Malaysia notches highest score in economic freedom since 1970, report says
However, think tank says the country slipped two rungs to 35th out of 165 countries because others improved faster.
Malaysia has achieved the highest economic freedom score since the index began in 1970, according to a report by the Center for Market Education (CME). The nation scored 7.57 out of 10, its best result in over five decades. However, Malaysia has slipped two places to 35th out of 165 countries due to other economies improving at a faster pace.
In 1995, Malaysia's score was 6.99, which dropped to 6.12 in 2002 during the Asian financial crisis caused by capital controls and policy shocks. The country's economic freedom score rose to 97th in 2009 but has since climbed steadily. Malaysia remains the second-freest economy in Southeast Asia, trailing behind Singapore, which ranks third globally.
Thailand, Brunei, the Philippines, and Indonesia follow Malaysia in terms of economic freedom. While Malaysia's score is above the regional average of 6.99, CME CEO Carmelo Ferlito cautions against complacency. Ferlito highlights that Malaysia's heavy state footprint in the economy, through government-linked companies and state-owned banks, remains among the heaviest in the world.
He emphasizes that if Malaysia aims to join the top 20 economies, it must reduce state ownership, maintain a rules-based and impartial civil service, simplify its tariff structure, and open its markets to competition.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
