Malaysia to regain Top 12 position

Malaysia’s Decline in 2024 (The International Institute for Management Development (IMD) released the 2024 World Competitiveness Ranking (WCR) in June 2024).

Malaysia ranked 34th out of 67 countries, down seven places from the previous year. Malaysia’s decline was evident across nearly all factors assessed, including economic performance, government efficiency, and business efficiency.

Malaysia’s decline was evident across nearly all factors assessed, including economic performance, government efficiency, and business efficiency.

WCR Measures economies with population size and GDP, provides a benchmark for countries to measure their progress and identify areas for improvement, helps governments and companies understand where to focus their resources.

What is IMD WCR in brief –> https://www.imd.org/

Malaysia’s economic performance, infrastructure, government efficiency, and business efficiency must all be strengthened in order to raise the nation’s standing in the IMD World Competitiveness standing.

Based on my personal observations, the following are strategy that Malaysia could use, the ‘3 + 3’ focus-driven scope: The 1st 3 are Enhance Infrastructure, Boost Government Efficiency and Improve Business Efficiency which are in line with the World Bank B Ready Report’s approach. The additional 3 are Economic Performance, Business Connectivity and Political Stability.

  1. Improve the Infrastructure
  • Increase the reach of 5G networks, boost broadband adoption, and guarantee that all areas have access to reasonably priced, fast internet. Which most of our initiatives are still on going, we should be to see an improvement scoring in this segment soon.
  • Transportation: Make investments in integrated transportation networks, such as public transportation, high-speed rail which under study, and effective and competitive ports.
  • Green Infrastructure: Emphasize renewable energy sources, encourage sustainable building techniques, create environmentally friendly metropolitan environments and many other initiatives.
  1. Increase the Efficiency of Government
  • Cut Down on Bureaucracy: Make administrative procedures easier for investors and companies while lowering regulatory barriers.
  • Combat Corruption: Make government contracts and expenditures more transparent, bolster anti-corruption organizations, and impose severe sanctions.
  • Fiscal Responsibilities: Manage debt levels, maximize public spending, and guarantee equitable tax collection in order to maintain sustainable fiscal policies.
  1. Improve Business Efficiency
  • Skilled Workforce: To create a workforce that is highly trained and flexible, strategically invest in the most relevant and up to date education system, technical or TVET practical training, and upskilling programs for white collar work-force.
  • Ease of Doing Business: Make it easier to start and run a business by streamlining processes including tax registration, permits, and legal compliance.
  • Innovation Ecosystem: Encourage innovation through R&D incentives, industry-academia cooperation, and startup assistance. Focus on local and small businesses.
  • Productivity Growth: Implement business digital transformation initiatives that emphasize automation and cutting-edge technologies.

     4. Boost Economic Performance

  • Diversify the Economy: Create high-growth businesses e.g, technology, green energy, and global hub healthcare to lessen dependency on particular industries (e.g, oil and gas).
  • Encourage Exports: By assisting sectors such as electronics, palm oil, and halal products and services that have high demand worldwide, Malaysia may become a more competitive exporter.
  • Promote foreign direct investment (FDI) by streamlining the process, providing tax breaks, and boosting investor confidence through political stability.
  • Support SMEs: Small and medium-sized businesses (SMEs) are key drivers to economic growth and have to be strongly supported via finance, technology assistance, and capacity building initiatives.

     5. Promote Political Stability

  • Good Governance: Make sure that policies are explicit, reduce policy reversals, and interact with stakeholders to foster confidence.
  • Transparency: Provide investors and public with regular updates on measures to ensure accountability and reduce uncertainty
  • Public Participation: Encourage citizen engagement in policymaking through town halls, consultations, and referendums
  • Collaborate with Opposition: Foster cross-party collaboration on national issues to build a unified approach to governance.
  1. Strengthen Global Connectivity
  • Trade Agreements: To increase market access, fortify relationships with significant trade blocs (such as ASEAN, CPTPP, and RCEP).
  • International Partnerships: To improve technology transfer and information sharing, form strategic alliances with developed economies.

By focusing on these areas, Malaysia can position itself as a more attractive, competitive, and sustainable nation on the global stage, thereby improving its IMD Competitiveness Ranking.

“Sayangi Malaysiaku”

Faisal Malik

Reach our team at –> admin@faisalmalikco.com

Glimpse of FMC Involvements in WEF IMD and WB B Ready Analysis.