chapter 6 - Malaysia Productivity Corporation ( MPC)

Box 4.1: Enhancing Malaysia’s Competitiveness Through Modernising Business
Licensing (MBL)
Realising the needs to enhance efficiency in the public delivery system and facilitate trade
investment, the Modernising Business Licensing (MBL) initiative was started in March 2010.
The Special Taskforce to Facilitate Business (PEMUDAH), through the Focus Group on Business
Process Re-engineering (FGBPR) initiated the programme by working with 23 ministries to review
all procedures related to the application of business-related licenses. The MBL initiative commenced at
Federal level (MBL Federal) and will be implemented among the States (MBL States).
The ultimate aim of MBL initiative is to abolish unnecessary licenses and simplify business-related
procedures in the country. This will consequently benefit the business community, allowing for faster
and more convenient and hassle-free application. At the same time, MBL will add value and integrity to
the public delivery system by ensuring easier, more transparent and cost-effective means of dealing with
the Government. As such, in line with the Government’s Economic Transformation Programme, the MBL
initiative will also help to reduce regulation burden.
52% of the 761 licenses reviewed by FGBPR have been identified for elimination or simplification. In
fact, it is estimated that the MBL initiative will generate a reduction of RM729 million in business license
compliance cost when the exercise is completed by end of 2012.
In implementing the MBL initiative, FGBPR has adopted the “Guillotine” method which was first introduced
in Sweden in the 1980s. This involves direct elimination of selected procedures, licenses and regulations.
To further facilitate the initiative, FGBPR is currently working with three agencies. The agencies are Malaysia
Productivity Corporation (MPC) acting as the Secretariat, the Malaysia Administrative Modernising and
Management Planning Unit (MAMPU) and the Implementation Coordination Unit (ICU) under the Prime
Minister’s Department.
MPC will address the quality of licensing administration and practices in ministries by assessing the
legality, necessity and appropriateness of the licenses. As such, procedures that do not meet legislative
justification and are unnecessary will be abolished, while any requirement that are not business-friendly
will be simplified.
MAMPU’s role is streamlining and simplifying the business licenses as well as coordinating and monitoring
the implementation of the new and more efficient procedures which will be made available on-line
through the Business Licensing Electronic Support System (BLESS). The BLESS portal, managed by ICU, is
an on-line one-stop centre for simultaneous applications for licenses, approvals and permits and it also
provides information and facilities for starting and operating business license applications. ICU will also
monitor the implementation of the on-line system for a more effective public delivery service.
Through the MBL programme, the Malaysian Government hopes to enhance competitiveness and
provides a more conducive and attractive environment for foreign direct investment as well as to
encourage more local businesses. The reduction in compliance cost will allow entrepreneurs to increase
quality and productivity thus enabling them to offer more competitive prices to consumers. Also, the
MBL initiative will create more employment opportunities and savings for businessmen who conduct
transactions with the Government.
Productivity Report 2011/2012
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