Khairy said this was all the more pertinent given how Prime Minister Anwar Ibrahim himself had cited the ranking as a measure of the Madani government’s success last year.
“If he hadn’t chosen it, it wouldn’t matter, but it has become one of the indices selected by the prime minister and the government to validate their success,” Khairy said in the latest episode of the Keluar Sekejap podcast.
On Tuesday, Malaysia dropped seven places to 34th out of 67 countries in the IMD’s competitiveness ranking.
Malaysia fell four places to 10th out of 14 countries in the Asia-Pacific region, marking it the first time it has ranked lower than Indonesia and Thailand.
Malaysia experienced a decline in nearly all factors, including economic performance, government efficiency and business efficiency, with the only exception being infrastructure, where it maintained its position.
In July 2023, Anwar unveiled the Madani economic framework, setting seven key performance indicators (KPIs) to be achieved within 10 years.
These targets include Malaysia ranking among the top 30 of the world’s largest economies, top 12 in the IMD’s World Competitiveness Index, and top 25 in both the Human Development Index and the Corruption Perception Index.
Khairy’s co-host, Shahril Hamdan, said the government cannot come up with excuses over the drop in the competitiveness ranking as it had failed “on your own terms”.
“This isn’t an opinion from outsiders. No one can claim this is a Western ranking with a questionable methodology,” he said in what was believed to be in reference to government spokesman Fahmi Fadzil playing down Malaysia’s decline in the Reporters Without Borders’ World Press Freedom Index.
“One of the seven KPIs you set for yourself is this ranking. You have failed on your own terms; that is the objective truth,” Shahril, the former Umno information chief, said.
However, Khairy said he was confident the ranking can be improved next year through the efforts of the investment, trade and industry ministry and Malaysia Productivity Corporation.
Earlier today, investment, trade and industry minister Tengku Zafrul Aziz said he would provide a detailed explanation of the country’s drop in the World Competitiveness Ranking by this evening.
Tengku Zafrul said his ministry has received the report and is reviewing it to understand the issues related to global trade.