Malaysia's Rise In GCI Commendable, Says Economist

By S. Joan Santani KUALA LUMPUR, Oct 1 (Bernama) -- The rise in Malaysia’s ranking in the Global Competitiveness Index (GCI) is a testament that the country is pursuing the right mix in managing and developing the economy. Head of MIDF Research, Zulkifli Hamzah, said the steady upward movement was more significant as it was accompanied by an increase in the overall index. "This means that the level of Malaysia’s competitiveness has indeed improved and the improvement in the ranking is not just due to other countries slipping. "It reaffirms the long-term viability of the economy and negates the negativity portrayed by financial markets, especially in the foreign exchange market," Zulkifli told Bernama Wednesday. The Global Competitiveness Report 2015-2016, compiled by the World Economic Forum (WEF), Wednesday revealed Malaysia in 18th spot with a score of 5.23, which is the highest among developing Asian countries. He said the GCI was used by many international investment funds as a parameter in computing a country’s weightage in the investment universe. "In normal circumstances, this would have led to a buoyant sentiment towards Malaysia. "However, the tide is much against emerging markets and appears to mar the achievement a little," he said, adding that share prices are depressed and the ringgit severely misaligned in relation to fundamentals," he said. Nevertheless, the equity market and the ringgit made significant progress Wednesday with the FTSE Bursa Malaysia KLCI gaining 17.2 per cent and the ringgit rising 1.41 per cent. Zulkifli said the recognition by the WEF could be an inflexion point as far as the short-term trend of the local financial market is concerned. Meanwhile, Dr Yeah Kim Leng, Dean of the School of Business at the Malaysia University of Science and Technology, said the improved ranking reaffirmed Malaysia’s effectiveness in doing investment and business despite various domestic issues. "Malaysia has been facing a slew of negative news and events that dampened consumer and investor confident and the improvement in ranking is a welcoming news," he said. -- BERNAMA