Malaysia On Track To Become A Top 12 Globally Competitive Economy - Mohd Shahar

KUALA LUMPUR, July 27 (Bernama) -- Malaysia is on track to achieve the target set under the 13th Malaysia Plan (13MP) of becoming among the top 12 economies in global competitiveness, according to Deputy Economy Minister Datuk Mohd Shahar Abdullah.

He said this belief is supported by Malaysia's improved position in the IMD World Competitiveness Ranking (WCR) 2026, where the country jumped to 15th spot from 23rd in 2025.

“Malaysia's improved IMD WCR ranking will provide a strong foundation for attracting high-quality investments and strengthening domestic economic growth.

“A higher national competitiveness ranking will enable more high-quality jobs being offered with decent salaries,” he said during the question-and-answer session in the Dewan Negara today.

He was responding to a question from Senator Hussin Ismail, who asked to what extent Malaysia's rise to 15th place in the IMD WCR 2026 reflects the actual state of the domestic economy.

According to Mohd Shahar, the achievement was driven by strong growth in private final consumption spending, which increased to 5.3 per cent last year from 4.8 per cent in 2024.

This, he said, directly reflects the resilience of consumer purchasing power, driven by increased expenditures on transport, restaurants and hotels, as well as food and non-alcoholic beverages.

“Private spending cannot be sustained over the long term without continuous income growth.

“To ensure that the people's purchasing power remains sustainable, the government is intensifying efforts to attract investments through strengthening the high-value industrial ecosystem, improving the investment approval process, and implementing new tax incentives under the New Incentive Framework starting March 1, 2026,” he added.

-- BERNAMA