The World Bank, which released its Doing Business 2020 study today, revealed three indicators for Malaysia to improve that could help lift the country’s ranking to the top 10 in the following year or year after from 12th spot currently. The three indicators are getting credit, enforcing contracts and resolving insolvency.
Speaking to reporters at the launch of the report, senior economist/statistician Arvind Jain said the target could be achieved considering the current pace and agenda set by the Special Task Force to Facilitate Business (Pemudah) and Malaysia Productivity Corporation. “This study covers 10 indicators and it can be a tool kit for the policymakers to reform,” he said.
With a score of 81.50 points amongst 190 global economies, Malaysia has recorded an improvement to the 12th position from 15th previously.
The Doing Business Report advocates regulatory quality and efficiency by instituting reforms. It measures 10 indicators, namely business incorporation, getting a building permit, obtaining an electricity connection, transferring property, access to credit, protecting minority investors, paying taxes, engaging in international trade, enforcing contracts and resolving insolvency.
“Malaysia deserved to be congratulated with the improvement of the ranking, topping areas such as dealing with construction permits, getting electricity and trading across borders,” said the World Bank country manager in Malaysia, Dr Firas Raad. However, he simultaneously warned the government not to be complacent, adding that the country’s performance does not only depend on Malaysia alone but also depends on what is happening to other countries. “Every economy is reforming to move forward, therefore, governments and private sectors or the stakeholders have to keep their eye on the globe and continue the momentum. Reforms are difficult and they become more difficult as you become much better and climb up the ranking,” he said.