KUALA LUMPUR - Malaysia’s climb of eight places to 15th in the International Institute for Management Development (IMD) World Competitiveness Ranking demonstrates that the MADANI Economy framework is on the right track, particularly through the government's commitment to reducing bureaucratic red tape.
Small and Medium Enterprises Association of Malaysia (SAMENTA) president Datuk William Ng said the country’s best performance in more than a decade highlights the economy’s true potential when the public and private sectors work closely together.
He said that the improvements in administrative processes under the Reformasi Kerenah Birokrasi (Bureaucratic Red Tape Reform or RKB) initiative, together with the enactment of the Government Service Efficiency Commitment Act 2025, known as the Iltizam Act, have delivered very positive results.
"This is reflected in government efficiency rising 11 places to 14th globally, while business efficiency climbed 16 places to 16th in the world,” he said in a statement here today.
He said the Time to Start a Business indicator surged 38 places to 15th globally, while the Business Legislation indicator rose 29 places to sixth in the world, driven by clearer and more structured regulatory compliance.
Ng said the country’s resilience and agility in adapting to changes in global supply chains amid worldwide energy challenges and geo-economic uncertainty are the result of close collaboration between the government and industry.
To sustain the positive momentum, he proposed that efforts to reduce bureaucratic red tape be extended to local authorities (PBTs) and statutory bodies.
He said a SAMENTA survey found that small and medium enterprises (SMEs) continue to face unpredictable processing times for licences, permits and renewals at the PBT level, contributing to higher operating costs and business uncertainty.
He added that SAMENTA has urged the government to set a benchmark requiring at least 40 per cent local supply chain participation in major foreign direct investment (FDI) projects, particularly in high-technology sectors.
"Such a move is important to ensure that investments by multinational companies also support the sustainable development of local SME capabilities,” he said.
On the role of the Malaysia Productivity Corporation (MPC), he proposed that the Productivity Nexus be strengthened from a policy bridge into a dedicated implementation unit working with business associations to deliver digitalisation and productivity enhancement programmes specifically for micro and small businesses.
He said the country’s improved competitiveness ranking is a victory for all Malaysians, but public-private collaboration at the local level must continue to be strengthened to enable local businesses to compete on the global stage. - BERNAMA