share on
Driven by trade, reforms, and improved efficiency, the country makes its strongest showing since 2020 with aspirations to break into the global top 12 by 2033.
Malaysia has surged 11 places to rank 23rd out of 69 economies in the 2025 edition of the World Competitiveness Ranking (WCR), up from 34th in 2024. This is Malaysia’s strongest showing since 2020, reflecting steady progress in its economic recovery and reform agenda, and reaffirming its path towards becoming one of the world’s top 12 most competitive economies by 2033, according to the Ministry of Investment, Trade and Industry.
The WCR, published annually by the Switzerland-based Institute for Management Development (IMD), assesses a country’s ability to foster a competitive and business-friendly environment that supports long-term prosperity.
Here’s how other markets rank in the top 30 out of 69:
| Rank | Country |
| 1st | Switzerland |
| 2nd | Singapore |
| 3rd | Hong Kong SAR |
| 4th | Denmark |
| 5th | UAE |
| 6th | Taiwan |
| 7th | Iceland |
| 8th | Sweden |
| 9th | Qatar |
| 10th | Netherlands |
| 11th | Canada |
| 12th | Norway |
| 13th | USA |
| 14th | Finland |
| 15th | Iceland |
| 16th | China |
| 17th | Saudi Arabia |
| 18th | Australia |
| 19th | Germany |
| 20th | Luxembourg |
| 21st | Lithuania |
| 22nd | Bahrain |
| 23rd | Malaysia |
| 24th | Belgium |
| 25th | Czech Republic |
| 26th | Austria |
| 27th | Korea Republic |
| 28th | Oman |
| 29th | United Kingdom |
| 30th | Thailand |
What’s driving the rise in Malaysia's ranking?
Malaysia’s improved ranking this year was driven by three key indicators: economic performance, government efficiency, and business efficiency.
Most notably, the country jumped to fourth place globally for economic performance, an improvement from 8th place last year. Government efficiency and business efficiency also improved, each advancing eight places from the previous year.
The international trade sub-factor saw a leap of 11 places, now ranking sixth worldwide. This was largely supported by strong export growth in goods and services, expanding market diversity, and a rise in tourism, all of which contributed to Malaysia’s healthy trade surplus.
A coordinated push across government
According to Malaysia’s Ministry of Investment, Trade and Industry (MITI), this achievement is the result of coordinated reforms under the National Competitiveness Committee (JKDSN), co-chaired with Senator Datuk Seri Amir Hamzah Azizan, Minister of Finance II,
Implementation is further supported by the Special Taskforce on Agency Reform (STAR), led by Tan Sri Shamsul Azri Abu Bakar, Chief Secretary to the Government. The taskforce is currently overseeing more than 1,000 initiatives under the Reformasi Kerenah Birokrasi (RKB) programme, which is part of the broader Public Service Reform Agenda (ARPA).
Reforms are paying off
YB Senator Tengku Datuk Seri Utama Zafrul Aziz, MITI Minister 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.”
He added that the Government’s whole-of-government approach under the MADANI economic framework demonstrates a firm commitment to holistic structural reforms. MITI remains confident that with strong governance, sustained collaboration between the Federal and State Governments, and close cooperation with the private sector, Malaysia is on track to become one of the world’s top 12 most competitive economies by 2033.
share on
