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.
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The Sun
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Policy consistency, political stability key to world competitiveness ranking
KUALA LUMPUR: Malaysia's World Competitiveness Ranking (WCR) hinges on political stability and consistent policy formulation and implementation, particularly as difficult or unpopular decisions are sometimes necessary to optimise resource allocation and strengthen the country's economic structure. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that for example, the government's efforts to rationalise subsidies and enhance tax revenue are aimed at enabling greater public spending to build the nation's production capacity. 'This includes expenditure on sectors such as education, healthcare, infrastructure and security. Therefore, the government must ensure that these policy messages are communicated clearly to the public so that they understand the national policy direction,' he told Bernama. He was commenting on Malaysia's 11-spot leap in the World Competitiveness Ranking (WCR) 2025 to 23rd place — the country's best performance since 2020. The WCR is published annually by the Switzerland-based International Institute for Management Development (IMD). Mohd Afzanizam said the report provides a comprehensive assessment of an economy's ability to generate and sustain a business-friendly environment that contributes to long-term prosperity. 'The improvement in the ranking clearly indicates that Malaysia has a conducive ecosystem for business and investment. 'Pro-business government policies, experienced civil service machinery, a competitive workforce, and a well-educated talent pool have all contributed to enhancing the country's competitiveness,' he said. Despite facing global economic uncertainties stemming from tariff shocks and escalating geopolitical risks, Malaysia continues to attract foreign investments, he said. He said that these uncertainties have in fact opened up opportunities for Malaysia to demonstrate its capabilities in supporting a robust business ecosystem. 'For instance, the rise of artificial intelligence (AI) technologies has sparked growing interest in data centre development, particularly in Johor. 'This, in turn, highlights the need to upgrade supporting infrastructure such as electricity supply. Additionally, construction activities have picked up pace, benefiting local contractors,' he said. As such, he noted, the spillover effects are clearly visible and overall, Malaysia is well positioned to register quality growth.
The Star
3 hours ago
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