Apparently the World Bank and the International Finance Corp think so. The belief is based on a report titled Doing Business 2010: Reforming Through Difficult Times, where Malaysia dropped two places to 23rd from 21st this year.
This is especially depressing when our neighbour, Singapore was ranked top in ease of doing business.
However, according to media report, it is still an achievement for the country which manages to retain its place in the top 30 of 183 countries or economies surveyed, owing to its transparent and efficient regulatory environment for businesses.
The report said Malaysia, alongside China, South Korea and Russia, had included reforms of regulations in economic recovery plans due to the global financial crisis.
This is because these governments recognise the importance of companies, especially small and medium enterprises, for creating jobs and revenue
Regulatory environment for businesses can influence how well companies cope with the crisis and are able to seize opportunities when recovery begins.
"Where business regulation is transparent and efficient, it is easier for companies to re-orient themselves and for new companies to start up," it said.