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
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