Latest news with #competitiveness
South China Morning Post
an hour ago
- Business
- South China Morning Post
Hong Kong aviation's revival perfectly timed for John Lee's report card
Timing is everything in politics, and Chief Executive John Lee Ka-chiu has good timing on his side. Director of the Hong Kong and Macau Affairs Office Xia Baolong's fact-finding trip could not have come at a more perfect time for Lee because school is out and the report cards are rolling in. Advertisement The day before Beijing's point man for Hong Kong and Macau affairs arrived for his third fact-finding trip, the Switzerland-based International Institute for Management Development released its latest World Competitiveness Ranking . Hong Kong scored 99.2 out of 100, rising two spots to came in third in global competitiveness. The city made it into the top three for the first time since 2019 Meanwhile, Hong Kong's flag carrier Cathay Pacific returned to the top three of the Skytrax airline rankings, rising three places from last year. It also received awards for best in-flight entertainment and best economy class. Cathay came fifth in 2024 after another three-place rise. In April, meanwhile, Hong Kong International Airport came sixth in the Skytrax World Airport Awards, rising from 33rd place in 2023 and 11th last year. Fortunately for Lee, all these accolades came to Hong Kong under his watch. Xia can take them back to Beijing, using this rise in the rankings as evidence that the world's perception of the city is improving and the pendulum is swinging back in its favour despite the persistent challenges posed by geopolitical developments This shift is the result of more than work done by the government. Not only has Cathay Pacific made a remarkable recovery since the outbreak of the Covid-19 pandemic, the Cathay Group – which includes the budget airline HK Express – celebrated the milestone of reaching 100 passenger destinations around the globe this month. 10:38 The headwinds holding back Cathay Pacific's post-pandemic recovery The headwinds holding back Cathay Pacific's post-pandemic recovery It is easy to forget the Hong Kong government no longer has a stake in Cathay Pacific, one of the most compelling success stories in the city. That is in contrast to Qatar Airways and Singapore Airlines, the two competitors that finished ahead of it in this year's Skytrax rankings.
Malay Mail
2 days ago
- Business
- Malay Mail
Leaping ahead to continue leading with conviction — Tengku Zafrul Abdul Aziz
JUNE 21 — Malaysia's remarkable 11-spot jump in the 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. MITI is especially pleased that our industrial reforms implemented under the New Industrial Masterplan 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 & Efficiency (+19) and the 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 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 (JKDSN) together with the Ministry of Finance has driven whole-of-government efforts to streamline investment approvals, reduce regulatory burdens, ease investors' journey and modernise economic policy frameworks. The 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. — Picture by Firdaus Latif Moreover, the establishment of the Special Taskforce on Agency Reform (STAR) led by Chief Secretary to the Government (KSN) – 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 that 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 that 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, who 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. * Datuk Seri Tengku Zafrul Abdul Aziz is Malaysia's Investment, Trade and Industry Minister. ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
Close structural gaps to achieve economic goals, govt told
Malaysia has become the world's 23rd most competitive economy, according to an international ranking, rising 11 places from last year. (Envato Elements pic) PETALING JAYA : For businesses and employers, addressing structural problems and inadequacies must be front and centre in any effort to take the Malaysian economy to the next level. As the Malaysian Employers Federation (MEF) and Small and Medium Enterprises Association of Malaysia (Samenta) pointed out, challenges such as the shortage of talent and too much red tape must be sorted out before the country can achieve its goal to be among the world's top 12 economies by 2033. Syed Hussain Syed Husman. MEF president Syed Hussain Syed Husman said Malaysia continues to face structural gaps in multiple areas. 'We are weak in innovation, the talent pool in artificial intelligence (AI) and data analytics is shallow, and we are slow in adopting automation and cybersecurity,' he told FMT. He also pointed out that there is a persistent mismatch between the skills that graduates have acquired at university and what industry actually needs. 'We must tackle these issues now if we are serious about competing with the world's best,' he said. In its World Competitiveness Ranking 2025 list released this week, the International Institute for Management Development (IMD) has placed Malaysia at number 23, up 11 places from the previous year. The 69 countries covered in the IMD survey were evaluated in five key strategic focus areas, namely workforce development, digital and AI adoption, private sector-led research and development (R&D), regulatory reforms, and supply chain resilience. Switzerland tops the list, followed by Singapore, with Hong Kong rounding off the top three. Elaborating on the failure of the education system to produce graduates who can meet industry needs, Syed Hussain said many training modules are now outdated, having failed to keep up with the demands of fast-evolving sectors. He singled out fast-moving sectors such as AI, cybersecurity, fintech, renewable energy and e-commerce as those sectors that are affected. He attributed this to 'insufficient employer involvement' in technical and vocational education and training as well as the Human Resource Development Corporation training programmes. 'The skills development ecosystem is also fragmented across ministries and agencies,' he added. As a result, he said, small and medium enterprises (SMEs) continue to struggle with automation due to high upfront costs and limited awareness of return on investment. On digital transformation, Syed Hussain said businesses outside urban centres still face barriers such as poor access to high-speed internet and 5G networks. At the same time, the talent pool in AI, data analytics, and cybersecurity remains limited. 'Malaysia faces a persistent gap in high-demand tech areas, leading to a dependence on foreign expertise,' he said. He said R&D in Malaysia is also largely driven by the government, with low commercial returns posing a deterrent to private sector involvement. Syed Hussain added that Malaysia's reliance on low-margin manufacturing makes it vulnerable to global trade shocks. 'Many local firms lack the scale, certification or access to financing needed to break into foreign markets,' he said, adding that a logistics infrastructure was needed to diversify trade. Reforms working but must be sustained Samenta chairman William Ng said that while he welcomed the country's improved standing in the IMD ranking, he also stressed that this is not the time to be complacent. William Ng. He said consistent policies, improved R&D support, and greater private sector participation are needed for Malaysia to break into the ranks of the world's top 12 economies by 2033. Ng credited recent initiatives such as the Reformasi Kerenah Birokrasi (RKB) and the creation of the Business Efficiency Task Force for contributing to the positive momentum. However, he warned that longstanding challenges remain, especially on ensuring that national policies are not frequently changed and reducing red tape for firms to do business. Ng said Malaysia's improved position ahead of Thailand, Indonesia, and the Philippines signals that reforms are working, but they must be sustained and supported through a whole-of-nation approach. 'The government alone cannot effect these reforms. Businesses, including our SMEs, must move up the value chain for Malaysia to become even more competitive and to future-proof our economy for generations to come,' he added.
Times
3 days ago
- Business
- Times
Taxpayer will subsidise industry energy bills to help firms compete
British manufacturers will have their energy bills slashed and subsidised by the taxpayer under plans to boost the country's global competitiveness. Ministers will announce a multibillion-pound package of support to the UK's most energy-intensive industries to bring their costs in line with international competitors. The announcement next week will form the centrepiece of a ten-year industrial strategy under which the government provide bespoke support for sectors that are seen as critical for the UK's long-term growth. Under the plan, Britain's industries, such as steel, ceramics and chemicals will see the standing charges they pay for their electricity supply fall by up to 90 per cent, saving them hundreds of millions of pounds a year. But sources said that Rachel Reeves, the chancellor, and Jonathan Reynolds, the business secretary, wanted to go further and extend the support to other industries who are heavy electricity users but are currently ineligible for support. They are launching a consultation to extend subsidised power to other key growth sectors such as AI databases and advanced manufacturing that are not currently covered by the existing scheme and cost the government several billion pounds. This would see firms being exempt from paying towards the costs of the government's renewable energy policies — bringing the UK into line with others who largely fund the upfront costs of transitioning to net zero through general taxation. One source described the government's move as a 'very significant intervention' which had the backing of the Treasury 'despite severe fiscal constraints'. Another source close to the plans added: 'The attitude is that if the Office for Budget Responsibility are going to make us raise taxes by £15 billion anyway, we might as well add this for the sake of keeping jobs alive.' Britain has some of the highest industrial electricity prices in the developed world, according to 2023 data from the International Energy Agency. Since 2021, the average electricity price for UK non-domestic users has increased to 75 per cent higher than the average price at the start of 2021. • £2bn green hydrogen project on Humberside pulled by US group UK firms currently pay about 25p per kilowatt hour for power compared with just 17p in France and Germany. Compared with the United States, prices are almost three times higher. Industry has long argued that such high prices have deterred investment in the UK and made it far harder for existing British firms to compete in international market places. They have also warned that the problem will be exacerbated by the government's wider net-zero plans to shift energy consumption away from gas towards electricity. Sir Jim Ratcliffe, the founder of chemicals giant Ineos, warned last month that 'excessive' energy costs were 'squeezing the life out of the sector'. Reeves also acknowledged the problem when she addressed the GMB union earlier this month. 'There are a whole range of sectors where energy prices are making our British businesses uncompetitive with our counterparts around Europe where energy prices for industry are lower,' Ratcliffe said. Stephen Phipson, chief executive of Make UK, which represents Britain's manufacturers, said it would be a 'genuine game changer'. 'At a time of falling confidence and weak economic growth, such a welcome move would help kick-start vitally needed investment and put industry on a much stronger footing to support the government's key mission of boosting the economy at a time when a shot in the arm to confidence is much needed,' he said. The industrial strategy will set how the government intends to support eight key growth sectors, and 37 sub-sectors, with a particular focus on advanced manufacturing, clean energy industries, and defence. The strategy lists 40 areas across the UK where sectors will be supported to 'cluster' — many in post-industrial areas where Reform UK is posing the biggest threat to Labour. The document will also include a plan for boosting domestic digital and engineering skills, with further education colleges offered funding to set up technical courses which lead to particular career routes. 'It does not try to be all things to all people, so there will be some big losers,' the source said. 'This is about the type of economic growth as much as the scale of it.' The strategy will also spell out which sectors will benefit from the two-thirds uplift to funding for the British Business Bank. One source said the government wanted to prioritise funding on small and medium-sized businesses, helping them to expand in the UK rather than having to rely on foreign equity.
Yahoo
3 days ago
- Business
- Yahoo
Finance Departments Struggle to Balance AI Adoption Risks With Rewards
If you're not considering how to work AI into your finance team, you may be behind the curve. While doing so involves additional hurdles and higher stakes than adding AI to other departments in an enterprise, the benefits that the tech can bring – and the ability to stay ahead of competition – may be worth the hassle, experts told CIO Upside as part of our first-ever webinar. 'Opportunities for AI in finance are ultimately going to become as routine as using spreadsheets,' said Mel Walker, managing director and data and AI practice leader at CohnReznick. READ ALSO: Why is the Quantum Race Moving Faster? and IBM Patent Seeks to Help AI Models 'Unlearn' There are tons of ways to put AI to use in financial departments, said L.E.K. Managing Director and Partner Chuck Reynolds. Enterprises should invest in a 'portfolio of solutions' to adopt AI across their finance teams: Reynolds sees AI advancements in three key areas: performance enhancement, competitiveness and unique revenue streams. Areas like fraud detection and accounts payable and receivable, he said, are ripe for automation. The introduction of AI agents, Reynolds noted, has the capability to make these processes even more efficient and seamless. 'It's imperative for organizations to adopt AI,' he said. 'If you're not doing this, your competitors will be.' The stakes, however, are quite high, Walker said. Without total confidence in the outputs, finance departments have naturally adopted AI more slowly than others. Making a mistake in financial statements and audits or reporting bad numbers to Wall Street 'can have a serious negative impact on your brand or your reputation,' Walker said, and even lead to fines or penalties. 'That responsibility can't be taken lightly.' So how can finance teams strike a balance? Figure out where to keep a human in the loop, Walker and Reynolds said. While teams can safely take their hands off the wheel for some tasks, in professions like accounting where 'accuracy is paramount,' having a human in the loop is critical, Walker said. Having a strong internal policy that governs AI use can also prevent missteps, she added. 'Human feedback serves as a safeguard for the limitations that come with AI' she said. 'Keeping people as part of the process is absolutely essential.' To watch 'Mind the Gap: Avoiding AI Pitfalls in Finance,' click here. This post first appeared on The Daily Upside. To receive cutting-edge insights into technology trends impacting CIOs and IT leaders, subscribe to our free CIO Upside newsletter. Sign in to access your portfolio
