Malaysia retained its ranking among the top 15 nations in the latest World Competitiveness Yearbook 2015 (WCY) compiled by the Institute for Management Development (IMD), based in Lausanne, Switzerland.

International Trade and Industry Minister Dato' Seri Mustapa Mohamed, in a statement today, said the report ranked Malaysia 14th among 61 countries -- ahead of such countries as the Netherlands (15), Ireland (16), New Zealand (17), Australia (18), the United Kingdom (19), Finland (20), Korea (25) and Japan (27).

"We were ranked 14 (from 12th previously), in a group that includes the United States, Singapore, Switzerland, Canada, Norway, Luxembourg, Germany, Denmark, Sweden, the United Arab Emirates and Qatar, together with Hong Kong and Taiwan," he said.

"Although our ranking declined by two positions in this latest report, being placed in the top 15 globally among the most competitive nations, indicates our economy’s 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," Dato' Seri Mustapa reiterated.

In its summary, the WCY listed Malaysia as 1st 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 5th. In ASEAN, Malaysia remains in second position, and is ranked 4th among the 14 countries in the Asia-Pacific region. 

The Minister added that Malaysia's achievement 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," Dato' Seri Mustapa said.

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, moving three positions up to 6thposition from 9th in 2014. This is supported by the significant improvements recorded under the Domestic Economy, 15th (2014: 19th) and Employment, 7th (2014: 12th) sub-factors, as well as sustaining top ten positions in Prices, 3rd (2014: 3rd) and International Investment, 8th (2014: 7th). 

Dato' Sri Mustapa added that this year's WCY shows that Business Efficiency is a critical determining factor in enhancing competitiveness. "As emphasised by IMD, business efficiency requires greater productivity and the competitiveness of countries is greatly linked to the ability of enterprises to remain profitable over time. Increasing productivity remains a fundamental challenge for all countries," he said.

In this context he pointed out that the 11th Malaysia Plan, tabled in Parliament last week by Prime Minister YAB Dato' Sri Mohd. Najib Tun Haji Abdul Razak, is right on track in its emphasis on increasing productivity. "Our drive to improve productivity is framed in the five-year Malaysia Productivity Blueprint, where the focus will be on increased productivity with fewer inputs from capital and labour. The target of 3.7% 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,” Dato’ Sri Mustapa said.

 

YB. Dato’ Seri Mustapa Mohamed
Minister for International Trade and Industry
28 May 2015