MALAYSIA has dropped 11 positions globally in the 2025 Property Rights Alliance (PRA)- sanctioned International Property Rights Index (IPRI) which covers 126 countries– moving from the 30th spot in 2024 to 41st in 2025.
Deemed the leading tool for policymakers, advocates and businessmen to navigate the complex property rights ecosystem, the country’s overall score declined from 6.19 to 5.94, reflecting slight deterioration across several sub-indicators that assess the strength of legal institutions and protection of property rights.
“Malaysia’s overall IPRI score fell by 0.25 points, resulting in a lower global and regional standing,” revealed Carmelo Ferlito, CEO of the think-firm Centre for Market Education (CME) which is PRA’s partner for Malaysia and Indonesia.
“Within the Asia and Oceania region, Malaysia now ranks seventh (out of 19 countries), maintaining the same regional position as in 2024 despite the global drop.
“The decline suggests that other economies in the region have either improved their institutional quality or maintained stronger property-rights protection frameworks.”
On the overall, Malaysia’s Legal and Political Sub-Index rose 0.092 to 5.584 with scores of 5.058 in Judicial Independence, Rule of Law (6.144), Political Stability (5.541) and Control of Corruption (5.591).
However, its Physical Property Rights Sub-Index declined by -0.784 to 5.749 with scores of 8.333 in perception of Property Rights Protection, Property Registration (5.515) and Ease of Access to Loans (3.4).
Elsewhere, Malaysia’s Intellectual Property Rights Subindex retreated by -0.054 to 6.493 with scores of 7.319 in perception of Intellectual Property Protection, Patent Protection (6.183), Copyright Protection (6,471) and Trademark Protection (5.999).
“The overall decline calls attention to the need for institutional reforms and improved legal enforcement to strengthen property rights – a cornerstone for attracting high-value investment, fostering innovation and ensuring long-term economic competitiveness,” asserted Ferlito.
“Special attention needs to be paid to the severe drop in the access to finance general conditions.”
He added: “Enhanced protection of physical property rights should become a policy priority to restore investor confidence and sustain Malaysia’s role as a hub for knowledge-driven industries.” – Oct 16, 2025
