Malaysia is ranked no: 25th most business-friendly nation from among 175 countries in the world, a new World Bank report says.
Japan is ranked 11th, Hong Kong (5th), South Korea (23rd), India (134th) and Indonesia (135th). Taiwan (47th), and China (93rd).
Singapore topped the list, beating 2006's top-ranked New Zealand into second place, US and Canada remained at 3rd and 4th, while Thailand’s ranking improved to 18th.
The report also warned that Malaysia’s competitiveness may soon prove inadequate if it failed to keep pace with speedy reforms being introduced in other economies worldwide.
The World Bank report titled: "Doing Business 2007", ranked countries by tracking indicators of the time and cost for businesses to meet government requirements; to start and close a business; obtain licenses; get credit; pay taxes and other essential areas.
Investment Climate Department official, Svetlana Bagaudinova, said Malaysia needed to further reform its business environment to attract more foreign direct investments (FDI).
"More reforms in areas such as cutting bureaucracy and taxes will help Malaysia pull in more foreign investments and at the same time create new employment opportunities," she said.
The report indicates that Malaysia’s competitiveness suffered in several categories such as dealing with licences, employing workers, trading cross borders, enforcing contracts and closing businesses.
The World Bank states that in the past year, less than half of the East Asian economies introduced at least one reform that conformed to the report’s indicators. However, every Eastern European country except Slovenia instituted reforms.
Asian Strategy Leadership Institute director Tan Sri Ramon Navaratnam said Malaysia’s ranking in the survey on business-friendly economies will decline further if the country continues to protect local industries, an economist said.
Ramon Navaratnam said Malaysia cannot be too protective in the world of rapid globalisation.
"The world does not owe us a living and we have to struggle to improve at a faster pace or be left behind," he told Business Times yesterday.
Navaratnam said Malaysia’s competitiveness would be adversely affected by its ranking.
Navaratnam, who was former alternate World Bank director, said the report should be taken seriously as foreign boards of directors will be influenced by the World Bank indices just like the Transparency International Index which influenced investors.
Globally, China is ranked fourth in terms of speed of reforms, after Georgia, Romania and Mexico.
You know what it means if Malaysia fell further behind?
It means more retrenchments from Multi-National Corporations (MNCs will shift their operations to more competitive environment); more outflow of FDIs and lesser job opportunities which will translate into more unemployment.
Japan is ranked 11th, Hong Kong (5th), South Korea (23rd), India (134th) and Indonesia (135th). Taiwan (47th), and China (93rd).
Singapore topped the list, beating 2006's top-ranked New Zealand into second place, US and Canada remained at 3rd and 4th, while Thailand’s ranking improved to 18th.
The report also warned that Malaysia’s competitiveness may soon prove inadequate if it failed to keep pace with speedy reforms being introduced in other economies worldwide.
The World Bank report titled: "Doing Business 2007", ranked countries by tracking indicators of the time and cost for businesses to meet government requirements; to start and close a business; obtain licenses; get credit; pay taxes and other essential areas.
Investment Climate Department official, Svetlana Bagaudinova, said Malaysia needed to further reform its business environment to attract more foreign direct investments (FDI).
"More reforms in areas such as cutting bureaucracy and taxes will help Malaysia pull in more foreign investments and at the same time create new employment opportunities," she said.
The report indicates that Malaysia’s competitiveness suffered in several categories such as dealing with licences, employing workers, trading cross borders, enforcing contracts and closing businesses.
The World Bank states that in the past year, less than half of the East Asian economies introduced at least one reform that conformed to the report’s indicators. However, every Eastern European country except Slovenia instituted reforms.
Asian Strategy Leadership Institute director Tan Sri Ramon Navaratnam said Malaysia’s ranking in the survey on business-friendly economies will decline further if the country continues to protect local industries, an economist said.
Ramon Navaratnam said Malaysia cannot be too protective in the world of rapid globalisation.
"The world does not owe us a living and we have to struggle to improve at a faster pace or be left behind," he told Business Times yesterday.
Navaratnam said Malaysia’s competitiveness would be adversely affected by its ranking.
Navaratnam, who was former alternate World Bank director, said the report should be taken seriously as foreign boards of directors will be influenced by the World Bank indices just like the Transparency International Index which influenced investors.
Globally, China is ranked fourth in terms of speed of reforms, after Georgia, Romania and Mexico.
You know what it means if Malaysia fell further behind?
It means more retrenchments from Multi-National Corporations (MNCs will shift their operations to more competitive environment); more outflow of FDIs and lesser job opportunities which will translate into more unemployment.
3 comments:
mave sm:
The local politicians play wayang and opera, trying to be jaguh kampong -- while the world spins past us several rounds and they smiled.
When will these BN, esp UMNO, kaki and their bdekers wake up?
A-Jokers or Rip van Winkles? Same fate for the Rakyat. I pray Pak Lah, Mr Nice Guy, steps down the niceness and cracks the blardy WHIP! Now, otherwise the ilk of former PM and some Malaysians aboroad will continue to de-stabilise NegaraKu - what is it that they want actually? The whole Bounty, isIT?
DEsi, greed has no bottom... hungrier after each avalanche till bulimia.
Prepare for a tough 2007, yet our current leader is still in a delusional mode with many Honeymoon escapades, on and off-work!
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