Malaysia’s economic freedom score is 70.8, making its economy the 31st freest in the 2015 Index. Its score has increased by 1.2 points since last year, with improvements in freedom from corruption, business freedom, and trade freedom outweighing declines in labor freedom and the management of government spending. Malaysia is ranked 8th out of 42 countries in the Asia–Pacific region, and its overall score is above the world and regional averages.
Malaysia has risen to the “mostly free” category. Since 2011, its economic freedom has advanced by 4.5 points, the third largest point increase in the Asia–Pacific region. Gains in six of the 10 economic freedoms have been led by double-digit increases in investment, financial, and business freedoms.
A relatively open economy, Malaysia is a vital part of the East Asian manufacturing network. The business environment encourages the development of a vibrant private sector. Malaysia scores well in the area of open markets measured by trade freedom, investment freedom, and financial freedom compared to the global averages. The financial sector is robust, and foreign investment is being permitted to a greater degree. While the rule of law remains weak, the government has taken steps to tackle corruption more effectively.