Malaysia Records Highest Economic Freedom Score Since 1970 - CME
KUALA LUMPUR, Oct 19 (Bernama) -- Malaysia recorded a score of 7.57 out of 10 in the ‘Economic Freedom of the World: 2026 Annual Report’, marking its strongest performance since the index was introduced in 1970, according to the Center for Market Education (CME).
In a statement today, the think tank said Malaysia’s score edged up to 7.57 from 7.55 last year. However, the marginal improvement was insufficient to maintain its 33rd place ranking, with Malaysia slipping two spots to 35th place out of 165 jurisdictions as other countries recorded faster gains.
“Malaysia is far more economically free today than at the start of the century. Its score fell from 6.99 (36th place) in 1995 to 6.12 in 2002 after the Asian financial crisis, as capital controls and policy shocks took hold. It bottomed out at 97th in 2009 but has climbed steadily since,” it said.
The country also remains ASEAN’s second-freest economy, behind only Singapore, which scored 8.43 points to rank third globally. Malaysia ranks ahead of Thailand (57th), Brunei and the Philippines (both 61st), and Indonesia (72nd), it said.
Globally, Hong Kong topped the ranking with a score of 8.53, followed by Switzerland, Singapore, New Zealand and the United States.
Meanwhile, CME chief executive officer Dr Carmelo Ferlito said although Malaysia’s record score was encouraging, it should not lead to complacency, as other countries were implementing reforms at a faster pace, resulting in Malaysia’s two-place drop in the ranking.
He said the country’s monetary stability and relatively flexible labour market remained key strengths.
“However, the state’s footprint in the economy, through government-linked companies and state-owned banks, remains among the heaviest in the world. Public administration has also become less impartial since 2019.
“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,” he added.
-- BERNAMA