Malaysia Jumps 11 Spots to 23rd in 2025 Global Competitiveness Rankings
Malaysia has leapt ahead 11 spots to rank 23rd in the World Competitiveness Ranking 2025. It’s the highest position the country has reached since 2020.
We can thank Malaysia’s strong economic performance and targeted reforms under the MADANI Economy framework for this leaping success. Malaysia’s Ministry of Investment, Trade and Industry (MITI) says that the significant leap from 34th place last year only highlights the country’s ongoing recovery and ambition to break into the world’s top 12 most competitive economies by 2033.
Notable Gains and Substantial Progress
Malaysia is making notable gains in government and business efficiency, which has led it to rank 4th globally in its economic performance. The international trade sub-factor also rose 11 places to 6th. The industries responsible for this success are the robust exports, diversified markets, and a growing tourism sector.
The Malaysian Government’s approach is unlocking industrial growth and attracting investment, further enhancing Malaysia’s competitive edge. Progress has even been observed in its reform efforts at both the federal and state levels. There is also strong collaboration with the private sector. Initiatives such as the National Competitiveness Committee (JKDSN) and the Special Task Force on Agency Reform (STAR) are helping to implement over 1,000 bureaucracy-reduction projects aligned with public service reform.
Opportunities for Innovative Businesses and SMEs
Malaysia’s performance in the World Competitiveness Ranking reflects significant strides in reducing bureaucracy, fostering innovation, and promoting business adaptability. It is worth highlighting that Malaysia now ranks ahead of its ASEAN peers, including Thailand (30th), Indonesia (40th), and the Philippines (51st). If you’re ever thinking about starting a business in Malaysia, this would be the time to do it.
There is a need for a more profound digital transformation, improved education and skills development, consistent policymaking, and increased R&D investment, particularly for small and medium-sized enterprises (SMEs). Is this an industry your business could contribute to? Then, ask 3E Accounting how we can assist you.
