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The Star
11 hours ago
- Business
- The Star
Positioning Malaysia as a leader
MALAYSIA'S remarkable 11-spot jump in the International Institute for Management Development (IMD) World Competitiveness Ranking (WCR) – from 34th position in 2024 to 23rd in 2025 – is more than just a statistical victory. It is a powerful testament to the effective implementation of the Madani government's economic reforms, including fiscal, industrial and social. For context, the WCR assesses the ability of economies to foster an environment that supports business competitiveness, productivity and economic growth, across four main categories: economic performance, government efficiency, business efficiency and infrastructure. Malaysia's marked improvement in three out of four areas, especially the leap to fourth among 69 economies in economic performance is no small feat. The Investment, Trade and Industry Ministry (Miti) is especially pleased that our industrial reforms implemented under the New Industrial Masterplan (NIMP) 2030 have contributed to the jump in the rankings in terms of sub-factors such as domestic economy (+20); international trade (+11); international investment (+2); employment (+8); institutional framework (+11); business legislation (+4); productivity and efficiency (+19); and labour market (+11). While there is still much room for improvement, this dramatic increase in the rankings is a strong validation that Malaysia's economy is on the right track and we are steadily regaining our competitive edge on the global stage. The reform engine: Miti's coordinating role This surge in competitiveness is not accidental. It is the result of intentional, coordinated and at times, politically difficult reforms. It reflects a responsible governance approach under Datuk Seri Anwar Ibrahim's Madani Economy framework and the deft execution by the relevant economic ministries and agencies including Miti, which has led the implementation of Malaysia's revamped trade, investment and industrial strategies. Miti's agency – the Malaysia Productivity Corporation (MPC) – has led the coordination work on improving the WCR sub-factors across various ministries and agencies. At the heart of this leap is a more aggressive posture on bureaucratic reform and investment facilitation. Miti's leadership of the National Competitiveness Council together with the Finance Ministry has driven whole-of-government efforts to streamline investment approvals, reduce regulatory burdens, ease investors' journey and modernise economic policy frameworks. Moreover, the establishment of the Special Taskforce on Agency Reform (STAR) led by Chief Secretary to the Government – part of the wider Public Service Reform Agenda (2024-2030) and involving over 1,000 reform initiatives at federal and state levels, has helped dismantle bottlenecks that previously discouraged investors. The improvement in the international trade sub-factor – rising 11 spots to 6th globally – is also clear evidence of targeted policy outcomes under Miti's purview. This includes enhanced investment strategies by the Malaysian Investment Development Authority (Mida), and improved trade promotion by the Malaysia External Trade Development Corporation (Matrade). Our efforts in advancing regional agreements and accelerating participation in digital economy frameworks have also contributed to improvement in the rankings. Concurrently, in a world marked by rising protectionism, geopolitical realignments and economic fragmentation, Malaysia's steady hand in policy continuity is increasingly appreciated by global investors. This competitiveness boost is also a strong endorsement of the NIMP 2030 along with its supporting policies such as the National Semiconductor Strategy and Green Investment Strategy – all of which prioritise high-value industries such as semiconductors, green technology and digital economy as future growth pillars. Their implementation has already created stronger linkages between industrial policy and talent development, innovation incentives and sustainability goals. Rankings, of course, are not policy goals in themselves, but they do matter. They serve as confidence benchmarks to global markets, foreign investors and multilateral institutions. A leap of 11 positions makes Malaysia more attractive as a business destination, especially for multinationals seeking resilient and progressive emerging markets in Asia. It also reflects how our institutions, empowered with the political will, mandate and right leadership are perfectly capable of executing coherent reform agendas for the nation. The road ahead: Maintain the momentum This milestone is cause for celebration, but not for complacency. If anything, the real work begins now. While economic performance and trade efficiency have improved, there remain areas where Malaysia still lags, particularly in innovation capability, workforce productivity, digital transformation, management practices and workforce attitudes. There may be a need to complement structural reforms with human capital upgrades and culture shifts. Global digital and green transitions will require Malaysia to not only adopt new technologies but also to nurture a new generation of skilled, future-ready workers. Here, too, Miti's role will be pivotal. The ministry will continue working closely with education and human resource agencies to ensure industrial strategies are matched by robust talent development and pipelines. Initiatives like Academy in Industry programme by MPC, K-Youth under Khazanah Nasional, and upskilling programmes under HRD Corp must be scaled and better integrated into the national competitiveness agenda. To sustain and further elevate Malaysia's position, it is worthwhile to draw inspiration from international best practices. For instance, Denmark's emphasis on workforce adaptability and lifelong learning ensures its economy remains resilient and responsive to technological shifts. Meanwhile, South Korea's aggressive investments in R&D and innovation ecosystems have positioned it as a global leader in advanced manufacturing and semiconductors. Malaysia should consider incorporating these elements such as agile regulatory sandboxes, performance-based innovation grants, and a national work-integrated and lifelong learning agenda as part of its next phase of competitiveness reforms. More importantly, Malaysia must shift from a primarily input-driven model to one rooted in productivity and innovation-led growth. This means significantly boosting investments in R&D, creating stronger linkages between academia and industry, and nurturing a vibrant startup ecosystem. Malaysia should also emulate countries that rank highly in competitiveness, such as Switzerland, South Korea and Sweden, which lead in patents, intellectual property and cutting-edge innovation globally. We can try to achieve this in strategic sectors such as advanced electronics, AI, clean energy and biotech. Incentivising private sector innovation, reforming procurement to favour innovative solutions and enhancing funding mechanisms for techpreneurs will be crucial steps forward. Innovation must be made the 'engine' of our long-term economic resilience and prosperity. It is imperative that we maintain this trajectory. The government has set a goal for Malaysia to be among the Top 12 most competitive economies by 2033. This is ambitious, but now, demonstrably achievable. It must be stressed that improved economic competitiveness means increased chances of attracting high-impact investments which will create more job opportunities with higher wages. This latest ranking shows that Malaysia is not just playing catch-up, but also clearly positioning itself to lead, especially in today's complex geoeconomic landscape. Our message to the world has been clear and consistent: Malaysia is serious about economic reforms, open for business and ready for the challenges ahead. Ultimately, Malaysia's improved competitiveness is a function of political will and determined leadership. It shows what can be achieved when a government dares to reform and focus on making tough but necessary decisions for Malaysia's future prosperity. Tengku Datuk Seri Zafrul Abdul Aziz is the Investment, Trade and Industry Minister. The views expressed here are his own.
Malaysiakini
a day ago
- Business
- Malaysiakini
Rankings speak louder than false narratives, PKR MP shells opposition
PKR lawmaker R Yuneswaran has urged the opposition to stop peddling 'false narratives' about the goods and services tax (GST), sales and service tax (SST), and subsidy rationalisation efforts. To underscore that the Madani government is on the right track, the Segamat MP pointed to the International Institute for Management Development World Competitiveness Ranking 2025, which saw Malaysia rise 11 spots with a record high of RM378.5 billion in foreign direct investments.
Irish Examiner
3 days ago
- Business
- Irish Examiner
Ireland falls to seventh place in competitiveness rankings
Ireland has fallen to seventh place in the latest World Competitiveness Rankings, as the country suffered a significant fall in efficiency of doing business. According to the latest rankings from the International Institute for Management Development's (IMD) World Competitiveness Centre, which has been ranking the competitiveness of countries for 37 years, Ireland fell three places from fourth in 2024. Ireland stood at second in the rankings in 2023. The IMD rankings assess 69 economies around the world based on their competitive business environment. It is based on hundreds of indicators across four areas such as economic performance, government efficiency, business efficiency, and infrastructure. Switzerland took the top spot this year, followed by Singapore in second place, and Hong Kong in third. Denmark, the United Arab Emirates, and Taiwan were also ahead of Ireland. Ireland was the highest ranking member of the eurozone on the list. Sweden, Qatar, and the Netherlands rounded out the top 10 places on the list. The US stood in 13th place in this year's rankings, while China fell to 16th. Germany rose five places to 19th, the UK was in 29th place, and Spain was in 39th place. Nigeria, Namibia, and Venezuela were all at the bottom of this year's rankings. In terms of the metrics, Ireland was on par in almost every category compared to 2024, however, there was a significant fall-off recorded in the business efficiency category. In 2023 and 2024, Ireland ranked third in the world in this area but in 2025 it has fallen to 11th. The country still ranks highly in government efficiency, in fifth place. It placed ninth in economic performance, despite ranking 33rd for the domestic economy and 46th for prices. While it ranked 17th in infrastructure, this was the same ranking the country had in 2024. According to IMD, the final score for each economy is computed by using the perceptions of executives, together with statistical data. The hard data represent a weight of two-thirds in the overall rankings. This year, the hard data was computed to form 170 criteria. Read More Irish exports fell 43% in April compared to March as tariffs hit trade
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Korea Herald
3 days ago
- Business
- Korea Herald
[Editorial] Raise competitiveness
South Korea's ranking falls seven notches, affected by worsened business efficiency South Korea's global competitiveness ranking dropped seven notches in 2025. According to the Finance Ministry on Tuesday, the latest report from the International Institute for Management Development showed South Korea ranked 27th among 69 countries surveyed. It was the largest decline since the institute announced South Korea's ranking for the first time in 1997. Last year, South Korea rose eight notches from 28th to a record high of 20th, but in a year, it returned to the level of two years ago. The IMD, a Switzerland-based business school, has published its annual World Competitiveness Ranking since 1989, evaluating countries in four key factors: economic performance, government efficiency, business efficiency and infrastructure. Business efficiency was the most decisive factor dragging down South Korea's ranking this year. In that category, it dropped from 23rd to 44th and in infrastructure from 11th to 21st, but climbed from 16th to 11th in economic performance and from 39th to 31st in government efficiency. South Korea's position fell in all five sub-factors of business efficiency — productivity (from 33rd to 45th), labor market (from 31st to 53rd), finance (from 29th to 33rd), management practices (from 28th to 55th) and attitudes and values (from 11th to 33rd). Declines in its ranking were pronounced in some specific indicators, including efficiency of large corporations (from 41st to 57th), corporate response to opportunities and threats (from 17th to 52nd), agility of companies (from ninth to 46th) and attracting and retaining talent (from sixth to 29th). These results are apparently caused by a combination of the weakened competitiveness of South Korea's major industries, the rapid emergence of Chinese companies, labor-management conflict and other factors. A notable category was technological infrastructure, where South Korea's place plunged from 16th to 39th. It also scored low in the availability of digital and technological skills, cybersecurity and others. In a global market characterized by fierce high-tech and digital competition, weakened infrastructure will undermine South Korea's growth potential. The IMD competitiveness rankings cannot be seen as absolutely reliable, considering that they are much affected by an opinion survey of business executives. Yet they are useful reference data for the Lee Jae Myung government in making policy. South Korea's ranking this year can be seen as a warning from the IMD that if the country fails to revitalize enterprise activities and develop new technologies, it could drop out of global competition for good. The decline in its labor market ranking should be taken seriously. Apparently, this is caused by a rigid enforcement of the 52-hour workweek, an excessive protection of full-time regular staff compared with non-regular workers, seniority-based wage system, labor union demands for shorter working hours and legislators' moves to curtail the standard workweek to 4 1/2 days. South Korea also needs to improve productivity and management practices. The decline of its rankings in these fields indicates that South Korean companies are slow in high-tech development and underprepared to secure a competitive edge in the age of artificial intelligence. It also shows that their management innovations remain disappointing. Taipei and China, among others, are far ahead of South Korea, ranking sixth and 16th, respectively, this year. The countries compete directly with South Korea in semiconductors and many other industries. The government should analyze their competitiveness and figure out ways to narrow the gap with them. It should foster creativity and innovation, rebuild technological infrastructure and produce talent. The key to raising competitiveness is to create and maintain an environment conducive to business activity. Barriers to business should be eliminated immediately. The government should listen more carefully to business concerns about legislators' push to make the yellow envelope bill into law and revise the Commercial Act. Under the Commercial Act revision bill, company directors would have a fiduciary duty to shareholders, not only to their companies. If the two bills are implemented, South Korea's ranking could fall further next year.
HKFP
3 days ago
- Business
- HKFP
Hong Kong leader lauds gov't approach as city climbs to 3rd spot in global competitiveness index
Hong Kong has been ranked third in a global competitiveness index, up two places from last year, with Chief Executive John Lee lauding his administration for improving government efficiency. The Switzerland-based International Institute for Management Development (IMD) on Tuesday released the 2025 edition of its World Competitiveness Ranking. Out of 69 economies, Hong Kong ranked behind only Switzerland and Singapore, returning to the top three for the first time since 2019. In the latest IMD rankings, Hong Kong was followed by Denmark, the United Arab Emirates, and Taiwan. China ranked 16th, sandwiched between Iceland and Saudi Arabia. Speaking at a weekly press conference on Tuesday, Lee said Hong Kong had scored 99.2 points out of 100 in the IMD ranking – up 7.7 points from last year, when the city ranked fifth, marking the biggest improvement among the top 10 in this year's list. Hong Kong also improved in the IMD's assessment of government efficiency, business efficiency, economic performance, and infrastructure, the chief executive added. 'This shows the government's governing approach is largely on the right track and various policies are effective,' he said in Cantonese. Hong Kong scored 94.3 out of 100 for government efficiency, ranking second in the category this year. Last year, it ranked third. Lee said he felt 'encouraged' by the results and lauded the excellence of the city's civil service. 'This also shows that my reform of government culture and making result-oriented policies are correct and effective,' he added. Lee also said the city expected to have a GDP growth of 2 to 3 per cent this year, following a 2.5 per cent increase last year. But he warned that some industries in Hong Kong, such as retail and the food and beverage sector, were facing challenges amid 'a period of economic restructuring.' He said the government would continue supporting small and medium-sized businesses in areas such as brand enhancement and market expansion. Rising unemployment rate Meanwhile, according to data released by the Census and Statistics Department on Tuesday, the unemployment rate increased to 3.5 per cent for the period between March and May, up from 3.4 per cent for the period between February and April. The underemployment rate also rose to 1.4 per cent between March and May, from 1.3 per cent for the February-April period. 'Total employment fell by around 12,400 to 3,664,700, while the labour force dropped by around 6,000 to 3,800,500,' the government said on Tuesday.
