chapter 6 - Malaysia Productivity Corporation ( MPC)

The Government took a significant step in
rationalising regulatory system in 2007 by
establishing the Special Task Force to Facilitate
Business (PEMUDAH). This task force helps to
facilitate business and to alleviate the burden
on business from unnecessary regulations.
PEMUDAH’s substantial achievements include
reducing the process of starting a business from
nine procedures and 11 days to three procedures
and three days, reducing time taken to register
standard property titles from 41 days to two days
and reducing time taken for tax refunds to 14 days
compared to one year previously.
Another initiative undertaken is “Modernising
Business Licensing” which is crucial to create
a more favourable and competitive business
environment. PEMUDAH works with 23 ministries
and agencies aiming to abolish unnecessary
licenses, simplify business related procedures and
reducing processing time. As a result, 52% from
761 licenses were identified to be eliminated and
simplified. This whole initiative resulted in an
estimated reduction of RM729 million in business
licenses compliance cost and will be realised by
the end of 2012.
International Comparison on Regulatory
Performance
Measuring the impact of regulation on
productivity at the macro level is a constraint
due to unavailability of up-to-date measures of
competitiveness and the regulatory environment.
This is attributed to a wide variety of factors which
contribute to productivity performance and the
challenge is to determine a direct relationship
between regulatory quality and productivity
outcome. A number of international institutions
CHAPTER 4
had produced indicators of individual country
performance on regulation. These indicators were
developed using a number of different methods
including self-assessment and surveys of opinions.
Based on the World Bank’s “Doing Business 2012”
Report, Malaysia ranked 18 th position among 183
economies. For “Global Competitiveness Report
2011-2012” published by the World Economic
Forum (WEF), Malaysia was at 8 th position for the
burden of government regulation indicator.
The International Institute for Management
Development (IMD), World Competitiveness
Yearbook (WCY) 2011” placed Malaysia at 30 th
position on business legislation (Figure 4.1).
Malaysia continues to be ahead of the United
Kingdom (42 th ) and Korea (43 th ). However,
Singapore, Hong Kong, Qatar and Finland were
the top four most competitive nations in terms of
‘Business Legislation’ among the 59 economies.
As shown in Figure 4.1, Malaysia was ranked at
33 rd on ‘Openness’, 26 th on ‘Competition and
Regulation’, and 29 th on ‘Labour Regulation’. Among
the indicators under ‘Business Legislation’, Malaysia
performed very well in terms of ‘Unemployment
Legislation’ and ‘Ease of Doing Business’ which
were at 5 th placing. For the ‘Ease of Doing Business’,
Malaysia had overtaken several developed
countries such as Denmark (9 th ), Germany (20 th )
and the Netherlands (23 rd ).
Best Practices in Regulation
Development Process
Regulations are essential for the proper functioning
of society and the economy. However, the challenge
for a Government is to deliver effective and efficient
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