chapter 6 - Malaysia Productivity Corporation ( MPC)

MALAYSIA AND INTERNATIONAL COMPETITIVENESS
in Asia. Hong Kong is a highly attractive market
for foreign direct investment, which received FDI
amounting USD76.1 billion in 2010, the biggest
receiver among Asian countries.
Government Efficiency
Government plays a crucial role for economic
development, providing security including
domestic and international, protecting property
rights and enforcing laws. Government Efficiency
aims to measure the extent to which Government
policies are conducive to competitiveness.
Malaysia was ranked at 17 th position (Figure 3.4).
This achievement was contributed by sound Fiscal
Policy (9 th ) with low tax burden in collected capital
and property taxes (0.01% of GDP), low indirect tax
revenue at 4.1% of GDP, moderate performance in
Institutional Framework (17 th ) and resilient Public
Finance (19 th ). Malaysia was ranked at 29 th for
Societal Framework and 30 th position for Business
Legislation.
Government Efficiency is a key determinant for
economic recovery and future competitiveness
of nations especially in the context of managing
economic crisis like in the USA and European
countries. To cushion the impact of such economic
crisis, various initiatives had been undertaken
by the Government to enhance delivery
system, increase transparency and modernising
business regulation. To combat corruption, the
Whistleblower Act was established and as a
deterrent, the identified offenders will be listed in
the Malaysia Anti-Corruption Commission (MACC)
website. On top of this, other initiatives to enhance
transparency include online tender listing, online
Government contract, e-payment facilities and
registering properties improvement.
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Hong Kong and Singapore were among the top
two economies in Government Efficiency with
profound institutions that are more transparent, less
bureaucratic and efficient in Government delivery
system. These economies have the most businessfriendly
regulations as reflected in their ranking in
the ease of doing business where Singapore was
the top and Hong Kong at 2 nd position among 183
countries in the World Bank “Doing Business 2012”.
Singapore has also been assessed as the best in
the world for its Government Efficiency where
combating corruption is a priority. This includes
declaration of assets and investment, nonacceptance
of gifts as well as constant reviewing
of work methods to improve work process,
procedures and avoid delays in granting of permits,
licences and to expedite approvals.
Business Efficiency
Business Efficiency measures the extent to which
enterprises are performing in an innovative,
profitable and responsible manner. In this factor,
Malaysia was ranked at 14 th position out of 59
economies. The performance of Malaysia in
Business Efficiency was supported by good
Management Practices (6 th ), positive Attitudes
and Values (7 th ), strong Labour Market (8 th ),
strong Financial fundamentals (17 th ) reflecting
banking efficiency. However, the Productivity and
Efficiency sub-factor, was ranked at 27 th position. In
this regard, Malaysia needs to improve further the
productivity level across various economic sectors
in order to achieve high income economy.
To further enhance Business Efficiency of Malaysia,
the Government has set up a Special Task Force to
Facilitate Business (PEMUDAH) in 2007 through