WORLD BANK: MALAYSIA MOVES UP IN THE EASE OF DOING BUSINESS
PUTRAJAYA, 4 Nov 2010 - Malaysia moved up to 21st position in the World Bank Doing Business Report for 2011. This Report, released on 4th Nov 2010, ranks 183 countries in terms of the ease of doing business. It highlighted Malaysia’s improvements from its 23rd position in 2010, signalling that the rigorous institutional strengthening in the public and private sectors has led to improvements in the business environment here.
Earlier this year Malaysia made a significant leap in its IMD World Competitiveness Yearbook, moving up eight places and became the 10th most competitive nation in the World.
In responding to the improved World Bank Doing Business Report ranking, Tan Sri Mohd Sidek Hassan, the Co-Chair of PEMUDAH and the Chief Secretary to the Government said, “Whilst the improvement in this year’s ranking is encouraging, strengthening of our public and private sectors must continue even as rankings improve. We must set new benchmarks in our markets as events of the recent past have shown that even the most competitive of nations suffered significantly from the global economic crisis.”
These improvements in rankings come on the heels of Newsweek magazine’s recent announcement that Malaysia is the 37th Best Country in the world and Legatum Prosperity Index, a London-based analytical centre, ranking Malaysia the 43rd most prosperous nation. In September 2010, Malaysia was ranked 26th on the World Economic Forum (WEF) Competitiveness Ranking. Malaysia’s aggregate score remained fairly stable on this ranking up slightly to 4.88 from 4.87 last year.
It is also important that we take cognisance of the different indicators used in these rankings. The World Bank, The World Economic Forum (WEF) and the IMD World Competitiveness Yearbook each guide us to different indicators for improvements. They do not measure exactly the same areas, Tan Sri Sidek added. “We must assess each ranking in its perspective and not just be transfixed by the numbers. It is imperative that we continue to improve beyond the benchmarks of the countries ahead of us and we should view rise and fall in rankings as an opportunity to institute bold changes in our market. This is the challenge both the public and private sectors must collectively rise up to”, he said.
The World Bank Doing Business Report recognised the initiatives Malaysia has put in place in enhancing its business environment. Specifically the report highlighted the significant improvements in enforcing contracts and that case disposals at the courts are moving considerably faster. Malaysia showed improvements in its on-line procedures for starting a business, speedy registration of properties and notable ease in tax procedures especially with the introduction of online tax submissions. The Report also highlighted that Malaysia ranked second best for importing, while for exporting it cost the least to move a 20ft container.
In echoing Tan Sri Sidek’s comments, Tan Sri Yong Poh Kon also the Co-Chair of PEMUDAH added, “The private sector has an enormous responsibility in the making of these rankings. The innovativeness of our industries and the efficiency of service delivery in the private sector must be comparable to global standards. Rankings are not solely dependent on public sector alone. It is a reflection of all market constituents”.
These rankings highlight where Malaysia must place more focus and we must collectively view these rankings as a continual push for Malaysia to be globally competitive, Tan Sri Yong added.
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The Special Task Force to Facilitate Business
4 Nov 2010