Malaysia Climbs 11 Places to 23rd in World Competitiveness Ranking 2025, Marks Best Performance Since 2020
Kuala Lumpur, The Gulf Observer: Malaysia has made a significant leap in the World Competitiveness Ranking (WCR) 2025, rising 11 positions to 23rd place, its highest ranking since 2020. The improvement, announced by the Ministry of Investment, Trade and Industry (MITI), underscores the success of Malaysia’s ongoing economic recovery, governance reforms, and competitiveness initiatives under the MADANI Economy framework.
The rise from 34th place last year reflects strong gains in economic performance, government efficiency, and business efficiency—key factors contributing to the country’s enhanced global competitiveness.
In particular, Malaysia now ranks 4th globally in economic performance, up from 8th in 2024. The international trade sub-factor saw a notable improvement, jumping 11 spots to 6th position, driven by robust goods and services exports, diversification of markets, and increasing tourism receipts—all contributing to a healthy trade surplus.
MITI emphasized that this trajectory reaffirms Malaysia’s commitment to becoming one of the world’s top 12 most competitive economies by 2033, a key target under the MADANI framework.
MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz said the jump in rankings is a testament to Malaysia’s whole-of-government approach to structural reforms.
“Malaysia’s move up by 11 positions reflects how bureaucracy-related reforms are closely intertwined with facilitating robust investment and industrial growth, both of which are critical to enhancing our global competitiveness,” he said.
The National Competitiveness Committee (JKDSN), co-chaired by MITI and Finance Minister II Datuk Seri Amir Hamzah Azizan, provides strategic direction, while the Special Taskforce on Agency Reform (STAR)—led by Chief Secretary Tan Sri Shamsul Azri Abu Bakar—oversees implementation of reforms, including more than 1,000 Reformasi Kerenah Birokrasi (RKB) projects under the Public Service Reform Agenda (ARPA).
Published annually by the Institute for Management Development (IMD) in Switzerland, the WCR evaluates countries’ capabilities to sustain long-term prosperity by fostering a competitive and business-friendly environment.
