KUALA LUMPUR, June 27 — Prime Minister Datuk Seri Anwar Ibrahim expressed confidence in Parliament today that Malaysia’s World Competitiveness Ranking (WCR) will improve this year and be reflected positively in the 2025 report. Addressing the recent decline in Malaysia’s competitiveness, Anwar attributed it to situational and unforeseen factors affecting key performance indicators, comparing the years 2023 and 2022. Anwar responded to Alor Setar MP Afnan Hamimi Taib Azamudden’s inquiry about the government’s strategy following Malaysia’s slide to 34th place in the World Competitive Index 2024.
He highlighted that high subsidies, exceeding 3% of GDP, were a factor in the decline. The government is committed to implementing targeted subsidies in stages, such as the electricity subsidy in January 2023, saving RM5 billion by reducing subsidies for large companies while maintaining tariffs for over 80% of local households and businesses. Anwar also noted improvements in the ringgit’s performance against regional currencies despite challenges from a strong US dollar and post-pandemic economic indicators.
