Malaysia Surges to 25th in IMD World Talent Ranking 2025

Malaysia has achieved a major milestone in global competitiveness by climbing to 25th place in the International Institute for Management Development’s (IMD) World Talent Ranking 2025. This is the country’s best performance in five years, rising eight places from its 33rd spot last year.

The ranking reflects Malaysia’s steady progress in education, skills readiness, and talent attraction, underscoring its resilience and policy effectiveness in nurturing human capital.

Malaysia Outpaces Regional Peers

In Southeast Asia, Malaysia is now the second-highest ranked nation after Singapore, which slipped from 2nd in 2024 to 7th in 2025. Other ASEAN peers trailed further:

• Thailand – 43rd

• Indonesia – 53rd

• Philippines – 64th

• Vietnam – excluded in 2025, though historically ranked below Malaysia

Within the Asia-Pacific region, Malaysia secured 5th place, behind Hong Kong, Singapore, Taiwan, and Australia.

This performance highlights Malaysia’s competitive edge in human capital development, making it one of the most attractive investment destinations in Asia outside of Singapore and Hong Kong.

Strengths Driving Malaysia’s Leap

The IMD report pointed to several factors behind Malaysia’s improved ranking:

1. Appeal to Foreign Professionals
   Malaysia scored high in worker motivation and talent retention, showcasing its ability to attract and retain skilled professionals.

2. Education Investment
   Steady improvements in skills readiness and investment in education helped elevate Malaysia’s score.

3. Infrastructure Improvements
   Executives surveyed praised Malaysia’s infrastructure upgrades, particularly in transport and digital connectivity, as a draw for global talent.

4. Relative Affordability
   While the cost-of-living index was flagged as a weakness, Malaysia still offers a more affordable lifestyle than Singapore or Hong Kong, especially attractive for expatriates and multinational corporations.

Weaknesses and Challenges

Despite the improvements, Malaysia still faces several gaps:

• Education Spending per Student – remains low compared to regional leaders.

• Limited Apprenticeships – fewer structured pathways for technical and vocational training.

• STEM Talent Shortage – fewer science and technology graduates than required for future-ready industries.

• Cost-of-Living Perception – although still affordable globally, rising urban costs in KL and Penang have dented Malaysia’s appeal slightly.

Addressing these weaknesses will be critical for Malaysia to maintain momentum in future rankings.

Outperforming Larger Economies

Malaysia’s 25th position places it ahead of major economies such as China (38th) and India (63rd).

This is significant because it demonstrates how smaller nations can outperform larger peers by focusing on targeted policies, infrastructure improvements, and investor-friendly reforms.

It also enhances Malaysia’s brand value for foreign investors, showing that despite global uncertainties, the country has the human capital to support advanced industries like green technology, digital economy, and financial services.

What This Means for Investment and KL Property

Malaysia’s rise in the IMD ranking isn’t just symbolic—it has real-world implications for investors, particularly in the property market.

1. Boost in Investor Confidence

A higher ranking strengthens Malaysia’s credibility among global investors. For KL property buyers, this signals sustained demand from multinational corporations expanding operations in Kuala Lumpur, bringing in expatriates who fuel high-end residential and rental demand.

2. Increased Demand for Grade A Offices

With talent competitiveness improving, more global firms are likely to establish regional offices in KL Sentral, TRX, or Merdeka 118 precincts, driving demand for Grade A office space.

3. Residential Property Growth in KLCC and Mont Kiara

International professionals prefer well-connected, lifestyle-rich neighbourhoods such as KLCC, Bangsar, and Mont Kiara. As Malaysia attracts more global talent, residential projects in these areas stand to benefit from stronger occupancy and rental yields.

4. Infrastructure-Led Appreciation

Malaysia’s improved infrastructure — from the MRT Putrajaya Line and upcoming MRT3 Circle Line in KL, to Penang’s LRT Mutiara Line — underpins talent attraction. Properties near these transport links will see capital appreciation and stronger rental demand.

Long-Term Outlook for Malaysia

Analysts interpret Malaysia’s surge in the IMD World Talent Ranking as a sign of policy effectiveness in building human capital. Combined with other factors — such as entry into BRICS, steady GDP growth, and green technology initiatives — Malaysia is increasingly well-positioned as a mid-tier global hub for investment and talent.

For the property market, particularly in Kuala Lumpur:

• The luxury segment will benefit from foreign professionals and expatriates.

• The mid-market and affordable housing sector will see stronger demand from local talent entering urban job markets.

• The rental market will gain stability as global firms relocate staff into Malaysia.

Conclusion

Malaysia’s leap to 25th place in the IMD World Talent Ranking 2025 represents more than just an accolade. It is a confidence signal for investors, businesses, and property buyers that the country is on the right track in building a competitive, talent-driven economy.

While challenges remain in education spending, STEM output, and cost-of-living competitiveness, the broader trend is positive. For the KL property market, this translates to rising demand for premium residences, office spaces, and transit-linked developments as Malaysia attracts more global talent and investment.

The message is clear: with human capital strengthening, infrastructure improving, and investor confidence rising, Malaysia is not just keeping pace with its regional peers — it is climbing the global ladder of competitiveness. For investors, that makes KL property one of the most promising urban markets in Southeast Asia.