In the Southeast Asia region, Malaysia is ranked lower than Thailand (25th) and Indonesia (27th) but higher than the Philippines (52nd)
Malaysia fell seven places to 34th in the IMD World Competitiveness Ranking 2024, while Singapore remained at the top.
Malaysia has also fallen four places to 10th place out of 14 Asia Pacific countries included in the ranking, according to the Swiss-based business school, the International Institute for Management Development (IMD).
In the Southeast Asia region, Malaysia is ranked lower than Thailand (25th) and Indonesia (27th) but higher than the Philippines (52nd).
The annual ranking, created in 1989, has traditionally been closely watched by governments, academics, economists, investors and corporate executives. In addition to statistical data from 67 economies, the ranking also includes surveys with executives.
The survey was conducted between March and May 2024 among 6,612 C-level and mid-level managers from 67 economies.
At the macro level, Malaysia ranks high in terms of price (second), basic infrastructure (10th) and tax policy (11th).
However, it is less competitive in education (44th), business law (50th), and productivity and efficiency (53rd).
The main challenges for Malaysia are to increase investment in research and development to improve business resilience, optimize the labor market to maximize workforce productivity, and update policies and regulations to improve global competitiveness, IMD said.
Other challenges include leveraging advanced technology to accelerate productivity growth, as well as reducing cost increases through strategic productivity improvements.
Emerging markets such as China, India, Brazil, Indonesia and Türki have experienced rapid growth and development in recent decades, and have become important players in trade, investment, innovation and geopolitics, IMD said.
Malaysia, Thailand and Chile are also either stable or improving, he said. Governments and firms around the world must adapt to the "different cultural, institutional and regulatory environment of these markets to succeed in them while also adhering to global quality and sustainability standards", the report said.
"We believe the most competitive economies of the future will be those that are able to anticipate and adapt to this changing global context while simultaneously creating value and well-being for their people," said IMD's Center for World Competitiveness director Arturo Bris.
The world economy faces major competitiveness challenges, including the transition to a low-carbon and circular economy while taking into account emerging markets that are increasing integration into the world economy, and following the digital transformation.
source : Dagang news
