Malaysia has dropped one spot to rank 78 out of 140 countries in an index measuring the level of economic freedom this year.
This is on the back of poor performance in several areas of the index, including the size of the government and access to sound money.
Worryingly, Malaysia scored zero for the sub-category of government enterprise and investment due to the large presence of government-linked companies (GLCs) in the economy.
Presenting the ‘Economic Freedom of the World Report 2011' in Kuala Lumpur, Fraser Institute representative Fred McMahon said this significantly increases the likelihood of rent-seeking.
"Malaysia get a zero on this because GLCs make up 50 percent of the economy.
"It dramatically reduces free exchange and increases the politicisation of economy and rent-seeking," he said of the index which captures hard data collected in 2009.
[More to follow]
This is on the back of poor performance in several areas of the index, including the size of the government and access to sound money.
Worryingly, Malaysia scored zero for the sub-category of government enterprise and investment due to the large presence of government-linked companies (GLCs) in the economy.Presenting the ‘Economic Freedom of the World Report 2011' in Kuala Lumpur, Fraser Institute representative Fred McMahon said this significantly increases the likelihood of rent-seeking.
"Malaysia get a zero on this because GLCs make up 50 percent of the economy.
"It dramatically reduces free exchange and increases the politicisation of economy and rent-seeking," he said of the index which captures hard data collected in 2009.
[More to follow]
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