2.

1: Country/Economy Profiles

Malaysia
Key indicators, 2013
GDP (PPP) per capita (intl $), 19902013
Population (millions) ........................................ 29.6
20,000 Malaysia Emerging and Developing Asia
GDP (US$ billions) ........................................ 312.4
GDP per capita (US$) ................................. 10,548 15,000
GDP (PPP) as share (%) of world total ............ 0.60
10,000

5,000

0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Global Competitiveness Index

Rank
(out of 144)
Score
(17)
Stage of development
GCI 20142015 ...................................................... 20 ..... 5.2 Transition Transition
1 12 2 23 3
GCI 20132014 (out of 148) ..................................... 24 ......5.0
GCI 20122013 (out of 144) ..................................... 25 ......5.1 Factor Efficiency Innovation
driven driven driven
GCI 20112012 (out of 142) ..................................... 21 ......5.1
Institutions
Basic requirements (36.1%) .......................................23 ......5.5 7
Institutions ................................................................ 20 ......5.1 Innovation Infrastructure
6
Infrastructure ............................................................ 25 ......5.5 5
Business Macroeconomic
Macroeconomic environment ................................... 44 ......5.3 4
sophistication environment
Health and primary education ................................... 33 ......6.3 3
2 Health and
Efficiency enhancers (50.0%) .....................................24 ......4.9 Market size 1 primary
Higher education and training ................................... 46 ......4.8 education
Goods market efficiency ............................................ 7 ......5.4
Labor market efficiency ............................................ 19 ......4.8 Technological Higher education
readiness and training
Financial market development .................................... 4 ......5.6
Technological readiness ............................................ 60 ......4.2 Financial market Goods market
Market size ............................................................... 26 ......4.9 development efficiency
Labor market efficiency
Innovation and sophistication factors (13.9%) ...........17 ......5.0
Business sophistication ........................................... 15 ......5.2 Malaysia Emerging and Developing Asia
Innovation ................................................................. 21 ......4.7

The most problematic factors for doing business

Corruption .........................................................................17.0
Access to financing .............................................................9.7
Crime and theft ...................................................................9.5
Inefficient government bureaucracy .....................................8.8
Tax rates..............................................................................6.6
Inflation ................................................................................6.4
Policy instability ...................................................................5.9
Poor work ethic in national labor force ................................5.8
Government instability/coups ..............................................5.2
Insufficient capacity to innovate ...........................................5.1
Inadequate supply of infrastructure ......................................4.4
Tax regulations ....................................................................4.4
Inadequately educated workforce ........................................3.9
Restrictive labor regulations .................................................3.4
Foreign currency regulations ................................................3.4
Poor public health ...............................................................0.7
0 5 10 15 20 25 30
Percent of responses

Note: From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between
1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

260 | The Global Competitiveness Report 20142015

2014 World Economic Forum
2.1: Country/Economy Profiles

Malaysia
The Global Competitiveness Index in detail
INDICATOR VALUE RANK/144 INDICATOR VALUE RANK/144
1st pillar: Institutions 6th pillar: Goods market efficiency (contd.)
1.01 Property rights ....................................................... 5.3 ............26 6.06 No. procedures to start a business* .......................... 3 ............10
1.02 Intellectual property protection ............................... 5.2 ............25 6.07 No. days to start a business* ................................. 6.0 ............21
1.03 Diversion of public funds ........................................ 4.8 ............26 6.08 Agricultural policy costs.......................................... 5.2 ..............2
1.04 Public trust in politicians ......................................... 4.7 ............17 6.09 Prevalence of trade barriers ................................... 5.1 ..............9
1.05 Irregular payments and bribes ................................ 4.9 ............37 6.10 Trade tariffs, % duty* .............................................. 6.2 ............81
1.06 Judicial independence............................................ 4.9 ............36 6.11 Prevalence of foreign ownership............................. 5.3 ............30
1.07 Favoritism in decisions of government officials ....... 4.5 ............14 6.12 Business impact of rules on FDI ............................. 5.5 ............11
1.08 Wastefulness of government spending ................... 4.9 ..............8 6.13 Burden of customs procedures .............................. 5.2 ............20
1.09 Burden of government regulation ........................... 5.0 ..............4 6.14 Imports as a percentage of GDP* ........................ 80.0 ............24
1.10 Efficiency of legal framework in settling disputes .... 5.3 ............14 6.15 Degree of customer orientation .............................. 5.5 ............11
1.11 Efficiency of legal framework in challenging regs. ... 4.8 ............13 6.16 Buyer sophistication ............................................... 4.9 ..............4
1.12 Transparency of government policymaking............. 5.2 ............15
1.13 Business costs of terrorism .................................... 5.4 ............65 7th pillar: Labor market efficiency
1.14 Business costs of crime and violence..................... 4.9 ............47 7.01 Cooperation in labor-employer relations ................. 5.4 ............14
1.15 Organized crime ..................................................... 5.2 ............51 7.02 Flexibility of wage determination ............................. 5.5 ............33
1.16 Reliability of police services .................................... 5.1 ............35 7.03 Hiring and firing practices ....................................... 4.9 ..............9
1.17 Ethical behavior of firms ......................................... 5.3 ............23 7.04 Redundancy costs, weeks of salary* .................... 23.9 ..........111
1.18 Strength of auditing and reporting standards ......... 5.7 ............19 7.05 Effect of taxation on incentives to work .................. 5.1 ..............8
1.19 Efficacy of corporate boards .................................. 5.6 ............10 7.06 Pay and productivity............................................... 5.4 ..............2
1.20 Protection of minority shareholders interests ......... 5.3 ............13 7.07 Reliance on professional management ................... 5.6 ............15
1.21 Strength of investor protection, 010 (best)* .......... 8.7 ..............4 7.08 Country capacity to retain talent............................. 5.1 ..............9
7.09 Country capacity to attract talent ........................... 5.0 ............12
2nd pillar: Infrastructure 7.10 Women in labor force, ratio to men* ..................... 0.59 ..........119
2.01 Quality of overall infrastructure ............................... 5.6 ............20
2.02 Quality of roads ...................................................... 5.6 ............19 8th pillar: Financial market development
2.03 Quality of railroad infrastructure .............................. 5.0 ............12 8.01 Availability of financial services ............................... 5.6 ............17
2.04 Quality of port infrastructure ................................... 5.6 ............19 8.02 Affordability of financial services ............................. 5.6 ............12
2.05 Quality of air transport infrastructure....................... 5.7 ............19 8.03 Financing through local equity market .................... 5.1 ..............8
2.06 Available airline seat km/week, millions* .......... 1,959.0 ............22 8.04 Ease of access to loans ......................................... 4.8 ..............2
2.07 Quality of electricity supply ..................................... 5.7 ............39 8.05 Venture capital availability ....................................... 4.6 ..............2
2.08 Mobile telephone subscriptions/100 pop.* ......... 144.7 ............30 8.06 Soundness of banks .............................................. 5.7 ............35
2.09 Fixed telephone lines/100 pop.* ........................... 15.3 ............73 8.07 Regulation of securities exchanges ........................ 5.5 ............13
8.08 Legal rights index, 010 (best)* ............................... 10 ..............1
3rd pillar: Macroeconomic environment
3.01 Government budget balance, % GDP*................. 4.6 ..........102 9th pillar: Technological readiness
3.02 Gross national savings, % GDP* .......................... 30.1 ............25 9.01 Availability of latest technologies ............................ 5.7 ............33
3.03 Inflation, annual % change* .................................... 2.1 ..............1 9.02 Firm-level technology absorption ............................ 5.6 ............24
3.04 General government debt, % GDP* ..................... 58.2 ............97 9.03 FDI and technology transfer ................................... 5.5 ..............8
3.05 Country credit rating, 0100 (best)* ...................... 72.0 ............32 9.04 Individuals using Internet, %* ............................... 67.0 ............41
9.05 Fixed broadband Internet subscriptions/100 pop.* ... 8.2 ............69
4th pillar: Health and primary education 9.06 Intl Internet bandwidth, kb/s per user* ................ 22.1 ............81
4.01 Malaria cases/100,000 pop.* ............................... 33.5 ............28 9.07 Mobile broadband subscriptions/100 pop.*.......... 12.5 ............93
4.02 Business impact of malaria .................................... 5.5 ............21
4.03 Tuberculosis cases/100,000 pop.* ....................... 80.0 ............86 10th pillar: Market size
4.04 Business impact of tuberculosis ............................. 5.3 ............84 10.01 Domestic market size index, 17 (best)*................. 4.6 ............29
4.05 HIV prevalence, % adult pop.* ............................... 0.4 ............75 10.02 Foreign market size index, 17 (best)* .................... 5.8 ............20
4.06 Business impact of HIV/AIDS ................................. 5.1 ............83 10.03 GDP (PPP$ billions)* .......................................... 525.7 ............29
4.07 Infant mortality, deaths/1,000 live births* ................ 7.3 ............45 10.04 Exports as a percentage of GDP* ........................ 85.6 ............15
4.08 Life expectancy, years*......................................... 74.8 ............60
4.09 Quality of primary education ................................... 5.3 ............17 11th pillar: Business sophistication
4.10 Primary education enrollment, net %* .................. 95.5 ............60 11.01 Local supplier quantity ........................................... 5.5 ..............6
11.02 Local supplier quality.............................................. 5.2 ............24
5th pillar: Higher education and training 11.03 State of cluster development.................................. 5.3 ..............9
5.01 Secondary education enrollment, gross %* .......... 67.2 ..........108 11.04 Nature of competitive advantage ............................ 4.8 ............26
5.02 Tertiary education enrollment, gross %*................ 36.0 ............72 11.05 Value chain breadth................................................ 5.2 ............11
5.03 Quality of the education system ............................. 5.3 ............10 11.06 Control of international distribution ......................... 5.2 ..............7
5.04 Quality of math and science education .................. 5.2 ............16 11.07 Production process sophistication.......................... 5.2 ............23
5.05 Quality of management schools ............................. 5.1 ............25 11.08 Extent of marketing ................................................ 5.3 ............17
5.06 Internet access in schools ...................................... 5.4 ............34 11.09 Willingness to delegate authority ............................ 5.2 ............10
5.07 Availability of research and training services ........... 5.4 ............13
5.08 Extent of staff training ............................................ 5.3 ..............4 12th pillar: Innovation
12.01 Capacity for innovation........................................... 5.2 ............13
6th pillar: Goods market efficiency 12.02 Quality of scientific research institutions ................. 5.2 ............20
6.01 Intensity of local competition .................................. 5.5 ............34 12.03 Company spending on R&D................................... 4.9 ..............9
6.02 Extent of market dominance .................................. 5.2 ............11 12.04 University-industry collaboration in R&D ................. 5.3 ............12
6.03 Effectiveness of anti-monopoly policy ..................... 5.0 ............17 12.05 Govt procurement of advanced tech products ...... 5.2 ..............3
6.04 Effect of taxation on incentives to invest................. 5.2 ............10 12.06 Availability of scientists and engineers .................... 5.2 ..............9
6.05 Total tax rate, % profits* ....................................... 36.3 ............65 12.07 PCT patents, applications/million pop.* ................ 12.6 ............32

Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section How to Read
the Country/Economy Profiles on page 101.

The Global Competitiveness Report 20142015 | 261

2014 World Economic Forum