Latest news with #IMDWorldCompetitivenessRanking
New Straits Times
16 hours ago
- Business
- New Straits Times
Anwar: Reforms paying off as Malaysia rises in global rankings
PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim today highlighted Malaysia's improving economic trajectory, citing robust growth, lower unemployment, and renewed investor confidence. He attributed these positive developments to a series of fiscal reforms and targeted policies, while firmly dismissing allegations of economic mismanagement by the government. Speaking at the Finance Ministry's monthly assembly, he said the latest data told a story of recovery, reform, and resilience. Malaysia has climbed 11 spots to rank 23rd in the 2025 IMD World Competitiveness Ranking — its highest position since 2020 — with notable gains in economic performance, government efficiency, and business competitiveness. The country's gross domestic product (GDP) expanded by 5.1 per cent in 2024, exceeding the 3.5 per cent recorded in 2023 and surpassing official projections. The unemployment rate fell to 3 per cent in April 2025 — the lowest in a decade. The ringgit also posted significant gains, emerging as one of Asia's top-performing currencies. It appreciated by 5.2 per cent against the US dollar and strengthened against regional currencies such as the Indonesian rupiah and Chinese renminbi. Anwar said that Malaysia's fiscal reforms had received commendation from the International Monetary Fund (IMF), which described the Fiscal Responsibility Act 2023 as a major milestone. The fiscal deficit has been reduced from 5.5 per cent in 2022 to 4.1 per cent in 2024, with a target of 3.8 per cent for 2025. Federal borrowing has also decreased, with new debt issuance falling from RM100 billion in 2022 to RM85 billion in 2024. This, Anwar said, had enabled the government to sustain public services while maintaining fiscal discipline. He stressed that the reforms were undertaken without placing undue burden on the public. The government had broadened the tax base and restructured subsidies to ensure more effective support and service delivery. Eighty-five per cent of households were unaffected by electricity tariff adjustments, while diesel subsidies for logistics vehicles were maintained to prevent a knock-on effect on prices. Inflation remained contained at 1.8 per cent in 2024. The adjustment to the Sales and Service Tax (SST), effective from July 1, excludes essential goods. Analysts have forecast only a marginal inflationary impact of 0.25 per cent. With improved fiscal space, the government has been able to boost allocations for public assistance and essential services. A record RM13 billion was channelled to the SARA and STR cash aid programmes this year, benefiting nine million recipients. Funding for education and healthcare was also raised to RM64 billion and RM45 billion, respectively. "This nation inherited a burdensome fiscal structure — ballooning debt, a narrow revenue base, and untargeted subsidies that disproportionately benefited the wealthy and foreign nationals. "Whether we liked it or not, reform was essential. Since the Madani government took office, we have embraced bold, corrective policies to restore our fiscal foundation and uplift the people's lives," he said.
New Straits Times
a day ago
- Business
- New Straits Times
Shifting Gears in Southeast Asia: How Malaysia Went from Laggard to Contender
IF you want to understand who's really winning in Southeast Asia today, don't just glance at GDP charts or listen to upbeat investment roadshows. Instead, look beneath the surface - at the metrics that actually move the needle: trade agility, digital depth, and the machinery of governance. That's where the tectonic shifts are happening. And when you do, a clearer picture emerges: Singapore remains the regional oracle; Malaysia is sprinting ahead like a reformist insurgent; and Thailand, while trying to keep pace, is still caught in the weeds of structural drag. Let's start with Malaysia, because something is finally clicking. By mid-2025, Malaysia jumped 11 spots in the IMD World Competitiveness Ranking, climbing from 34th to 23rd out of 69 economies. That's not a statistical blip. It's Malaysia's best performance since 2020 and a clear sign that the gears of reform are beginning to turn in earnest. Economic performance? Fourth globally. Government efficiency? Up eight places. Business efficiency? Also up eight. And trade - often the acid test for middle-income economies? Malaysia now ranks 6th in the world, up 11 spots, powered by strong exports, broader market reach, and a healthy rebound in tourism. But this wasn't luck. According to Prime Minister Datuk Seri Anwar Ibrahim and Investment, Trade and Industry Ministry, this surge is rooted in political will and a relentless focus on bureaucratic modernisation - over 1,000 reform initiatives under the Madani Economy framework. These include digitalisation of public services, procurement reform, accelerated investment approvals, and consolidation of regulatory functions across ministries. It's a serious attempt to make "ease of doing business" more than just a slogan. For a country long caught between ambition and inertia, this IMD jump is a rare data point of real traction - where trade statistics, policy clarity, and administrative muscle finally line up. Zoom out and the regional picture gets sharper. Singapore, as always, sets the bar. Despite slipping slightly to second place globally, it remains the gold standard in trade, digital governance, and institutional design. For a resource-scarce city-state, this dominance is less about size and more about orchestration, a blend of tech infrastructure, regulatory agility and long-term planning that continues to pay dividends. Thailand, by contrast, is moving, but unevenly. While its economic and business metrics nudged upward, its government efficiency fell by eight places, a sign that reform hasn't kept pace with rhetoric. Political volatility and fragmented policymaking continue to blunt the impact of what might otherwise be a promising digital and export agenda. But here's the real twist in the Southeast Asian playbook: 2025 isn't just about ports and factories anymore. It's about chips, clouds, and code. Digital competitiveness is now the new frontline. Singapore, predictably, leads again—ranked No. 1 globally with a fintech ecosystem plugged directly into regulatory sandboxes and digital identity rails. Malaysia isn't there yet, but it's laying the groundwork fast. With more than RM30 billion in digital investments from Google, Microsoft and ByteDance, and a slew of policies like the National AI Roadmap and sovereign cloud frameworks, Malaysia is quietly morphing into a regional data hub. Thailand is pushing hard to digitize 30 per cent of its GDP by 2030, leveraging AI in agriculture and cloud infrastructure but it's still playing catch-up. Governance, however, remains the X-factor. It's the difference between a country that moves and one that drifts. Singapore is still the masterclass its governance model is less about bureaucracy and more about choreography. Malaysia, to its credit, is catching on fast. Its eight-rank jump in government efficiency reflects more than just cosmetic tweaks; it marks a shift in how the public sector thinks about speed, coordination, and execution. Thailand, unfortunately, slipped in this category, held back by legacy systems and electoral churn that don't move fast enough for a digital economy. So what's the bigger story? It's that the race to the top in Southeast Asia is no longer just a regional contest. It's a systemic one. Competitiveness today isn't about who can export the most palm oil or assemble the cheapest smartphones. It's about who can export trust, reduce friction, digitise their bureaucracy and make infrastructure work at the speed of capital. Malaysia, after years of spinning its wheels, seems to have found traction. This year, it's the comeback kid. The challenge now is to maintain altitude to turn a reform moment into a reform movement. Because in this new Southeast Asia, the scoreboard doesn't wait. It updates in real time. And this time, Malaysia isn't just watching the scoreboard. It's finally part of the game that counts.
Gulf Insider
3 days ago
- Business
- Gulf Insider
UAE Ranked 5th in Global Competitiveness Ranking
The UAE has ranked in fifth place in a global competitiveness ranking, outperforming major economies including the US, Sweden, and Germany. The achievement was reviewed at a meeting of the UAE Cabinet, chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, at Qasr Al Watan in Abu Dhabi. During the meeting, Sheikh Mohammed confirmed that over 1,830 UAE citizens received housing support in the first half of 2025, with grants exceeding AED1.25bn ($340.4m), to reinforce family stability and ensure decent living standards. Sheikh Mohammed said: 'I chaired a Cabinet meeting at Qasr Al Watan in Abu Dhabi, where we reviewed the UAE's performance in the 2025 IMD World Competitiveness Ranking. The UAE ranked fifth globally, alongside the world's leading countries in economic competitiveness, government efficiency, legislative strength, and business environment excellence. 'Fourteen years ago, we established a competitiveness centre, uniting the efforts of key national entities. These efforts have elevated the UAE's ranking from 28th globally in 2009 to being among the top five globally in competitiveness. 'In the same report, the UAE ranked first globally in the absence of bureaucracy index, second globally in government policies adaptability index, and fourth globally in government efficiency index. 'This achievement is a testament to years of consistent effort. With the vision of my brother, Mohamed bin Zayed, our future will continue to be even brighter and stronger.' The UAE led globally in 22 indicators including employment rate, availability of global expertise, digital company transformation, and female parliamentary representation. The UAE also ranked second globally in social cohesion, flexibility of residency laws, and government policy adaptability, while securing third globally in graduates in sciences, leverage of digital tools and technology, and healthcare infrastructure. The Cabinet also reviewed the 2024 report of the Higher Commission for Free Trade Negotiations, confirming the signing of 27 Comprehensive Economic Partnership Agreements (CEPAs), of which eight have come into force. This has helped the UAE achieve: AED5.23tn ($1.42tn) in total foreign trade (2024) AED440bn ($119.9bn) in non-oil exports (up 16.3 per cent YoY) AED684.3bn ($186.4bn) in re-exports AED113bn ($30.8bn) in foreign direct investment in 2023 The UAE Cabinet also reviewed the Emirates Council for Balanced Development, chaired by Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Deputy Chairman of the Presidential Court for Development and Fallen Heroes' Affairs. Highlights include completed and ongoing projects in Qidfa, Masfout, and Al Rams. These include community spaces, markets, ecotourism initiatives, and the 'Jothoor' programme empowering female Emirati artisans. The Cabinet also reviewed the success of the Digital Identity system, now used by more than 11m citizens and residents, enabling 600 million secure logins and facilitating 2.6bn digital transactions. New federal initiatives approved by the Cabinet include: National Maritime Navigation Centre to oversee vessel tracking, marine safety, and environmental protection Restructuring of the Higher Committee for Anti-Money Laundering and Countering Terrorism Financing, chaired by Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Foreign Affairs A draft law to safeguard UAE cultural heritage and enhance public awareness The United Arab Emirates Council for Climate Action was also restructured to accelerate the Net Zero 2050 strategy, with the UAE expanding protected areas (18 per cent mainland, 12 per cent marine) and adding nine new biodiversity hotspots, alongside a plan to plant 100 million mangrove trees by 2030. Special attention to the fourth edition of the Make it in the Emirates platform, which in 2025 attracted more than 122,000 visitors and facilitated: AED168bn ($45.7bn) in potential procurement deals for local manufacturing AED11bn ($3bn) in new industrial project agreements AED40 billion ($10.9 billion) in SME financing over five years Furthermore, the Cabinet ratified 13 international agreements, including economic and visa deals with Montenegro, Vietnam, Uganda, and New Zealand. Approval was also granted for: 36 new MOUs and agreements, including with Hong Kong and the Eurasian Economic Union Establishing UAE embassies in Togo, Gabon, Cameroon, and Tajikistan, and a Consulate General in Miami, USA UAE participation in 13 global events and hosting of key summits like the Central Banks Data Cooperation Group Also read: UAE Offers Corporate Tax Fine Waiver — but Deadline Looms
ARN News Center
3 days ago
- Business
- ARN News Center
H.H. Sheikh Mohammed: UAE ranked 5th in World Competitiveness Ranking
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has chaired a Cabinet meeting, highlighting major national achievements and approving key initiatives. During the meeting at Qasr Al Watan in Abu Dhabi, Sheikh Mohammed announced that the UAE has ranked 5th globally in the 2025 IMD World Competitiveness Ranking. The country was recognised for its strengths in economic performance, government efficiency and business environment. Notably, it ranked 1st worldwide for minimal bureaucracy and 2nd for government adaptability. His Highness credited 14 years of coordinated national efforts for this rise from 28th place in 2009. The Cabinet also approved housing grants worth AED 1.2 billion for over 1,800 citizens in the first half of 2025, reinforcing efforts to ensure stable and decent living conditions for Emirati families. It also reviewed the Emirates Council for Balanced Development's progress in enhancing Emirati villages and supporting families and small businesses, as well as the success of the UAE's digital identity system UAE PASS, which now supports over 11 million users and has processed 2.6 billion digital transactions. Further approvals included restructuring the national anti-money laundering committee, establishing a National Maritime Navigation Centre to enhance marine safety, and endorsing the 2024 Annual Report on Free Trade Negotiations, which saw 27 major trade agreements signed. #uaegov — UAEGOV (@UAEmediaoffice) June 17, 2025
Hi Dubai
3 days ago
- Business
- Hi Dubai
UAE Cabinet Approves Major National Initiatives and Reviews Global Competitiveness Gains
The UAE Cabinet, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, has approved a wide-ranging set of national initiatives during a meeting held at Qasr Al Watan in Abu Dhabi, reaffirming the country's commitment to balanced development, global competitiveness, and sustainable growth. The session came as the UAE was ranked fifth globally in the 2025 IMD World Competitiveness Ranking—its highest to date. UAE Among Top Five Globally in Competitiveness During the meeting, the Cabinet reviewed the UAE's performance in the latest IMD World Competitiveness Ranking, where the country climbed two places to reach fifth globally, surpassing major economies including the United States, Germany, and Canada. The UAE ranked first worldwide in indicators such as absence of bureaucracy, global expertise availability, and digital transformation in companies. It also ranked second in adaptability of government policies and social cohesion, and third in business efficiency and use of digital tools. This marks a significant improvement since 2009, when the country stood at 28th place. Officials attributed this rise to long-term investment in competitiveness, government efficiency, and strategic reforms across key sectors. AED 1.2 Billion in Housing Grants Approved The Cabinet approved housing grants for 1,838 Emirati citizens in the first half of 2025, with a total value exceeding AED 1.2 billion. This initiative is part of ongoing efforts to promote family stability and enhance living standards across the nation. Balanced Development and Community Projects The Emirates Council for Balanced Development presented its 2024 achievements, which included major projects in regions such as Qidfa, Masfout, Al Sila', and Al Rams. These developments ranged from waterfronts and cycling tracks to cultural restorations and tourism initiatives. The 'UAE Villages Councils' programme, under the 'Jothoor' initiative, was also launched to empower female artisans, support families, and promote traditional crafts through community-led markets and events. Expansion of the Digital Government Ecosystem The Cabinet reviewed progress on the UAE's unified digital identity system, which has now registered over 11 million users and facilitated more than 600 million secure logins. The platform connects 130 public and private sector entities and has enabled 2.6 billion digital transactions to date. A new National Maritime Navigation Center will be established under the Ministry of Energy and Infrastructure. The center will monitor maritime traffic, manage a unified maritime database, and enhance safety and environmental protection in UAE waters. Steps to Combat Money Laundering Strengthened The Cabinet approved the restructuring of the Higher Committee for Overseeing the National Strategy on Anti-Money Laundering and Countering the Financing of Terrorism. The committee, now chaired by Sheikh Abdullah bin Zayed Al Nahyan, will continue to strengthen the country's policies and regulatory frameworks in alignment with international standards. Record Trade Growth and New Global Partnerships The Cabinet reviewed the 2024 annual report on Comprehensive Economic Partnership Agreements (CEPAs). The UAE has signed 27 CEPAs to date, eight of which are already in effect. These agreements helped push the country's foreign trade volume to a record AED 5.23 trillion in 2024, alongside historic highs in non-oil exports and re-exports. Thirteen international agreements were ratified, including partnerships with countries like Vietnam, Montenegro, Uganda, and New Zealand. The Cabinet also approved negotiations for 36 new agreements and the establishment of UAE embassies in Togo, Gabon, Cameroon, and Tajikistan. Focus on Heritage, Environment, and Industry The Cabinet endorsed a draft federal law to preserve the UAE's cultural heritage, reviewed achievements under the 'Make it in the Emirates' platform, and approved AED 40 billion in financing to support local manufacturing and SMEs. On the environmental front, the UAE added nine new sites to the global biodiversity hotspot list and launched a roadmap to plant 100 million mangroves by 2030. Protected areas were expanded significantly both on land and at sea. International Engagement and Upcoming Events The Cabinet approved the UAE's participation in 13 international events and its accession to global bodies such as the International Competition Network and the OECD Forum on Tax Administration. The country will also host high-level summits, including the Central Banks Data Cooperation Group Annual Summit. The meeting underscored the UAE's ongoing efforts to position itself as a global leader in governance, innovation, sustainability, and international cooperation. News Source: Emirates News Agency
