Malaysia rises up business rankings
Malaysia vaulted to sixth from 12th a year ago after easing procedures for registering a company, applying for a construction permit and getting electricity, the World Bank said in its 2014 Doing Business report. Rounding out the top five after Singapore were Hong Kong, New Zealand, the US and Denmark, unchanged from a year ago. Australia was No. 11. China slid five spots to 96th, while Britain dropped to 10th from seventh.
Bureaucracy has improved under Malaysian Prime Minister Najib Razak's transformation programs, even as the country grapples with crime and corruption. While the country moved to 54th from 60th place among 176 countries in Transparency International's Corruption Perceptions Index last year, it was ranked worst for bribery among 30 countries surveyed.
The World Bank's study, in its 11th year, covered 189 economies, assessing them on measures such as the costliness of commercial regulations and the strength of public institutions. Nations are ranked based on indicators such as the time required to start a business, file tax returns and export or import goods.
World Bank president Jim Yong Kim pledged in June to improve the report, which he called "an important catalyst in driving reforms around the world". Non-profit groups such as Oxfam have criticised it and India, which slid two spots to 134th, has questioned its methodology.
"Governments play a crucial role in supporting a dynamic ecosystem for firms," the World Bank said. "Without good rules that are evenly enforced, entrepreneurs have a harder time starting and growing the small and medium-size firms that are the engines of growth and job creation for most economies around the world."
Ukraine, rising to 112th from 137th a year ago, made the greatest progress with reforms, having simplified measures in areas such as customs, bankruptcy and a value-added tax. Greece, whose insolvency helped trigger the European debt crisis, rose in the ranking to 72nd from 78th, while Spain, beset with a 26 per cent unemployment rate, slipped to 52nd from 44th.
Frequently Asked Questions about this Article…
Malaysia advanced in the World Bank's business rankings due to improvements in procedures for registering a company, applying for construction permits, and getting electricity. These changes made it easier for businesses to operate, boosting Malaysia's position to sixth place.
The World Bank's Doing Business report ranks countries based on indicators like the time required to start a business, file tax returns, and export or import goods. It assesses the costliness of commercial regulations and the strength of public institutions.
Under Prime Minister Najib Razak's transformation programs, Malaysia has improved bureaucracy, making it easier for businesses to register and operate. This has contributed to Malaysia's rise in the World Bank's business rankings.
Despite its improved business ranking, Malaysia continues to grapple with issues like crime and corruption. It was ranked worst for bribery among 30 countries surveyed, indicating ongoing challenges in these areas.
The World Bank's Doing Business report is considered an important catalyst for driving reforms worldwide. It encourages governments to create better rules and environments for businesses, fostering growth and job creation.
Non-profit groups like Oxfam and countries such as India have criticized the World Bank's Doing Business report, questioning its methodology and the accuracy of its rankings.
Singapore leads the World Bank's business rankings for the eighth consecutive year, followed by Hong Kong, New Zealand, the US, and Denmark. These countries have consistently maintained strong business environments.
Ukraine made significant progress in the World Bank's business rankings, rising from 137th to 112th place. This improvement is attributed to reforms in customs, bankruptcy, and value-added tax measures.
Call 1300 880 160
Start a chat
Schedule a call
