Malaysia is the world's 18th most competitive economy, moving two notches up, according to the World Economic Forum's (WEF) Global Competitiveness Report (GCR) 2015-2016.

This is Malaysia's highest ranking since 2005 in the highly influential and closely monitored report which ranks 140 economies. The upgrade is welcome news for Malaysia especially during the present challenging global environment and reflects the country's progress through the Government Transformation Programme and Economic Transformation Programme (ETP).

Malaysia tops the list among 20 economies under the transition stage from an efficiency-driven to innovation-driven economy.

The report says Malaysia is on track to continue its progress towards high-income developed status in the next five years as the country closes the gap with gross national income per capita at US$10,660 (RM46,904) last year.

For 1H15, the country's gross domestic product grew at 5.3% and is projected to grow between 4.5% to 5.5% for the full year.

In the same period, private investment stood at RM108.5 billion, contributing 71% of total investment, reflecting the private sectors' confidence in Malaysia's long-term prospects.

"The WEF findings affirm that the ETP has successfully steered the nation out of the middle-income band and continues to build momentum to hit its high-income markers.

"Despite global volatilities, Malaysia enjoys good growth and is considered as one of the best performing economies for more than five years now," said Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed.

He said, however, the challenges highlighted by WEF to ensure economic sustainability and growth serve as a reminder that there is no room for complacency.

"In an increasingly complex global economic arena, Malaysia as one of the most tradedependent and open economies in the world has to be extra vigilant, given the very volatile nature of global markets," Mustapa said further.

WEF highlighted that Malaysia has consolidated its position among the world's top 20 most competitive economies and remains the highest-ranked developing Asian economy.

The top 10 of the ranking continues to be dominated by highly-advanced economies, led by Switzerland, followed by Singapore, US, Germany, Netherlands, Japan, Hong Kong, Finland, Sweden and the UK.

The report's Global Competitiveness Index (GCI) finds a close link between competitiveness and an economy's ability to nurture, attract, leverage and support talent.

With an enhanced competitiveness performance, Malaysia (18th) is ahead of developed economies such as Belgium (19th), Luxembourg (20th), Australia (21st), France (22nd), Austria (23rd), Ireland (24th) and Korea (26th).

The GCR is an annual report published by WEF based on the GCI that integrates both macro and microeconomic aspects of competitiveness.

It uses 70% perception data obtained through the Executive Opinion Survey from high-level private sector executives and 30% statistical data.

Mustapa said Malaysia is already heeding the WEF assessment that countries need to ensure higher productivity, nurture innovation, talent and entrepreneurship, and embrace long-term structural reforms to generate resilience for economic downturns.

He noted that Malaysia's strong foundation of publicprivate partnership would help ensure the nation maintains its growth momentum to become one of the top investment and trade destinations in Asia.

By themalaysianreserve.com/

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