Friday, September 10, 2010

Is Malaysia slippage in competitiveness index a concern?

(Business Times) Malaysia has slipped two spots to 26th in a ranking of the world's most competitive countries, on concerns of higher education and training, technological readiness and labour market efficiency.

The 2010-2011 Global Competitiveness Report placed Malaysia 26th among 139 economies, from 24th out of 133 countries in the previous report. The report was released by the World Economic Forum (WEF) yesterday.

Malaysia, however, maintained its score, recording 4.88 out of a maximum score of seven, in comparison to a score of 4.87 previously.

According to the report, Malaysia's position has been on a declining trend in the past three years since its 21st position in 2008-2009.

Read more: Malaysia slips in competitiveness

The law of relativity is at work here. If we don't move forward, we will move backward. Look at this chart, it tells us that when somebody moved up, somebody will be moved down.Saudi Arabia and Qatar for example had moved up significantly, so some guys will be moved down. If China were to move up by one notch next year, everything being equals, Malaysia will be moved down by one notch.

Which areas are holding us back? Higher education, innovation and technological readiness. All three are inter-related, withouth higher education, the other two would be lagging behind naturally.

We are good in terms of business sophistication and financial market development. Both of these are good ingredients for future competitiveness. This tells us that imbalances between urban and rural gap is growing(wealth and digital divide?).

Saudara and Saudari seklian, Turtle mengucapkan Selamat Hari Raya.

1 comment:

Observer said...

I think higher education may or may not be interlink..

That's because the assumption that better quality of education would produce better quality of students... which is again a proxy statement... we cannot discount the scenarios of foreign malaysian graduates returning and also quality graduates from not world recognised universities...

Of course that is not to say we don't have to improve the higher education's quality...