World Competitiveness Ranking

by SUFEA SALEHUDDIN

MALAYSIA has climbed 11 spots to 23rd place out of 69 economies in the 2025 World Competitiveness Ranking (WCR), marking its best performance since 2020 as reform efforts begin to show tangible results.

The annual ranking, published by Switzerland’s Institute for Management Development (IMD), evaluates economies based on their ability to sustain long-term growth through efficient, business-friendly environments. Malaysia ranked 34th last year.

The improvement reflects growing investor confidence in Malaysia’s economic governance, trade performance and regulatory reforms under the Madani administration.

According to IMD, the country’s overall score was driven by advances in three of four main categories: Economic performance, government efficiency and business efficiency.

Malaysia’s economic performance rose to fourth place globally — up from eighth previous — underpinned by robust export activity, diversified trade markets and a rebound in tourism receipts.

Its international trade sub-factor jumped 11 spots to sixth, highlighting stronger trade surplus dynamics and greater market reach.

International Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz noted that the 11-rank improvement to 23rd position reflects how government efficiency and business reforms are now bearing fruit.

He said the ranking validates the government’s whole-of-government approach under the Madani framework, aimed at making Malaysia a globally competitive investment destination while addressing legacy bureaucratic hurdles.

The rise follows the strategic coordination of the National Competitiveness Committee (JKDSN), co-chaired by Tengku Zafrul and Finance Minister II Datuk Seri Amir Hamzah Azizan.

Supporting implementation efforts is the Special Taskforce on Agency Reform (STAR), led by Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar.

Over 1,000 initiatives have been executed under the Bureaucratic Reform Programme (RKB), which forms part of the wider Public Service Reform Agenda (ARPA), targeting structural improvements in government service delivery.

MITI said Malaysia is on track to break into the world’s top 12 most competitive economies by 2033, as targetted in the Madani Economic Framework.

The WCR 2025 also places Malaysia ahead of several regional peers, reaffirming its strategic position in South-East Asia’s trade and manufacturing ecosystem amid global supply chain shifts.

“The link between reducing bureaucracy and attracting quality investments is clear. Malaysia’s rise in the rankings shows investors are taking notice,” Tengku Zafrul said in a statement.

He added that continued reforms in public service, industrial development and fiscal governance will be critical to sustaining momentum.

MITI reiterated that strong institutional governance, federal-state cooperation and private sector engagement will be key enablers for achieving its long-term competitiveness goals.

The post Malaysia ranks 23rd in global competitiveness index, best since 2020 appeared first on The Malaysian Reserve.

KUALA LUMPUR — Malaysia’s remarkable rise in the World Competitiveness Ranking (WCR) 2025 is clear evidence that the reforms implemented by the MADANI government are yielding positive results, said Prime Minister Datuk Seri Anwar Ibrahim (picture).

The WCR 2025 report showed Malaysia jumping 11 positions from 34th in 2024 to 23rd place, the country’s best performance since 2020.

Anwar, who is also the Finance Minister, emphasised that the country’s strong performance in trade, administrative efficiency, and investment environment forms a solid foundation for inclusive and sustainable economic growth.

“We have proven that Malaysia can make significant strides with political determination, the commitment of the entire government machinery, and close cooperation with the private sector.

“This achievement belongs to all Malaysians. It is a crucial cornerstone in our journey to position the country among the most competitive economies by 2033, ensuring a brighter future for our children,” he said in a post on his official Facebook page.

The WCR is published annually by the Switzerland-based International Institute for Management Development (IMD).

It is a comprehensive report that evaluates economies based on their ability to create and sustain a business-friendly environment that contributes to long-term prosperity. — BERNAMA

The post PM Anwar: Malaysia’s impressive WCR 2025 leap proves success of MADANI govt’s reforms appeared first on The Malaysian Reserve.