PETALING JAYA: The Small and Medium Enterprises Association of Malaysia (Samenta) said yesterday the Madani economy framework is on the right track as it has helped Malaysia leap up the 2026 International Institute for Management Development World Competitiveness Ranking.
Samenta national president Datuk William Ng said Malaysia has moved up eight spots to 15th out of 70 economies and this clear proof of what Malaysia can achieve when the government works closely with the industry, reduces red tape, and allows the private sector to drive the economic momentum.
“While the rest of the world is engulfed in the ongoing economic uncertainty, Malaysia has demonstrated remarkable resilience, agility, and speed in adapting to changes in global supply chains. This remarkable resilience is the result of joint effort by the private sector and the government,” he remarked.
In particular, Ng said, the reduction of bureaucratic processes and the passing of the Iltizam Act have resulted in a significant leap in Government Efficiency (up 11 spots to 14th globally) and Business Efficiency (up 16 spots to 16th globally).
“Time to Start a Business has also jumped 38 places to 15th globally and Business Legislation rose 29 spots to 6th place globally as regulatory compliance became clearer and more streamlined. This demonstrates that when the government actively engages with businesses and reduces red tape, the entire economy moves forward together,” said Ng.
To build on this momentum and ensure that the benefits of Malaysia’s improved ranking extend directly to SMEs, Samenta strongly suggests that the next focus of the bureaucracy reduction be on local councils and statutory bodies.
“In our own surveys, SMEs consistently report that unpredictable processing timelines for licenses, permits and renewals as well as erratic enforcement remain a primary driver of rising operational costs and business uncertainties,” said Ng.
He noted that the surge in foreign direct investment in high-tech sectors presents an enormous opportunity for local industry.
To maximise this, he said, the government and industry must work together to integrate local suppliers.
Samenta proposes a target benchmark of at least 40% domestic supply chain sourcing for major projects, ensuring incoming multinational investments directly uplift local SME capabilities.
“Much of our progress in the competitiveness index is the result of work done by Malaysia Productivity Corporation through the Productivity Nexuses. These nexuses serve as vital bridges between policy and industry,” said Ng.
Samenta suggests evolving these nexuses into implementation units that partner government agencies with trade associations to deliver direct, co-funded digital and automation initiatives tailored for micro and small enterprises.
“This achievement is a win for all Malaysians. However, our work is far from over. By deepening public-private engagement at the local municipal level, supporting domestic supply chain integration, and ensuring our infrastructure keeps pace with growth, we can build an economy where every business has the room and support to compete on the world stage,” said Ng.
