Malaysia drops 7 places in World Competitiveness Ranking

Malaysia has dropped seven places in the IMD World Competitiveness Ranking to rank 34 out of the 67 countries included in the dataset. It also dropped four places in the Asia Pacific group ranking coming in at number 10 out of 14 countries included.

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The IMD World Competitiveness Ranking was created to provide actionable data analysis on economies, regions and sub-regions according to how they optimise their individual competencies, using statistics and survey data. It ranks countries in categories of economic performance, government efficiency, business efficiency and infrastructure.

Malaysia has declined in most categories since last year except for infrastructure, where it has retained its 35th position. Its strongest rankings include second in prices and 11th tax policy. Some challenges Malaysia faced, based off data provided by the Malaysia Productivity Corporation (MPC), include difficulties in investing in R&D to boost business resilience, as well as optimising the labour market to maximise workforce productivity. This is reflected in Malaysia’s lowest ranking in productivity and efficiency, ranking 53 out of 67 countries.

IMD also cites challenges in updating regulations to improve global competitiveness, as well as leveraging advanced technologies to accelerate productivity growth. Most strikingly, Malaysia’s most notable drop in rankings include dropping 11 places in management practices to come in at 42, and 13 places in technological infrastructure to come in at 29.

This is not to say that advancements and improvements are not underway in Malaysia. Just recently, PM Anwar urged companies to prioritise investments in the silver economy, and build the infrastructure and spark innovation in technology fields such as artificial intelligence and robotics that can enable active and healthy ageing. At the opening ceremony of the International Social Wellbeing Conference 2024 (ISWC 2024), he said that the improvement of accessible technologies might enhance the productivity of older persons in the workplace.

This comes in view of Malaysia’s aging population which brings new challenges for Malaysia especially in areas such as healthcare. PM Anwar also emphasised the importance of investing in key sectors like healthcare, pharmaceuticals and infrastructure. According to FMT, the PM said by allocating resources to these areas, Malaysia will be able to tap on a potentially market worth an estimated US$15 trillion.

In contrast, Singapore has risen up the ranks by three spots, reclaiming top position for the first time since 2020. Singapore also ranks second in international investment and trade, surpassing countries such as Switzerland and Denmark.

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