Malaysia has climbed eight places to 15th among 70 economies in the International Institute for Management Development’s (IMD) World Competitiveness Ranking (WCR) 2026.
The improvement marks a significant rise from 23rd place in 2025, which itself was an advance from 34th in 2024. The latest result represents Malaysia’s highest ranking since the annual index was introduced.
Among Southeast Asian countries, Malaysia ranked second behind Singapore, which topped the global rankings.
The city-state was followed by Hong Kong, Switzerland, Taiwan, the United Arab Emirates, Denmark, Ireland, the Netherlands, Sweden, the United States, Qatar, China, Saudi Arabia and Luxembourg.
Strong performance across key indicators
The WCR evaluates and ranks countries based on their ability to create and sustain an environment that supports business competitiveness.
Malaysia recorded a score of 78.4 for economic performance, placing fourth among the 70 economies. The ranking remained unchanged from the previous year.
Government efficiency showed notable improvement, with Malaysia moving up from 25th place in 2025 to 14th this year, achieving a score of 71.6.
Improvements in business efficiency
The country’s ranking for business efficiency also improved significantly, rising from 32nd place last year to 16th in 2026, with a score of 75.4.
These gains contributed to Malaysia’s overall rise in the global competitiveness rankings.
Infrastructure remains a challenge
Malaysia registered a more modest improvement in the infrastructure category, moving up two places to 33rd with a score of 59.8.
According to IMD, Malaysia’s overall ranking was supported by stronger performances in the domestic economy, international trade and international investment, all of which recorded improved scores during the assessment period.
