Malaysia's economic freedom score is 66.4, making its economy the 53rd freest in the 2012 Index. Its score is 0.1 point higher than last year, reflecting a gain in business freedom partially offset by declining effectiveness in the control of government spending. Malaysia is ranked 9th out of 41 countries in the Asia–Pacific region, and its overall score is above the world and regional averages.
The Malaysian economy has shown a moderate degree of resilience in the face of a challenging global economic environment. Reform efforts have continued in many of the four pillars of economic freedom. The overall regulatory framework is now more efficient, and business procedures have been streamlined. Implementation of policies intended to support open markets and encourage a vibrant private sector is enhancing investment flows and improving the vitality of entrepreneurship.</p>
In contrast to its performance in other areas, Malaysia has lagged in promoting the effective rule of law and enhancing and modernizing the legal framework. The judicial system remains vulnerable to political interference, and property rights are not strongly protected. Lingering corruption further undermines freedom and hampers long-term institutional competitiveness. Government spending has been expanding in recent years, threatening overall economic efficiency - Heritage Foundation
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