Based on the Economic Freedom of the Word 2022 annual report, Malaysia showed a jump of 3 steps to enter the top 50 ranking.
According to data released jointly by the Center for Market Education and Canada's Fraser Institute, Malaysia's position in the global economic freedom list rose from 52 in 2019 to 49 in 2020.
Even so, Malaysia's economic freedom is expected to decline due to the tightening of restrictions (lockdown) and increased government control in negotiations.
According to the Chief Executive Officer (CEO) of the Center for Market Education, Carmelo Ferlito, Malaysia is expected to experience a decline in the future with reduced access to stable finance, international trade restrictions and new credit regulations.
However, as a whole, economic freedom around the world is seen to decline from 2020 due to the lockdown related to the Covid-19 virus.
According to Fred McMahon from the Fraser Institute, when government authorities raise taxes and regulations, the people become less free in terms of the economy, which leads to slow growth and lack of investment.
According to McMahon, those who live in countries with high levels of economic freedom achieve greater prosperity, more political and civil freedom and experience longer lives.
Speaking of economic freedom, the report measures an individual's ability to make economic decisions by analyzing regulation, government size, property rights, government spending and taxation in determining the ranking.
Looking at the ranking, Hong Kong tops the first position followed by Singapore, Switzerland, New Zealand, Denmark, Australia, the United States, Estonia, Mauritius and Ireland.
On the other hand, among the lowest 10 countries saw Congo, Algeria, Iran, Libya, Argentina, Syria, Zimbabwe, Sudan and Venezuela.
