482 
About Documents
In the current economic context, a country’s competitiveness is crucial for its growth and sustainability. It plays a vital role in attracting investment, generating employment, and improving quality of life. Highly competitive nations are better equipped to adapt to change, maintain advantages, and respond effectively to global economic volatility.
The International Institute for Management Development (IMD) has published the IMD World Competitiveness Ranking 2025, a key index that reflects the competitiveness of 69 countries worldwide. The ranking is based on four main factors: economic performance, government efficiency, business efficiency, and infrastructure. This year’s results reveal an increasingly dynamic competitive landscape, underscoring the importance of government efficiency in fostering long-term economic resilience.
In 2025, Switzerland reclaimed the top global position, reflecting the strength of its stable economic and social structures. Singapore ranked second, followed by Hong Kong SAR in third place. These top-ranked economies demonstrate strong adaptability, world-class infrastructure investment, high-quality education, and outstanding digital governance.
Southeast Asia continues to show notable adaptability, with some countries making significant progress while others face ongoing challenges. Malaysia, in particular, emerged as ASEAN’s standout performer, rising 11 positions to rank 23rd globally. This sharp improvement reflects substantial advancements in digital governance, foreign investment policies, and infrastructure development.
In contrast, Indonesia experienced significant challenges, falling to 40th place globally, the steepest decline in the region. Despite strengths in economic performance and business efficiency, Indonesia still faces weaknesses in infrastructure, ranked 57th, and requires improvement in government efficiency.
Thailand ranked 30th globally, down from 25th last year. The decline occurred across all major factors: economic performance, government efficiency, business efficiency, and infrastructure. This drop reflects growing concerns about stagnating innovation development, policy uncertainty, and mounting social and demographic pressures.
The 2025 ranking highlights that government efficiency is a central driver in sustaining economic momentum. This includes agility, inclusiveness, and forward-looking policy frameworks. For ASEAN countries like Indonesia and Thailand, whose rankings declined, these outcomes signal the urgent need for structural reforms, regulatory clarity, and serious infrastructure development.
Amid global trade reconfiguration, digital transformation, and geopolitical volatility, ASEAN nations must convert potential and resilience into concrete outcomes to define their position on the global stage. Public-private collaboration, digital investment, green economic transition, and human capital development are essential for ASEAN to confront challenges and seize future opportunities effectively.
Author:
Mr. Kamol Panmuang
Senior Researcher
International Institute for Trade and Development (Public Organization)
www.itd.or.th
Publication: Bangkok BIZ Newspaper
Section: First Section/World Beat
Volume: 38 Issue: 12946
Date: Wednesday, Jul. 16, 2025
Page: 8 (left)
Column: “Asean Insight”
