Malaysia shows steady improvement in global prosperity rankings

Malaysia has achieved significant progress in global prosperity rankings, according to the 2023 Legatum Prosperity Index, reflecting its steady improvement and competitiveness within Southeast Asia. Malaysia is now ranked as the 43rd most prosperous country globally, a commendable position among the 167 countries and territories evaluated.

The Legatum Prosperity Index, a comprehensive annual report developed by the independent educational charity Legatum Institute, goes beyond measuring economic output. It evaluates a range of factors, including governance, education, health, personal freedom, and social capital, to provide a holistic view of a country’s well-being and development.

In Southeast Asia, Singapore maintains its lead as the highest-ranked country, positioned 17th globally with a score of 78.21. Malaysia follows at 43rd globally with a score of 66.84, ahead of Indonesia, which ranks 63rd with a score of 60.88. This ranking underscores Malaysia’s growing influence and progress within the region.

Malaysia’s Performance Across Key Pillars

The 2023 Legatum Prosperity Index highlights several areas where Malaysia excels and others where there is room for improvement. Malaysia’s strongest performance is in the Investment Environment pillar, where it ranks 27th globally. This indicates a robust environment for investments, supported by strong protections and accessibility.

Other notable rankings for Malaysia include:

• Enterprise Conditions: 29th globally
• Infrastructure and Market Access: 37th globally
• Economic Quality: 34th globally

These pillars reflect Malaysia’s conducive business environment, efficient infrastructure, and solid economic foundations. The country’s biggest leap over the past decade has been in the Social Capital pillar, moving to 63rd place, showcasing improvements in personal and social relationships, institutional trust, and civic participation.

However, Malaysia faces challenges in the Personal Freedom pillar, where it ranks 113th globally. This aspect measures progress towards basic legal rights, individual liberties, and social tolerance, highlighting an area that requires significant attention and reform.

Regional Dynamics and Global Context

Comparatively, Singapore’s top regional position is bolstered by its exceptional scores in governance, health, and education, reflecting its comprehensive development strategy. On the other hand, Indonesia’s ranking at 63rd showcases its ongoing efforts in economic and social reforms but also points to areas needing further development.

Globally, Denmark tops the Legatum Prosperity Index with a score of 83.67, followed by Norway (83.59), Finland (83.47), Switzerland (83.42), and the Netherlands (82.32). Japan is the highest-ranked Asian country, positioned 16th with a score of 78.22, closely followed by Singapore.

Malaysia’s Path Forward

Malaysia’s ascent in the global prosperity rankings demonstrates its commitment to enhancing various facets of national well-being. The focus on improving investment environments and enterprise conditions has paid off, contributing to the country’s steady climb in the index. However, addressing the lower ranking in personal freedom will be crucial for sustaining and accelerating this progress.

As Malaysia continues to navigate its path towards greater prosperity, the insights from the Legatum Prosperity Index will be vital in guiding policies and initiatives aimed at achieving comprehensive and sustainable development.

Conclusion

Malaysia’s rise in the 2023 Legatum Prosperity Index is a testament to its resilience and strategic efforts in fostering a prosperous nation. While challenges remain, particularly in enhancing personal freedoms, the country’s overall trajectory is one of growth and improvement, positioning it as a key player in Southeast Asia’s dynamic landscape.

For more detailed insights and the full ranking, the Legatum Prosperity Index 2023 can be accessed through the Legatum Institute’s official website.