chapter 6 - Malaysia Productivity Corporation ( MPC)

Modernising Business Regulation
The burden of regulation on business was estimated at RM15 billion in 2011 (2.5% of GDP). Most
countries have set a 25% reduction in regulation cost as their targets. Malaysia plans to reduce by
RM 1 billion cost of unnecessary regulation a year until 2015. Programs involving Government and
private agencies have been implemented under the supervision of the Task Force to Facilitate Business
(PEMUDAH) to achieve the target reduction in regulatory burden.
A framework for quality management regulation and Best Practice Regulation Handbook was published to
encourage competitiveness, innovation, investment and skills that will contribute towards improvement.
Quality of Life
Quality of Life Index measures the qualitative aspects of productivity which complements the quantitative
measurement of the economy such as labor productivity. Malaysia Quality of Life Index, reached a score
of 111.9 points (based on year 2000 = 100). Happiness World Report compiled by the United Nations
also placed Malaysia in the second position among Southeast Asia countries behind Singapore and was
ranked 51 among 156 countries in the world.
Quality of Working Life includes having a more conducive working environment, job satisfaction and
individual well-being. The preliminary study found that more than 70% of employees love their work,
had high moral and showed loyalty and high job aspirations. Positive factors which support the welfare
and quality of work include guaranteed work, creativity and employee recognition and strong leadership,
vision, respect and setting a good example.
Outlook for 2012
The economy is anticipated to sustain its growth momentum in 2012 where productivity is expected to
grow by more than 4.0%. The growth in productivity is expected to benefit from the implementation of
some of the EPPs introduced under the NKEAs where the private sector will provide the impetus in driving
economic expansion while the Government will provide the supportive role in improving productivity.
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