Posted on 01 Oct 2015
Last year, Malaysia was ranked 20th out of 144 countries, the report surveyed by the World Economic Forum (WEF) noted.
In the latest report, Malaysia is ranked ahead of developed economies
such as Belgium, Luxembourg, Australia, France, Austria, Ireland and
South Korea.
The report indicated that Malaysia’s competitiveness lies in goods market efficiency and financial market development pillars in which Malaysia is ranked 6th and 9th respectively.
Malaysia improved in most of the 12 pillars, with gains in macroeconomic stability as the budget deficit continues to be reduced to the lowest in six years, higher education and training, and, most notably, technology readiness.
However, Malaysia slipped in ranking in financial market development and institutions.
The report also showed that Malaysia’s position declined by 56 places to 57th position in the annual percentage change in the consumer price index, or inflation indicator. “Malaysia’s position declined as the inflation rate at 3.10% fell outside the range of 0.5% and 2.95,” it said.
“This is Malaysia’s highest ranking since 2005 in the highly-influential and closely monitored report, which includes 140 economies,” International Trade and Industry Minister Datuk Seri Mustapa Mohamed said in a statement yesterday.
“In the context of the current challenging global environment, this upgrade is welcome news for Malaysia. This ranking is also an endorsement of the progress we have made in enhancing efficiency and competitiveness through the Government Transformation Programme and the Economic Transformation Programme.”
Mustapa said Malaysia is already heeding the WEF assessment that countries need to ensure higher productivity, nurture innovation, talent and entrepreneurship; and embrace long-term structural reforms to generate resilience for economic downturns.
In line with the WEF’s emphasis on higher productivity to address sluggish growth, renewed efforts will be undertaken to boost productivity in a focused and targeted manner with clear outcomes at the national, industry and enterprise level during the 11th Malaysia Plan period, he added.
“Malaysia Productivity Corporation, in partnership with the public and the private sectors, will forge ahead to enhance productivity for global competitiveness and innovation. In addition, there is a need to accelerate good regulatory practices to ensure the quality and effective delivery of public policy which is business friendly and people centric,” Mustapa said.
