Malaysia notches highest score in economic freedom since 1970, report says

Malaysia is also Asean’s second-freest economy, behind only Singapore, which is ranked third in the world. (Bernama pic) PETALING JAYA: Malaysia scored 7.57 out of a possible 10 in the “Economic Freedom of the World: 2026 Annual Report”, its highest score since the index began in 1970, the Center for Market Education (CME) said.

Malaysia previously scored 7.55, the think tank said.

However, it slipped two places to 35th out of 165 countries from last year because other countries improved faster.

In a statement today, CME said Malaysia is far more economically free today than at the start of the century.

It said Malaysia's score fell from 6.99 in 1995 to 6.12 in 2002 after the Asian financial crisis, as capital controls and policy shocks took hold.

In 2009, Malaysia came in 97th out of 165 countries, but has climbed steadily since, CME said.

The think tank also noted that Malaysia remains Asean’s second-freest economy, behind only Singapore, which is ranked third in the world.

Trailing behind them are Thailand (57th), Brunei and the Philippines (both 61st) and Indonesia (72nd).

Carmelo Ferlito. Malaysia’s score is also well above the regional average of 6.99, but Carmelo Ferlito, CME's CEO, said although the record score is good news, it is not a reason for complacency.

Ferlito said other countries are reforming faster, which was why Malaysia dropped two places.

“Malaysia’s monetary stability and relatively flexible labour market are real assets.

“But the state’s footprint in the economy, through government-linked companies and state-owned banks, remains among the heaviest in the world,” he said.

He said if Malaysia wants to join the top 20, it must reduce state ownership, keep the civil service rules-based and impartial, simplify its tariff structure, and open its markets to competition.