Malaysia Jumps Eight Spots in IMD World Competitive Ranking

 

Malaysia has jumped eight spots in the 2026 International Institute for Management Development (IMD) World Competitiveness Ranking, rising to the 15th spot among 70 economies, marking its best ranking in recent years. Last year, Malaysia advanced 11 places to 23rd among 69 economies, up from 34th place out of 67 economies in 2024.  

The ranking was based on four pillars, including the country's economic performance, government efficiency, business efficiency and infrastructure. According to IMD, improvements across all four pillars contributed to Malaysia's stronger standing. Malaysia ranked fourth globally in economic performance, while government efficiency rose 11 spots to the 14th, business efficiency advanced 16 spots to the 16th, and infrastructure also improved by two places to 33rd. Among the sub-factors, Malaysia's domestic economy ranking improved four places to 11th, while international trade rose one spot to the fifth position.  International investment also recorded a strong improvement, climbing seven places to the 19th position.

 

Source: https://en.wikipedia.org 

Meanwhile, Switzerland lost its position as the world’s most competitive economy to Singapore, slipping to third place in the ranking as high US trade tariffs and a strong Swiss franc hurt investment flows. While Switzerland remained the highest-ranked European nation, it was also leapfrogged by Hong Kong in the 2026 IMD World Competitiveness Ranking. Business efficiency was key to Singapore rebounding to first place, a position it last held in 2024. 

The IMD said Switzerland’s decline underscores how even the world’s strongest economies remain vulnerable to shifting capital flows and heightened geopolitical uncertainty. The setback comes as Switzerland faces intensifying competition, with Hong Kong recently overtaking the country as the world’s largest cross-border wealth hub, according to Boston Consulting Group.

Switzerland’s inward direct investment flows flipped to a negative US$60.7 billion, putting it bottom of the IMD’s 70-country ranking for that metric. 

Despite the drop, Switzerland retained its position as the world leader in government efficiency and infrastructure, while business efficiency remained sixth. The IMD’s statistical measures are primarily driven by the 2025 macroeconomic data, and don’t fully incorporate the impact of the Iran war. 

The key development is Singapore is back on top. If only we are a little humble to learn, implement or adapt their winning strategies? If not go to Hong Kong or Switzerland and do the ‘lawatan sambil belajar’ excursion? 

References:

Malaysia jumps eight spots to 15^th in 2026 IMD world competitiveness ranking, Bernama/The Star, 18 June 2026

 

Switzerland loses top competitiveness ranking to Singapore, Allegra Catelli/Bloomberg, theedgemalaysia.com, 18 June 2026

 

Can We Discern Halal Rubbish?

 

Halal rubbish? That’s something Selangor wants to do! Not even PAS has suggested that! 

I am not insulting halal standards. Shopping malls in Selangor must now separate halal rubbish from non-halal rubbish or food waste. Garbage is garbage. Leftover food is meant to be recycled into fertilisers. They are broken down by bacteria and fungi to become rich compost. The only possible reason for separate bins is if we want to create “halal fertilisers”. If so, is the soil where food is grown halal? What if a wild boar from the nearby forest pees on it? Frogs and snakes are also haram. What if these hop or slither across the soil?

 

Source: https://en.wikipedia.org

Back in 2012, fast-food chain A&W rebranded its “Coney Dog” and “Root Beer” to “Chicken Coney” and “RB” as the Islamic Development Department (Jakim) deemed that certain words would “confuse” Muslims. Yet A&W had been in Malaysia since 1963, and Muslims drank root beer for over 50 years, knowing full well it had nothing intoxicating, except too much sugar. In fact, the Malay dessert of fermented tapioca, or tapai, probably has more alcohol. 

In 2017, a “halal laundry” in Muar refused to serve non-Muslims. Johor ruler Sultan Ibrahim Sultan Iskandar, as the head of state of Islamic matters, called this “extreme” and a “narrow mindset”. He pointed out that ringgit notes may have also come in contact with pork or liquor.

Malaysians generate around 8.3 million metric tonnes of food waste annually, or roughly 260kg per person. Food waste makes up 40 percent to 45 percent of all daily waste sent to landfills. 

Halal is supposed to mean compliance with Islamic principles of hygiene. But what about halal restaurants that are dirty? Or halal food packed with harmful preservatives and nitrates? Are we getting bogged down in micro details while missing the big picture? 

Former minister Rafidah Aziz said in 2024 that authorities should focus on combating corruption, which was “non-halal money”, instead of “causing inconvenience” by enforcing rigid halal rules. Rather than getting fixated about halal garbage, we should examine if politicians, top civil servants, plus corporate/GLC leaders got their wealth in halal or haram ways. 

The biggest threats to Muslims and Malaysians are the 3Rs of “rempit, rokok, rasuah” - reckless motorcyclists, smoking, and corruption. 

These 3Rs are what really harm lives, health, and society - not the other R - a lack of halal rubbish bins. Please focus on real issues – cost of living, inflation, job creation, corruption, education and health services, not some outward appearance while the inside is rotten or dead! 

Reference:

COMMENT | Can trash be halal?, Andrew Sia, Malaysiakini, 22 June 2026

Will a PhD Make You a Good Politician?

 

Many of our politicians today have a PhD, but does this make them better politicians? Many of them are not academics. But then politics is not a scholastic affair. It’s an art of compromise where politicians must work within real-world constraints. Academic or textbook theories may not really work in the world of politics. 

The mindset that has besieged Malaysians for so long is that politicians with impressive academic titles can become better politicians. Some politicians may even go all out to have academic titles attached to their names to convince the masses that they are “obnoxiously clever”. And some of these titles are purchased from paper mills.

 

https://www.wikihow.life

In politics, being charismatic matters more than academic titles. Many academics who went into politics have failed as most of them have been too textbook-oriented in their approach to the unpredictable economic and social turbulence engulfing the world.  Many academics are usually obstinately inflexible when proposing solutions or formulas to these quandaries. For that matter, they are usually too idealistic and always would want things to be done their way. They keep to their ideals and seldom would want to compromise. This attribute makes it hard for them to become flexible in politics, what more to become team players. 

Malaysians should start shedding the perception that those with ‘high’ qualifications can become effective political leaders. In fact, it is also true in the corporate world. Not many do well with a PhD. Many corporate or political leaders of the past or even in the present never had a PhD and were not even university educated. 

A PhD only reflects research and ability into a single area of knowledge and specialisation. A PhD holder in one area may know little about other areas of knowledge. To become a politician, a person must be rhetorically convincing even though it may only carry little substance. Ask Trump. The person must first have the political appeal and be willing to work for the people and accept human frailties in life. A good politician must be patient and be willing to accept criticism and defeat, as he has now become a public figure. Unlike a politician, an academic would not tolerate off-putting criticism and does not accept dim-witted comments just like what often happens in our local political scene. 

Politics at a certain level and in some illiterate societies is all about struggling to gain power, manipulation, and convincing people with promises. A true academic will not resort to such undignified behaviour. 

PhD holders who have proven themselves in their areas of expertise in the real world are usually roped into politics in a literate and developed society. They make good workers, but this is limited to the level of getting things executed at the highest level but not going down to the grassroots to talk about what politics is all about. In fact, in a literate and developed society, the people need not have to be convinced by political rhetoric and promises. They just want to see things delivered and therefore they seek leaders who are down to earth and speak to them plainly irrespective of their academic titles. 

A politician is not judged by their academic qualifications but by their execution. Academic qualifications will not help without the tangible ability to deliver on socio-economic reforms, infrastructure, and constituent welfare. The masses would want political figures who have ideas that are realistic, pragmatic, and that they are able to do a better check-and-balance duty in a healthy democracy. 

Reference:

Having a PhD doesn’t make you a good politician, Moaz Nair, FMT, 14 June 2026

What Work Should I Stop Doing Manually?

 

Because AI is moving work from:

-Search

-Analyze

-Design

-Present

 

Into:

 -Describe the outcome

-Give the context

-Let AI build the first version

-Review and improve the result

In 2026, the edge will go to people who build smarter systems around their work. Hard work still matters. But doing every step by hand is getting expensive. Which task are you still doing manually?

  

Reference:

Julia Danyal’s post on LinkedIn

Muted 1Q26 and the Hormuz Effects Ahead!

 

The first quarter (1Q26) reporting season for 2026 was undeniably weak, led by a surprisingly poor set of results from the banking sector as well as the consumer sector. Banking stocks like Malayan Banking Bhd and CIMB Group Holdings Bhd reported negative earnings growth year-on-year (y-o-y) of 4.1% and 2.9%, respectively. Bucking the trend, RHB Bank Bhd recorded a strong performance with a solid 14.2% y-o-y growth in net earnings.

 

Source: https://de.wikipedia.org

Among FBM KLCI stocks, outstanding earnings growth was seen in the telecommunications sector. In the utility sector, Tenaga Nasional Bhd saw a decent growth in earnings of 5.5% y-o-y, but YTL Power International Bhd posted a significant 42% drop in profits, namely driven by lower margins. Other notable surprises among FBM KLCI-linked companies were the lower earnings by newly listed Sunway Healthcare Holdings Bhd, due to one-off listing expenses as well as higher operating expenses. However, Press Metal Aluminium Holdings Bhd continues to ride the rise in commodity prices, as its earnings jumped 35.2% y-o-y on the back of higher aluminium prices.

Among plantation companies, Kuala Lumpur Kepong Bhd reported a weaker core profit, dragged by lower plantation earnings, while SD Guthrie Bhd’s earnings were impacted by lower profits from its upstream division. However, IOI Corp Bhd’s earnings were firmer by about 10% due to higher output and better oil extraction rate. 

Although corporate earnings showed a decent growth of 3.6% y-o-y for 1Q26, the pace of increase was slower than the preceding quarter’s 7.5% y-o-y growth.

On a quarter-to-quarter (q-o-q) basis, after expanding by 4.2% in the preceding quarter, earnings momentum reversed with contraction of 3.5% q-o-q. 

Most brokers lowered their FBM KLCI target, with consensus now looking at 1,766 points as the new fair value, against 1,775 points in the preceding quarter, based on earnings growth of approximately 7.9% for 2026 and a market price earnings multiple of 15.3 times. For 2027, earnings growth has been lowered marginally from the previous estimate of 7.5% to 6%. 

The closure of the Strait of Hormuz and the prolonged war in Iran have taken a toll on the global economic outlook. Countries have utilised their strategic petroleum reserve to offset supply uncertainties. The supply chain disruption will also take a toll on other commodities and goods that are imported from the region. 

The Organisation for Economic Cooperation and Development (OECD) recently lowered its 2026 global economic growth outlook to just 2.8% from the 3.6% that was achieved in 2025, while growth for 2027 is now projected at 3.1%. The OECD further warned that under a “prolonged disruption”, which assumes that the current disruptions to energy production and exports in the Gulf economies persist well into 2027, global growth may even slow to just 2.1% in 2026 and 1.8% in 2027. 

The elevated global oil price has also become a hot potato for the Federal Government to manage, as it has vowed to keep the current subsidy price, while ensuring that it maintains its fiscal prudence and does not raise the federal government’s debt level. A tough balancing act.

Given the external and domestic headwinds, the upcoming 2Q26 reporting season will remain a subdued quarter, and with the supply disruption and elevated global oil prices, a slower economic growth is likely to follow suit. 

Reference:

Muted 1Q26, weaker growth ahead, Pankaj C. Kumar, The Star, 13 June 2026

The Pressure on Malaysia’s Automotive Policy!

 

For Malaysia, there is a challenge to long-standing policy assumptions. The National Automotive Policy 2020 was drafted when China was still below the radar as a global automotive leader. However, the pace of change showcased in Beijing auto show suggests that the NAP needs to be reviewed, with an emphasis on outcomes rather than aspirations. 

Malaysia’s automotive landscape is closely tied to Proton, long seen as a symbol of national industrial ambition. Yet Proton’s strategic partnership with Geely highlights a deeper reality: the line between domestic and foreign capability is increasingly blurred.

 

Source: https://en.wikipedia.org 

Geely brings scale, advanced platforms, and access to China’s fast-moving innovation ecosystem — advantages that would be difficult for any standalone national automaker to replicate. 

This creates a policy tension. On one hand, there is a desire to protect domestic industry players to preserve jobs, local vendors, and national identity. On the other, excessive protection risks insulating the market from competition at a time when global benchmarks are rising quickly. The issue is not protection per se, but whether it remains fit for purpose in a dramatically different global environment. 

For Malaysian consumers, the implications are significant. First, the price-performance gap is likely to widen. Chinese-developed vehicles—particularly EVs and strong hybrids—are improving rapidly while becoming more affordable. If the domestic market is shielded from these trends, buyers may face higher prices or slower access to new technologies. 

Second, expectations around technology are shifting. Features such as advanced driver assistance systems, seamless infotainment integration, and over-the-air software updates are becoming standard in China-linked vehicles but may not be as readily available if competition is restrained. Malaysian buyers exposed to these advancements may begin to demand similar value across all segments. 

Third, consumer preferences could increasingly diverge from policy intent. Even with incentives or protective measures favouring national brands, buyers tend to gravitate toward vehicles that offer the best overall value. In a more connected and informed market, shielding consumers from global competition becomes harder to sustain. 

None of this suggests that Malaysia should abandon its ambition to build a strong domestic automotive industry. Rather, it points to the need for recalibration. Competing in today’s environment — and within Malaysia’s fragmented car market — may require less emphasis on local assembly and more focus on integration: deeper participation in regional supply chains, partnerships that accelerate technology transfer, and investments in high-value areas such as electrical and electronics, software, and mobility services. And working R&Ds on new concept vehicles. 

Development cycles are shorter, innovation is more iterative, and scale matters more than ever. Policies designed for a slower era risk is now falling out of sync with these realities. Malaysia  faces a choice. It can continue to anchor its automotive strategy in an industrial past shaped by protection and gradual upgrading, or it can adapt to a future defined by speed, openness, and intense competition. 

For Malaysian car buyers, the outcome of that choice will determine not just what they drive, but how much value they receive. 

Reference:

China’s car surge puts pressure on Malaysian policy and car buyers, Yamin Vong, FMT, 4 May 2026

Are Banks “Really” Helping MSMEs?

 

The turmoil in the oil market due to the Iran war has disrupted supply chains across many economies around the world. There is barely any country insulated from the effects of this supply chain-driven crisis. Malaysia, while a net energy exporter (oil and gas), remains a net importer of crude oil. This effectively means that our country’s economy is also affected by the supply chain crisis, with inflationary pressure creeping and unemployment rate spiking. 

In April, unemployment rate jumped 20% to around 7,000 people losing their jobs. The cracks are showing. Micro, small and medium enterprises (MSMEs) are again the most impacted category with cash-flow constraints, with some estimated to have an average runway of only six months amid the ongoing uncertainty. 

Source: https://www.wikiimpact.com 

MSMEs make up 40% of the country’s gross domestic product and employ nearly 48% of the workforce. We are seeing many announcements, including a RM5bil special funding allocation under the SME Stabilisation Relief Facility to help affected businesses manage their cash flow. Another would be the RM5bil guarantee facility provided by Credit Guarantee Corp Malaysia Bhd and Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP), bringing total support for the MSME sector to RM60bil. 

Speaking from personal experience, I have seen disappointing encounters when seeking bank financing for clients. The financing in green renewables or for scheduled waste have taken long periods for approval. Why? The client does not have a GLC or GLIC as its shareholder. The sector assumptions are not widely accepted. The size of the facility is too large. The risk unit of a bank is not ‘comfortable’ with the project profile. And so forth. 

Building my own business (financial advisory) from the ground up with no external fundraising, I can say that the banking system in Malaysia does not foster entrepreneurial endeavours. In fact, it is a major hurdle to MSMEs as the bank establishments are too entrenched following the post 1997 Asian financial crisis consolidation exercise. 

The banks prefer only to lend to highly profitable businesses that may not need it and deprive those who have genuine financing needs. They back winners or those who they think are winners. This is why regardless of whether it is an economic crisis such as Covid-19, the banks all remain highly profitable so much so they can afford to pay windfall dividends to shareholders and higher taxes to the government during the period. 

Some may argue that, with the government rolling out many programmes today, the situation must be different. While larger allocations may increase banks’ capacity to disburse loans, the more important question is who ultimately receives the financing. Many have been approached by relationship managers and bankers to take up special SME loan facilities with low interest rates, even though they do not need additional financing. This includes owners of listed companies and large private corporations. In many cases, financing is channelled through associated companies or subsidiaries of privately held groups. Even where traditional collateral may be lacking, banks are often willing to accept corporate guarantees from financially strong parent entities. What this effectively means is that banks hardly lose. They only finance profitable companies with little to no risk of default. In addition, many facilities remain collateral-backed and may require borrowers to purchase key-person insurance from related insurance providers at exorbitant premiums. As a result, banks can generate income not only from lending activities but also from associated financial products. 

If we truly want to foster entrepreneurship and help the MSMEs evolve into high-quality public-listed companies, this is not the way. There is a pressing need to have a larger pool of dedicated funds that invest directly in MSMEs. Beyond lending, these funds should provide equity financing and growth capital to promising businesses with the potential to scale. And use licensed corporate finance advisors (CFAs) to steer MSME on a pathway to success. Banks only look after their own balance sheet! If only they use CFAs with BNM’s approval to assist in the growth trajectory of MSMEs then we may have a dynamic landscape and more employment opportunities for fresh graduates. 

Reference:

Are banks truly helping MSMEs?, Ng Zhu Hann, The Star, 13 June 2026