Construction Sector Key To Malaysia's Enhanced Global Competitiveness
July 2, 2025, Kuala Lumpur – Malaysia has surged to 23rd place in the IMD World Competitiveness Ranking 2025, marking its strongest global standing since 2020. This impressive leap from 34th in 2024 demonstrates Malaysia's unwavering commitment to economic strength and growth, testimony to the positive impact of policies under the MADANI Economy framework. Robust performances in economic performance, government’s accommodative approach and business efficiency drove this strong upward trajectory.
"This is not merely a numbers game, it is a validation of Malaysia's resolve to reform, invest, and innovate." said Datuk Seri Dr. Michael Yam Kong Choy, Champion of the Construction and Built Environment Productivity Nexus (COBEPN).
Generating a remarkable RM 17.8 billion turnover in the first quarter of 2025 alone, the construction sector stands as a pillar of Malaysia's economy, contributing significantly to the nation's Gross Domestic Product (GDP). This strong economic footprint is matched by an expanding role in shaping Malaysia’s global competitiveness. From urban rail systems and renewable energy facilities to digital infrastructure projects, the construction ecosystem continues to generate jobs, connectivity, and investor confidence.
"Malaysia's strategic investments in transformative infrastructure projects, coupled with our sector's progressive embrace of digital innovation, have revolutionized productivity and project delivery efficiency," stated Michael Yam.
"These bold initiatives, supported by forward-thinking government policies and our growing skilled workforce, significantly amplify Malaysia’s competitive edge on the global stage”, he added.
While this positive shift merits celebration, the ranking also offers crucial insights into areas within the construction sector that demand continued focus and strategic enhancement. Michael Yam also emphasized that, sustained improvement in productivity through advanced technology adoption, such as Building Information Modelling (BIM), modern methods of construction (MMC) and Design for Manufacture and Assembly (DfMA) approach remains paramount.
He highlighted the urgency of intensifying efforts to embrace sustainability practices, circular economy principles, and secure green building certifications, integrating advanced technologies like artificial intelligence to align with evolving global environmental, social, and governance (ESG) standards. Streamlining regulatory processes and enhancing efficiency will also prove crucial in attracting further foreign direct investments and stimulating local innovation.
The Malaysia Productivity Corporation (MPC), through COBEPN, stands fully committed to spearheading initiatives designed to elevate the construction sector’s productivity and overall competitiveness. COBEPN actively collaborates with industry players, professional bodies, and academic institutions to cultivate a vibrant culture of innovation and excellence within the sector, directly supporting the MADANI Economy's goals of a high-value, sustainable, and inclusive economy.
This significant climb in the IMD World Competitiveness Ranking 2025 reinforces the importance of a continuous and concerted effort from all stakeholders. COBEPN urges every industry player, policymaker, and member of the workforce within the construction sector to seize this momentum and leverage by boldly embracing innovation and championing sustainable practices. This collaborative effort is essential to forge a more resilient, productive, and globally competitive Malaysian economy, driving relentlessly towards our shared national target of being among the world's top 12 most competitive economies by 2033.
To learn more about COBEPN, please contact the Construction & Built Environment Productivity Nexus at COBEPN@mpc.gov.my.
End of Release.
For media inquiry:
Media Management Unit
media@mpc.gov.my
