World Competitiveness Ranking 2026: How did APAC economies perform?

Singapore topped the 2026 ranking globally, Hong Kong SAR placed second, while Malaysia climbed eight places to 15th position to record its best showing in a decade.

Asia Pacific economies continued to demonstrate their competitiveness on the global stage in the IMD World Competitiveness Ranking (WCR) 2026, with several markets maintaining strong positions across the annual assessment.

Published by the Institute for Management Development (IMD), the ranking evaluates an economy's ability to create and maintain an environment that enables businesses to compete, innovate, and grow.

Singapore reclaimed its position as the world's most competitive economy, while Hong Kong SAR, Taiwan (Chinese Taipei), China, and Malaysia were among the region's strongest performers.

Among them, Malaysia recorded one of the most notable improvements, climbing eight places to 15^th position out of 70 economies assessed, up from 23^rd in 2025. The result marks the country's highest ranking in a decade and brings it closer to its target of becoming one of the world's 12 most competitive economies by 2030.

A look at top 10 APAC economies in 2026

Who made it into the global top 10

Click here to find out the full ranking.

Key factors behind Malaysia's improved performance

Malaysia was among the region's standout performers, climbing eight places to 15th position out of 70 economies assessed, up from 23rd in 2025. The improvement was driven largely by gains in government efficiency, which rose 11 places to 14th globally. Notable improvements included a 29-place jump in the business legislation sub-factor, while the time to start a business indicator climbed 38 places to 15th.

In addition, the newly introduced regulatory burden indicator placed Malaysia 11th globally, and the bureaucracy indicator improved to sixth in the world, reflecting progress in efforts to streamline regulations and improve service delivery.

Commenting on the results, Tan Sri Shamsul Azri Abu Bakar, Chief Secretary to the Government, said the focus of reforms extends beyond improving Malaysia's standing in international rankings.

"The Government's priority is not just to improve the country's position in international indices, but to ensure that every reform implemented translates into more efficient service delivery, reduced regulatory burden, increased productivity, and a more conducive environment for economic growth and the country's competitiveness for the wellbeing of the people,” he shared.

Key factors behind Singapore's return to first place

Singapore reclaimed first place, advancing one position from second in 2025. The result was driven by a broad rebalancing across its competitiveness profile, most notably in business efficiency, which surged from eighth to first globally, with improvements across all five of its sub-factors. Government efficiency held steady in third and Infrastructure gained a place to rank fifth.

The return to the top was tempered by a decline in economic performance, particularly around cost pressures, with the prices sub-factor falling to 69^th place.

Key factors behind Hong Kong's rise to second place

Hong Kong SAR advanced one position to second place in 2026, continuing a strong upward trajectory from fifth in 2024 and third in 2025. Government efficiency remains its defining competitive strength, retaining second place for a second consecutive year, anchored by a first-place tax policy sub-factor built on zero consumption taxes and a low corporate rate of 16.5%. Business efficiency held at third, supported by a second-place finance sub-factor with banking assets at 608% of GDP and a surging stock market index.

The main concern was a decline in economic performance to 11^th, with employment growth contracting and cost pressures pushing the prices sub-factor to last place among all of Hong Kong's sub-factors.

What does the World Competitiveness Ranking measure?

The Ranking assesses how effectively economies create and sustain an environment that supports business competitiveness and long-term growth. It is based on four key factors:

Economic performance: Measuring domestic economic conditions, international trade and investment, employment, and prices.

Government efficiency: Evaluating the extent to which government policies, institutions, and regulations support competitiveness.

Business efficiency: Assessing productivity, labour market performance, finance, management practices, and business values.

Infrastructure: Examining the quality of technological, scientific, educational, health, environmental, and basic infrastructure.

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In article image / Tan Sri Shamsul Azri Abu Bakar Facebook