Malaysia Rises In IMD Ranking, But Reforms Must Continue – FMM

KUALA LUMPUR, June 22 (Bernama) -- Malaysia’s notable rise in the IMD World Competitiveness Ranking 2025 -- climbing 11 spots to 23rd out of 69 economies -- should be used as a catalyst for deeper reform, according to the Federation of Malaysian Manufacturers (FMM)

FMM president Tan Sri Soh Thian Lai said that while the ranking is encouraging, it should not be seen as an end goal.

He added that Malaysia needs to shift from an input-driven growth model -- dependent on labour, capital, and natural resources -- to one centred on productivity and innovation to sustain long-term competitiveness.

“This transition is not just timely but necessary to stay competitive in high-value sectors and adapt to fast-evolving global trends,” he said in a statement today.

He highlighted several focus areas that require urgent attention, including a substantial increase in investment in research and development, aligned with industry needs and national priorities.

“Malaysia’s start-up ecosystem holds real promise, especially in digital, green, and deep-tech sectors.

“With the right support and simplified regulations, easier access to funding, and stronger mentorship, local entrepreneurs can become powerful drivers of economic transformation,” he added.

Soh also lauded the government on the improved IMD ranking, which is the best showing since 2020.

“This marks a significant turnaround from the previous year, when Malaysia ranked 34th out of 67 economies. The latest result is a strong signal that recent policy measures, institutional reforms, and efforts to restore investor confidence are delivering tangible outcomes,” he said.

Malaysia now ranks fourth globally in economic performance, moving up from eighth place last year.

Both government efficiency and business efficiency also improved by eight positions.

-- BERNAMA