Wednesday, September 5, 2012

Malaysia is still among the world's best economies

Falling four rungs to 25th in the Global Competitiveness Report (GCR) 2012-2013 does not put Malaysia in the stream of losers. Considering the 'near perfection' of the report, the country is still among the world's strongest and vibrant economies and among the top 10 in Asia-Pacific region, much placed than China and India.

The GCR by the World Economic Forum (WEF) based in Geneva covers 144 countries still ranked Malaysia as among the top 20 per cent of the most competitive economies.

We have also been upgraded to the transition range of development from Efficiency-Driven Stage towards Innovation-Driven Stage of Development, based on our GDP per capita increase to US$9,700 from US$8,423 previously.

(Also read Rocky's Bru)

In other words, the 25th ranking does not reflect significant downward trend to its major sectors although some may need re-adjustment and stronger push.

Maintaining its score of 5.1, the most notable advantage is found in the country's efficient and competitive market for goods and services and its remarkably supportive financial sector, as well as its business-friendly institutional framework.

In a region where many economies suffer from the lack of transparency and the presence of red tape, Malaysia stands out as particularly successful at tackling those two issues. Yet, despite the progress achieved, much remains to be done to put the country on a more solid growth path, according to the report, released today.

Of course, the Opposition and its media will capitalise on the rank issue but they need to know that the countries that overtook Malaysia - South Korea, Luxembourg, New Zealand and United Arab Emirates - are exercising massive development and infrastructure plan. However, in terms of economic growth, we still fared better.

Malaysia's competitive strengths - apart from its efficient and competitive market for goods and services, which ranked 11th - are in the areas of legal rights index (1st), pay and productivity (4th), government services for improved business performance (new indicator, ranked 4th), investor protection, agriculture policy costs and government procurement of advanced technology products (4th) and extent of staff training (7th).

Others are burden of government regulation and the ease of access to loans (8th), financing through local equity market (9th), business impact of rules on FDIs (10th) and efficiency of legal framework in challenging regulations (10th).

Nevertheless, the report noted some factors that had adversely affected Malaysia's competitiveness, mainly in the areas of government budget balance and debt, health, crime and technological readiness.

These are women in labour force (119), government balance budget (110), redundancy costs, weeks of salary (108), secondary education enrollment rate, gross percentage (103), general government debt in terms of percentage of GDP (100) and malaria cases per 100,000 population (86).

Most alarming are broadband internet subscription per 100 population (68th) and mobile broadband subscription per 100 population (64th).

This factor, together with the lack of progress in the country's focus in promoting the use of ICT, will significantly undermine Malaysia's efforts to become a knowledge-based economy by the end of the decade, or in other words, in attaining a fully-developed nation by the year 2020.

TOP 30 COUNTRIES

1.   Switzerland
2.   Singapore
3.   Finland
4.   Sweden
5.   Netherlands
6.   Germany
7.   United States
8.   United Kingdom
9.   Hong Kong SAR
10. Japan
11. Qatar
12. Denmark
13. Taiwan, China
14. Canada
15. Norway
16. Austria
17. Belgium
18. Saudi Arabia
19. Republic of Korea
20. Australia
21. France
22. Luxembourg
23. New Zealand
24. United Arab Emirates
25. Malaysia
26. Israel
27. Ireland
28. Brunei Darussalam
29. China
30. Iceland

14 comments:

masih di BH said...

jai,

let's hear to what the opposition, esp anwar has got to say.

for sure he will ride on it!

keyman said...

not bad... in fact almost no change after taking into account our economic performance and its micro-management.

not an easy task to maintain that position as many countries are also progressing rapidly.

penangan said...

pembangkang akan cari ruang untuk bedil kerajaan pimpinan datuk seri najib.

pada mereka, jatuh satu anak tangga pun dah kira buruk walhal ia tidak langsung mencerminkan kemerosotan kedudukan malaysia sebagai salah satu ekonomi terkukuh dunia.

kita tunggu apa orang pakatan rakyat akan komen.

karipuley said...

wah jai!

back to reporting?

surprise that u and rockybru got the report much earlier than the newspapers and TV.

hehehehe...

kudos guys!

Anonymous said...

if the opp makes noise, tell them to read the full report.

even economies like the US, UK and china are taking a slide in their position.

so, being at 25 is still very, very good and strong

nasi & kicap said...

kena bagitau kat anwar, at least kita lebih baik daripada israel, negara yang dipujanya tu!

sebagai rakyat, saya bangga dan bersyukur...

tak taulah kalau2 pembangkang tak sedar dengan hakikat bahawa malaysia adalah negara yang makmur

Anonymous said...

tangga 25 di dunia ? Kira OK ke?

pro-Pakatan said...

betul ke laporan tu?

mesti kerajaan bayar punya, kan?

Jasper Bloodstone said...

Hey, hey - Singapore is still Number 2.

Not bad for a resourceless little red dot that got chucked out of Malaysia.

Guess being a city state and a parliamentary democracy has it's plus points after all!

And it must be a strange world where a slippage in rankings is cause for satisfaction and celebration...

Or, maybe, the WEF staffers who prepare these rankings just don't like Malaysia?

sakuntala said...

i thought anwar and ambiga always compare malaysia with zimbabwe and myanmar!

where are those two nations in the list?

Anonymous said...

maknanya, asyik kat takuk lama la jugak!

ice cube said...

nothing to ring the alarm.

i always have trust for our economists and the government!

Anonymous said...

Malaysia could be right at the top if only, if only ............

Another 50% of the population work as hard as the other 50% and not just ari-ari suruh orang baca Perlembagaan and tunggu projek dan subsidi.

Anonymous said...

just wondering how anwar compared malaysia with zimbabwe!

what an idiot!