Latest news with #WCR
Sinar Daily
10 hours ago
- Business
- Sinar Daily
Malaysia's leap in competitiveness, investments reflect strong investor confidence, economic resilience
SHAH ALAM – Malaysia's impressive 11-spot leap to 23rd in the 2025 World Competitiveness Ranking (WCR), coupled with Shell's commitment to invest over RM9 billion in the coming years, is widely seen as a strong affirmation of the country's growing attractiveness to investors, despite ongoing global economic challenges. Economists welcomed these developments as clear indicators that the Madani Government economic framework is beginning to bear fruit. They pointed to the government's focus on fiscal reform, long-term economic stability and inclusive growth as key factors behind this renewed investor confidence and improved global perception of Malaysia's economic direction. Economist and Putra Business School Business Administration Programme Director Associate Professor Dr Ahmed Razman Abdul Latiff said these indicators were highly encouraging, particularly given the current global uncertainties. 'I view these recent developments as highly encouraging, particularly given the challenging global economic environment Malaysia is currently navigating, including potential tariff hikes from the United States (US). 'Despite such external pressures, Malaysia's significant improvement in the 2025 WCR and Shell's RM9 billion investment signal that investor confidence remains robust. "This affirms Malaysia's standing as a preferred investment destination, bolstered by our political stability, strong growth potential and increasing competitiveness," he told Sinar Daily when contacted. Razman credited the government's fiscal reforms, especially subsidy rationalisation and deficit reduction efforts, for improving efficiency and laying the foundation for long-term sustainable growth. These measures, he clarified, help curb wastage and enable better resource allocation. 'The Madani government's commitment to sustainability, resilience and inclusivity is evident in its initiatives to reduce inequality, raise household incomes through better wages and manage the cost of living. 'When such efforts are effectively implemented and truly benefit the population, they help preserve social cohesion. This stability, in turn, enhances Malaysia's attractiveness to investors," he added. Razman also cited the importance of creating high-skilled jobs as a key strategy to address income inequality and job mismatches. He described that aligning individuals' skills with the right employment opportunities not only improves their livelihoods but also boosts domestic consumption and overall economic activity. However, he cautioned that public perception plays a critical role in the success of these reforms. To ensure citizens recognise the benefits, he stressed the need for clear and effective communication. On June 18, Anwar (right) confirmed Shell CEO Wael Sawan's (left) pledge to invest over RM9 billion in Malaysia within two to three years. Photo: Anwar's Facebook page Malaysia Airports Holdings Bhd (MAHB) Chairman and economist, Dr Nungsari Ahmad Radhi echoed similar sentiments, noting that Malaysia's rise in the global rankings was a sign that the Madani economic framework was producing results. 'Malaysia's recent rise in the 2025 WCR is a highly encouraging development, especially given today's uncertain global environment. "It signals that the Madani economic framework is beginning to deliver tangible results. 'Since the index assesses economic performance, government and business efficiency and infrastructure, our improved ranking reflects progress across all these areas," he said. Nungsari said that fiscal reform must remain a top national priority and emphasised the importance of public understanding of the rationale behind such reforms. Strengthening Malaysia's fiscal position, he added, inevitably involves making difficult decisions, whether through spending cuts, reallocations, or revenue increases. It is therefore crucial for the public to grasp why these measures are necessary. He cited the Fiscal Responsibility Act 2023 (FRA) and the ongoing subsidy rationalisation efforts as key components of these reforms. According to him, such initiatives are vital to preserving Malaysia's sovereign credit rating, which in turn helps to keep the country's borrowing costs manageable. 'In the context of the Madani administration, sustainability is fundamentally about fiscal sustainability. If we fail to protect our fiscal space, our ability to spend or borrow during a crisis, we risk undermining our resilience. 'Our companies must look toward larger markets, particularly across Asean. "At the same time, we must strengthen our workforce through upskilling and make it easier to do business. These efforts, collectively, will reduce income inequality and build a more inclusive economy," he added. On June 18, Anwar (right) confirmed Shell CEO Wael Sawan's (left) pledge to invest over RM9 billion in Malaysia within two to three years. Photo: Anwar's Facebook page Economist and Director of Williams Business Consultancy Sdn Bhd, Dr Geoffrey Williams saw Shell's RM9 billion investment as a clear indication of long-term confidence in Malaysia's economic environment. He described the move as a welcome development, noting Shell's decades-long relationship with the country. 'In many ways, such enduring partnerships speak more meaningfully to the strength of Malaysia's economic environment than short-term fluctuations in metrics like the WCR. 'From a macroeconomic standpoint, the Malaysian economy is performing well. Growth remains strong, inflation is stable and the financial system is sound. The country's fiscal position, particularly regarding debt and deficit levels, has stabilised," he said. However, Williams pointed out that despite Malaysia benefiting from decades of foreign direct investment, these investments have yet to significantly translate into the creation of high-skilled jobs or meaningful wage growth. He argued that the existing wage-setting mechanisms have failed to distribute the benefits of the country's development fairly. 'The system has not effectively channeled the gains from economic development into salaries, upward mobility, or reduced income area that clearly needs reform. 'While there is still considerable work to be done to achieve lasting improvement, the path forward is clearer with the proper implementation of the Medium-Term Fiscal Strategy (MTFS) and the Fiscal Responsibility Act (FRA). "Alongside these efforts, continued focus on reducing wastage, leakages, and corruption remains essential. In this context, subsidy rationalisation is a key tool and progress has already been made in areas like electricity and diesel subsidies, with RON95 fuel reforms expected in the near future," he said. Williams affirmed that the Madani framework is grounded in strong principles and holds the potential to bring real benefits to the public while promoting long-term economic development—provided it is implemented effectively. However, he pointed out that a major challenge lies in the way these benefits are identified and communicated. 'Both areas need considerable improvement to ensure the public can fully understand and feel the impact of the initiatives under the framework,' he said. On June 18, Prime Minister Datuk Seri Anwar Ibrahim revealed that Shell's Global Chief Executive Officer (CEO) Wael Sawan had pledged to invest over RM9 billion in Malaysia within two to three years. The announcement came after a courtesy call on the Prime Minister following his engagement at Sasana Kijang. Anwar described the investment as a commitment to creating high-skilled jobs and a reflection of Shell's long-standing trust in Malaysia's direction under the Madani government, which he said was built on stability, sustainability and long-term resilience. Malaysia also rose 11 places in the 2025 WCR, from 34th to 23rd—a rare and significant improvement. Malaysia University of Science and Technology (MUST) economics expert, Professor Emeritus Dr Barjoyai Bardai said the jump reflected a strong recovery, driven by prudent fiscal policy, targeted subsidies and growing investor trust. While the effects may not yet be fully felt by the public, he predicted they would translate into higher incomes and more job opportunities in the medium term.
Barnama
2 days ago
- Business
- Barnama
WCR 2025 Performance Proves Effectiveness Of MADANI Govt's Economic Policies
PUTRAJAYA, June 19 (Bernama) -- Malaysia's performance in the World Competitiveness Ranking (WCR) 2025 demonstrates the country's investment appeal amid a challenging global landscape. Minister of Housing and Local Government Nga Kor Ming said that this achievement also underscores the effectiveness of the economic policies implemented by the MADANI Government. Malaysia jumped 11 places in the rankings to 23rd, marking the country's best performance since 2020 and signalling positive momentum in the national economic recovery and reform agenda. Nga, in a statement yesterday, said that Malaysia remains the third most attractive investment destination globally, drawing interest from global tech giants such as Intel, Microsoft, Amazon, and Infineon to expand their investments in the local market. 'Under the leadership of the MADANI Government, Malaysia's economic growth reached 5.1 per cent in 2024, exceeding the expectations of the World Bank and other international agencies. The Employees Provident Fund (EPF) dividend rate also increased to 6.3 per cent, higher than the previous year,' he said. The WCR is published annually by the Switzerland-based Institute for Management Development (IMD). It is a comprehensive report that assesses economies based on their capacity to generate and sustain a business-friendly environment that contributes to long-term prosperity. -- BERNAMA
The Sun
2 days ago
- Business
- The Sun
Samenta: Malaysia's surge in competitiveness due to policy and reforms by government and businesses
PETALING JAYA: Malaysia's achievement in climbing 11 positions to 23rd spot in the 2025 World Competitiveness Ranking (WCR) underscores the strong policy measures and reforms implemented by the government and businesses in strengthening the economic fundamentals and making the nation more competitive on the world stage, said Small and Medium Enterprises Association of Malaysia (Samenta). Samenta national president Datuk William Ng remarked: 'The rise, the highest among all participating economies, reflects progress across key areas of competitiveness, in particular government and business efficiency, both of which improved by eight ranks.' Notably, he said, Malaysia has improved significantly in eradicating bribery and corruption, boosting private investment in research and development (R&D), reducing bureaucracy and strengthening employment. 'Malaysian businesses have demonstrated greater adaptability, productivity and innovation, making our companies more competitive. The country's strong economic growth, low inflation and healthy employment conditions all contribute to this upward trajectory,' said Ng. 'Malaysia's improvement is particularly noteworthy when we consider it within the Southeast Asia context. Among Asean members, we now outperform Thailand (30th), Indonesia (40th) and the Philippines (51st). Our progress underscores our ability to implement reforms effectively and signals to investors and businesses that Malaysia continues to be a leading destination for investment and growth in Southeast Asia,' he added. Ng said recent initiatives have played a key role in this progress, especially the rollout of Reformasi Kerenah Birokrasi, which has helped cut red tape and simplified procedures for businesses and citizens. The Akta Iltizam passed by Parliament in March underscores a strong legislative resolve to ensure efficiency in the public sector, he said, adding that the Corruption Perception Index Task Force, chaired by the chief secretary to the government, is tackling corruption and strengthening institutional integrity. Furthermore, Ng said, the Business Efficiency Task Force, led by Malaysia Productivity Corporation, is hard at work identifying bottlenecks and improving the ease of doing business across sectors. 'All these initiatives collectively create a more stable, efficient and forward-looking ecosystem for companies to operate and grow.' The inclusion of Samenta and SMEs in some of these efforts, including the Business Efficiency Task Force and various productivity initiatives, is indicative of the government's desire to drive the economic reform at all levels, including among their small and medium enterprises, said Ng. 'While we celebrate this progress, we must not become complacent. More needs to be done if we are to realize Ekonomi Madani's ambitious goal of breaking into the top 12 of the ranking by 2033. To further enhance our competitiveness and move up the ranking, we need to strengthen digital transformation, improve skills and education, cut bureaucracy, provide policy consistency and boost research and development initiatives. 'Providing greater incentives and support for companies, especially SMEs, to leverage technology and innovate is key. Ensuring policy stability and reducing red tape will help businesses operate more efficiently and respond faster to market opportunities,' he remarked. Ng said these efforts require a whole-of-nation approach as the government alone cannot affect these reforms. Businesses, he added, including SMEs, must move up the value chain in order for Malaysia to become even more competitive and to future-proof the economy for generations to come.
The Sun
3 days ago
- Business
- The Sun
WCR ranking rise reflects Anwar's reform success: Expert
KUALA LUMPUR: Malaysia's 11-spot leap in the World Competitiveness Ranking (WCR) 2025 serves as clear evidence of the effectiveness of the reform agenda spearheaded by Prime Minister Datuk Seri Anwar Ibrahim, says geostrategist Prof Dr Azmi Hassan. He said that although there were some parties still questioning the implementation of these reforms, international assessment bodies clearly indicated that the nation's transformation was heading in a positive direction, especially in combating corruption and strengthening economic policies. 'The government's core reform is focused on minimising corruption, as the Prime Minister has often stressed — if corruption is not curbed, it is the country that will suffer. 'Anti-graft efforts are not limited to high-profile cases like 1MDB, but also include various forms of corruption in both the public and private sectors. These are among the key reform elements being closely observed by the international community,' said the Senior Fellow at the Nusantara Academy for Strategic Research (NASR). Malaysia is now ranked 23rd in the latest WCR report, up from 34th place the previous year — its best performance since 2020. However, Azmi expressed concern that the government's genuine reform efforts were not fully appreciated domestically due to political differences and the unwillingness of some quarters to view progress objectively. 'Some groups deliberately ignore the facts because they want to discredit the government, but I believe this is where agencies such as the Department of Statistics Malaysia (DOSM) must step up with data and statistics to reflect the government's reform achievements,' he said. At the same time, he urged that the Prime Minister's credibility and diplomatic acumen be fully leveraged to boost Malaysia's global image. 'Anwar is a respected and articulate leader, especially among ASEAN and Indo-Pacific nations. His ability to present arguments and perspectives on global issues is unmatched and should be used to the country's advantage,' he said. Meanwhile, University of Malaya (UM) lecturer Assoc Prof Dr Khoo Ying Hooi described the improved ranking as a reflection of progress in governance and institutional frameworks, including bureaucratic rationalisation and administrative efficiency. Dr Khoo, from the Department of International and Strategic Studies at UM's Faculty of Arts and Social Sciences, said initiatives such as the National Anti-Corruption Strategy 2024–2028 had made a significant impact on international perceptions, though the improved ranking should not lead to complacency. 'The improved ranking doesn't mean Malaysia has already achieved excellence in fighting corruption,' she said. 'As for the efficiency of government service delivery, there are clear signs of progress, but challenges remain in terms of the scale and consistency of impact across all administrative levels,' she added. The WCR is published annually by the Switzerland-based Institute for Management Development (IMD). It is a comprehensive report that evaluates an economy's ability to generate and sustain a business-friendly environment conducive to long-term prosperity.
The Sun
3 days ago
- Business
- The Sun
WCR ranking boost reflects success of Anwar's reform agenda
KUALA LUMPUR: Malaysia's 11-spot leap in the World Competitiveness Ranking (WCR) 2025 serves as clear evidence of the effectiveness of the reform agenda spearheaded by Prime Minister Datuk Seri Anwar Ibrahim, says geostrategist Prof Dr Azmi Hassan. He said that although there were some parties still questioning the implementation of these reforms, international assessment bodies clearly indicated that the nation's transformation was heading in a positive direction, especially in combating corruption and strengthening economic policies. 'The government's core reform is focused on minimising corruption, as the Prime Minister has often stressed — if corruption is not curbed, it is the country that will suffer. 'Anti-graft efforts are not limited to high-profile cases like 1MDB, but also include various forms of corruption in both the public and private sectors. These are among the key reform elements being closely observed by the international community,' said the Senior Fellow at the Nusantara Academy for Strategic Research (NASR). Malaysia is now ranked 23rd in the latest WCR report, up from 34th place the previous year — its best performance since 2020. However, Azmi expressed concern that the government's genuine reform efforts were not fully appreciated domestically due to political differences and the unwillingness of some quarters to view progress objectively. 'Some groups deliberately ignore the facts because they want to discredit the government, but I believe this is where agencies such as the Department of Statistics Malaysia (DOSM) must step up with data and statistics to reflect the government's reform achievements,' he said. At the same time, he urged that the Prime Minister's credibility and diplomatic acumen be fully leveraged to boost Malaysia's global image. 'Anwar is a respected and articulate leader, especially among ASEAN and Indo-Pacific nations. His ability to present arguments and perspectives on global issues is unmatched and should be used to the country's advantage,' he said. Meanwhile, University of Malaya (UM) lecturer Assoc Prof Dr Khoo Ying Hooi described the improved ranking as a reflection of progress in governance and institutional frameworks, including bureaucratic rationalisation and administrative efficiency. Dr Khoo, from the Department of International and Strategic Studies at UM's Faculty of Arts and Social Sciences, said initiatives such as the National Anti-Corruption Strategy 2024–2028 had made a significant impact on international perceptions, though the improved ranking should not lead to complacency. 'The improved ranking doesn't mean Malaysia has already achieved excellence in fighting corruption,' she said. 'As for the efficiency of government service delivery, there are clear signs of progress, but challenges remain in terms of the scale and consistency of impact across all administrative levels,' she added. The WCR is published annually by the Switzerland-based Institute for Management Development (IMD). It is a comprehensive report that evaluates an economy's ability to generate and sustain a business-friendly environment conducive to long-term prosperity.
