Malaysia Advances 11 Spots In The World Competitiveness Ranking (WCR) 2025

Malaysia has advanced 11 spots in the World Competitiveness Ranking (WCR) 2025, to 23rd among 69 economies, up from 34th placing last year. The WCR is published annually by the Institute for Management Development based in Switzerland. It is a comprehensive report that evaluates countries based on their ability to create and maintain a business-friendly environment that fosters long-term prosperity.

This ranking is the country’s best since 2020, reflecting the progressive momentum in Malaysia’s economic recovery and reform agenda, and reaffirming its trajectory towards becoming one of the world’s top 12 most competitive economies by 2033, as targeted under the MADANI Economic framework.

Economic Performance, Government Efficiency, and Business Efficiency factors drove Malaysia’s overall competitiveness performance. Malaysia ranked 4th globally in Economic Performance, improving 4 spots from 8th place last year. Both Government Efficiency and Business Efficiency factors improved by 8 positions.

The International Trade sub-factor increases 11 places to 6th, supported by strong export growth in goods and services, diversified markets, and rising tourism receipts, strengthening Malaysia’s trade surplus.

MITI, through the National Competitiveness Committee (JKDSN) – co-chaired with the Minister of Finance II, YB Senator Datuk Seri Amir Hamzah Azizan – coordinates the strategic direction across ministries to enhance Malaysia’s competitiveness. At the operational level, the Special Taskforce on Agency Reform (STAR) – led by the Chief Secretary to the Government (KSN), Y. Bhg. Tan Sri Shamsul Azri Abu Bakar – ensures effective implementation of competitiveness initiatives, including over 1,000 Reformasi Kerenah Birokrasi (RKB) projects aligned to the Public Service Reform Agenda (ARPA).

MITI Minister, YB Senator Tengku Datuk Seri Utama Zafrul Aziz said, “Malaysia’s move up the rankings by 11 positions to 23rd from 34th last year reflects how bureaucracy-related reforms are closely intertwined with facilitating robust investment and industrial growth, both critical for enhancing Malaysia’s attractiveness as a preferred investment destination. The Government’s whole-of-government approach under the MADANI framework also demonstrates its commitment to holistic structural reforms.”

MITI is confident that with strong governance, continuous commitment from the Federal and State Governments, and close cooperation with the private sector, Malaysia is on the right path to position itself among the world’s 12 most competitive economies by 2033.



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