Malaysia falls 7 spots in global competitiveness ranking

According to the International Institute for Management Development’s (IMD) World Competitiveness Ranking, Malaysia has dropped seven spots to 34th rank out of 67 nations.

In the Asia-Pacific area, Malaysia fell four spots to rank 10th out of 14 nations, its lowest ranking since it surpassed Thailand and Indonesia.

Concurrently, Singapore regained its standing as the most competitive economy globally, rising four spots from the previous year and leading the index for the first time since 2020, outpacing nations such as Denmark (third) and Switzerland (second).

Nearly every metric, including corporate and government efficiency as well as economic performance, declined in Malaysia. Infrastructure was the lone area where it did not lose ground.

Additionally, the research revealed that Malaysia fell 19 places to rank 35th in the sub-factor of the domestic economy and 17 places to rank 53rd in productivity and efficiency.

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Five challenges were listed in the report for Malaysia.

1. 1. Leveraging advanced technologies to accelerate productivity growth

   2. Updating policies and regulations to improve global competitiveness

   3. Optimizing the labor market to maximize workforce productivity

   4. Increasing investment in research and development to boost business resilience

   5. Mitigating rising costs through strategic productivity enhancements.

The ability of nations to establish and preserve an atmosphere that supports businesses’ competitiveness is analyzed and ranked in the IMD World Competitiveness Ranking.

The current edition rates 67 economies globally. Executive perceptions and statistical data are used to determine each economy’s ultimate score.

A customized online survey was used to collect executive opinions between February and May of 2024. The sources of statistical indicators were partner institutes, private institutions, and international, national, and regional organizations.

The Malaysia Productivity Corporation provides the data on Malaysia.

The institute’s research and expertise, along with scholarly evaluations, formed the basis for the methodology used in the ranking. Which separated the national environment into four primary factors. They are infrastructure, business efficiency, government efficiency, and economic performance.

Malaysia maintained its strength in the sub-factors of tax policy and prices. Placing second and eleventh respectively, while falling one spot from the previous year in each area. Malaysia, meanwhile, dropped two spots to tenth position for basic infrastructure.