The government is confident that Malaysia’s position in the 2025 competitiveness ranking will improve

KUALA LUMPUR: The government is confident that Malaysia’s position in the IMD World Competitiveness Ranking 2025 will improve compared to 2024, driven by, among other things, increased exports of high-tech products.

According to Bernama, Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz said the decline in the country’s high-tech exports, which affects Malaysia’s position in the list, is a short-term situation and the score is expected to increase for the 2025 ranking.

He said, it follows that there are many new investments from existing electrical and electronics (E&E) companies in Malaysia as well as multinational companies this year.

“All these (investments) will begin to have an impact in the next 12 to 18 months and will raise our position again,” he said in a post on social media.

He said, high-tech exports are products with a high research and development (R&D) component such as in the fields of aerospace, computers, pharmaceuticals, scientific instruments, chemistry and electrical machines.

Tengku Zafrul said, the decline experienced for the 2024 ranking following the decline in communications electronics exports is due to the decline in global demand and increased global competition.

For example, China’s high-tech exports in the 10 months of 2023 fell 11.4% year-on-year to USD728.2 billion compared to the same period a year earlier, while South Korea fell 28% to USD110 billion, and Japan declined 10% to USD76.9 billion.

In the meantime, he said the projected annual global semiconductor sales increase of 16% in 2024 and 12.5% ​​in 2025 will benefit Malaysia as the world’s sixth largest semiconductor exporter.

“When the demand for semiconductors increases, the country’s high-tech exports will automatically increase,” he said.

Tengku Zafrul said that stable economic growth, unemployment rates continue to decrease, and controlled inflation will improve Malaysia’s position in the future.