Malaysia is also Asean’s second-freest economy, behind only Singapore, which is ranked third in the world. (Bernama pic)PETALING JAYA: Malaysia scored 7.57 out of a possible 10 in the “Economic Freedom of the World: 2026 Annual Report”, its highest score since the index began in 1970, the Center for Market Education (CME) said.

However, it slipped two places to 35th out of 165 countries from last year because other countries improved faster.

In a statement today, CME said Malaysia is far more economically free today than at the start of the century.

It said Malaysia's score fell from 6.99 in 1995 to 6.12 in 2002 after the Asian financial crisis, as capital controls and policy shocks took hold.