Kuala lumpur: Malaysia is on track to achieve the target set under the 13th Malaysia Plan (13MP) of becoming among the top 12 economies in global competitiveness, according to Deputy Economy Minister Datuk Mohd Shahar Abdullah. He said this belief is supported by Malaysia's improved position in the IMD World Competitiveness Ranking (WCR) 2026, where the country jumped to 15th spot from 23rd in 2025.

According to BERNAMA News Agency, during a question-and-answer session in the Dewan Negara, Mohd Shahar expressed confidence that Malaysia's enhanced IMD WCR ranking will lay a strong foundation for attracting high-quality investments and strengthening domestic economic growth. He highlighted that a higher national competitiveness ranking would enable the creation of more high-quality jobs with decent salaries.

Mohd Shahar was responding to a question from Senator Hussin Ismail, who inquired about the extent to which Malaysia's rise to 15th place in the IMD WCR 2026 reflects the actual state of the domestic economy. He attributed the achievement to strong growth in private final consumption spending, which increased to 5.3 percent last year from 4.8 percent in 2024.

This growth, he noted, directly reflects the resilience of consumer purchasing power, driven by increased expenditures on transport, restaurants and hotels, as well as food and non-alcoholic beverages. However, Mohd Shahar emphasized that private spending cannot be sustained over the long term without continuous income growth.

To ensure sustainable purchasing power, the government is intensifying efforts to attract investments by enhancing the high-value industrial ecosystem, streamlining the investment approval process, and implementing new tax incentives under the New Incentive Framework starting March 1, 2026.