Latest news with #IMDWorldCompetitivenessRanking2025
New Straits Times
22-07-2025
- Business
- New Straits Times
Improvement driven by E&E and reforms
KUALA LUMPUR: Malaysia's rise in the IMD World Competitiveness Ranking 2025 was driven by its electrical and electronics (E&E) sector and regulatory efficiency reforms. The Malaysia Productivity Corporation (MPC) said the improved standing reflects sustained industrial momentum and government-led efforts to create a more business-friendly environment. A key initiative is the Industrial Green Lane (IGL), which expedites development and licensing approvals for industrial projects. "Malaysia's improved competitiveness reflects not just industrial strength, but regulatory transformation on the ground," MPC director-general Datuk Zahid Ismail said in a statement. "Through IGL, we are enabling faster, cleaner and more predictable approvals, essential for investment, productivity and growth." The IGL model streamlines approvals via simultaneous technical briefings, fast-track licence processing and licence issuance within 24 hours of the certificate of completion and compliance. This approach has generated RM0.5 billion in local authority revenue, created 20,000 jobs and facilitated billions in investments. Last year, Malaysia approved RM378.5 billion in total investments, including RM120.5 billion in the manufacturing sector. "The E&E industry led the way with RM55.8 billion, making it the largest sub-sector, supported by 73.8 per cent of foreign direct investment. These outcomes align with the National Semiconductor Strategy and the New Industrial Master Plan," MPC said. However, issues like Customs efficiency, trade transparency and documentation handling remain hurdles to export growth. MPC said reducing non-tariff measures and improving trade facilitation are critical for enhancing export competitiveness. "The E&E Productivity Nexus, alongside national agencies, is addressing these challenges through digital adoption, artificial intelligence and Internet of Things-driven energy efficiency and regulatory coordination. "There is also continued emphasis on helping small and medium enterprises adapt to global standards. The government aims to expand IGL implementation nationwide, improve logistics infrastructure and drive data-driven regulatory reforms."
The Sun
21-07-2025
- Business
- The Sun
Malaysia reduces new debt to RM77 billion in 2024, says PM Anwar
PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim revealed that the government has successfully lowered annual new debt to RM77 billion in 2024, a significant drop from RM99 billion in 2022. Speaking at the Prime Minister's Department monthly assembly, he emphasised that this achievement aligns with the administration's commitment to prudent fiscal management. 'The new debt incurred was RM99 billion in 2022, dropping to RM93 billion in 2023 and further to RM77 billion in 2024. The government promised to reduce new debt, and we have fulfilled that,' Anwar stated. He dismissed claims that the government was increasing overall debt, clarifying that only interest payments on older debts remain unchanged. Anwar, who also serves as Finance Minister, highlighted the gradual reduction in the fiscal deficit from 5.5 per cent in 2022 to 4.1 per cent in 2024, with a target of 3.8 per cent this year. He explained that a measured approach ensures development projects and market confidence remain unaffected. 'We manage the national economy like a household. If income is RM5,000 but spending is RM7,000, that's a deficit. Now, we're reducing expenditure step by step,' he said. The Prime Minister also commended Malaysia's improved global competitiveness, noting an 11-place jump to 23rd in the IMD World Competitiveness Ranking 2025. This progress, driven by economic reforms and administrative efficiency, supports the MADANI Economy Framework's goal of placing Malaysia among the top 12 competitive economies by 2033. Anwar cited the International Monetary Fund's (IMF) approval of Malaysia's fiscal reforms, including the Public Finance and Fiscal Responsibility Act (FRA), as evidence of the government's disciplined approach. – Bernama
New Straits Times
16-07-2025
- Business
- New Straits Times
PM urges business-friendly reforms following Malaysia's ranking rise
PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim has urged all stakeholders to intensify efforts to enhance the ease of doing business in Malaysia, following the country's improved performance in the IMD World Competitiveness Ranking 2025, where it jumped 11 places to rank 23rd globally. Anwar described the result, the best in five years, as a clear sign of progress, but warned that sustained reforms remain necessary to maintain momentum. "I urge all relevant parties to continue strengthening their resolve and efforts to improve the ease of doing business in the country," he said in a Facebook post after chairing the National Physical Planning Council meeting. He also said that comprehensive reform in governance and public service delivery is important, highlighting the need for systems that are more efficient, transparent and uphold integrity. Anwar added that effective planning under the Town and Country Planning Act 1976, including reviewing state structure plans and land use proposals, is vital to ensure that development remains people-centric and investor-friendly. "These steps are crucial to safeguard national prosperity, boost investor confidence, and most importantly, ensure that the well-being of the people remains at the heart of development," he said.
The Sun
15-07-2025
- Business
- The Sun
MITI urged to boost anti-corruption efforts with business community
PUTRAJAYA: The Ministry of Investment, Trade and Industry (MITI) has been urged to strengthen collaboration with businesses and investors to address corruption concerns affecting Malaysia's economic growth. The recommendation emerged during a meeting of the Corruption Perceptions Index (CPI) Special Task Force, led by Chief Secretary Tan Sri Shamsul Azri Abdul Bakar. The task force highlighted the need for MITI to conduct engagement sessions with the business community, including the Special Task Force to Facilitate Business (PEMUDAH), to gather direct feedback on corruption risks. The sessions aim to enhance transparency and trust in Malaysia's governance system. Key reform strategies identified include promoting integrity culture and leveraging technology to combat corruption. Local authorities were also encouraged to lead by example in ethical governance. 'The CPI Special Task Force remains fully committed to strengthening governance and anti-corruption efforts through a whole-of-government approach,' the statement read. Malaysia's improved performance in the IMD World Competitiveness Ranking 2025, rising 11 spots to 23rd place, was partly attributed to progress in the Bribery and Corruption indicator. The task force hopes these efforts will further elevate Malaysia's CPI ranking, targeting a top-25 global position within a decade. The meeting was attended by MACC Chief Commissioner Tan Sri Azam Baki and CPI task force members. The group was formed to strategise improvements in Malaysia's anti-corruption measures and global perception. – Bernama
The Sun
15-07-2025
- Business
- The Sun
Malaysia leaps 11 spots to 23rd in IMD world competitiveness list for 2025, best since 2020
KUALA LUMPUR: Malaysia has jumped 11 places to 23rd in the IMD World Competitiveness Ranking 2025, marking its best performance since 2020. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the leap is attributed to significant improvements in economic performance, government efficiency and business efficiency, primarily driven by productivity reforms and trade diversification. 'Our efforts have paid off. We are determined to maintain this momentum through the RKB (Regulatory Reform) initiatives and strategic policy execution,' he said during the Ministry of Investment, Trade and Industry's (Miti) second-quarter report card today. Tengku Zafrul said one standout case is the Kulim Fast Lane/Fast Track project, a bureaucratic reform initiative using artificial intelligence (AI) and a centralised database to expedite business permits. As a result, immediate leases were issued just one hour after compliance clearance and project approvals were reduced from 24 months to 10 months. This fast-tracking helped raise total investment in the project from RM50.1 billion in 2020 to RM192 billion in 2024, representing a 74% increase. 'This is what we mean by results from reforms,' said Tengku Zafrul. 'Reduced bureaucracy is not just about speed, it drives real growth, jobs and investor confidence.' Under Miti's Good Regulatory Practises Framework, 807 regulatory reform projects have been registered to date, with RM374 million in cost savings recorded from completed initiatives as of June 2025. The ministry is targeting up to RM1.5 billion in cost savings by the end of the year. Miti also announced that, effective May 6, only the ministry will issue Non-Preferential Certificates of Origin for exports to the United States, streamlining export documentation. In a move to safeguard national security and uphold responsible trade, all exports, transit and transshipment of high-performance AI chips now require Strategic Trade Permits, as of Monday, under the Strategic Trade Act 2010. Further, the report showed Malaysia has signed 18 free trade agreements (FTA) covering 28 countries, with the most recent being the Malaysia-EFTA Economic Partnership Agreement on June 23. Miti noted that many exporters are unaware of FTA benefits. 'We are scaling up outreach and have allocated RM50 million in market development grants (MDG), with a RM22.7 billion export target for 2025–2026,' Tengku Zafrul said. Between January and June alone, MDG recipients recorded RM2.88 billion in reported export sales, with RM2.09 billion potentially realised. Malaysia's digital economy saw RM310.7 billion in approved investments between 2021 and Q1 2025, generating 92,058 jobs, largely in data centres, which Miti estimates have a 6.6x economic multiplier effect. 'For every ringgit spent on data centres, the economy gains RM6.60. This is the kind of return that fuels national resilience,' Tengku Zafrul noted. Miti-led missions to countries including the US, the UK, Singapore and India have generated RM25.6 billion in potential investments and RM30.08 billion in potential exports in the first half of 2025. Green investments under the Green Investment Strategy reached RM22.9 billion in Q1 2025, with 1,492 approved projects in renewable energy, green mobility, and circular economy sectors. Foreign investments made up 53.7% of the total. From 2021 to Q1 2025, Malaysia approved 3,494 manufacturing projects, with 3,095 implemented, achieving an 86.4% realisation rate. Employment in the sector rose by 50,000 in Q1 2025 alone. Median wages grew by 5.4% year-on-year to RM2,745, while GDP value-added from manufacturing increased RM3.8 billion to RM95.7 billion. Miti's NIMP 2030 initiative to advance economic complexity is also progressing. Five local IC design firms have been established, and RM52 billion in semiconductor-related investments have been secured. The Smart Tech-Up programme now supports up to 80 smart factories by 2025. Investments in chemical and related sectors soared by 105.1% year-on-year in Q1 2025, reaching RM479.26 billion, up from RM233.68 billion. Foreign direct investment alone surged by 174.4%. On the domestic automotive side, Miti report noted that Perusahaan Otomobil Kedua Sdn Bhd (Perodua) is on track to launch its first electric vehicle by end-2025. Meanwhile, the MARiiCAS e-bike rebate programme, under Budget 2025, has approved 11,724 applications worth RM28.14 million to support low-carbon mobility. Down south, the Johor-Singapore Special Economic Zone accounted for 90.4% of Johor's total approved investments in Q1 2025, totalling RM30.14 billion, with a majority in the services sector. Miti has also ramped up efforts to build supply chain resilience through cross-ministerial cooperation and the upcoming Supply Chain Intelligent Management System, set to go live in December. 'In a time of geopolitical tension and resource shocks, we must digitise, diversify and cooperate to safeguard economic security,' Tengku Zafrul emphasised.
