Malaysia jumps 11 spots in world competitiveness ranking, best since 2020

New Straits Times

3 days ago

KUALA LUMPUR: Malaysia has risen 11 places in the World Competitiveness Ranking (WCR) 2025, moving to 23rd out of 69 economies, the country's best ranking 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.