PETALING JAYA: Malaysia moved up two positions to 18th placing in the latest world competitiveness report by the World Economic Forum.
It marks Malaysia's highest ranking since 2005 in the highly-influential and closely monitored report, which includes 140 economies.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed described the ranking as an endorsement of the progress through the Government Transformation Programme (GTP) and Economic Transformation Programme (ETP).
“Backed by sound fundamentals, Malaysia is well on track to continue its progress towards high-income developed status in the next five years as we close the gap with GNI per capita at US$10,660 last year,” he said, in a statement.
Malaysia tops the list among 20 economies under the transition stage from an efficiency-driven to innovation-driven economy.
But Malaysia, being one of the most trade-dependent and open economies in the world has to be extra vigilant given the very volatile nature of global markets, he said.
“The cross-structural and fiscal reforms put into place over the last five years have played an integral role in creating financial and economic resilience.
“The government remains committed in institutionalising measures that allow for private sector to flourish in a competitive environment.”
The report indicates that Malaysia’s competitiveness lies in goods market efficiency and financial market development pillars in which Malaysia is ranked in the top ten at 6th and 9th positions respectively.
Malaysia improves in most of the 12 pillars, with gains in macroeconomic stability (35th, up nine places) as the budget deficit continues to be reduced to the lowest in six years (3.7 percent of GDP); Higher Education & Training (36th, improving by 10 places) and, most notably, technology readiness (47th) improving by 13 places.
“The Malaysia Productivity Corporation, in partnership with both the public and private sectors, will forge ahead to enhance productivity for global competitiveness and innovation,” Mustapa added.
Areas which posed challenges to Malaysia’s competitiveness performance and need improvements include redundancy costs, women in labour force and gross secondary education enrolment.
Among the priorities that need to be focused include unlocking the potential of productivity, nurturing talent & entrepreneurship as well as forging ahead with innovation.
Among the measures highlighted by MPC to enhance competitiveness include identifying champions to role model change and ensure buy-in across stakeholders, prioritising productivity and innovation as the game changers, accelerate good regulatory practice (GRP) and strong public-private sector collaboration.