Policy Consistency, Political Stability Key To World Competitiveness Ranking – Economist
By Abdul Hamid A Rahman
KUALA LUMPUR, June 17 (Bernama) -- Malaysia’s World Competitiveness Ranking (WCR) hinges on political stability and consistent policy formulation and implementation, particularly as difficult or unpopular decisions are sometimes necessary to optimise resource allocation and strengthen the country’s economic structure.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that for example, the government’s efforts to rationalise subsidies and enhance tax revenue are aimed at enabling greater public spending to build the nation’s production capacity.
“This includes expenditure on sectors such as education, healthcare, infrastructure and security. Therefore, the government must ensure that these policy messages are communicated clearly to the public so that they understand the national policy direction,” he told Bernama.
He was commenting on Malaysia’s 11-spot leap in the World Competitiveness Ranking (WCR) 2025 to 23rd place — the country’s best performance since 2020.
The WCR is published annually by the Switzerland-based International Institute for Management Development (IMD).
Mohd Afzanizam said the report provides a comprehensive assessment of an economy’s ability to generate and sustain a business-friendly environment that contributes to long-term prosperity.
“The improvement in the ranking clearly indicates that Malaysia has a conducive ecosystem for business and investment.
“Pro-business government policies, experienced civil service machinery, a competitive workforce, and a well-educated talent pool have all contributed to enhancing the country’s competitiveness,” he said.
Despite facing global economic uncertainties stemming from tariff shocks and escalating geopolitical risks, Malaysia continues to attract foreign investments, he said.
He said that these uncertainties have in fact opened up opportunities for Malaysia to demonstrate its capabilities in supporting a robust business ecosystem.
“For instance, the rise of artificial intelligence (AI) technologies has sparked growing interest in data centre development, particularly in Johor.
“This, in turn, highlights the need to upgrade supporting infrastructure such as electricity supply. Additionally, construction activities have picked up pace, benefiting local contractors,” he said.
As such, he noted, the spillover effects are clearly visible and overall, Malaysia is well positioned to register quality growth.
-- BERNAMA