Malaysia rises 8 spots to 15th in global competitiveness index

PETALING JAYA: Malaysia has climbed eight spots in the International Institute for Management Development’s (IMD) World Competitiveness Ranking for 2026 to 15th among 70 countries.

This is a significant jump from its ranking of 23rd last year – which was already an improvement from 34th in 2024 – and represents its highest position yet in the annual index.

Malaysia ranked second-highest in Southeast Asia after Singapore, which topped the overall rankings.

The city-state was followed by Hong Kong, Switzerland, Taiwan, UAE, Denmark, Ireland, Netherlands, Sweden, US, Qatar, China, Saudi Arabia and Luxembourg.

The WCR analyses and ranks the capacity of countries to create and maintain an environment that sustains the competitiveness of enterprises.

In terms of economic performance, Malaysia received a score of 78.4 points, placing it in fourth place among the 70 economies, the same rank as last year.

The country’s position for government efficiency rose from 25th last year to 14th with a score of 71.6, while its standing in terms of business efficiency also improved from 32nd in 2025 to 16th this year, with a score of 75.4.

However, Malaysia scored lower in the infrastructure category, rising just two places to 33rd this year with a score of 59.8.

IMD said the country’s ranking was also buoyed by the domestic economy, international trade, and international investment, with improved scores recorded across these three categories.