Latest news with #IMDWorldCompetitivenessRanking
New Straits Times
21-06-2025
- Business
- New Straits Times
Leaping ahead to lead with conviction
Malaysia's remarkable 11-spot jump in the IMD World Competitiveness Ranking (WCR) —from 34th position in 2024 to 23rd in 2025—is more than just a statistical victory. It is a powerful testament to the effective implementation of the MADANI Government's economic reforms, including fiscal, industrial and social. For context, the WCR assesses the ability of economies to foster an environment that supports business competitiveness, productivity and economic growth, across four main categories: economic performance, government efficiency, business efficiency and infrastructure. Malaysia's marked improvement in three out of four areas, especially the leap to fourth among 69 economies in economic performance, is no small feat. MITI is especially pleased that our industrial reforms implemented under the New Industrial Masterplan 2030 have contributed to the jump in the rankings in terms of sub-factors such as domestic economy (+20); international trade (+11); international investment (+2); employment (+8); institutional framework (+11); business legislation (+4); productivity and efficiency (+19) and the labour market (+11). While there is still much room for improvement, this dramatic increase in the rankings is a strong validation that Malaysia's economy is on the right track and we are steadily regaining our competitive edge on the global stage. This surge in competitiveness is not accidental. It is the result of intentional, coordinated, and at times, politically difficult reforms. It reflects a responsible governance approach under Datuk Seri Anwar Ibrahim's Madani Economy framework, and the deft execution by the relevant economic ministries and agencies including MITI, which has led the implementation of Malaysia's revamped trade, investment, and industrial strategies. MITI's agency, the MPC, has led the coordination work on improving the WCR sub-factors across various ministries and agencies. At the heart of this leap is a more aggressive posture on bureaucratic reform and investment facilitation. MITI's leadership of the National Competitiveness Council (JKDSN) together with the Finance Ministry has driven whole-of-government efforts to streamline investment approvals, reduce regulatory burdens, ease investors' journey and modernise economic policy frameworks. Moreover, the establishment of the Special Taskforce on Agency Reform (STAR) led by Chief Secretary to the Government (KSN) — part of the wider Public Service Reform Agenda (2024-2030) and involving over 1,000 reform initiatives at federal and state levels — has helped dismantle bottlenecks that previously discouraged investors. The improvement in the international trade sub-factor—rising 11 spots to 6th globally—is also clear evidence of targeted policy outcomes under MITI's purview. This includes enhanced investment strategies by the Malaysian Investment Development Authority (MIDA), and improved trade promotion by the Malaysia External Trade Development Corporation (MATRADE). Our efforts in advancing regional agreements and accelerating participation in digital economy frameworks have also contributed to improvement in the rankings. Concurrently, in a world marked by rising protectionism, geopolitical realignments and economic fragmentation, Malaysia's steady hand in policy continuity is increasingly appreciated by global investors. This competitiveness boost is also a strong endorsement of the NIMP 2030 along with its supporting policies such as the National Semiconductor Strategy and Green Investment Strategy – all of which prioritise high-value industries such as semiconductors, green technology, and digital economy as future growth pillars. Their implementation has already created stronger linkages between industrial policy and talent development, innovation incentives and sustainability goals. Rankings, of course, are not policy goals in themselves—but they do matter. They serve as confidence benchmarks to global markets, foreign investors, and multilateral institutions. A leap of 11 positions makes Malaysia more attractive as a business destination, especially for multinationals seeking resilient and progressive emerging markets in Asia. It also reflects how our institutions – empowered with the political will, mandate and right leadership – are perfectly capable of executing coherent reform agendas for the nation. The Road Ahead: Maintain the Momentum This milestone is cause for celebration, but not for complacency. If anything, the real work begins now. While economic performance and trade efficiency have improved, there remain areas where Malaysia still lags—particularly in innovation capability, workforce productivity, digital transformation, management practices and workforce attitudes. There may be a need to complement structural reforms with human capital upgrades and culture shifts. Global digital and green transitions will require Malaysia to not only adopt new technologies but also to nurture a new generation of skilled, future-ready workers. Here, too, MITI's role will be pivotal. The Ministry will continue working closely with education and human resource agencies to ensure that industrial strategies are matched by robust talent development and pipelines. Initiatives like Academy in Industry programme by MPC, K-Youth under Khazanah Nasional, and upskilling programmes under HRD Corp, must be scaled and better integrated into the national competitiveness agenda. To sustain and further elevate Malaysia's position, it is worthwhile to draw inspiration from international best practices. For instance, Denmark's emphasis on workforce adaptability and lifelong learning ensures that its economy remains resilient and responsive to technological shifts. Meanwhile, South Korea's aggressive investments in R&D and innovation ecosystems have positioned it as a global leader in advanced manufacturing and semiconductors. Malaysia should consider incorporating these elements—such as agile regulatory sandboxes, performancebased innovation grants, and a national work-integrated and lifelong learning agenda—as part of its next phase of competitiveness reforms. More importantly, Malaysia must shift from a primarily input-driven model to one rooted in productivity and innovation-led growth. This means significantly boosting investments in R&D, creating stronger linkages between academia and industry, and nurturing a vibrant startup ecosystem. Malaysia should also emulate countries that rank highly in competitiveness, such as Switzerland, South Korea and Sweden, who lead in patents, intellectual property, and cutting-edge innovation globally. We can try to achieve this in strategic sectors such as advanced electronics, AI, clean energy, and biotech. Incentivising privatesector innovation, reforming procurement to favour innovative solutions, and enhancing funding mechanisms for techpreneurs will be crucial steps forward. Innovation must be made the 'engine' of our long-term economic resilience and prosperity. It is imperative that we maintain this trajectory. The Government has set a goal for Malaysia to be among the Top 12 most competitive economies by 2033. This is ambitious, but now, demonstrably achievable. It must be stressed that improved economic competitiveness means increased chances of attracting high impact investments which will create more job opportunities with higher wages. This latest ranking shows that Malaysia is not just playing catch-up, but also clearly positioning itself to lead especially in today's complex geoeconomic landscape. Our message to the world has been clear and consistent: Malaysia is serious about economic reforms, open for business and ready for the challenges ahead. Ultimately, Malaysia's improved competitiveness is a function of political will and determined leadership. It shows what can be achieved when a government dares to reform and focus on making tough but necessary decisions for Malaysia's future prosperity.
Borneo Post
20-06-2025
- Business
- Borneo Post
Leaping ahead to continue leading with conviction
Incentivising private sector innovation, reforming procurement to favour innovative solutions, and enhancing funding mechanisms for techpreneurs will be crucial steps forward for Malaysia, says Tengku Zafrul. MALAYSIA'S remarkable 11-spot jump in the IMD World Competitiveness Ranking (WCR) – from 34th position in 2024 to 23rd in 2025 – is more than just a statistical victory. It is a powerful testament to the effective implementation of the Madani Government's economic reforms – including fiscal, industrial and social. For context, the WCR assesses the ability of economies to foster an environment that supports business competitiveness, productivity and economic growth, across four main categories: economic performance, government efficiency, business efficiency, and infrastructure. Malaysia's marked improvement in three out of four areas, especially the leap to fourth among 69 economies in economic performance, is no small feat. The Ministry of Investment, Trade and Industry (MITI) is especially pleased that our industrial reforms implemented under the New Industrial Masterplan 2030 have contributed to the jump in the rankings in terms of sub-factors such as domestic economy (+20); international trade (+11); international investment (+2); employment (+8); institutional framework (+11); business legislation (+4); productivity and efficiency (+19), and the labour market (+11). While there is still much room for improvement, this dramatic increase in the rankings is a strong validation that Malaysia's economy is on the right track and we are steadily regaining our competitive edge on the global stage. Reform engine: MITI's coordinating role This surge in competitiveness is not accidental. It is the result of intentional, coordinated, and at times, politically difficult reforms. It reflects a responsible governance approach under Prime Minister Datuk Seri Anwar Ibrahim's Madani Economy Framework, and the deft execution by the relevant economic ministries and agencies including MITI, which has led the implementation of Malaysia's revamped trade, investment, and industrial strategies. MITI's agency, the Malaysia Productivity Corporation (MPC), has led the coordination work on improving the WCR sub-factors across various ministries and agencies. At the heart of this leap is a more aggressive posture on bureaucratic reform and investment facilitation. MITI's leadership of the National Competitiveness Council (JKDSN), together with the Ministry of Finance, has driven whole-of-government efforts to streamline investment approvals, reduce regulatory burdens, ease investors' journey and modernise economic policy frameworks. Moreover, the establishment of the Special Taskforce on Agency Reform (STAR) led by Chief Secretary to the Government (KSN) – part of the wider Public Service Reform Agenda (2024-2030) and involving over 1,000 reform initiatives at federal and state levels – has helped dismantle bottlenecks that previously discouraged investors. The improvement in the international trade sub-factor – rising 11 spots to 6th globally – is also clear evidence of targeted policy outcomes under MITI's purview. This includes enhanced investment strategies by the Malaysian Investment Development Authority (MIDA), and improved trade promotion by the Malaysia External Trade Development Corporation (Matrade). Our efforts in advancing regional agreements and accelerating participation in digital economy frameworks have also contributed to improvement in the rankings. Concurrently, in a world marked by rising protectionism, geopolitical realignments, and economic fragmentation, Malaysia's steady hand in policy continuity is increasingly appreciated by global investors. This competitiveness boost is also a strong endorsement of the New Industrial Master Plan (NIMP) 2030 along with its supporting policies such as the National Semiconductor Strategy and Green Investment Strategy – all of which prioritise high-value industries such as semiconductors, green technology, and digital economy as future growth pillars. Their implementation has already created stronger linkages between industrial policy and talent development, innovation incentives and sustainability goals. Rankings, of course, are not policy goals in themselves, but they do matter. They serve as confidence benchmarks to global markets, foreign investors, and multilateral institutions. A leap of 11 positions makes Malaysia more attractive as a business destination, especially for multinationals seeking resilient and progressive emerging markets in Asia. It also reflects how our institutions – empowered with the political will, mandate and right leadership – are perfectly capable of executing coherent reform agendas for the nation. The road ahead: Maintain the momentum This milestone is cause for celebration, but not for complacency. If anything, the real work begins now. While economic performance and trade efficiency have improved, there remain areas where Malaysia still lags – particularly in innovation capability, workforce productivity, digital transformation, management practices and workforce attitudes. There may be a need to complement structural reforms with human capital upgrades and culture shifts. Global digital and green transitions will require Malaysia to not only adopt new technologies but also to nurture a new generation of skilled, future-ready workers. Here, too, MITI's role will be pivotal. The ministry will continue working closely with education and human resource agencies to ensure that industrial strategies are matched by robust talent development and pipelines. Initiatives like 'Academy in Industry' programme by MPC, K-Youth under Khazanah Nasional, and upskilling programmes under HRD Corp, must be scaled and better integrated into the national competitiveness agenda. To sustain and further elevate Malaysia's position, it is worthwhile to draw inspiration from international best practices. For instance, Denmark's emphasis on workforce adaptability and lifelong learning ensures that its economy remains resilient and responsive to technological shifts. Meanwhile, South Korea's aggressive investments in research and development (R&D) and innovation ecosystems have positioned it as a global leader in advanced manufacturing and semiconductors. Malaysia should consider incorporating these elements such as agile regulatory sandboxes, performance based innovation grants, and a national work-integrated and lifelong learning agenda, as part of its next phase of competitiveness reforms. More importantly, Malaysia must shift from a primarily input-driven model to one rooted in productivity and innovation-led growth. This means significantly boosting investments in R&D, creating stronger linkages between academia and industry, and nurturing a vibrant startup ecosystem. Malaysia should also emulate countries that rank highly in competitiveness, such as Switzerland, South Korea, and Sweden, who lead in patents, intellectual property, and cutting-edge innovation globally. We can try to achieve this in strategic sectors such as advanced electronics, artificial intelligence (AI), clean energy, and biotechnology. Incentivising private sector innovation, reforming procurement to favour innovative solutions, and enhancing funding mechanisms for techpreneurs will be crucial steps forward. Innovation must be made the 'engine' of our long-term economic resilience and prosperity. It is imperative that we maintain this trajectory. The government has set a goal for Malaysia to be among the 'Top 12 Most Competitive Economies' by 2033. This is ambitious, but now, demonstrably achievable. It must be stressed that improved economic competitiveness means increased chances of attracting high impact investments which will create more job opportunities with higher wages. This latest ranking shows that Malaysia is not just playing catch-up, but also clearly positioning itself to lead especially in today's complex geo-economic landscape. Our message to the world has been clear and consistent: Malaysia is serious about economic reforms, open for business and ready for the challenges ahead. Ultimately, Malaysia's improved competitiveness is a function of political will and determined leadership. It shows what can be achieved when a government dares to reform and focus on making tough but necessary decisions for Malaysia's future prosperity. * Tengku Zafrul is Malaysia's Investment, Trade and Industry Minister. IMD World Competitiveness Ranking Miti Tengku Zafrul
New Straits Times
20-06-2025
- Business
- New Straits Times
Anwar: Reforms paying off as Malaysia rises in global rankings
PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim today highlighted Malaysia's improving economic trajectory, citing robust growth, lower unemployment, and renewed investor confidence. He attributed these positive developments to a series of fiscal reforms and targeted policies, while firmly dismissing allegations of economic mismanagement by the government. Speaking at the Finance Ministry's monthly assembly, he said the latest data told a story of recovery, reform, and resilience. Malaysia has climbed 11 spots to rank 23rd in the 2025 IMD World Competitiveness Ranking — its highest position since 2020 — with notable gains in economic performance, government efficiency, and business competitiveness. The country's gross domestic product (GDP) expanded by 5.1 per cent in 2024, exceeding the 3.5 per cent recorded in 2023 and surpassing official projections. The unemployment rate fell to 3 per cent in April 2025 — the lowest in a decade. The ringgit also posted significant gains, emerging as one of Asia's top-performing currencies. It appreciated by 5.2 per cent against the US dollar and strengthened against regional currencies such as the Indonesian rupiah and Chinese renminbi. Anwar said that Malaysia's fiscal reforms had received commendation from the International Monetary Fund (IMF), which described the Fiscal Responsibility Act 2023 as a major milestone. The fiscal deficit has been reduced from 5.5 per cent in 2022 to 4.1 per cent in 2024, with a target of 3.8 per cent for 2025. Federal borrowing has also decreased, with new debt issuance falling from RM100 billion in 2022 to RM85 billion in 2024. This, Anwar said, had enabled the government to sustain public services while maintaining fiscal discipline. He stressed that the reforms were undertaken without placing undue burden on the public. The government had broadened the tax base and restructured subsidies to ensure more effective support and service delivery. Eighty-five per cent of households were unaffected by electricity tariff adjustments, while diesel subsidies for logistics vehicles were maintained to prevent a knock-on effect on prices. Inflation remained contained at 1.8 per cent in 2024. The adjustment to the Sales and Service Tax (SST), effective from July 1, excludes essential goods. Analysts have forecast only a marginal inflationary impact of 0.25 per cent. With improved fiscal space, the government has been able to boost allocations for public assistance and essential services. A record RM13 billion was channelled to the SARA and STR cash aid programmes this year, benefiting nine million recipients. Funding for education and healthcare was also raised to RM64 billion and RM45 billion, respectively. "This nation inherited a burdensome fiscal structure — ballooning debt, a narrow revenue base, and untargeted subsidies that disproportionately benefited the wealthy and foreign nationals. "Whether we liked it or not, reform was essential. Since the Madani government took office, we have embraced bold, corrective policies to restore our fiscal foundation and uplift the people's lives," he said.
New Straits Times
20-06-2025
- Business
- New Straits Times
Shifting Gears in Southeast Asia: How Malaysia Went from Laggard to Contender
IF you want to understand who's really winning in Southeast Asia today, don't just glance at GDP charts or listen to upbeat investment roadshows. Instead, look beneath the surface - at the metrics that actually move the needle: trade agility, digital depth, and the machinery of governance. That's where the tectonic shifts are happening. And when you do, a clearer picture emerges: Singapore remains the regional oracle; Malaysia is sprinting ahead like a reformist insurgent; and Thailand, while trying to keep pace, is still caught in the weeds of structural drag. Let's start with Malaysia, because something is finally clicking. By mid-2025, Malaysia jumped 11 spots in the IMD World Competitiveness Ranking, climbing from 34th to 23rd out of 69 economies. That's not a statistical blip. It's Malaysia's best performance since 2020 and a clear sign that the gears of reform are beginning to turn in earnest. Economic performance? Fourth globally. Government efficiency? Up eight places. Business efficiency? Also up eight. And trade - often the acid test for middle-income economies? Malaysia now ranks 6th in the world, up 11 spots, powered by strong exports, broader market reach, and a healthy rebound in tourism. But this wasn't luck. According to Prime Minister Datuk Seri Anwar Ibrahim and Investment, Trade and Industry Ministry, this surge is rooted in political will and a relentless focus on bureaucratic modernisation - over 1,000 reform initiatives under the Madani Economy framework. These include digitalisation of public services, procurement reform, accelerated investment approvals, and consolidation of regulatory functions across ministries. It's a serious attempt to make "ease of doing business" more than just a slogan. For a country long caught between ambition and inertia, this IMD jump is a rare data point of real traction - where trade statistics, policy clarity, and administrative muscle finally line up. Zoom out and the regional picture gets sharper. Singapore, as always, sets the bar. Despite slipping slightly to second place globally, it remains the gold standard in trade, digital governance, and institutional design. For a resource-scarce city-state, this dominance is less about size and more about orchestration, a blend of tech infrastructure, regulatory agility and long-term planning that continues to pay dividends. Thailand, by contrast, is moving, but unevenly. While its economic and business metrics nudged upward, its government efficiency fell by eight places, a sign that reform hasn't kept pace with rhetoric. Political volatility and fragmented policymaking continue to blunt the impact of what might otherwise be a promising digital and export agenda. But here's the real twist in the Southeast Asian playbook: 2025 isn't just about ports and factories anymore. It's about chips, clouds, and code. Digital competitiveness is now the new frontline. Singapore, predictably, leads again—ranked No. 1 globally with a fintech ecosystem plugged directly into regulatory sandboxes and digital identity rails. Malaysia isn't there yet, but it's laying the groundwork fast. With more than RM30 billion in digital investments from Google, Microsoft and ByteDance, and a slew of policies like the National AI Roadmap and sovereign cloud frameworks, Malaysia is quietly morphing into a regional data hub. Thailand is pushing hard to digitize 30 per cent of its GDP by 2030, leveraging AI in agriculture and cloud infrastructure but it's still playing catch-up. Governance, however, remains the X-factor. It's the difference between a country that moves and one that drifts. Singapore is still the masterclass its governance model is less about bureaucracy and more about choreography. Malaysia, to its credit, is catching on fast. Its eight-rank jump in government efficiency reflects more than just cosmetic tweaks; it marks a shift in how the public sector thinks about speed, coordination, and execution. Thailand, unfortunately, slipped in this category, held back by legacy systems and electoral churn that don't move fast enough for a digital economy. So what's the bigger story? It's that the race to the top in Southeast Asia is no longer just a regional contest. It's a systemic one. Competitiveness today isn't about who can export the most palm oil or assemble the cheapest smartphones. It's about who can export trust, reduce friction, digitise their bureaucracy and make infrastructure work at the speed of capital. Malaysia, after years of spinning its wheels, seems to have found traction. This year, it's the comeback kid. The challenge now is to maintain altitude to turn a reform moment into a reform movement. Because in this new Southeast Asia, the scoreboard doesn't wait. It updates in real time. And this time, Malaysia isn't just watching the scoreboard. It's finally part of the game that counts.
Gulf Insider
18-06-2025
- Business
- Gulf Insider
UAE Ranked 5th in Global Competitiveness Ranking
The UAE has ranked in fifth place in a global competitiveness ranking, outperforming major economies including the US, Sweden, and Germany. The achievement was reviewed at a meeting of the UAE Cabinet, chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, at Qasr Al Watan in Abu Dhabi. During the meeting, Sheikh Mohammed confirmed that over 1,830 UAE citizens received housing support in the first half of 2025, with grants exceeding AED1.25bn ($340.4m), to reinforce family stability and ensure decent living standards. Sheikh Mohammed said: 'I chaired a Cabinet meeting at Qasr Al Watan in Abu Dhabi, where we reviewed the UAE's performance in the 2025 IMD World Competitiveness Ranking. The UAE ranked fifth globally, alongside the world's leading countries in economic competitiveness, government efficiency, legislative strength, and business environment excellence. 'Fourteen years ago, we established a competitiveness centre, uniting the efforts of key national entities. These efforts have elevated the UAE's ranking from 28th globally in 2009 to being among the top five globally in competitiveness. 'In the same report, the UAE ranked first globally in the absence of bureaucracy index, second globally in government policies adaptability index, and fourth globally in government efficiency index. 'This achievement is a testament to years of consistent effort. With the vision of my brother, Mohamed bin Zayed, our future will continue to be even brighter and stronger.' The UAE led globally in 22 indicators including employment rate, availability of global expertise, digital company transformation, and female parliamentary representation. The UAE also ranked second globally in social cohesion, flexibility of residency laws, and government policy adaptability, while securing third globally in graduates in sciences, leverage of digital tools and technology, and healthcare infrastructure. The Cabinet also reviewed the 2024 report of the Higher Commission for Free Trade Negotiations, confirming the signing of 27 Comprehensive Economic Partnership Agreements (CEPAs), of which eight have come into force. This has helped the UAE achieve: AED5.23tn ($1.42tn) in total foreign trade (2024) AED440bn ($119.9bn) in non-oil exports (up 16.3 per cent YoY) AED684.3bn ($186.4bn) in re-exports AED113bn ($30.8bn) in foreign direct investment in 2023 The UAE Cabinet also reviewed the Emirates Council for Balanced Development, chaired by Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Deputy Chairman of the Presidential Court for Development and Fallen Heroes' Affairs. Highlights include completed and ongoing projects in Qidfa, Masfout, and Al Rams. These include community spaces, markets, ecotourism initiatives, and the 'Jothoor' programme empowering female Emirati artisans. The Cabinet also reviewed the success of the Digital Identity system, now used by more than 11m citizens and residents, enabling 600 million secure logins and facilitating 2.6bn digital transactions. New federal initiatives approved by the Cabinet include: National Maritime Navigation Centre to oversee vessel tracking, marine safety, and environmental protection Restructuring of the Higher Committee for Anti-Money Laundering and Countering Terrorism Financing, chaired by Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Foreign Affairs A draft law to safeguard UAE cultural heritage and enhance public awareness The United Arab Emirates Council for Climate Action was also restructured to accelerate the Net Zero 2050 strategy, with the UAE expanding protected areas (18 per cent mainland, 12 per cent marine) and adding nine new biodiversity hotspots, alongside a plan to plant 100 million mangrove trees by 2030. Special attention to the fourth edition of the Make it in the Emirates platform, which in 2025 attracted more than 122,000 visitors and facilitated: AED168bn ($45.7bn) in potential procurement deals for local manufacturing AED11bn ($3bn) in new industrial project agreements AED40 billion ($10.9 billion) in SME financing over five years Furthermore, the Cabinet ratified 13 international agreements, including economic and visa deals with Montenegro, Vietnam, Uganda, and New Zealand. Approval was also granted for: 36 new MOUs and agreements, including with Hong Kong and the Eurasian Economic Union Establishing UAE embassies in Togo, Gabon, Cameroon, and Tajikistan, and a Consulate General in Miami, USA UAE participation in 13 global events and hosting of key summits like the Central Banks Data Cooperation Group Also read: UAE Offers Corporate Tax Fine Waiver — but Deadline Looms
