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Borneo Post
24-06-2025
- Business
- Borneo Post
Malaysia's rise in global competitiveness rank signals economic resurgence
In the 2025 edition of the annual World Competitiveness Ranking), Malaysia surged from 34th to 23rd place, marking its strongest performance since 2020. – File Photo/AFP KUALA LUMPUR (June 24): Malaysia is making waves on the world stage, achieving a remarkable leap up the rankings that reflects purpose, progress, and promise. In the 2025 edition of the annual World Competitiveness Ranking (WCR) published by the Institute for Management Development (IMD), Malaysia surged from 34th to 23rd place, a jump of 11 spots, marking its strongest performance since 2020. This leap is propelled not only by economic growth but also driven by cohesive policy reforms, investor-friendly governance and a reinvigorated commitment to inclusive development. Malaysia now ranks just ahead of Belgium and Czechia and no longer trails Thailand at 30th. Many celebrated this milestone as a testament to the country's revitalized competitiveness. The Malaysian Investment Development Authority (MIDA) credited the rise to a dynamic, pro-business ecosystem, underscoring recent reforms and the investment optimism they have inspired. To bring these macro reforms into sharper focus, The Borneo Post took a deep dive with Dr. Nivakan Sritharan, lecturer from the Faculty of Business, Design and Arts, Swinburne University of Technology Sarawak, on how the leap in rankings aligns with real-world prosperity. Nivakan Sritharan Malaysia posted a GDP growth rate of 5.1 percent in 2024, with inflation holding steady at 1.8 percent and unemployment near pre-pandemic levels at just 3.3 percent. These figures reflect not just recovery, but sustained economic resilience. According to Dr. Nivakan, 'Malaysia ranked fourth globally in economic performance. That kind of leap doesn't happen without coordinated reforms.' Notably, its standing in economic performance alone catapulted from eighth to fourth in just one year which signifies a clear sign of accelerating momentum. Government and business efficiency also registered impressive gains, both improving by eight positions compared to the previous year. A closer examination reveals that international trade terms, often considered a harbinger of competitiveness, saw Malaysia rise by 11 places to sixth globally. This jump reflects robust export growth, diversification into new trade markets, and stronger tourism receipts contributing to a healthier trade surplus. Fiscal discipline has been central to this resurgence. Malaysia's budget deficit has narrowed to approximately 4.1 percent of GDP which is a significant improvement over previous years. At the same time, the current account surplus has strengthened, supported by a dual export strategy focusing on high-value manufactured goods and commodities. The ringgit too has found greater balance, further enhancing export competitiveness. Dr. Nivakan emphasized the role of the Fiscal Responsibility Act, a landmark policy aimed at mainstreaming budget discipline and reducing public debt. He praised the government's move to transition from blanket fuel subsidies to targeted schemes, an approach that annually frees up approximately RM8 billion. These savings are being channelled into digital infrastructure, green energy, and upskilling initiatives where all of which inject long-term value into the economy. Another plank of the reform agenda is revenue modernization. The introduction of e-invoicing and expanded Sales and Service Tax (SST), alongside a modest dividend tax on higher-income brackets, reflect Malaysia's evolving fiscal architecture. Coupled with strategic expenditure including support for electric vehicle infrastructure where the result has been a more efficient and future-ready public finances framework, signaling clarity and consistency for investors. Malaysia has achieved tangible progress where in 2024, RM378.5 billion in investments were approved, creating more than 207,000 new jobs. The labour force participation rate climbed to 70.2 percent, and median wages increased by 5 per cent, reaching RM3,045 per month. Dr. Nivakan explained that education and workforce development are central to this improvement. Apprenticeships, vocational training under the TVET initiative, and the Talent Roadmap 2024–2030 are equipping Malaysians with the skills demanded by both emerging and established industries. He noted that wage-indexing mechanisms linked to productivity are helping ensure equitable income growth. Malaysia's upward trajectory is also attracting international attention. In 2024, foreign direct investment (FDI) formed about 45 per cent of the total RM378.5 billion in approved projects, driven largely by investors from the US, China, Germany, and Singapore. 'Improved rankings and clearer regulation are giving investors the confidence to commit especially in high-growth sectors like semiconductors, green tech, and digital finance,' said Dr. Nivakan. Indeed, a virtuous cycle appears to be emerging: reform leads to performance, performance attracts investment, investment creates jobs, and improved livelihoods reinforce resilience and confidence. Consumer sentiment is on the rise, and business outlook signifies the heartbeat of long-term growth is strengthening, particularly among SMEs nationwide. Looking ahead, the government's ambition is clear, which is to break into the top 12 most competitive countries by 2033. Achieving this milestone will require sustained momentum, especially in ensuring inclusivity. Infrastructure and opportunities must reach beyond the Klang Valley into rural and smaller urban centres. Educational attainment must be uplifted, incomes aligned with productivity gains, and targeted support maintained for B40 and M40 households. As Dr. Nivakan explained: 'The challenge now is to climb further up the ladder, but without leaving anyone behind. Ultimately, Malaysia's 11‑spot climb in WCR 2025 reflects collective purpose.' It demonstrates how macroeconomic stability, fiscal realism, regulatory clarity, and inclusive policies can align to elevate a nation's standing and the wellbeing of its people. This is about building a foundation on which Malaysia can confidently thrive in the global economy. Dr Nivakan Sritharan malaysia World Competitiveness Ranking


The Sun
20-06-2025
- Business
- The Sun
MADANI economic reform agenda yielding results
PUTRAJAYA: The MADANI economic reform agenda has yielded results, said Prime Minister Datuk Seri Anwar Ibrahim. Despite global geopolitical and economic uncertainties, Malaysia has shown encouraging achievements in investment, economic performance, and fiscal stability, said Anwar, who is also the Finance Minister. Citing the World Competitiveness Ranking 2025 by the Institute for Management Development (IMD) recently, Anwar said Malaysia ranks 23rd in the global ranking, up 11 places from 34th in 2024. 'This is the best achievement since 2020. We are the only country to record an improvement of more than 10 places,' he said at the Finance Ministry's monthly assembly today. Anwar said the overall ranking was driven by improvements in three key areas — economic performance, which rose four spots to 4th in 2025, up from 8th in 2024; government efficiency, which jumped eight steps to 25th in 2025 from 33rd last year; and business efficiency, which rose eight rankings to 32nd in 2025 from 40th in 2024. 'This achievement is not only the result of prudent fiscal and financial policies but also due to the competence and capability of our civil servants. 'It shows that introducing the Public Service Remuneration System was not in vain – it's an encouragement to consider bonus-related matters next,' he added. Anwar also said the International Monetary Fund (IMF) had noted the reform efforts. 'Through the 2025 Article IV mission, the IMF praised Malaysia's commitment to fiscal reforms. They described the implementation of the Public Finance and Fiscal Responsibility Act (FRA) 2023 as a key pillar of the country's fiscal reform,' he said. Anwar reiterated that targeted subsidies and taxation measures are intended to protect the majority of the population. He explained that each fiscal reform initiative does not neglect the welfare of the people. Instead, the government is broadening the tax base and targeting subsidies to improve aid and public services. He noted that in 2023, the government adjusted electricity subsidies in a way that did not burden 85 per cent of the population. 'As a result, we saved RM4 billion – for what? For schools and hospitals,' he said. Anwar added that the targeted diesel subsidy implemented last year also did not burden the public. 'Smuggling to Thailand and Indonesia had gone on for decades and (cost us) tens of billions of ringgit. The government cannot allow that. That is why we enforced controls,' he said. He said the inflation rate was kept under control at 1.8 per cent in 2024 versus 2.5 per cent in 2023 due to targeted subsidy measures.


GMA Network
17-06-2025
- Business
- GMA Network
Philippines moves up to 51st spot in global competitiveness ranking
The Philippines' competitiveness ranking rose one notch this year amid improvements in economic performance and infrastructure, according to a report by the Switzerland-based Institute for Management Development (IMD). In its 2025 World Competitiveness Report, the IMD placed the Philippines 51st, up from 52nd last year, out of 69 economies it ranked all over the world. The IMD's World Competitiveness Ranking, first published in 1989, 'analyzes and ranks countries according to how they manage their competencies to achieve long-term value creation.' IMD divides its data into four areas, namely economic performance, government efficiency, business efficiency, and infrastructure. The four areas, together, capture various aspects of competitiveness, such as macroeconomic stability, fiscal policy, institutional quality, market openness, business dynamism, innovation, education, health, and environmental performance, according to the Swiss institute. The latest IMD report showed the Philippines' ranking in terms of the four key areas: Economic Performance - 33rd up from 40th Government Efficiency - 51st down from 49th Business Efficiency - 46th down from 43rd Infrastructure - 60th up from 61st Among Asia-Pacific's 14 economies, the Philippines ranked 13th—unchanged for six consecutive years. The IMD's report cited the following challenges for the Philippines this year: Rekindle the country's economic dynamism and growth trajectory. Address inflation expectations. Promote investments in inclusive technology to boost labor productivity and empower entrepreneurship. Improve education and healthcare to promote inclusive growth and reduce vulnerabilities. Adapt to shifting global economic and geopolitical dynamics. The report ranked Switzerland as the most competitive economy in the world this year, followed by Singapore and Hong Kong. —VBL, GMA Integrated News


The Sun
17-06-2025
- Business
- The Sun
Malaysia achieves significant improvement in global competitiveness, says WCR report
Malaysia's advancement from 34th place last year highlights the country's robust economic recovery and ongoing reform initiatives, as noted by Miti. KUALA LUMPUR: Malaysia has climbed 11 positions in the 2025 World Competitiveness Ranking (WCR), securing the 23rd spot out of 69 economies—its highest placement since 2020. The WCR, released each year by the Institute for Management Development in Switzerland, evaluates countries based on their ability to foster a supportive business environment and drive sustainable economic growth. Malaysia's advancement from 34th place last year highlights the country's robust economic recovery and ongoing reform initiatives, as noted by the Ministry of Investment, Trade and Industry (Miti). This progress supports Malaysia's goal of joining the world's top 12 most competitive economies by 2033, as set out in the Madani Economic Framework. According to the WCR, Malaysia's enhanced global competitiveness is driven by strong economic performance, improved government efficiency, and more effective business operations. The country now ranks 4th globally in economic performance—up four spots from last year—while government and business efficiency factors each improved by eight positions. International trade has also seen significant progress, climbing 11 places to rank 6th, thanks to robust export growth, diversified markets, and increased tourism receipts, which together have strengthened Malaysia's trade surplus. At the strategic level, the National Competitiveness Committee, co-chaired by the Finance Minister II, coordinates efforts across ministries to boost competitiveness. At the same time, the Special Taskforce on Agency Reform (STAR), led by the Chief Secretary to the government, ensures the effective implementation of over 1,000 projects under the Public Service Reform Agenda. Further, Miti emphasises that these bureaucracy-related reforms are closely linked to facilitating strong investment and industrial growth, both of which are essential for making Malaysia a more attractive investment destination. The whole-of-government approach under the Madani framework demonstrates its commitment to comprehensive structural reforms. With an ongoing commitment from federal and state governments and close collaboration with the private sector, Malaysia is well-positioned to achieve its goal of becoming one of the world's 12 most competitive economies by 2033.


New Straits Times
17-06-2025
- Business
- New Straits Times
Anwar: Madani reforms driving Malaysia's surge in global competitiveness ranking
KUALA LUMPUR: The Madani government's reform initiatives are beginning to bear fruit, as Malaysia surged 11 spots to 23rd place in the World Competitiveness Ranking 2025, its best performance in the past five years, said Prime Minister Datuk Seri Anwar Ibrahim. He said the significant improvement reflects Malaysia's ability to make great strides through strong political will, efficient government machinery and close collaboration with the private sector. "Encouraging performance in trade, administrative efficiency and the investment environment is a strong foundation for inclusive and sustainable economic progress," he said in a post on Facebook. Anwar said the achievement belongs to all Malaysians. "It is one of the important foundations in our journey to place this country in the most competitive economic group by 2033 for a brighter future for our children." The World Competitiveness Ranking, 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. Earlier, the Investment, Trade and Industry Ministry in a statement said the improved ranking from 34th place last year reflects the strong momentum in Malaysia's economic recovery and reform efforts. The ranking reaffirms the country's path toward becoming one of the world's top 12 most competitive economies by 2033, as outlined in the Madani Economic Framework.