Malaysia has undertaken structural reforms to enhance the entrepreneurial environment. Management of public finance has been relatively prudent, with gradual reductions in various government subsidies in recent years, and the corporate income tax rate will be reduced from 25 percent to 24 percent in 2016.
Economic Freedom Snapshot
2016 Economic Freedom Score: 71.5 (up 0.7 point)
Economic Freedom Status: Mostly Free
Global Ranking: 29th
Regional Ranking: 8th in the Asia–Pacific Region
Notable Successes: Trade Freedom and Management of Public Finance
Concerns: Corruption and Property Rights
Overall Score Change Since 2012: +5.1
Malaysia’s overall economic freedom continues to be constrained by systemic shortcomings that damage prospects for more vibrant long-term economic expansion. The perceived level of corruption has increased, and there is no sign of effective anti-corruption measures. The judicial system remains vulnerable to political interference.