Tuesday, June 5, 2012

Today's Pick (31/05/12/092/786) Malaysia moves up to 14th most competitive economy in the world


Malaysia moves up to 14th most competitive economy in the world
KUALA LUMPUR: Malaysia has moved up two spots from 16th to 14th most competitive economy in the world in the Institute for Management Development's (IMD) World Competitiveness Yearbook (WCY) 2012 survey.
The survey showed that Malaysia's competitiveness ranking was now ahead of countries such as Australia (15th), Britain (18th), South Korea (22nd), China (23rd), Japan (27th) and France (29th).
The IMD survey assessed countries according to four main competitiveness factors: economic performance, government efficiency, business efficiency and infrastructure. The WCY rankings measure how well countries manage their economic and human resources to increase their prosperity and 59 countries were surveyed this year.
“Malaysia registered significant improvements in the business efficiency category (sixth position from last year's 14th) and in the government efficiency category (13th from 17th). Ranking improvements were recorded in the sub-categories of business productivity and efficiency, finance, business legislation, and societal framework,” the International Trade and Industry Ministry (MITI) said in a media statement.
“In economic performance category, although Malaysia maintains its top 10 ranking, its position slipped by three places from last year's seventh ranking. This is attributable to slower employment growth and concerns over rising prices,” MITI said.
It added that Malaysia marginally improved its ranking to 26th position from 27th position in the infrastructure category and highlighted the areas of concern were health and the environment, education and scientific infrastructure.
“We recognise there are areas where improvements in our competitiveness can still be made. Special attention will be given to address these concerns. Our overall objective remains the same: to achieve a top 10 ranking in the near future,” it noted.
The most competitive of the 59 ranked economies in 2012 were Hong Kong, the United States and Switzerland, the IMD said.
Despite all its setbacks, the United States remained at the centre of world competitiveness due to its unique economic power, the dynamism of its enterprises and its capacity for innovation, IMD added.
“US competitiveness has a deep impact on the rest of the world because it is uniquely interacting with every economy, advanced or emerging. No other nation can exercise such a strong pull effect' on the world. Europe is burdened with austerity and fragmented political leadership and is hardly a credible substitute, while a South-South bloc of emerging markets is still a work in progress,” said director of IMD's World Competitiveness Centre Professor Stephane Garelli.
“The recession has made the world economy more fragmented and diverse than ever, forcing companies to operate several parallel business models.
”Emerging economies are relying on domestic demand and national champion companies to insulate themselves from economic turmoil, while the submerging' developed economies are turning to re-industrialisation. In both cases, economic nationalism is back and protectionism is tempting,” Garelli added.
Source : The Star
Date : 31 May 2012
Today's Pick (31/05/12/092/786)









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