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