FMM: Malaysia rises in IMD ranking, but reforms must continue
MALAYSIA'S notable rise in the IMD World Competitiveness Ranking 2025 — climbing 11 spots to 23rd out of 69 economies — should be used as a catalyst for deeper reform, according to the Federation of Malaysian Manufacturers (FMM)
FMM president Tan Sri Soh Thian Lai said that while the ranking is encouraging, it should not be seen as an end goal.
He added that Malaysia needs to shift from an input-driven growth model — dependent on labour, capital, and natural resources — to one centred on productivity and innovation to sustain long-term competitiveness.
'This transition is not just timely but necessary to stay competitive in high-value sectors and adapt to fast-evolving global trends,' he said in a statement today.
He highlighted several focus areas that require urgent attention, including a substantial increase in investment in research and development, aligned with industry needs and national priorities.
'Malaysia's start-up ecosystem holds real promise, especially in digital, green, and deep-tech sectors.
'With the right support and simplified regulations, easier access to funding, and stronger mentorship, local entrepreneurs can become powerful drivers of economic transformation,' he added.
Soh also lauded the government on the improved IMD ranking, which is the best showing since 2020.
'This marks a significant turnaround from the previous year, when Malaysia ranked 34th out of 67 economies. The latest result is a strong signal that recent policy measures, institutional reforms, and efforts to restore investor confidence are delivering tangible outcomes,' he said.
Malaysia now ranks fourth globally in economic performance, moving up from eighth place last year.
Both government efficiency and business efficiency also improved by eight positions. — BERNAMA
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FMM: Malaysia rises in IMD ranking, but reforms must continue
MALAYSIA'S notable rise in the IMD World Competitiveness Ranking 2025 — climbing 11 spots to 23rd out of 69 economies — should be used as a catalyst for deeper reform, according to the Federation of Malaysian Manufacturers (FMM) FMM president Tan Sri Soh Thian Lai said that while the ranking is encouraging, it should not be seen as an end goal. He added that Malaysia needs to shift from an input-driven growth model — dependent on labour, capital, and natural resources — to one centred on productivity and innovation to sustain long-term competitiveness. 'This transition is not just timely but necessary to stay competitive in high-value sectors and adapt to fast-evolving global trends,' he said in a statement today. He highlighted several focus areas that require urgent attention, including a substantial increase in investment in research and development, aligned with industry needs and national priorities. 'Malaysia's start-up ecosystem holds real promise, especially in digital, green, and deep-tech sectors. 'With the right support and simplified regulations, easier access to funding, and stronger mentorship, local entrepreneurs can become powerful drivers of economic transformation,' he added. Soh also lauded the government on the improved IMD ranking, which is the best showing since 2020. 'This marks a significant turnaround from the previous year, when Malaysia ranked 34th out of 67 economies. The latest result is a strong signal that recent policy measures, institutional reforms, and efforts to restore investor confidence are delivering tangible outcomes,' he said. Malaysia now ranks fourth globally in economic performance, moving up from eighth place last year. Both government efficiency and business efficiency also improved by eight positions. — BERNAMA
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Malaysia's IMD ranking rise a stepping stone for more reforms: FMM
KUALA LUMPUR: Malaysia's rise in the IMD World Competitiveness Ranking 2025 is a stepping stone toward more comprehensive reforms, Federation of Malaysian Manufacturers (FMM) said. FMM president Tan Sri Soh Thian Lai said the improvement by 11 places to 23rd out of 69 economies in the IMD ranking signals progress in several important areas. However, he highlighted that Malaysia remains 10th out of 14 Asia Pacific countries, lagging behind regional peers such as Indonesia and Thailand, indicating that more work is needed to narrow the gap. "While the ranking is encouraging, it should not be seen as an end goal. It must serve as a platform for deeper reform," Soh said in a statement. He said maintaining the momentum requires Malaysia to move beyond its traditional input-driven growth model, one dependent on labour, capital and natural resources, and to embrace a growth strategy centred on productivity and innovation. This shift is not only timely but crucial for ensuring Malaysia stays competitive in high-value sectors and adapts effectively to the fast-changing global landscape. "We believe a few focus areas require urgent attention. Firstly, investment in research and development must be scaled up significantly. "But beyond funding, it is critical to ensure that research is aligned with industry needs and national priorities. Strengthening the links between academia and industry will ensure that ideas are commercialised and translated into meaningful outcomes," Soh said. He noted that Malaysia's start-up ecosystem shows strong potential, particularly in the digital, green, and deep-tech industries. With appropriate support such as streamlined regulations, improved funding access and enhanced mentorship, local entrepreneurs could play a significant role in driving economic transformation. Soh said this year's improvement is a positive move towards achieving the national goal outlined in the Madani Economic Framework, to rank Malaysia among the world's top 12 most competitive economies by 2033. "Achieving this goal will require sustained commitment to structural reforms, policy consistency and bold execution across all levels of government and industry. "We applaud the government for this notable achievement. But to truly position Malaysia as a future-ready economy, we must stay focused on raising productivity, deepening innovation, and building long-term competitiveness," he added.
Borneo Post
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M'sian manufacturing body urges govt support for automation, job redesign to tackle labour shortage
Soh says while manufacturers are investing heavily in automation and digitalisation, these transitions require capital, time and skilled talents, which remain in short supply. KUCHING (June 21): The Federation of Malaysian Manufacturing (FMM) has suggested the government introduce targeted incentives for automation and support for job redesign to maintain manufacturing as a competitive and inclusive sector. According to FMM president Tan Sri Soh Thian Lai, while manufacturers are investing heavily in automation and digitalisation, these transitions require capital, time and skilled talents, which remain in short supply. He said the latest Department of Statistics Malaysia (DoSM) data had confirmed that manufacturing wages in Malaysia were rising steadily and surpassing national averages. 'Employers in the sector remain committed to offering fair and competitive compensation, but urgent support is needed to address persistent labour shortage. 'The reliance on foreign workers stems from a shortage of willing and skilled local workers, not from any strategy to suppress wages. 'A balanced, data-driven and skills-based human capital strategy is crucial for us to remain competitive and inclusive,' he said in a statement, issued in response to DoSM's Monthly Manufacturing Statistics, which indicated that the average salary in the manufacturing sector rose to RM3,460 per month in April this year, reflecting a 1.2 per cent year-on-year increase. In comparison, the average monthly salary across all formal sectors stood at RM3,441 in the fourth quarter of last year, highlighting that manufacturing wages continued to outperform the national average, Soh pointed out. Additionally, he said total wages paid in the manufacturing sector climbed to RM8.31 billion in April 2025, marking a 2.4 per cent year-on-year increase. He added that the median wage across all formal sectors was recorded at RM3,045, while manufacturing median wages ranged between RM2,764 and RM3,052, well above the national minimum wage of RM1,700. 'FMM acknowledges that the data clearly demonstrates manufacturing wages in Malaysia are not only competitive, but are continuing to rise steadily. This affirms that employers in the sector are offering fair compensation, and it also counters the claim of the workers being underpaid. 'Despite competitive wage levels, the manufacturing sector continues to grapple with acute labour shortages, especially in 3D (dirty, dangerous, and difficult) job categories.' He emphasised again that the local workers were not being displaced by cheaper foreign labour, adding that hiring foreign workers involved considerable costs and regulatory compliance. 'Furthermore, even when wages offered exceed the national minimum wage, many of these roles remain unattractive to the local job-seekers.' As such, he recommended the government to expand technical and vocational education and training (TVET) programmes and industry-led training initiatives to the manufacturing sector and strengthen them, as well as to formalise informal workers and improve the enforcement of wage-related regulations. 'The government should also establish tripartite labour planning councils for collaborative workforce strategies. 'We reiterate our support for a voluntary, productivity-linked Progressive Wage Policy (PWP) that encourages wage growth aligned with skills enhancement and measurable performance, rather than arbitrary increases. 'A business-friendly and voluntary PWP, grounded in clear performance metrics, would gain manufacturers' support and ensure that wage increases are sustainable and linked to worker capability,' added Soh.
