Malaysia was ranked 23rd among 69 economies in the global competitiveness index 2025 by the
Management Development (IMD) World Competitiveness Yearbook 2025. It is a significant achievement in the improvement of the ranking by 11 points as Malaysia was ranked at 34th position in 2024. In the ASEAN Region, Malaysia is ranked second after Singapore
ASEAN countries in the World Competitiveness Index 2015 -2025
In the Tax Policy indicator, Malaysia is ranked at 11th position while Thailand and Indonesia which are above Malaysia ranked at 8th and 10th position respectively.
Tax Policy ranking of ASEAN Countries in the World Competitiveness Index 2015 -2025
However, the perception on tax evasion in Malaysia is still low at 31st position as compared to Singapore at 6th position. With the improvement by 13 points from 44th position in 2025, Malaysia would be able to achieve better ranking in 2026 onwards with the emphasizing on digitalisation in tax administration such as introductions of e-invoicing and online filing of tax working sheets and other pertinent documents electronically through the Malaysian Income Tax Reporting System (MITRS)
Perception of tax evasion in Malaysia 2018 - 2025
Written by: Dr. Zainal Abidin Md Yassin
Date: 17th August 2025
Tel: 019-2612032