The Global Competitiveness Report is an annual report published by the World Economic Forum (WEF) based on the Global Competitiveness Index that combines 114 indicators that integrate both macro and micro economic aspects of competitiveness.
These indicators are grouped into 12 pillars comprising Institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication and innovation.
Malaysia has been ranked 25th out of 138 economies, down from 18th last year, with its performance score down from 5.23 to 5.16 out of a maximum of seven. In the report, Malaysia remains ahead of economies such as South Korea, Iceland and China, but was overtaken by Belgium, Austria, Luxembourg, France, Australia, Ireland and Israel. Meanwhile, countries and territories that also slipped in their rankings included Germany, Japan, Hong Kong, Finland, Canada, France, Thailand, Indonesia and the Philippines.
Compared to last year, out of the 12 pillars, Malaysia has slipped down in the Health and Primary education, Higher education and training, Business sophistication, Labour market efficiency, Financial market development, Institutions, Market size and Innovation.
The most affected is the 4th pillar – Health and Primary Education. If we analysed in detail the 4th pillar- Health and Primary Education, the main downside is the Primary Education enrolment rate (down 36 points), followed by HIV prevalence percentage of adult population (down 11 points), Life expectancy years (down 9 points), Quality of primary education (down 8 points), Tuberculosis incidence cases per 100,000 pop. (down 3 points) and lastly Business impact of HIV aids.
The second most affected is the 5th pillar – Higher Education and Training. The main weakness is the Secondary education enrolment rate gross % (down 16 points), Quality of math and science education (down 7 points), Quality of the education system (down 6 points) , Extent of staff training (down 6 points), Local availability of specialised training services (down 5 points) and Quality of management schools (down 3 points).
The third most affected is the 11th Pillar – Business Sophistication. The main weakness in this pillar is the Control of international distribution, the value chain breadth, the state of cluster development, Local supplier quantity, Production process sophistication, Extent of marketing, Local supplier quality and nature of competitive advantage.