KUALA LUMPUR: Malaysia slipped by two notches on the annual Swiss-based competitiveness rankings for 2015.
It however remained in the top 15, ahead of Netherlands, Ireland, New Zealand, Australia, UK, Finland, Korea and Japan.
The latest World Competitiveness Yearbook 2015 (WCY) compiled by the Institute for Management Development (IMD), based in Lausanne, Switzerland.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said being in the top 15 of 61 countries reflected the economy’s continued resilience and competitiveness.
“Continuing fiscal reforms, initiatives to control the rising cost of living, diversification of the economy, upskilling of capabilities and expertise, review of the education system, reforming and modernising the tax system through GST will enable Malaysia to remain globally competitive.”
According to IMD director Professor Arturo Bris, analysis of the 2015 ranking showed that top countries were going back to the basics.
“Productivity and efficiency are in the driver’s seat of the competitiveness wagon.
“Companies in those countries are increasing their efforts to minimize their environmental impact and provide a strong organizational structure for workforces to thrive.”
The US remains at the top of the ranking as a result of its strong business efficiency and financial sector, its innovation drive and the effectiveness of its infrastructure.
Hong Kong and Singapore move up overtaking Switzerland, which drops to fourth place.
Malaysia however remained as top among 30 economies with GDP per capita less than US$20,000, retaining its previous position.
Among 28 countries with populations above 20 million, Malaysia was ranked fifth.
Malaysia's achievement, he added, was all the more notable given the current global economic environment and testified to the efficacy of the policies and processes implemented under the Government Transformation Programme and the Economic Transformation Programme.
“We are totally focused on increasing productivity, encouraging innovation and facilitating the ease of doing business. These are the factors that can help sustain Malaysia's economic performance in our aspiration to become a high-income economy by 2020.”
The WCY 2015 assessed countries based on four competitiveness factors: economic performance, government efficiency, business efficiency and infrastructure.
Among the four factors, Malaysia recorded improvement in the economic performance indicator, supported by the significant improvements recorded under the domestic economy, and employment, prices, and international investment.
The 11th Malaysia Plan, tabled in Parliament last week is right on track in its emphasis on increasing productivity, he added.
"The target of 3.7 per cent annual productivity growth will only be achievable through comprehensive initiatives at all levels and championed by industry players.
“Productivity improvements in combination with the ETP and GTP, and initiatives under the 11th Malaysia Plan, should enable us to further enhance our national competitiveness.”