chapter 6 - Malaysia Productivity Corporation ( MPC)

MALAYSIA AND INTERNATIONAL COMPETITIVENESS
close collaboration between public and private
sectors. The Task Force focuses on improving
Malaysian business environment, enhancing
transparency of the public and private sector,
liberalising services as well as reducing the number
of business-related licences.
A lot of improvements have been achieved by
the Task Force such as eliminating or simplifying
licences under various ministries and is expected
to reduce business licensing compliance cost. The
Task Force also looks into the implementation of
e-payment facilities in federal, states agencies and
local authorities as well as Government–Linked
Companies (GLCs) toward enhancing Government
delivery system.
The top three most competitive economies
in this factor were Hong Kong, Singapore and
Taiwan (Figure 3.5). These countries experienced
a very dynamic business development, offering
conducive business environment with modern
business regulations, low tariff and trade barriers
as well as efficient goods markets. Singapore
performed well in many areas such as labor market,
financial sector, services sector productivity and
advocates free-market policies and practices.
Infrastructure
Malaysia was ranked at 27 th position among 59
countries in Infrastructure factor which measures
to what extent basic, technological, scientific and
human resources meet the needs of business
enterprise. Malaysia’s Infrastructure performance
was contributed by its sub-factors namely, Basic
Infrastructure (13 th ), Technological Infrastructure
(18 th ), Scientific Infrastructure (29th), Health and
Environment (36 th ) and Education (35 th ).
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The Government continues to upgrade physical
infrastructure to enhance access and connectivity
as it plays an important role in supporting the
economic development which directly affect
domestic businesses, export sector, tourism
and investment. As Malaysia aspires to be a
developed nation, it needs a strong infrastructure
base which emphasises on development and
maintenance, advanced infrastructure to support
an efficient distribution network and sophisticated
transportation system for economic activities.
Nations leading in competitiveness focus highly
on developed innovative information and
communications technology. In line with this,
the Government aims to increase broadband
penetration with the National Broadband Initiatives
(NBI) and High-Speed Broadband (HSBB) as key
economic enablers towards economic growth and
enhance connectivity and productivity.
Additionally, the Government has set up several
agencies such as Agensi Inovasi Malaysia (AIM)
and Talent Corporation. Talent Corporation aims
to attract, generate and retain talent to reduce the
problem of brain drain. Unit Inovasi Khas (UNIK) was
established to identify R&D projects with potentials
to be commercialised. Through these initiatives,
hopefully, they will support future growth of the
National Key Economic Areas (NKEAs) via the
enhancement of transformation process towards
an innovation-driven economy.
The top three countries for Infrastructure were the
United States, Sweden and Denmark (Figure 3.6).
These countries have good basic infrastructure,
technological and scientific infrastructure as
well as excellent education system in tandem
with their status as developed economies. These