Malaysia ranks 15th in world competitiveness, up eight places
SHAH ALAM: Malaysia has risen eight places to rank 15th out of 70 economies in the World Competitiveness Ranking (WCR), driven by improvements in government efficiency and efforts to reduce bureaucratic red tape.
Malaysia has climbed eight places to secure the 15th position in the World Competitiveness Ranking (WCR), according to Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar. This advancement is attributed to enhancements in government efficiency and a decrease in bureaucratic red tape. Malaysia's ranking for government efficiency has improved from 25th to 14th place, while its ranking for bureaucracy has risen to the sixth spot globally.
The progress has reinstated investor confidence, as evidenced by RM218.5 billion in approved investments during the first half of 2026, marking an 11.7% increase compared to the same period last year. The improvements were spurred by the enforcement of the Government Service Efficiency Commitment Act, which came into effect on December 1, 2025.
The Act mandates the review of regulations every three years to eliminate irrelevant ones, thereby alleviating the burden on the public and businesses. Agencies are required to reduce their regulatory burden by at least 25% every three years, with bureaucratic reform serving as the primary mechanism to achieve this goal. The implementation of these reforms is supported by the Public Service Performance Index (I-PPA) and the Demerit Evaluation of Performance System (DEEP) to enhance leadership and deliver superior services to the public.
Looking ahead, Malaysia aims to rank within the top 12 economies in the WCR by 2030. To accomplish this, Shamsul Azri urged government agencies and local authorities to overcome silos and enhance inter-agency cooperation. He emphasized the need to shift focus from merely reducing processing times to immediate application processing and to view processes from the customer's perspective rather than solely from the internal viewpoint of agencies.
Reducing bureaucratic hurdles and compliance costs is particularly crucial for micro, small, and medium enterprises (MSMEs), which constitute 40% of the national economy and employ half of the workforce. The conference gathered over 1,000 participants from state governments, local authorities, government agencies, and the private sector to discuss strategies for tackling bureaucratic red tape and boosting national productivity.
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