance linkages with exchanges and the ecosystem across Asean. 'As the largest Asean exchange by number of listed companies, we continue to solidify our position as a key avenue for fundraising. 'In 2024, we led the region's initial public offering (IPO) 'league table' in both the number of IPOs at 55, and in total IPO funds raised,' he said in his keynote speech. He added there were already encouraging IPO activities witnessed in the first half of this year despite market volatility. 'As we continuously facilitate businesses to raise funds, we also take pride in witnessing companies progress from the LEAP Market to the ACE Market, and from the ACE Market to the Main Market. 'Since 2020, more than 40 companies have made this transition and graduated upwards,' he said. On a separate note, the Invest Asean-Malaysia 2025 Conference which began yesterday and will run until tomorrow is expected to attract more than 1,500 delegates from across the region. Themed 'Driving Asean Integration through Malaysia's Economic Resilience – Capital, Collaborations, Connections', the event comprises a showcase of 71 corporates from Asean, including 30 from Malaysia.
The Star
36 minutes ago
- The Star
Tariff: Positive response from US to Malaysia's approach
KUALA LUMPUR: The United States (US) has responded positively to Malaysia's approach and engagements on tariff issues and proposals, said Finance Minister II Datuk Seri Amir Hamzah Azizan. He said Malaysia's proactive engagement and approach with the US is to understand the issues involved and to work together to navigate a path to find a win-win situation. The US responded positively to Malaysia's approach. Trade teams from both sides discussed how to navigate forward, he said. "The two teams held (productive) discussions and negotiations; progress is being made along those lines," he said during a fireside chat at the Invest ASEAN-Malaysia Conference 2025 moderated by Bursa Malaysia chief executive officer Datuk Fad'l Mohamed today. According to Amir Hamzah, Malaysia has always been non-retaliatory. It wants to work with the US to seek ways to improve trade for both sides. He noted that the trade deficit between Malaysia and the US comprised key components such as the electronics and semiconductor industries. He said many US-based multinationals are exporting to the US, and Malaysia was pleased when the US suspended tariffs for the semiconductor sector. It recognised that this was a critical asset that they wanted to protect. "But for Malaysia, it was important because it shows there is a lot of cross dependency between Malaysia and the US," he said. The minister also noted that Malaysia highlighted to the US in the negotiations that global supply chains are integrally linked and are difficult to decouple without significant consequences. - Bernama
Malay Mail
an hour ago
- Malay Mail
O&G consultant loses RM2.7m in ‘Nova 88' investment scam
IPOH, July 2 — An oil and gas consultant lost over RM2.7 million after falling victim to a non-existent investment scheme advertised on a website. Perak police chief Datuk Noor Hisam Nordin said the 37-year-old man lodged a police report on June 29 at the Ipoh district police headquarters, claiming he had been scammed through an online investment platform known as 'Nova 88.' Preliminary investigations revealed that the victim registered an account on the website in April 2023 through a contact, now the main suspect, whom he had met via WhatsApp. Convinced by the suspect, the victim made an initial deposit of RM30,000 into a provided account number and was then given a user ID and password to monitor the supposed investment. 'Between Jan 5, 2024, and May 20, 2025, the victim made 136 fund transfers to seven different accounts, totalling RM2,701,687. The funds came from his savings and contributions from family members,' Noor Hisam said in a statement last night. He said the victim realised he had been duped when each attempt to withdraw his purported profits required additional payments. To date, he has been unable to access any returns, with the suspect offering numerous excuses before eventually becoming unreachable. The case is being investigated under Section 420 of the Penal Code for cheating. Noor Hisam advised the public to avoid any form of investment offered through unlicensed, unregistered, or unregulated websites. 'Such investments carry high risks and can lead to significant financial losses. Always verify the background of any investment company with recognised authorities such as Bank Negara Malaysia or the Securities Commission,' he said. — Bernama
