Kuala Lumpur, 7 October 2016 – Malaysia ranked 26 out of 128 countries and 7 out of 20 in the Asian and Oceana regions in the International Property Rights Index (IPRI) 2016.
Commenting on the results of the report, Institute for Democracy and Economic Affairs (IDEAS) Chief Executive Wan Saiful Wan Jan said, “Intellectual and physical property rights ensure that businesses have stability, which is important for long term growth. If we look at this on a macro scale, property rights therefore is crucial to economic growth and per capita income. The report shows how nations with the strongest property rights like Finland, Norway and New Zealand enjoy an average national GDP per capita of USD 45,273.62 as compared to those in the lower range which have a national average of USD 2173.13.”
“Malaysia has been steadily increasing its scores since 2011. In fact, its current score of 6.8 (up from 0.2 last year) is its highest score to date. This is something that should be commended as it shows that there is a sincere commitment from Government to protect physical and property rights”
Malaysia’s scores have improved across the board:
- Overall score increased by 0.2 from 6.6 to 6.8 (7th within the Asia and Oceania region and 26th worldwide).
- Legal and political environment score increased by 0.3 from 5.8 from 6.1; with scores of 6.6 in Judicial Independence, 6.3 in Rule of Law, 5.7 in Political Stability, and 6.0 in Control of Corruption.
- Physical property rights score remained the same at 7.7; with scores of 7.3 in Property Rights, 9.5 in Registering Property, and 6.3 in Ease of Access to Loans.
- Intellectual property rights score increased by 0.1 from 6.3 to 6.4; with scores of 7.4 in Intellectual Property Protection, 7.4 in Patent Protection, and 4.6 in Copyright Piracy Level.
“Although we commend the Government’s efforts in strengthening property rights, caution must be taken so as to not slip in the ranks. The scores are positive given the 2 year lag, which means that reforms that occurred in the past 2 years have shown to be effective in protecting property. However, recent moves like plain packaging may compromise intellectual property rights and there is the consideration of the ‘legal and political environment’ component which unfortunately have been somewhat unstable in recent times”, concluded Wan Saiful.
The International Property Rights Index (IPRI) is the only international index that measures intellectual and physical property rights and has been referenced by major financial media and bodies such as Forbes, Financial Times, The Economist, the World Bank, and the International Monetary Fund (IMF). The report is conducted yearly by the Property Rights Alliance in Washington D.C. to which the Institute for Democracy and Economic Affairs (IDEAS) is a partner.
This year’s report represents countries that form 98 percent of world GDP and 93 percent of the world’s population.
The full report is available here: http://internationalpropertyrightsindex.org/