MALAYSIA has climbed 11 places to rank 23rd among 69 economies in the 2025 World Competitiveness Ranking (WCR), marking its best performance since 2020 and reinforcing the government’s reform drive under the MADANI economic framework.
The annual ranking, published by the Institute for Management Development (IMD) in Switzerland, assesses countries’ ability to create and sustain a business-friendly environment that supports long-term prosperity.
Malaysia’s rise from 34th position in 2024 was primarily driven by improvements in Economic Performance, Government Efficiency and Business Efficiency.
The country placed 4th globally for Economic Performance, up from 8th the previous year, while Government and Business Efficiency each improved by eight spots.
The International Trade sub-factor also surged 11 positions to 6th place, buoyed by robust goods and services exports, market diversification, and increased tourism revenue – all of which contributed to strengthening Malaysia’s trade surplus.
Minister of Investment, Trade and Industry (MITI), Tengku Zafrul Abdul Aziz, said the latest ranking reflects the tangible impact of administrative and structural reforms.
“Malaysia’s move up the rankings by 11 positions to 23rd from 34th last year reflects how bureaucracy-related reforms are closely intertwined with facilitating robust investment and industrial growth, both critical for enhancing Malaysia’s attractiveness as a preferred investment destination,” he said in a statement.
He added that the MADANI framework’s whole-of-government approach underscores the administration’s commitment to holistic and coordinated reforms.
The National Competitiveness Committee (JKDSN), co-chaired by the MITI Minister and Finance Minister II, Datuk Seri Amir Hamzah Azizan, oversees strategic competitiveness efforts across ministries. Operationally, these are supported by the Special Taskforce on Agency Reform (STAR), chaired by Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar, which coordinates over 1,000 Reformasi Kerenah Birokrasi (RKB) initiatives under the Public Service Reform Agenda (ARPA).
MITI remains confident that with sustained federal-state cooperation and private sector engagement, Malaysia is on track to achieve its goal of becoming one of the world’s top 12 most competitive economies by 2033. - June 17, 2025
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