Kuala lumpur: Malaysia has achieved a significant milestone by ranking 16th out of 180 countries in the DHL Global Connectedness Report 2026, solidifying its position as the most globally connected country among middle-income economies.
According to BERNAMA News Agency, this achievement highlights Malaysia's strategic focus on attracting inward investment and enhancing its role in global supply chains. Professor Steven A. Altman, senior research scholar and Adjunct Assistant Professor at the New York University Stern School of Business, emphasized Malaysia's efforts in integrating with the global economy. The report, co-published by DHL Group and New York University Stern School of Business, tracks international trade, capital, information, and people flows.
Malaysia has not only maintained a strong position globally but also recorded one of the largest increases in global connectedness since 2019, ranking seventh in terms of improvement. Among countries in the middle third of the global income distribution, Malaysia stands out for its performance, which is attributed to the government's emphasis on foreign direct investment and trade facilitation.
Altman noted the growing role of Southeast Asia in global supply chains despite geopolitical tensions. As part of ASEAN, Malaysia is well-positioned to benefit from the region's trade growth. He expressed optimism about Malaysia's future if it continues to capitalize on regional opportunities.
Globally, Singapore leads the rankings, followed by Luxembourg, the Netherlands, Ireland, Switzerland, and Hong Kong. The United Arab Emirates ranks seventh, marking the largest increase in global connectedness since 2001. Other notable rankings include Canada at 26th, Thailand at 27th, South Korea at 31st, Vietnam at 36th, the United States at 39th, and Japan at 46th. Europe emerges as the most globally connected region, with seven of the top 10 economies.
Altman highlighted that globalisation remains robust despite geopolitical challenges, rising US tariffs, and uncertainties in trade policies. The share of global output traded internationally remains near historic highs, with a slight increase noted in 2025. Trade growth, driven significantly by the development of artificial intelligence infrastructure, has defied expectations, with AI-related products contributing to 42% of the growth in global goods trade in early 2025, according to the World Trade Organisation.
Looking ahead, while tariff increases may slow trade growth through 2029, global trade volumes are expected to maintain the growth rate seen over the past decade. Altman dismissed the notion of a global split into rival blocs, despite the US-China decoupling, as most countries continue to engage with existing partners. Only a small percentage of global trade and investment flows have shifted away from geopolitical rivals, moving instead to countries with flexible geopolitical stances like India and Vietnam, indicating that the global economy remains interconnected.