Malaysia Rises To 15th Place In World Competitiveness Index Amid Reform Efforts

PUTRAJAYA, June 18 (Bernama) — Malaysia has jumped eight spots in the 2026 World Competitiveness Ranking (WCR) to be ranked 15th among 70 economies, marking its best performance in a decade.

Chief Secretary to the Government (KSN) Tan Sri Shamsul Azri Abu Bakar said the achievement reflects the effectiveness of reforms implemented by the MADANI Government.

“For the record, the government’s target is to reach the 12th position by 2030,” he said in a statement today.

He said that Government Efficiency, which is one of the four key factors assessed in the report, also recorded an encouraging improvement, up by 11 spots from 25th to 14th. 

He added that this shows that reforms implemented to strengthen governance, improve delivery efficiency and reduce bureaucratic burdens are beginning to translate into tangible results for the people and the business community.

“Several indicators related to Government Efficiency also recorded significant improvements, including the Time to Start a Business indicator, which jumped 38 places from 53rd to 15th,” he said.

Shamsul Azri said the improvement was mainly driven by a jump of 29 places for the Business Legislation sub-factor, which rose from 46th to 17th.

Meanwhile, the Regulatory Burden indicator, introduced in WCR 2026, placed Malaysia 11th in the world.

At the same time, he said the Bureaucracy indicator improved by eight places to sixth in the world, compared to 14th the previous year.

He said these achievements were in line with the Public Service Reform Agenda (ARPA), which serves as the main framework for improving government services.

According to him, the Government Service Efficiency Commitment Act 2025 (ILTIZAM) and the ILTIZAM Circular, which came into effect on Dec 1, have also been important catalysts for the country’s regulatory reform.

He said that among the mechanisms introduced were the periodic review of regulatory instruments every three years, a reduction of at least 25 per cent in the regulatory burden and the “one in, one out” policy.

Meanwhile, he said the strengthening of the Bureaucratic Reform Programme, with a target of 500 projects to be completed and fully implemented this year, is expected to generate potential compliance cost savings of RM2.5 billion for the people and the business community.

Shamsul Azri said the civil service would continue to strengthen momentum of reform to ensure its benefits could be directly felt by the people and the economy.

He said the government remains committed to ensuring that every reform translates into more efficient service delivery, reduced regulatory burden, increased productivity and a more conducive environment for economic growth and national competitiveness.

— BERNAMA