chapter 6 - Malaysia Productivity Corporation ( MPC)

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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 51
MODERNISING BUSINESS REGULATION Figure 4.1: Decomposition of the IMD’s Business Legislation Criteria 52 Openness (33) Tariff Barrier (47) Bureaucracy (9) Customs Authorities (23) Protectionism (35) Public Sector Contracts (43) Foreign Investors (46) Access to Capital Markets (25) Investment Incentives (10) Business Legislation (30) Competition and Regulation (26) Government Subsidies (50) Subsidies (29) Competition Legislation (27) Parallel Economy (24) Start – Up Procedures (45) Ease of Doing Business (5) Creation of Firms (13) Start-Up Days (34) Source: World Competitiveness Year Book 2011, Institute for Management Development (IMD) Labour Regulations (29) Labour Regulations (9) Unemployment Legislation (5) Immigration Laws (32) Redundancy Costs (44) Labour Market Flexibility (10)
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MALAYSIA
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STATUTORY REQUIREMENTS In accordanc
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organisation level will further str
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Besides analysis on productivity pe
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CONTENTS MESSAGE FROM MINISTER vi S
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CONTENTS PART 3: SYNERGY THROUGH PU
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CONTENTS Chapter 8: Productivity Pe
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REPORT HIGHLIGHTS PRODUCTIVITY PERF
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The productivity of the services se
Page 22 and 23: CHAPTER 1 PRODUCTIVITY PERFORMANCE
Page 24 and 25: Figure 1.2: Productivity Growth by
Page 26 and 27: for broadband services was also sup
Page 28 and 29: The other services sub-sector recor
Page 30 and 31: Manufacturing sector The productivi
Page 32 and 33: productivity of the sector was impa
Page 34 and 35: target to become a high-income econ
Page 36: Towards A High Income Economy CHAPT
Page 39 and 40: SOURCES OF MALAYSIA’S ECONOMIC GR
Page 47 and 48: Box 2.1: Productivity Measurement U
Page 49 and 50: 28 Productivity Report 2011/2012 Bo
Page 52 and 53: CHAPTER 3 MALAYSIA AND INTERNATIONA
Page 54 and 55: Chart 3.2: IMD Competitiveness Mode
Page 56 and 57: Malaysia among the top 20 with coun
Page 58 and 59: Figure 3.3: Economic Performance Ma
Page 60 and 61: Figure 3.4: Government Efficiency E
Page 62 and 63: Figure 3.5: Business Efficiency Ext
Page 64 and 65: economies were already in the innov
Page 66 and 67: BOX 3.1: CHARACTERISTICS OF INNOVAT
Page 68 and 69: Characteristics of Selected Top Inn
Page 70 and 71: CHAPTER 4 MODERNISING BUSINESS REGU
Page 74 and 75: egulations in addressing an identif
Page 76 and 77: The Best Practice Regulation Handbo
Page 78 and 79: Box 4.1: Enhancing Malaysia’s Com
Page 80 and 81: Government Agency : Certi�cation
Page 82 and 83: START NFP Plan Verification OSC DBK
Page 84: The following improvements are reco
Page 87 and 88: ESCALATING ENTERPRISE INNOVATION AN
Page 101 and 102: Box 5.1: Knowledge Content Study in
Page 103 and 104: Efficient delivery time is vital to
Page 105 and 106: Group A (North) China Hong Kong Jap
Page 107 and 108: . ICQCC 2011, YOKOHAMA, JAPAN 11 th
Page 109 and 110: Over production is caused by: • I
Page 111 and 112: Box 5.4: Green Productivity (GP) fo
Page 113 and 114: Box 5.5: Enhancing Productivity thr
Page 115 and 116: Box 5.6: Achieving Excellence throu
Page 117 and 118: PART 3 SYNERGY THROUGH PUBLIC-PRIVA
Page 119 and 120: PRODUCTIVITY PERFORMANCE OF THE SER
Page 121 and 122: PRODUCTIVITY PERFORMANCE OF THE SER
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PRODUCTIVITY PERFORMANCE OF THE SER
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Box 6.1: Benchmarking for Education
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Box 6.2: Measuring Performance of P
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Box 6.3: Building Information Model
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CHAPTER 7 PRODUCTIVITY PERFORMANCE
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quarter of the year, the global sup
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CHAPTER 7 Figure 7.3: Productivity
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Figure 7.6 shows that labour remune
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increased to RM35,300 million in 20
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enable the sub-sector to face signi
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cost per employee had significantly
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The industry experienced a nominal
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CHAPTER 7 Figure 7.10: TFP Growth o
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in particular E&E. This sub-sector
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Furthermore, it can be observed tha
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PRODUCTIVITY PERFORMANCE OF THE AGR
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Box 8.1: Innovative Farming Practic
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PART 4 SUSTAINING THE QUALITY OF LI
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NATION’S QUALITY OF LIFE ASPIRATI
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Sources: Preliminary Report, Malays
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Box 9.1: Best Practices in Work Lif
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Box 9.2: National Customer Satisfac
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Application of National Customer Sa
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APPENDICES
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APPENDIX A - PRODUCTIVITY ii. Subtr
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APPENDIX A - PRODUCTIVITY 8.2 Labou
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APPENDIX A - PRODUCTIVITY 8.5 Proce
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APPENDIX C - COMPETITIVENESS TERMIN
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APPENDIX D - REGULATORY REVIEW TERM
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APPENDIX D - REGULATORY REVIEW Nati
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APPENDIX E - TECHNICAL NOTES TERMIN
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APPENDIX E - TECHNICAL NOTES Output
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APPENDIX E - TECHNICAL NOTES 243
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APPENDIX F - CONTRIBUTION BY SUB-SE
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MPC CONSULTATIVE PANELS CONSULTATIV
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MPC CONSULTATIVE PANELS CONSULTATIV
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PARTNERSHIP Economic Planning Unit
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MPC CONSULTATIVE OFFICE ADDRESSES P
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MPC REFERENCES CONSULTATIVE PANELS
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MPC ACRONYMS CONSULTATIVE AND ABBRE
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MPC ACRONYMS CONSULTATIVE AND ABBRE
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INDEX Culture 28, 46, 47, 67, 71, 7
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INDEX Malcolm Baldrige National Qua
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TRANSFORMATION INNOVATION PARTNERSH
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