PEMUDAH Annual Report 2015

Your Business Our Priority

PEMUDAH Annual Report 2015

2015AnnualReport

Published by PEMUDAH In collaboration with Malaysia Productivity Corporation (MPC)

Propelling Growth Through Public-Private Sector Collaboration

Contents

Vision and ValuesAbout PEMUDAHMembers of PEMUDAHStructure of PEMUDAHCollaboration Driven by Equality

Message from the Honourable Prime MinisterForeword from the PEMUDAH ChairmanForeword from the PEMUDAH Co-Chair

040608

1213141617

Snapshot of Initiatives

Dealing with Construction PermitsGetting ElectricityRegistering Property

Paying TaxesGetting Credit

Trading Across Borders

Resolving InsolvencyLabour Market Regulation

Abandoned Housing ProjectsBusiness Process Re-engineering in Business LicensingImplementation of e-Payment FacilitiesKuala Lumpur City Hall (DBKL)Private Sector Efficiency and Accountability Towards Consumerism

Safety and Security

Starting a Business20

323436

4039

41

4748

5153545556

49

31

Enforcing Contracts 45

Good Regulatory Practice (GRP) 57

CHAPTER 1: Introduction

CHAPTER 2: Enhancing Business Growth



PEMUDAH Challenge

PEMUDAH PortalPublic RelationsInternational CompetitivenessThe Way Forward

PEMUDAH at State Level60

6869

8172

64

CHAPTER 3: Propelling The Change



Vision and ValuesAbout PEMUDAHMembers of PEMUDAHStructure of PEMUDAHCollaboration Driven by Equality

Message from the Honourable Prime MinisterForeword from the PEMUDAH ChairmanForeword from the PEMUDAH Co-Chair

040608

1213141617

Snapshot of Initiatives

Dealing with Construction PermitsGetting ElectricityRegistering Property

Paying TaxesGetting Credit

Trading Across Borders

Resolving InsolvencyLabour Market Regulation

Abandoned Housing ProjectsBusiness Process Re-engineering in Business LicensingImplementation of e-Payment FacilitiesKuala Lumpur City Hall (DBKL)Private Sector Efficiency and Accountability Towards Consumerism

Safety and Security

Starting a Business20

323436

4039

41

4748

5153545556

49

31

Enforcing Contracts 45

Good Regulatory Practice (GRP) 57

CHAPTER 1: Introduction

CHAPTER 2: Enhancing Business Growth



PEMUDAH Challenge

PEMUDAH PortalPublic RelationsInternational CompetitivenessThe Way Forward

PEMUDAH at State Level60

6869

8172

64

CHAPTER 3: Propelling The Change


PEMUDAH Annual Report 201504 PEMUDAH Annual Report 2015

PEMUDAH will, as always, rise to the challenge by charting and executing appropriate

strategies and leveraging on public-private sector collaboration to ensure efficient service

delivery for the rakyat and to facilitate business

“

”

YAB DATO’ SRI MOHD NAJIBTUN HAJI ABDUL RAZAK

Prime Minister of Malaysia





05PEMUDAH Annual Report 2015

The economic plans that are being implemented by the Government are aimed at transforming Malaysia into a high-income nation with socio-economic inclusiveness for all Malaysians.

The Eleventh Malaysia Plan (2016-2020), with its theme of “Anchoring Growth on People”, focusses on rapidly delivering high-impact outcomes to the people at reasonable costs and builds on the achievements of the economy as evidenced by an increase in Gross National Income of nearly 50 per cent since 2009. The rakyat can expect more growth and development in the country during the years leading up to the realisation of Vision 2020 as the fundamentals of the economy are sound.

The rakyat will also have greater and increasing employment opportunities, earn higher incomes for a better standard of living and can look forward to a brighter future as the business community grows their locally-based industries and services, and expands their existing market linkages internationally. There is also vast potential for improved trade prospects arising from Malaysia’s participation in the various free trade initiatives both globally and regionally.

The Strategic Reform Initiatives and the National Key Economic Areas of the Economic Transformation Programme (ETP) have enabled the country to record key achievements including an economic growth rate of 5 per cent in 2015 despite facing global economic headwinds caused by plummeting crude oil prices and slower growth in major global economies.

I am pleased to note that PEMUDAH as the Special Task Force to Facilitate Business continues to be in the forefront to drive a multitude of public-private sector initiatives to improve the efficiency of service delivery in support of a vibrant, competitive and conducive business environment. In doing so, the objectives of the ETP and the Government Transformation Programme (GTP) are also well served. PEMUDAH also complements the Government’s efforts to champion productivity and innovation as the basis to sustain economic growth and development.

Largely through the positive outcomes of the many initiatives undertaken by PEMUDAH targeting specific areas for improvement, Malaysia has consolidated its ranking among the top 10 per cent easiest-to-do-business economies in the world with a 18th ranking out of 189 economies in the World Bank Doing Business Report 2016. This achievement is commendable as many developed and developing economies have been striving to improve on their respective rankings by embarking on programmes to improve regulatory quality and efficiency.

Our target is for Malaysia to be ranked in the top five countries in the ease of doing business. This target has to be an ambitious one in order to galvanise the initiatives within the ministries, agencies and in the private sector so as to be ready to support the inflows of investment and growth in the economy.

I am confident that PEMUDAH will, as always, rise to the challenge by charting and executing appropriate strategies and leveraging on public-private sector collaboration to ensure efficient service delivery for the rakyat and to facilitate business.

I would like to thank the Chairman, the Co-Chair and members of PEMUDAH for their exemplary contributions in enhancing and enabling a business environment to propel Malaysia towards becoming a top-ranked nation, providing inclusive advancement opportunities for all Malaysians.

Message From The HonourablePrime Minister



YBHG. TAN SRIDR. ALI HAMSA

Foreword FromThe PEMUDAHChairman

In 2015, PEMUDAH accomplished many initiatives with impactful outcomes that significantly enhanced the public and private sector service delivery. This fostered a vibrant, resilient and competitive Malaysian economy as well as an entrepreneurial and progressive society.

Since its establishment, PEMUDAH has been unwavering in addressing challenges and issues that have emerged in trade, commerce and industries. It has offered solutions formulated through the unique public-private sector collaboration that is the cornerstone of PEMUDAH. PEMUDAH, now in its ninth year, is a well-established Task Force increasingly acknowledged within the public service and the business community as a key catalyst in transforming the regulatory environment through embedding good regulatory practices to enhance the ease of doing business. This is primarily achieved through reducing unnecessary regulatory burden by simplifying processes and procedures, and promoting business-friendly policy-making.

The way forward for PEMUDAH is clear – we must be relentless in our efforts to keep innovating and pushing through more workable solutions that will support the national endeavour to become a developed, competitive and high-income economy with socio-economic inclusiveness for all by the year 2020.

06

During the course of 2015, PEMUDAH has successfully completed initiatives in various areas of public administration and economic sectors that have yielded fruitful outcomes. Some of the initiatives of the Focus Groups have also been recognised by The World Bank as being exemplary to other economies.

Malaysia consistently achieves high rankings in international competitiveness reports. The World Bank’s Doing Business Report 2016 has ranked Malaysia 18th out of 189 economies. The World Economic Forum’s Global Competitiveness Report 2015-2016 has ranked Malaysia 18th from 140 economies while the Institute for Management Development World Competitiveness Yearbook 2016 ranked Malaysia 19th out of 61 economies. These achievements have been made possible by the concerted efforts of Ministries, agencies and key stakeholders with the participation of industries in driving improvements in those sectors of the economy. The Honourable Prime Minister aspires to see Malaysia become one of the top five ranked countries for the ease of doing business, and PEMUDAH shares and strongly supports this vision.

Once again, I wish to express my deepest appreciation and gratitude to the PEMUDAH members and the members of the Focus Groups and Task Forces for their dedication, hard work and invaluable contribution throughout the year in identifying and resolving issues to bring excellence to the public-private sector service delivery. This will undoubtedly enhance the reputation of Malaysia as a preferred investment destination and enable Malaysia to transform into a developed economy in the near future.



In 2015, PEMUDAH accomplished many initiatives with impactful outcomes that significantly enhanced the public and private sector service delivery. This fostered a vibrant, resilient and competitive Malaysian economy as well as an entrepreneurial and progressive society.

Since its establishment, PEMUDAH has been unwavering in addressing challenges and issues that have emerged in trade, commerce and industries. It has offered solutions formulated through the unique public-private sector collaboration that is the cornerstone of PEMUDAH. PEMUDAH, now in its ninth year, is a well-established Task Force increasingly acknowledged within the public service and the business community as a key catalyst in transforming the regulatory environment through embedding good regulatory practices to enhance the ease of doing business. This is primarily achieved through reducing unnecessary regulatory burden by simplifying processes and procedures, and promoting business-friendly policy-making.

The way forward for PEMUDAH is clear – we must be relentless in our efforts to keep innovating and pushing through more workable solutions that will support the national endeavour to become a developed, competitive and high-income economy with socio-economic inclusiveness for all by the year 2020.

During the course of 2015, PEMUDAH has successfully completed initiatives in various areas of public administration and economic sectors that have yielded fruitful outcomes. Some of the initiatives of the Focus Groups have also been recognised by The World Bank as being exemplary to other economies.

Malaysia consistently achieves high rankings in international competitiveness reports. The World Bank’s Doing Business Report 2016 has ranked Malaysia 18th out of 189 economies. The World Economic Forum’s Global Competitiveness Report 2015-2016 has ranked Malaysia 18th from 140 economies while the Institute for Management Development World Competitiveness Yearbook 2016 ranked Malaysia 19th out of 61 economies. These achievements have been made possible by the concerted efforts of Ministries, agencies and key stakeholders with the participation of industries in driving improvements in those sectors of the economy. The Honourable Prime Minister aspires to see Malaysia become one of the top five ranked countries for the ease of doing business, and PEMUDAH shares and strongly supports this vision.

Once again, I wish to express my deepest appreciation and gratitude to the PEMUDAH members and the members of the Focus Groups and Task Forces for their dedication, hard work and invaluable contribution throughout the year in identifying and resolving issues to bring excellence to the public-private sector service delivery. This will undoubtedly enhance the reputation of Malaysia as a preferred investment destination and enable Malaysia to transform into a developed economy in the near future.

07



YBHG. TAN SRISAW CHOO BOON

Foreword FromThe PEMUDAHCo-Chair

PEMUDAH is becoming more and more relevant year by year as it facilitates many facets of doing business in Malaysia from incorporation of a business, obtaining construction permits, getting electricity connections, registration of property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts to resolving insolvency.

PEMUDAH, through its Focus Groups, initiates changes to processes, procedures and, where necessary, policies and follows through on their implementation resulting in greater efficiency, effectiveness and productivity at minimal costs in the government regulatory and enforcement machinery as well as in the private sector service delivery. Businesses and even public-sector corporations at times seek assistance from PEMUDAH to mediate between regulatory and enforcement authorities in order to resolve issues or to brainstorm for more expeditious avenues to help achieve their objectives.

PEMUDAH has identified those areas in the government regulatory infrastructure and administration and also in the private sector service delivery where changes must be made in order to inject more efficiency and regulatory quality for better outcomes. Improvements are concomitant with greater competitiveness, lower costs, lesser wastage, more efficient use of valuable resources, higher productivity, a conducive business environment and a more positive investment outlook. PEMUDAH leads the change initiatives by pursuing closer collaboration between the relevant government ministries and agencies, local authorities, trade and industry representatives, subject matter experts and also the World Bank Doing Business team and by holding public consultations. Above all, the stakeholders need to forge ahead with a sense of urgency and strong commitment in the various public and private sector partnerships in order to nurture, strengthen and sustain a world-class and prosperous business environment in Malaysia. On behalf of the members of PEMUDAH, I wish to express our heartfelt appreciation to our Chairman, the Chief Secretary to the Government of Malaysia, YBhg. Tan Sri Dr. Ali Hamsa for his inspiring leadership that has taken PEMUDAH from strength to strength.

To all members from the public as well as the private sectors, I wish to extend my utmost gratitude for your tremendous efforts in the work of PEMUDAH.

We are most grateful to the Honourable Prime Minister, YAB Dato’ Sri Mohd Najib Tun Haji Abdul Razak for his steadfast support for PEMUDAH which gives much encouragement for us to work even harder and smarter to help realise the vision of a public and private sector service delivery par excellence.

08



PEMUDAH is becoming more and more relevant year by year as it facilitates many facets of doing business in Malaysia from incorporation of a business, obtaining construction permits, getting electricity connections, registration of property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts to resolving insolvency.

PEMUDAH, through its Focus Groups, initiates changes to processes, procedures and, where necessary, policies and follows through on their implementation resulting in greater efficiency, effectiveness and productivity at minimal costs in the government regulatory and enforcement machinery as well as in the private sector service delivery. Businesses and even public-sector corporations at times seek assistance from PEMUDAH to mediate between regulatory and enforcement authorities in order to resolve issues or to brainstorm for more expeditious avenues to help achieve their objectives.

PEMUDAH has identified those areas in the government regulatory infrastructure and administration and also in the private sector service delivery where changes must be made in order to inject more efficiency and regulatory quality for better outcomes. Improvements are concomitant with greater competitiveness, lower costs, lesser wastage, more efficient use of valuable resources, higher productivity, a conducive business environment and a more positive investment outlook. PEMUDAH leads the change initiatives by pursuing closer collaboration between the relevant government ministries and agencies, local authorities, trade and industry representatives, subject matter experts and also the World Bank Doing Business team and by holding public consultations. Above all, the stakeholders need to forge ahead with a sense of urgency and strong commitment in the various public and private sector partnerships in order to nurture, strengthen and sustain a world-class and prosperous business environment in Malaysia. On behalf of the members of PEMUDAH, I wish to express our heartfelt appreciation to our Chairman, the Chief Secretary to the Government of Malaysia, YBhg. Tan Sri Dr. Ali Hamsa for his inspiring leadership that has taken PEMUDAH from strength to strength.

To all members from the public as well as the private sectors, I wish to extend my utmost gratitude for your tremendous efforts in the work of PEMUDAH.

We are most grateful to the Honourable Prime Minister, YAB Dato’ Sri Mohd Najib Tun Haji Abdul Razak for his steadfast support for PEMUDAH which gives much encouragement for us to work even harder and smarter to help realise the vision of a public and private sector service delivery par excellence.

09



INTRODUCTIONChapter 1



Vision & Values ofPEMUDAH

To achieve a globally benchmarked, customer-centric, innovative, entrepreneurial and proactive public and private sector delivery service in support of a vibrant, resilient and competitive economy and society, driven by the following values:

A sense of urgency

Proactive public-privatesector collaboration

Facilitation, not hampering

No more regulationthan necessary

Zero tolerance for corruption

12

As new challenges emerge and existing issues undergo resolution, PEMUDAH continually strengthens and rejuvenates its capabilities by drawing on the expertise and experience of outstanding civil servants and dynamic corporate figures to brainstorm together the best way forward to further boost Malaysia’s competitiveness at the global level.

PEMUDAH is synonymous with leading and coordinating multi-faceted initiatives to improve Malaysia’s ranking in the annual World Bank Doing Business Reports. Its creditable efforts have enabled Malaysia to be ranked 18th out of 189 economies globally in the World Bank Doing Business Report 2016, joining the world’s top 10 percent economies in ease of doing business.

The working groups and the task forces within PEMUDAH address efficiencies of the public service delivery system as well as government policies and their impact on businesses. The PEMUDAH team now comprises 15 heads of government ministries and departments, 11 business leaders and 4 co-opted members from the public sector.

PEMUDAH adheres to comprehensive stakeholder engagements to source decision- enabling inputs for issues, a tried-and-true approach that has facilitated successful implementation of regulatory reforms.

Since its inception, PEMUDAH has introduced numerous major reforms which have made significant strides in ease of doing business. Currently, more reforms are in the pipeline to further improve the public-private sector delivery system.

About

PEMUDAH, the Special Task Force to Facilitate Business, was envisioned by former Prime Minister,

YABhg. Tun Abdullah Ahmad Badawi. It was established on February 7, 2007 to bring about

closer collaboration between the public and private sectors to enhance public service delivery and to

improve the business environment in Malaysia. Such collaboration has since broadened to include the areas of private sector efficiency and business

process re-engineering as well as initiatives to improve the efficiency of the judicial process.



Vision & Values of

To achieve a globally benchmarked, customer-centric, innovative, entrepreneurial and proactive public and private sector delivery service in support of a vibrant, resilient and competitive economy and society, driven by the following values:

A sense of urgency

Proactive public-privatesector collaboration

Facilitation, not hampering

No more regulationthan necessary

Zero tolerance for corruption

As new challenges emerge and existing issues undergo resolution, PEMUDAH continually strengthens and rejuvenates its capabilities by drawing on the expertise and experience of outstanding civil servants and dynamic corporate figures to brainstorm together the best way forward to further boost Malaysia’s competitiveness at the global level.

PEMUDAH is synonymous with leading and coordinating multi-faceted initiatives to improve Malaysia’s ranking in the annual World Bank Doing Business Reports. Its creditable efforts have enabled Malaysia to be ranked 18th out of 189 economies globally in the World Bank Doing Business Report 2016, joining the world’s top 10 percent economies in ease of doing business.

The working groups and the task forces within PEMUDAH address efficiencies of the public service delivery system as well as government policies and their impact on businesses. The PEMUDAH team now comprises 15 heads of government ministries and departments, 11 business leaders and 4 co-opted members from the public sector.

PEMUDAH adheres to comprehensive stakeholder engagements to source decision- enabling inputs for issues, a tried-and-true approach that has facilitated successful implementation of regulatory reforms.

Since its inception, PEMUDAH has introduced numerous major reforms which have made significant strides in ease of doing business. Currently, more reforms are in the pipeline to further improve the public-private sector delivery system.

AboutPEMUDAH

PEMUDAH, the Special Task Force to Facilitate Business, was envisioned by former Prime Minister,

YABhg. Tun Abdullah Ahmad Badawi. It was established on February 7, 2007 to bring about

closer collaboration between the public and private sectors to enhance public service delivery and to

improve the business environment in Malaysia. Such collaboration has since broadened to include the areas of private sector efficiency and business

process re-engineering as well as initiatives to improve the efficiency of the judicial process.

13


PEMUDAH Annual Report 2015PEMUDAH Annual Report 2015

YBhg. Tan Sri Dr. Ali HamsaKetua Setiausaha Negara

YBhg. Dato’ SeriZainal Rahim Seman

YBhg. Tan Sri Dr. KhairMohamad Yusof

YBhg. Tan Sri Dr. RebeccaFatima Sta Maria

YBhg. Dato' Sri Hj. AliasHaji Ahmad

Members of PEMUDAH

YBhg. Dato' Sri AlwiHj. Ibrahim

YBhg. Dato' AzmanMahmud

YBhg. Datuk MuhammadIbrahim

YBhg. Datuk Seri Hj.Saripuddin Hj. Kasim

YBhg. Tan Sri Dr. MohdIrwan Serigar Abdullah

YBhg. Tan Sri MohamadZabidi Zainal

YBhg. Datuk Seri AdnanHaji Md Ikshan

YBhg. Datuk Seri Dr.Rahamat Bivi Yusoff

YBhg. Dato’ MohdRazali Hussain

YBhg. Datuk Seri AhmadZaki Ansore Mohd Yusof

Since April 2015

YBhg. Datuk HajiMohammad Mentek

Since July 2015

YBhg. Dato' Dr.Sallehuddin Ishak

Since October 2015

YBhg. Datuk Hj. Mohd.Amin Nordin Abd. Aziz

Since October 2015

14



YBhg. Tan Sri Saw Choo BoonPresiden, Persekutuan Pekilang-PekilangMalaysia

YM. Raja Tan Sri Dato' SeriAman Raja Hj. Ahmad

YBhg. Tan Sri DatukG Gnanalingam

YBhg. Datuk WiraOmar Kaseh

Until January 2015

YBhg. Tan Sri Azman ShahDato' Seri Harun

YBhg. Dato’ Pardip KumarKukreja

Mr. David Anthony JonesYBhg. Tan SriTeo Chiang Kok

YBhg. Tan Sri HajiShukry Mohd Salleh

Until April 2015

YBhg. Dato’ Chua Tia GuanYBhg. Dato' Dr. Ir. AndyK H Seo

YBhg. Dato' WongSiew Hai

Mr. Vinayak P. Pradhan

YBhg. Dato’ SeriArpah Abdul Razak

Until May 2015

YBhg. Dato’ Sri HajiAzemi Kasim

Until October 2015

YBhg. Tan Sri Haji AhmadPhesal Haji Talib

Until July 2015

PEMUDAH Annual Report 2015 15



STRUCTURE OF PEMUDAH

JUNe

Focus Group on Starting a Business

Focus Group on Dealing with Construction Permits

Focus Group on Getting Electricity

Focus Group on Registering Property

Focus Group on Paying Taxes

Focus Group on Trading Across Borders

Focus Group on Enforcing Contracts

Focus Group on Resolving Insolvency

Focus Group on Labour Market Regulation

Focus Group on Public Relations

Task Force on Abandoned Housing Projects

Focus Group on Business Process Re-Engineering in Business Licensing

Task Force on DBKL

Task Force on Implementation of e-Payment Facilities

Focus Group on Private Sector Efficiency and Accountability Towards Consumerism

Focus Group on Safety and Security

Focus Group of Education

Focus Group on Enhancing Bumiputera Participation

ISSUES (WGEI)WORKING GROUP ON EFFICIENCY TASK FORCES DIRECTLY

UNDER PEMUDAH



16



Focus Group on Starting a Business

Focus Group on Dealing with Construction Permits

Focus Group on Getting Electricity

Focus Group on Registering Property

Focus Group on Paying Taxes

Focus Group on Trading Across Borders

Focus Group on Enforcing Contracts

Focus Group on Resolving Insolvency

Focus Group on Labour Market Regulation

Focus Group on Public Relations

Task Force on Abandoned Housing Projects

Focus Group on Business Process Re-Engineering in Business Licensing

Task Force on DBKL

Task Force on Implementation of e-Payment Facilities

Focus Group on Private Sector Efficiency and Accountability Towards Consumerism

Focus Group on Safety and Security

Focus Group of Education

Focus Group on Enhancing Bumiputera Participation



CHARTERED TAX INSTITUTE OF MALAYSIA

T a x a n dM a l a y s i a

Independent Tax Advisers

JABATAN AKAUNTAN NEGARA MALAYSIA

E n e r g y C o m m i s s i o n , M a l a y s i a

MALAYSIA EMPLOYERS FEDERATION

COLLABORATION DRIVEN BY EQUALITY

17



ENHANCINGBUSINESS GROWTH

Chapter 2



Achievements ofDEALING WITH CONSTRUCTION PERMITS

Achievements ofSTARTING A BUSINESS

SSM initiated an engagement with the World Bank Doing Business to clarify that the incorporation process (via the MyCoID portal) involved a single procedure and could be completed within one day.

2015

Mandatory online incorporation is in place. Closure of over-the- counter services for incorporation of companies nationwide effective December 2014.

With online mandatory procedure, name search and application for registration process can be done instantaneously.

Savings of RM45 (for e-stamping and reduction of cost for post-incorporation items).

The proposed Companies Bill has been finalised and will introduce significant simplification processes and cost reductions for doing business in 2016 and beyond.

2014

Mandatory online incorporation through the MyCoID portal for Kuala Lumpur, Selangor and Negeri Sembilan.

Reduction of incorporation fee of RM3,000 to RM1,000 for companies with an authorised share capital of

RM400,000.

Clarified the misconception of minimum capital requirements under the Companies Act, 1965 by SSM whereby

a company does not need to have a minimum capital to start a business under the Act.

2013

DBKL launched the Kuala Lumpur Integrated Submission be Efficient, Systematic and Transparent (KLIS

BEST) System to provide another lane to obtain approvals for permits to construct complex and high-risk

building projects in Kuala Lumpur.

FGDCP has improved the OSC 1Submission procedures in 2015 by simplifying procedures through Joint

Inspection for the final inspection stage. This new procedure has led to a reduction from 13 procedures to 6

procedures and reduction in time taken from 74 days to 27 days.

2015

KL TRAX was introduced as online system to monitor construction permits applications from the date of submission until issuance of Certificate of Completion and Compliance (CCC).

The common template OSC 3.0 for development proposal (other than low risk development proposal category) to be adopted by all local authorities in Peninsular Malaysia for standardisation was mandatory by June 2014.

Introduced DCP new model for Kuala Lumpur to facilitate large and complex development using medium and fast approval ‘KLISBEST’. Improved the implementation of One Stop Centre (OSC) 1 Submission for construction permits by Kuala Lumpur City Hall (DBKL).

Reduced number of procedures for approval from 15 to 13 and time taken from 130 days to 74 days.

2014

Improved the implementation of One Stop Centre (OSC) 1 Submission for construction permits by Kuala Lumpur City Hall (DBKL).

Reduced number of procedures for approval from 37 to 15 and time taken from 140 days to 130.

DBKL abolished the permit requirement for dustbins (RORO BIN) prior to construction.

DBKL issued Standard Guidelines for the construction of protective hoarding and construction signboard.

Issued Circular No.1/2012 mandating Principal Submitting Person (PSP) to submit and obtain permits via improved OSC 1 Submission

2013

SNAPSHOT OF INITIATIVES


Achievements of

An online system is being used throughout Peninsular Malaysia to process applications for State Authority’s

TNB’s involvement in early introduction of OSC 1 submission and OSC 3.0 for electricity connections enabled its

Construction Permits and Getting Electricity initiatives are part of TNB’s transformation programmes.

Achievements of




Achievements of

Achievements of

fast approval ‘KLISBEST’.

SNAPSHOT OF INITIATIVES


Achievements ofGETTING ELECTRICITY

2015

Increased efficiency of internal process and improvement in its communication and dialogues with contractors

has made Getting Electricity much easier in Malaysia which also contributes to improved performance.

With new initiatives, it only requires a total of 5 procedures and 32 days for getting overhead connection.

2013

An online system is being used throughout Peninsular Malaysia to process applications for State Authority’s consent to transfer the ownership of land. The processing of applications with this system takes on average about

30 days to be completed which is a significant improvement over the previous period of about two months.

A web-based 42-item e-Consent form (previously a 72-item manual form) can be downloaded and the completed

form is submitted online.

Simplification and standardisation of the consent form and the Standard Operating Procedure for consent has

expedited transfers, charging and leases and also reduced the number of supporting documents from 40 to

between 8 and 19 documents.

Implementation of a Guideline for Data Maintenance of Land Records for the Computerised Land Registration

System on March 1, 2015 to enhance data storage and recordkeeping procedures.

2015

Significant improvement had been made in the System Average Interruption Duration Index (SAIDI) and the

System Average Interruption Frequency Index (SAIFI) in 2015 through increased capital investment made by TNB.

TNB provides a web-based bill calculator for residential, commercial and industrial customers for them to

estimate their electricity costs as based on the voltage level and subscribed capacity.

Cost reduction was achieved via improvement on communication within various stakeholders (Tenaga Nasional

Berhad (TNB) / Local Authorities / consultants / users / project engineers) and the use of electronic document.

The “Deal from Home” concept powered by TNB Payment Gateway has provided a breakthrough to both TNB and

the Kuala Lumpur City Hall (KLCH). It has shortened the permit application period through Service Level Agreement

(SLA) Automation via online application. This improvement was subsequently implemented in Selangor, Putrajaya

and Pulau Pinang.

Malaysia has succeeded in obtaining the highest score of 8 under the reliability of supply and tariffs transparency

index in World Bank DB 2016 Report via the following initiatives:

2014 The number of procedures and time taken to get electricity are maintained at 5 procedures and 32 days respectively

while cost in terms of percentage of income per capita was reduced to 46.3% from 49.1%.

TNB’s involvement in early introduction of OSC 1 submission and OSC 3.0 for electricity connections enabled its internal processes to be more efficient in reducing the time to get connection.

TNB established Transformation team to review and improve its internal process and delivery. Dealing with

Construction Permits and Getting Electricity initiatives are part of TNB’s transformation programmes.

Achievements ofREGISTERING PROPERTY

Management of e-Consent.

To improve the registration of transfer of strata titles within 14 working days (if it is fit for registration) when the

e-Tanah system is implemented in Kuala Lumpur. However, currently the registration of transfer of strata titles is

done manually, and the process would be improved from 3 months to less than 2 months.

Reviewing the National Land Code to ensure land dealing procedures are safeguarded from fraud.

Roll-out of SELAMAT at nationwide as a standard procedure for most land offices when receiving applications for

land dealings and non-dealings.

One day registration of standard property.

Reviewing the National Land Code to ensure land dealing procedures are safeguarded from fraud.

SELAMAT was implemented in the whole of Pahang, Selangor, Johor and Kedah.

2014

2013




Achievements ofGETTING CREDIT

2015

EPF has introduced payment kiosks at 12 of their office locations with 50,097 transactions recorded in 2015.

15% of employers perform payment of monthly contribution via e-Caruman system.

HRDF has introduced E-Slip to abolish the manual printed form.

2015

Baseline study on time taken to file 4 labour taxes: PCB, EPF, SOCSO, HRDF – to reduce 50% time taken to pay

labour tax from the initial 77 hours and reducing administrative burden faced by businesses in complying with tax

payment based on current process.

Consolidation of payment date – SOCSO, HRDF and IRB.

e-Filing and e-Payment for withholding tax.

Strengthening the utilisation of bank payroll system by businesses as a mode to reduce time taken to prepare, file

and pay labour tax in Malaysia.

2014

Simplified tax returns for individuals (Forms B & BE).

Introduced m-Filing via mobile devices.

Consolidated Public Ruling and its addendums.

Amended Public Ruling notified to the public and professional bodies via IRB website.

Introduced New Section 77A Income Tax Act, 1967 for companies to submit tax returns via electronic transmission

(e-Filing).

Introduced New Section 77C Income Tax Act, 1967 which gives the option to taxpayers not to furnish tax returns if

certain criteria are fulfilled.

Issuance of guidelines on trading over Internet (e-Commerce).

2013

Achievements ofPAYING TAXES

A preliminary study was conducted by Companies Commission of Malaysia (SSM) and Bank Negara Malaysia

(BNM) to identify the gaps and make recommendations to address the shortcomings highlighted in the DB 2015


Achievements of

including on Delivery Order and Certificate of Origin. The two documents were eliminated from WB’s record as part

MAMPU, MPC and Customs are collaborating to improve the time taken for Customs’ clearance and control

In order to improve Malaysia’s ranking for Trading Across Borders in 2015, Focus Group Trading Across Borders




Achievements of

Achievements of


Achievements ofTRADING ACROSS BORDERS

2015

Reduced number of documents for import or export from 6 to 4. Focus Group Trading Across Borders organised a

video conference with World Bank (WB) in May 2013 to convey improvements made and clarified survey answers

including on Delivery Order and Certificate of Origin. The two documents were eliminated from WB’s record as part of documents for import or export.

Outreach Programme on AEO. Customs updated and replaced the Information Guideline for AEO in the AEO

website in March 2013 to promote awareness among companies to apply for AEO status. Customs also completed

its 2013 planned outreach programmes on AEO throughout the nation with cooperation from FMM and SME

Corporation.

Trade Facilitation Initiatives Project – The Guidebook on Export and Import Procedures was published in December

2013. The objective of the Guidebook is to provide an easy single-source reference material to Malaysian importers

and exporters.

Outreach Programme on Authorised Economic Operator (AEO) including awareness, capacity building and

consultation. The outreach programme is a continuous effort to enhance the level of compliance and awareness

among traders or operators on the importance of monitoring and managing the security of their respective supply

chain based on established criteria. In 2013, 48 operators have been accredited as AEOs and benefited from the

AEO programme in Malaysia.

MAMPU, MPC and Customs are collaborating to improve the time taken for Customs’ clearance and control procedures. Six pillars have been identified namely Pillar A – Establishing working parameters for improvements,

Pillar B – Strengthening internal relations and coordination, Pillar C – Inter-agency collaborative initiative, Pillar D –

Techniques enhancement and capacity building programme, Pillar E – Public engagement and public relations

programme and Pillar F – Regional engagement programme. This will reduce the compliance cost for business,

enhance government efficiency and fast delivery as well as promote ease of doing business in Malaysia.

2013

To reduce the number of documents needed for import and export from 4 (Bill of Lading, Customs Declaration,

Commercial Invoice and Packing List) to 2 documents only

To reduce the time required for export involving inland transport and handling from 3 days to 1 day.

Movement of Free Zone Dutiable Goods for value added activities to All Free Zone Companies: Savings of a total

of RM 150 million a year in compliance costs and 90% of the time that was previously expended; a new customs

procedure was introduced to facilitate the movements for value added activities of goods and raw materials.

Obtaining the Permit for Radioactive Goods: AELB and DCA streamlined their processes to reduce the overall time

taken for the approval of the permits by 50%.

Worked closely with the Ministry of Transport to reduce time and expenses for inland transportation to complement

the Logistics and Trade Facilitation Masterplan 2015-2020 in enhancing inland transportation efficiency, improving

last-mile connectivity at Port Klang and addressing bottlenecks at the Padang Besar Terminal.

2014 Outreach Programme on Authorised Economic Operator (AEO) including awareness, capacity building and

consultation. In 2014, 52 operators have been accredited as AEOs and benefited from the AEO programme in

Malaysia.

Customer Centric Service Delivery for Customs. Pillars A, B, C, D, E and F were completed in 2014.

In order to improve Malaysia’s ranking for Trading Across Borders in 2015, Focus Group Trading Across Borders has identified the following initiatives to be implemented:




Achievements ofENFORCING CONTRACTS

2015

Implemented the Court Recording and Transcription System (CRT) to expedite hearings and reduce judicial delays.

Established a taskforce to review the Enforcement of Judgment and Auction Process.

2013

A task force was formed in collaboration with the Office of Registrar of Lower Court of Malaya to prepare a draft

Practice Direction on payment of deposits upon any application for enforcement of judgements.

2014 A study was conducted at Shah Alam High Court to review the effectiveness of the judiciary process and was

completed in February 2014.

Published a court guidebook - Buku Panduan Mahkamah Malaysia (Kes-kes Sivil di Mahkamah Rendah) to be

used as a quick reference and for public awareness.

A benchmarking visit to the Legal Execution Department and few courts in Bangkok, Thailand to benchmark other

economies with higher rankings on Enforcing Contracts.

Amending new provisions on Corporate Insolvency Law in the Companies Bill covering Scheme of Arrangement,

Receivership and Winding Up.

Creating a single insolvency law by consolidating existing legislations into one new insolvency law and introducing

new provisions in reforming the insolvency landscape.

Continuous efforts are also being enhanced to simplify further the process for closing a business and publication of

Asset Search Directory to assist liquidators in tracing assets for liquidation processes.

2013

2014 Introduction of the corporate rescue mechanisms of ‘Judicial Management’ and ‘Corporate Voluntary Arrangement’ as well as overall improvements on insolvency laws such as shorter winding-up processes under the Companies

Bill.

The new framework will provide more avenues to resolve insolvency rehabilitation process, where companies

emerge as a going concern as opposed to being wound-up and sold off as piecemeal.

Achievements ofRESOLVING INSOLVENCY

Achievements ofLABOUR MARKET REGULATION

2015

Use of digital recording system to expedite cases in Industrial Court.

Amending the Employment Act, 1955 (Act 265) (Phase 2).

Amending the Industrial Relations Act, 1967 (Act 177).

2013

MOHR together with other relevant agencies has come out with a guideline requiring employers to provide

minimum standard of accommodation and amenities for their foreign workers so as to comply with Convention 29

of the International Labour Organisation (ILO) and Chapter 19 of the TPPA.

A task force was established under the Focus Group on Labour Market, i.e. Task Force on Automation and

Reduction of Foreign Workers. The task force focuses on 4 areas, namely, Restaurant, Carpark, Carwash and

Petrol Station.

2014 e-labour court.

Modernising the Industrial Court Procedure.

Amendments of the Employment Act, 1955.


Achievements of

Strengthened security and enforcement at the nation’s border areas by increasing collaboration between MOHA

Regular audit exercise on low performing security agencies (MOHA’s KPI for 2014).




Achievements of

Introduction of the corporate rescue mechanisms of ‘Judicial Management’ and ‘Corporate Voluntary Arrangement’

Achievements of

Achievements of


Achievements ofSAFETY AND SECURITY

2015 Initiated cooperation between the Royal Malaysian Police (RMP) and the Malaysian Armed Forces to increase

surveillance and joint patrols under the Blue Ocean Policing of the NBOS Programme.

Held engagements with local authorities and the public to curb social problems.

Involved local communities with MOHA and its agencies such as the RMP and RELA in the My Beautiful

Neighbourhood (MyBN) Programme to create awareness on safety and security.

Stepped up the omnipresence of the RMP at community and business areas/worship areas to 16 hours a day.

1,076 engagements were held with NGOs and the private sector to heighten crime prevention.

MOHA has improved the effectiveness of the biometric vetting processing of foreigners at the KLIA in order to

prevent the entry of illegal immigrants.

Reduced smuggling activities - the number of confiscation cases increased to 544 for a total value of about RM39 million.

Reduced drug trafficking - seized drugs valued at RM237.7 million.

Strengthened security and enforcement at the nation’s border areas by increasing collaboration between MOHA and related agencies to tackle transnational crimes such as terrorism and extremist militant activities, piracy, money

laundering, smuggling as well as human and arms trafficking.

2014MOHA has taken up the challenge in improving the quality of private security agencies with several high impact steps.

Categorising Security Agencies based on quality of service and management.

Regular audit exercise on low performing security agencies (MOHA’s KPI for 2014).Establishment of Certified Security Guards Programme (CSG) for producing better quality security guards.

Solutions or improvements regarding security programmes and infrastructure at FCZ.

LOW QUALITY OF PRIVATE SECURITY SERVICES

Improving the SOP of Crime Investigations to raise the quality of prosecution.

Focus on main business of KDN in the process of investigation. (i.e.: IO and bureaucratic red tape).

MODERN POLICING LABORATORY OUTCOME

SECURITY PROGRAMMES OR INITIATIVES, INFRASTRUCTURE MAINTENANCE PROCEDURES AND RESPONSIBILITIES AT FREE COMMERCIAL ZONE (FCZ)

2013Entry without visa for Iranians was shortened from 90 days to 14 days and Visa On Arrival (VOA) was abolished for

them (29 October 2013) to curb illegal activities by them in the country.

ENTRY WITHOUT VISA

Extensive measures were taken to deal with organised crime and gangsterism starting with Ops Cantas and

subsequently established Special Task Force.

Special Task Force on Organised Crime (STAFOC) was set up.

Special Task Force for Anti Vice, Gaming and Gangsterism (STAGG) was launched.

PDRM Motorcycle Patrol Unit (2,000 acquired till 2014; 5,000 more for the next two years).

IMPACT OF ORGANISED CRIME ON BUSINESS COMMUNITY

IMPROVING PDRM INVESTIGATING PROCESS

Matter was discussed in Modern Policing Lab on 19 to 27 Sept 2013 by PEMANDU with PDRM and AGC.

New approaches were proposed to improve the conviction process.

PDRM made it a priority to recruit more officers every year (4,000 new officers per year). A total of 6,053 new personnel were recruited in 2013 and 5,273 in 2014.




15 abandoned housing projects have been revived in 2015.

All amendments to the Housing Development Act 1966 (Act 118) have been completed and the act was enforced

concurrently with the Strata Management Act 757 and Strata Title Act 318.

2015

In 2014, the Task Force on Abandoned Housing Projects succeeded in resolving 15 abandoned housing projects.

At present, the remaining 20 projects (involving 6,436 units and 4,364 house buyers) are at various revival stages

of completion while 33 projects are at various stages of planning.

Amendment to the Housing Development (Control and Licensing) Act, 1966 (Act 118) has been completed and will

be enforced concurrently with the Strata Management Act 757 and Strata Title Act 318 in 2015.

2014

A total of 205 housing projects had been abandoned. Of this, 148 were revived by 2013.

Tax incentive scheme was initiated to reduce the burden borne by house purchasers, banks and financial

institutions and the rescue of contractors in abandoned housing projects.

2013

Achievements ofABANDONED HOUSING


At the federal level, 843 business licences for 23 ministries and two agencies under the Prime Minister’s Office have

the Prime Minister’s Department.

It is an initiative under the SME Master Plan and is monitored by the National SME Development Council.

system under the One Stop Service (OSS) programme.

Launched PEMUDAH Journalism Competition 2015

Published PEMUDAH article in Infoniaga MagazinePublished PEMUDAH article in International Business ReviewPublished Doing Business Booklet 2016

Achievements of

Achievements of




FGBPR has streamlined, standardized and improved the efficiency of businesses. The initiatives taken to support

the local authorities are as follows:2015

At the federal level, 843 business licences for 23 ministries and two agencies under the Prime Minister’s Office have been revised as well as 2,546 licenses for 13 states, including Sabah and Sarawak.

The estimated total compliance cost incurred by the business community at federal and state levels was RM900

million.

This initiative was made possible by Malaysia Productivity Corporation (MPC), Malaysian Administrative

Modernisation and Management Planning Unit (MAMPU) and the Implementation Coordination Unit (ICU) under

the Prime Minister’s Department.In order to improve the existing initiatives, the development of gateway registration and licensing is being developed

under the High Impact Programme (HIP) to provide access to information and online application for business

licences.

It is an initiative under the SME Master Plan and is monitored by the National SME Development Council.

2014

At the federal level, 717 licences were re-engineered and simplified into 448 business licences.

136 licences were automated into BLESS.

790 licences were re-engineered and simplified into 259 business licences at state level.

Established a special taskforce to form a Community of Practice (CoP) to work towards achieving a better delivery

system under the One Stop Service (OSS) programme.The new processing time recommended for Lesen Tred Perniagaan and Iklan Berisiko at local authorities in

Pahang was reduced to 8 days from 28.

Nine business licences at federal level were abolished.

2013

Launched PEMUDAH Journalism Competition 2015Participated in booth exhibition during SME Show 2015 – ASEAN

Published PEMUDAH article in Infoniaga MagazinePublished PEMUDAH article in International Business ReviewPublished Doing Business Booklet 2016

2015

Eliminated overlapping or conflicting requirements by different licensing authorities to ensure better

coordination.

Collected information on the impacts of licences on various businesses for the business community to comply

to regulatory requirement.

Updated information provided by licence approval authorities on compliance at online portal.

Provided lenient regulatory treatment or exemptions to the business community.

Reduced work cycle by improving work systems, eliminating non value-added activities and standardisation of

procedures.

Developed a composite form based on 3 categories of license, namely Business Premises and Advertising

Licence, Hawker Licence and Businesses Permit.

Achievements ofPUBLIC RELATIONS

Achievements ofBUSINESS PROCESS RE-ENGINEERING INBUSINESS LICENSING




422 agencies, local authorities and institutions implemented a total of 742 e-Payment services which is an increase

from the 402 similar entities that offered a total of 712 e-Payment services in 2014.

The level of e-Payment utilisation among 36 selected Federal Agencies was recorded at 36 per cent in 2015. A total

of 91 mobile payment services were also made available to the public.

A Public Sector e-Payment Conference 2015 to increase awareness and share best practices on e-Payment was

held on 26 February 2015 with 350 participations from various ministries, departments, statutory bodies, local

councils, public higher learning institutions and private sectors.

Achieved one of the three KPI’s of the e-Payment Strategic and Direction Plan for the Public Sector (2010-2015) which recorded an increment of 164% of appropriate e-Payment services for government agencies.

Promoted the greater usage of e-Payment facilities by having MAMPU awarding the Malaysia Trustmark for Public

Sector (MTSA) accreditation. 20 government agencies’ portals providing 22 applications were awarded the MTSA trustmark as at 31 December 2015.

2015

Debit card as another mode of payment at counters was introduced.Treasury circular now known as 1PP included debit card as mode of payment.

MOF agencies (EPF, IRB and RMCD) dramatically improved receipts by e-Payment due to Task Force engagement.

MyGST system impacts e-Payment landscape of public sector in a big way. From April 1, 2015 all GST payments

will be remitted online.

MOF submitted single e-Payment gateway (B2G) proposal to SOCSO, IRB and EPF for implementation consideration as alternative payment gateway.

Mandatory policy direction set for PBTs to provide e-Payment gateway on common public payments such as compounds, rent, licence and assessment tax.

In 2014, 402 agencies have implemented 712 e-Payment services.

The take-up rate in 2014 was 38% for 24 federal agencies compared with 34% in 2013 for 22 federal agencies.

KPKT has introduced e-PBT system to encourage local authorities’ usage of e-Payment.

2014

399 agencies have implemented e-Payment offering 708 services compared to 250 agencies and 551 services in 2012.

155 agencies have implemented e-Payment via FPX.

7 agencies (including DBKL) have implemented mobile payment (Mymobile).A workshop was organised on e-Payment for both government and private agencies towards achieving a cashless

society.

2013

Conducted media engagement session with journalists on 17 June 2014.

Launched PEMUDAH Journalism Competition 2014 on 27 March 2014.

Introduced new PEMUDAH logo and PEMUDAH business card for PEMUDAH private sector members.

Published PEMUDAH e-Bulletin.Published Doing Business 2015 Booklet.

2014

Conducted media engagement sessions with journalists on 24 June 2013 and 22 October 2013.

Launched PEMUDAH Journalism Competition 2013 on 24 June 2013.Published advertorial and newspaper articles by PEMUDAH members.Published 6 issues of PEMUDAH e-Bulletin.Published Doing Business 2014 Booklet.

2013

Achievements ofe-PAYMENT

Achievements ofPUBLIC RELATIONS


DBKL is introducing an online tracking and submission system called KLTRAX as part of its effort to improve its delivery system.

Revaluation of assessment rate in Kuala Lumpur for year 2014.

Programme on Repainting of Old Buildings in Kuala Lumpur: A total of 686 buildings had been identified and a total

Abdul Rahman and Leboh Ampang.

amounts of RM500,000 and below.

A code of Business Ethics Malaysia (EPM Code) has been improved to take into account additional policy issues

Discussion with the Association of Banks in Malaysia (ABM) and the Bar Council for possible reduction in the

Achievements of

Achievements of




Achieved one of the three KPI’s of the e-Payment Strategic and Direction Plan for the Public Sector (2010-2015)

Sector (MTSA) . 20 government agencies’ portals providing 22 applications were awarded the MTSA trustmark as at 31 December 2015.

Debit card as another mode of payment at counters was introduced.

MOF agencies (EPF, IRB and RMCD) dramatically improved receipts by e-Payment due to Task Force

MOF submitted single e-Payment gateway (B2G) proposal to SOCSO, IRB and EPF for implementation

Mandatory policy direction set for PBTs to provide e-Payment gateway on common public payments such as

KPKT has introduced e-PBT system to encourage local authorities’ usage of e-Payment.

7 agencies (including DBKL) have implemented mobile payment (Mymobile).

Launched PEMUDAH Journalism Competition 2014 on 27 March 2014.Introduced new PEMUDAH logo and PEMUDAH business card for PEMUDAH private sector members.Published PEMUDAH e-Bulletin.Published Doing Business 2015 Booklet.

Launched PEMUDAH Journalism Competition 2013 on 24 June 2013.advertorial and newspaper articles by PEMUDAH members.6 issues of PEMUDAH e-Bulletin.Doing Business 2014 Booklet.

Achievements of

Achievements of


2015

Prohibited slow moving and heavy vehicles from entering city centre between 6.30 a.m. to 9.30 a.m. and from 4.30

p.m. to 7.30 p.m. to ease traffic congestion.2013

Removed 1,340,000 illegal advertisements.

Issued 565 compounds.

Sent 1,299 SMS blast to illegal poster offenders.

Made 1,219 phone numbers termination applications; and 1,047 phone numbers were terminated by SKMM

A breakfast session with 12 ambassadors/representatives hosted by the Mayor of Kuala Lumpur

A media conference to discuss public safety (CCTVc, back streets etc), liveability (Greening of KL/ River of Life

(ROL), Tourism etc) and ease of doing business (One Stop Centre, Construction Permits etc).

Task Force on Illegal Posters was formed on 1st June 2015. The achievements were as follows:

2014 DBKL is introducing an online tracking and submission system called KLTRAX as part of its effort to improve its delivery system.Illegal Posters – vigorous actions taken on illegal posters by DBKL showed vast differences at the boundary of

Kuala Lumpur and Selangor.

Revaluation of assessment rate in Kuala Lumpur for year 2014.

Implementation of KLIS BEST (Kuala Lumpur Integrated Submission Be Efficient, Systematic & Transparent) by

DBKL. This new system will simplify the process of obtaining development approvals from DBKL and help improve

the ranking of Malaysia in the World Bank Ease of Doing Business – Dealing With Construction Permits.

Programme on Repainting of Old Buildings in Kuala Lumpur: A total of 686 buildings had been identified and a total of 517 Notice (Section 74 & 75) issued to the property owners. Enforcement actions on Program Mengecat were

taken until March 2014 covering 5 areas, namely, Bukit Bintang, Jalan Petaling, Jalan Chow Kit, Jalan Tuanku

Abdul Rahman and Leboh Ampang.

Enhanced banking efficiency and customer service for SMEs by simplifying the processes and procedures of loan

application.

Standardisation of key terms of housing loan agreements in both English and Malay Language for principal

amounts of RM500,000 and below.

2013

2014 A code of Business Ethics Malaysia (EPM Code) has been improved to take into account additional policy issues and policies in line with the initiatives of the government to be more comprehensive, structured and relevant to

industry needs.

2015 MCMC drafted an action plan to reduce the number of telecommunications “dropped” calls.

The Government assisted the private sector to change the network from copper to fibre-optic based in order to

increase broadband speed.

MCMC has taken action against service providers that placed misleading advertisements on their websites.

Discussion with the Association of Banks in Malaysia (ABM) and the Bar Council for possible reduction in the number of lawyers required in the conveyancing of sales and purchases of properties .

Communication initiatives, activities co-organized by DBKL and InvestKL are as follows:

Achievements ofKUALA LUMPUR CITY HALL

Achievements ofPRIVATE SECTOR EFFICIENCY




Successfully held ASEAN-OECD Conference and Meetings on GRP.

Attended to 26 enquiries and held 11 top management briefings.

Registered 319 Regulatory Coordinators (RCs).

Conducted 11 hands-on workshops on RIA, received 54 Regulatory Notification Forms, 35 proposals underwent 28

RIA projects and received 7 Regulatory Impact Statements (RIS) from regulators.

2015

Assessments on six completed RIA projects have been carried out. (Those involved were CIDB, MITI, DOSH and

Standards Malaysia).

These compliant assessments will be tabled to National Development Planning Committee for endorsement of

compliance to RIA adequacy criteria.

As at 31 December 2014, there were 53 enquiries attended to, 8 top management briefings, 297 registration of

Regulatory Coordinators (RCs), 17 Hands-On Workshops on RIA conducted, 41 Regulatory Notification Forms

(RNF) received as well as 28 RIA projects and 5 Regulatory Impact Statements submitted.

2014

Published important GRP documents: the National Policy on Development and Implementation of Regulations, the

Best Practice Regulation Handbook and the Quick Reference to Best Practice Regulation Handbook.

Developed the Regulatory Impact Statement (RIS) portal to be used as a repository and reference for all regulators,

stakeholders and interested parties.

180 Regulatory Coordinators (RCs) from 94 ministries and agencies registered with MPC and received training on

Regulatory Impact Analysis (RIA) from OECD.

A Circular on the National Policy on the Development and Implementation of Regulations was issued by the Chief

Secretary to the Government on 15 July 2013.

5 agencies, SPAN, FAMA, SKM, Standards Malaysia and DOSH and 1 Ministry (MITI) were involved in RIA pilot

project to undertake RIA process.

2013

Achievements ofGOOD REGULATORY PRACTICE




Achievements of


Company incorporation processes and procedures are done electronically via the Malaysia Corporate Identity (MyCoID) Gateway of the Companies Commission of Malaysia (SSM). This enables the automatic simultaneous registration of data on the incorporated entity with relevant government agencies.

In 2015, SSM engaged with the World Bank Doing Business to clarify that incorporation involved a single procedure only and could be completed within one day.

In 2015, a Bill is expected to be tabled in Parliament to approve a new Companies’ Act to bring about major reforms to the applications for, and the administration of incorporation, such as the dispensation of the need to appoint a company secretary to prepare for incorporation.

STARTING A BUSINESSON-GOING POLICY INITIATIVES

31



DEALING WITH CONSTRUCTION PERMITSCOMPLETED EFFICIENCY IMPROVEMENTS

System delivery will be enhanced once DBKL’s KL TRAX System, an online system that monitors and

updates the status of construction permit applications from submission to the issuance of Certificate

of Completion and Compliance (CCC), is operated together with OSC 1 Submission.

From 2016, Dealing With Construction Permits will also focus on good practices in construction

regulation that promote the quality of building regulations, quality control before, during and after

construction, liability and insurance regimes, and professional certifications. This is in line with the new

methodology used in the World Bank Doing Business Report.

Improvement through Construction Site Joint Inspection

The Focus Group has simplified and improved the OSC 1 Submission procedures in 2015 by

introducing Joint Inspection at the construction site at the final inspection stage. This Joint Inspection

is applicable only for OSC 1 Submission of small-scale non-residential developments.

StreamlinedProcedures

ProcessTransparency

KL TRAXSystem

32



REQUEST FOR INSPECTION SAME DAY (1 DAY) ACTUAL INSPECTION (1 DAY)

Joint Inspection Activities

WHY JOINT - INSPECTIONREQUEST FOR INSPECTION SEPARATELY (5 DAYS) 30 - 60 DAYS

TNBIWK FIRE

DEPARTMENTDBKL

ACTUALINSPECTIONS

SYABAS

PENGURUSANAIR SELANGOR

SDN BHD

TNBFIRE

DEPARTMENTDBKL

SYABAS

PENGURUSANAIR SELANGOR

SDN BHD

33



GETTING ELECTRICITYON-GOING POLICY INITIATIVES

Tenaga Nasional Berhad (TNB) is improving access to electricity, efficiency of the connection process

and reliability of electricity supply in order to supply electricity connections of world standard in

Malaysia.

TNB Improvement Initiatives

Reliability of Supply

Efficiency

A web page has been set up which provides a bill calculator for residential, commercial and industrial connections to estimate electricity costs based on voltage level and subscribed capacity.

System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index Score (SAIFI) are improved through increased capital investment. (Malaysia scored the maximum under Reliability of Supply and Tariffs Transparency Index in Getting Electricity, Doing Business 2016).

Reduction of costs through improved stakeholder (TNB/local authority/owner/consultant/ project engineer) communications and the use of electronic document management with risk-based resources management. Boost in customers’ energy savings by using an “energy audit calculator” to estimate electricity consumption of electrical appliances. A Transformation Team continually reviews and improves TNB’s internal processes and delivery service so as to respond rigorously to customer feedback and private-sector professionals’ experiences in obtaining electricity.

Transparency

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34

TNB’S Online System for Work Permit Approval Application



risk-based resources management. Boost in customers’ energy savings by using an

Transformation Team continually reviews and improves TNB’s internal processes and

professionals’ experiences in obtaining electricity. The PEMUDAH Focus Group on Getting Electricity (FGGE) proposes to work further with TNB with

emphasis on energy efficiency and the quality of power supply.This will further ease the doing of

business that is dependent on reliable electricity connections and supply.

Online System for Work Permit Approval Application

BEFORE

VS

2008

AFTER

2015

APPLY ONLINE(Semi-online application)

SUBMIT TO KTPAYMENT TO KT

DUAL SIGNATORY

MONITORSTATUS ONLINE

APPLY ONLINE

***MONITORSTATUS ONLINE

SUBMIT ONLINE*PAYMENT ONLINE

**SINGLESIGNATORY

TNB introduced the “Deal from Home” online system for work permit approval application powered by

the TNB Payment Gateway to enhance customers’ experiences through new innovations in obtaining

electricity.

The pilot project in Kuala Lumpur, a breakthrough collaboration between TNB and Kuala Lumpur City

Hall (DBKL), used lean application process and technology, and also introduced a Service Level

Agreement (SLA) Automation by Service, to ensure the compliance of services and shortened the

permit application period. This system was extended to Selangor, Putrajaya and Pulau Pinang.

TNB’S Online System for Work Permit Approval Application

*KT - Kedai Tenaga

35



Simplified and standardised the documentation to be submitted for applications for the transfer of property ownerships or the registration, issuance or transfer of land titles particularly strata titles.

i

ii

REGISTERING PROPERTYCOMPLETED EFFICIENCY IMPROVEMENTS

Shortened the turnaround time for processing applications and decision-making, by implementing more electronic means to move information between applicants and PTG/ PTD offices.

i An online system is being used throughout Peninsular Malaysia to process applications for State Authority’s consent to transfer the ownership of land. This has reduced the process to half the time it used to take ( an average of 30 days instead of the previous 60 ). A web-based 42-item e-Consent form (previously a 74-item manual form) can now be downloaded and submitted online.

ii A Simplification and Standardisation of the Consent Form and the Standard Operating Procedure for Consent have expedited transfers, charging and leases and reduced the number of supporting documents from 40 to between 8 and 19.

iii A Guideline for Data Maintenance of Land Records for Computerised Land Registration System has been put in place to enhance data storage and record - keeping procedures.

The Department of Director General of Lands and Mines (JKPTG) and the Focus Group on Registering Property have:

Recent improvement initiatives undertaken include the following:

An online system is being used throughout Peninsular Malaysia to process applications for State Authority’s consent to transfer land based on the simplified and standardised form and procedures.

Guideline for Data Maintenance of Land Records for Computerised Land Registration System to Enhance Data Storage and Record - keeping Procedures.

User ID control

Password database

Security papers management

Remedy for errors done by Registrar of Titles

36

New Features of Standardised Consent Form

One (1) single form for consent to transfer | charge | lease | sub-lease•

8 - 19 supporting documents to be submitted compared to 40 supporting documents previously

•

42 items to be filled up compared to 74 items previously•

42 days maximum time to process compared to months previously•

One (1) signature required from the applicant•

E-STRATA ini telah diwartakan pada 1 Mac 2012 bagi Hakmilik Pendaftar Negeri Selangor dan 2 Januari 2015 bagi Hakmilik Pentadbir Tanah Negeri Selangor.

Menyeragamkan proses kerja hakmilik strata berkomputer di PTGS dan Sembilan PTD di Negeri Selangor.

Mempercepatkan proses urusniaga dan bukan urusniaga hakmilik strata secara berkomputer di PTGS dan PTD.

Memudahkan PTGS memantau proses dan status hakmilik petak di peringkat 9 Pejabat Tanah Daerah (PTD) di Negeri Selangor.

Meningkatkan pengeluaran geran hakmilik strata berkomputer dengan lebih cekap dalam masa yang singkat.

Memudahkan dan mempercepatkan proses-proses yang dipohon oleh orang awam berkaitan urusan hakmilik strata.

Memudahkan orang awam menyemak status permohonan dan pendaftaran hakmilik strata melalui laman web semakan hakmilik strata di

OBJEKTIF

e-STRATA PENGENALAN

PENGENALAN SISTEMSELAMAT

• JKPTG telah membangunkan Sistem Aplikasi SELAMAT yang dihubungkan dengan SPTB (Sistem Pendaftaran Tanah Berkomputer) bagi mengatasi masalah penipuan dalam transaksi hartanah.

• PTGS dan PTD di Negeri Selangor telah selesai pemasangan dan menggunapakai SELAMAT versi 5.0 bermula Disember 2014.

• Pengguna Sistem SELAMAT adalah terdiri daripada:

i. Orang awam (tuan tanah, pemegang amanah, pemegang surat kuasa wakil dan lain-lain) ii. Wakil Peguam (runner) iii. Peguam iv.Kakitangan PTGS dan PTD yang menggunakan SPTB iaitu di Bahagian Pendaftaran Hakmilik.

• Sistem SELAMAT mengaplikasikan Teknologi Biometrik di dalam urusan pendaftaran hakmilik tanah iaitu yang melibatkan penggunaan Cap Jari dan MyKad dalam pengesahan identiti individu.

• Penggunaan Teknologi Biometrik dan audit trail di dalam SELAMAT dapat membantu pihak PDRM dalam mengesan pesalahlaku yang terlibat dalam kes-kes penipuan di pejabat-pejabat tanah.

1. Mengatasi masalah menentusahkan kesahihan maklumat dalam Borang 14A, suratkuasa wakil dan dokumen pengenalan diri.

2. Mengatasi masalah penipuan dan pemalsuan dokumen hakmilik tanah (geran tanah).

3. Untuk mengekalkan kepercayaan rakyat dan pelabur terhadap pentadbiran tanah dan kerajaan dalam menangani isu-isu penipuan dalam urusan pentadbiran tanah dengan lebih baik dan berkesan.

4. Merekodkan maklumat individu-individu yang berurusan di pejabat untuk rujukan di kemudian hari.

5. Mengatasi kelemahan penggunaan katalaluan.

6. Mengatasi isu dokumen hakmilik tanah dikutip/diambil oleh orang yang tidak dikenali oleh pemilik tanah.

7. Menyimpan maklumat pemohon & mendapatkan pengesahan atau verifikasi secara tepat mengenai kesahihan individu yang hadir semasa siasatan hakmilik hilang dijalankan.

8. Meningkatkan produktiviti kakitangan apabila semua dilakukan secara sistem tidak memerlukan pengesahan secara manual. Menjimatkan kos, masa dan tenaga.

OBJEKTIF

Sistem e-STRATA adalah sistem berasaskan web yang dibangunkan dengan tujuan untuk mengurus proses permohonan hakmilik baru dan pendaftaran urusniaga dan bukan urusniaga hakmilik strata secara berkomputer di Pejabat Tanah dan Galian Selangor (PTGS) dan Pejabat Tanah dan Daerah (PTD) di Negeri Selangor.

Sistem e-STRATA merupakan hasil kajian dan inisiatif daripada kakitangan Pejabat Tanah dan Galian Selangor sendiri. Sistem ini dibangunkan secara berperingkat-peringkat mengikut keperluan pengguna di Bahagian Hakmilik Strata dan Pindaan Akta Hakmilik Strata.

Pada 22 Februari 2012, modul Cetakan Borang SK, Carian Rasmi dan Carian Persendirian Hakmilik Strata telah dilaksanakan di kaunter Hakmilik Strata PTGS. Pada tahun 2013, sistem e-Strata telah diperluaskan modulnya kepada Modul Cetak Geran Hakmilik Strata, Modul Pendaftaran Unrusniaga dan Bukan Urusniaga secara berkomputer. Sistem ini telah diperluaskan penggunaannya di seluruh PTD bermula 2 Januari 2015 selaras pewartaan Sistem e-STRATA ini oleh Jabatan Peguam Negara 1985 (A318) dan Kanun Tanah Negara 1965.

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•

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•

•

•



Simplified and standardised the documentation to be submitted for applications for the transfer of property ownerships or the registration, issuance or transfer of land titles particularly strata titles.

i

ii Shortened the turnaround time for processing applications and decision-making, by implementing more electronic means to move information between applicants and PTG/ PTD offices.

i An online system is being used throughout Peninsular Malaysia to process applications for State Authority’s consent to transfer the ownership of land. This has reduced the process to half the time it used to take ( an average of 30 days instead of the previous 60 ). A web-based 42-item e-Consent form (previously a 74-item manual form) can now be downloaded and submitted online.

ii A Simplification and Standardisation of the Consent Form and the Standard Operating Procedure for Consent have expedited transfers, charging and leases and reduced the number of supporting documents from 40 to between 8 and 19.

iii A Guideline for Data Maintenance of Land Records for Computerised Land Registration System has been put in place to enhance data storage and record - keeping procedures.

The Department of Director General of Lands and Mines (JKPTG) and the Focus Group on Registering Property have:

Recent improvement initiatives undertaken include the following:

Authority’s consent to transfer land based on the simplified and standardised form and procedures.

Guideline for Data Maintenance of Land Records for Computerised Land Registration System to Enhance Data Storage and Record - keeping Procedures.

User ID control

Password database

Security papers management

Remedy for errors done by Registrar of Titles

Standardised Consent Form

New Features of Standardised Consent Form

One (1) single form for consent to transfer | charge | lease | sub-lease•

8 - 19 supporting documents to be submitted compared to 40 supporting documents previously

•

42 items to be filled up compared to 74 items previously•

42 days maximum time to process compared to months previously•

One (1) signature required from the applicant•

E-STRATA ini telah diwartakan pada 1 Mac 2012 bagi Hakmilik Pendaftar Negeri Selangor dan 2 Januari 2015 bagi Hakmilik Pentadbir Tanah Negeri Selangor.

Menyeragamkan proses kerja hakmilik strata berkomputer di PTGS dan Sembilan PTD di Negeri Selangor.

Mempercepatkan proses urusniaga dan bukan urusniaga hakmilik strata secara berkomputer di PTGS dan PTD.

Memudahkan PTGS memantau proses dan status hakmilik petak di peringkat 9 Pejabat Tanah Daerah (PTD) di Negeri Selangor.

Meningkatkan pengeluaran geran hakmilik strata berkomputer dengan lebih cekap dalam masa yang singkat.

Memudahkan dan mempercepatkan proses-proses yang dipohon oleh orang awam berkaitan urusan hakmilik strata.

Memudahkan orang awam menyemak status permohonan dan pendaftaran hakmilik strata melalui laman web semakan hakmilik strata di http://strata2u.selangor.gov.my/

OBJEKTIF

e-STRATA PENGENALAN

PENGENALAN SISTEMSELAMAT

• JKPTG telah membangunkan Sistem Aplikasi SELAMAT yang dihubungkan dengan SPTB (Sistem Pendaftaran Tanah Berkomputer) bagi mengatasi masalah penipuan dalam transaksi hartanah.

• PTGS dan PTD di Negeri Selangor telah selesai pemasangan dan menggunapakai SELAMAT versi 5.0 bermula Disember 2014.

• Pengguna Sistem SELAMAT adalah terdiri daripada:

i. Orang awam (tuan tanah, pemegang amanah, pemegang surat kuasa wakil dan lain-lain) ii. Wakil Peguam (runner) iii. Peguam iv.Kakitangan PTGS dan PTD yang menggunakan SPTB iaitu di Bahagian Pendaftaran Hakmilik.

• Sistem SELAMAT mengaplikasikan Teknologi Biometrik di dalam urusan pendaftaran hakmilik tanah iaitu yang melibatkan penggunaan Cap Jari dan MyKad dalam pengesahan identiti individu.

• Penggunaan Teknologi Biometrik dan audit trail di dalam SELAMAT dapat membantu pihak PDRM dalam mengesan pesalahlaku yang terlibat dalam kes-kes penipuan di pejabat-pejabat tanah.

1. Mengatasi masalah menentusahkan kesahihan maklumat dalam Borang 14A, suratkuasa wakil dan dokumen pengenalan diri.

2. Mengatasi masalah penipuan dan pemalsuan dokumen hakmilik tanah (geran tanah).

3. Untuk mengekalkan kepercayaan rakyat dan pelabur terhadap pentadbiran tanah dan kerajaan dalam menangani isu-isu penipuan dalam urusan pentadbiran tanah dengan lebih baik dan berkesan.

4. Merekodkan maklumat individu-individu yang berurusan di pejabat untuk rujukan di kemudian hari.

5. Mengatasi kelemahan penggunaan katalaluan.

6. Mengatasi isu dokumen hakmilik tanah dikutip/diambil oleh orang yang tidak dikenali oleh pemilik tanah.

7. Menyimpan maklumat pemohon & mendapatkan pengesahan atau verifikasi secara tepat mengenai kesahihan individu yang hadir semasa siasatan hakmilik hilang dijalankan.

8. Meningkatkan produktiviti kakitangan apabila semua dilakukan secara sistem tidak memerlukan pengesahan secara manual. Menjimatkan kos, masa dan tenaga.

OBJEKTIF

Sistem e-STRATA adalah sistem berasaskan web yang dibangunkan dengan tujuan untuk mengurus proses permohonan hakmilik baru dan pendaftaran urusniaga dan bukan urusniaga hakmilik strata secara berkomputer di Pejabat Tanah dan Galian Selangor (PTGS) dan Pejabat Tanah dan Daerah (PTD) di Negeri Selangor.

Sistem e-STRATA merupakan hasil kajian dan inisiatif daripada kakitangan Pejabat Tanah dan Galian Selangor sendiri. Sistem ini dibangunkan secara berperingkat-peringkat mengikut keperluan pengguna di Bahagian Hakmilik Strata dan Pindaan Akta Hakmilik Strata.

Pada 22 Februari 2012, modul Cetakan Borang SK, Carian Rasmi dan Carian Persendirian Hakmilik Strata telah dilaksanakan di kaunter Hakmilik Strata PTGS. Pada tahun 2013, sistem e-Strata telah diperluaskan modulnya kepada Modul Cetak Geran Hakmilik Strata, Modul Pendaftaran Unrusniaga dan Bukan Urusniaga secara berkomputer. Sistem ini telah diperluaskan penggunaannya di seluruh PTD bermula 2 Januari 2015 selaras pewartaan Sistem e-STRATA ini oleh Jabatan Peguam Negara 1985 (A318) dan Kanun Tanah Negara 1965.

•

•

•

•

•

•

37



REGISTERING PROPERTYON-GOING POLICY INITIATIVES

The Department of Director General of Lands and Mines (JKPTG) is reviewing the National Land Code

1965, Land Acquisition Act 1960 and Strata Titles Act 1985. This review aims to raise the efficiency

and upgrade the capability of the land administration delivery system to meet business needs,

globalisation challenges and accommodate more electronic features and facilities to be incorporated

in land administration.

38

SSM and BNM have conducted a preliminary study to assess thecurrent environment with regard to these possible facilities.

A data exchange to inter-link different collateral registries.

The facilitation and improvement of the governance of the credit reporting process in line with international best practices and the legal provisions that uphold the confidentiality of personalised information.

A collateral registry in operation for both incorporated and unincorporated entities which are

unified by the types of assets with an electronic database indexed by debtors’ names

An integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of movable assets as

security interest



The Focus Group on Getting Credit, in collaboration with Companies Commission of Malaysia (SSM) and

Bank Negara Malaysia (BNM), is considering the feasibility of establishing the following facilities to

enhance access to financing as well as to protect the interests of financiers in Malaysia:

GETTING CREDITON-GOING POLICY INITIATIVES

ACCESS TO

FINANCING

SSM and BNM have conducted a preliminary study to assess thecurrent environment with regard to these possible facilities.

Reform Initiatives Under Consideration

A data exchange to inter-link different collateral registries.

The facilitation and improvement of the governance of the credit reporting process in line with international best practices and the legal provisions that uphold the confidentiality of personalised information.

A collateral registry in operation for both incorporated and unincorporated entities which are

unified by the types of assets with an electronic database indexed by debtors’ names

An integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of movable assets as

security interest

39



Effective April 1, 2015, the GST replaced the Sales Tax and may improve Malaysia’s performance in

Paying Taxes in the World Bank Doing Business Report due to the reduced number of tax payments

to be made in a year.

PAYING TAXESON-GOING EFFICIENCY INITIATIVES

10000

0

20000

30000

40000

50000

60000

2014 2015

Tran

sact

ion

Year

51,075 50,097

EPF Payment Transactions at Kiosks

The on-going efficiency initiatives to improve Paying Taxes

are focussed on making available comprehensive e-services

for filing and payments to all tax authorities.

Greater awareness and use of more electronic services will

raise the efficiency of filing and payments of taxes and

contributions and lower administrative burdens.

The Employees’ Provident Fund’s (EPF) and the Inland

Revenue Board’s (IRB) fully-fledged e-filing and e-payment

mechanisms via their portals enable Electronic Transfer Filing

of taxes and payments to be made within the same system

interface.

More than 50,000 EPF payment transactions were made at

kiosks at 12 EPF office locations both in 2014 and 2015.

Goods And Services Tax (GST)

40

Manufacturers in the Port Klang Free Zone (PKFZ) face challenges in the multi-phase movements of their dutiable goods for value-added activities to other distant locations and their subsequent return to the PKFZ.

Under this initiative, MPC, Royal Malaysian Customs Department (RMCD), MITI, Malaysian Investment Development Authority (MIDA), together with Baker Hughes (M) Sdn. Bhd. (BH), a top tier service provider in the oil and gas industry, jointly developed a RURB-based solution to address these challenges and increase the efficiency of movements of dutiable goods into and from the PKFZ. This has resulted in a savings of RM1.5 million a year in compliance costs for the company and reduction in time by 90 per cent from what was previously expended on movement of goods.

The Focus Group on Trading Across Borders (FGTAB), jointly chaired by the Ministry of International Trade and Industry (MITI) and the Federation of Malaysian Manufacturers (FMM), addresses issues relating to mercantile exports and imports and introduces and builds on initiatives to provide solutions to improve the conduct of international trade in Malaysia. This is in line with the status of Malaysia being the 17th largest exporter and 18th largest importer globally in 2014.

The initiatives undertaken by FGTAB to facilitate trade and boost trading activities by providing a conducive business enviroment are driven by the methodology of Reducing Unnecessary Regulatory Burden (RURB).



10000

0

20000

30000

40000

50000

60000

2014 2015

Tran

sact

ion

Year

51,075 50,097

EPF Payment Transactions at Kiosks

RURB: Movement of Free Zone Dutiable Goods for Value Added Activities - A New Customs Procedure to Improve Ease of Doing Business (RURB Initiative).

Manufacturers in the Port Klang Free Zone (PKFZ) face challenges in the multi-phase movements of their dutiable goods for value-added activities to other distant locations and their subsequent return to the PKFZ.

Under this initiative, MPC, Royal Malaysian Customs Department (RMCD), MITI, Malaysian Investment Development Authority (MIDA), together with Baker Hughes (M) Sdn. Bhd. (BH), a top tier service provider in the oil and gas industry, jointly developed a RURB-based solution to address these challenges and increase the efficiency of movements of dutiable goods into and from the PKFZ. This has resulted in a savings of RM1.5 million a year in compliance costs for the company and reduction in time by 90 per cent from what was previously expended on movement of goods.

TRADING ACROSS BORDERSCOMPLETED EFFICIENCY IMPROVEMENTS

The Focus Group on Trading Across Borders (FGTAB), jointly chaired by the Ministry of International Trade and Industry (MITI) and the Federation of Malaysian Manufacturers (FMM), addresses issues relating to mercantile exports and imports and introduces and builds on initiatives to provide solutions to improve the conduct of international trade in Malaysia. This is in line with the status of Malaysia being the 17th largest exporter and 18th largest importer globally in 2014.

The initiatives undertaken by FGTAB to facilitate trade and boost trading activities by providing a conducive business enviroment are driven by the methodology of Reducing Unnecessary Regulatory Burden (RURB).

ExportImport

41



SUPPLIERS(OVERSEAS)

Manufacturing

ServiceCompany (LMW)

DrilmacoMeiban

Singapore

Johor Bahru1. BH orders goods (Purchase Order)

2. Supplier delivers good to BH

3. BH subcontracts to SME

4. SME delivers goods to BH

Before Process Improvement

After Process Improvement

Improved efficiency in cargo transportation. RMCD has decided to implement this initiative as a new Customs procedure to all free zone companies for all types of industries.Boosts the competitiveness of free zone companies and enables huge savings (estimated RM150 million a year) in compliance and time.

Greater efficiency, increased productivity and significant operational cost savings for industries.

Overall Positive Outcomes of RURB Initiative

BH orders goods (Purchase Order)

Supplier delivers

goods to

subcontractor (on

behalf of BH)

SUPPLIERS

SingaporeCus

tom

s

PKFZ

Customs

2

1

Related documents

for exportSME delivers goods to BH 3

ManufacturingService

Company(LMW)

DrilmacoMeiban

Johor Bahru

42

Schlumberger Asia CRE, the world’s leading supplier of technology, integrated project management and information solutions to the oil and gas industry, faced issues in its exporting of radioactive cargoes via the Kuala Lumpur International Airport (KLIA).

Businesses experienced an average turnaround time of between 5 and 10 working days before a radioactive cargo consignment could be transported out via KLIA.

Schlumberger, MPC, MITI, Department of Civil Aviation (DCA) and Atomic Energy Licensing Board (AELB) collaborated to improve the government service delivery for issuing permits for radioactive goods. AELB and DCA streamlined their internal processes after holding consultations with stakeholders.

Reduces the average time taken to approve radioactive goods permits by 50 per cent.1

Improves competitiveness of businesses operating from Malaysia.2

Promotes KLIA as a key regional hub for air cargo operations.3



(OVERSEAS)

ServiceCompany (LMW)

DrilmacoMeiban

Singapore

Johor Bahru

Improved efficiency in cargo transportation. RMCD has decided to implement this initiative as a new Customs procedure to all free zone companies for all types of industries.Boosts the competitiveness of free zone companies and enables huge savings (estimated RM150 million a year) in compliance and time.

Greater efficiency, increased productivity and significant operational cost savings for industries.

SingaporeCus

tom

s

DrilmacoMeiban

Johor Bahru

Schlumberger Asia CRE, the world’s leading supplier of technology, integrated project management and information solutions to the oil and gas industry, faced issues in its exporting of radioactive cargoes via the Kuala Lumpur International Airport (KLIA).

Businesses experienced an average turnaround time of between 5 and 10 working days before a radioactive cargo consignment could be transported out via KLIA.

Schlumberger, MPC, MITI, Department of Civil Aviation (DCA) and Atomic Energy Licensing Board (AELB) collaborated to improve the government service delivery for issuing permits for radioactive goods. AELB and DCA streamlined their internal processes after holding consultations with stakeholders.

Obtaining Permit for Radioactive Goods (RURB Initiative)

Overall Positive Outcomes of RURB Initiative

Reduces the average time taken to approve radioactive goods permits by 50 per cent.1

Improves competitiveness of businesses operating from Malaysia.2

Promotes KLIA as a key regional hub for air cargo operations.3

43



TradeFacilitation2

Infrastructure& FreightDemand

3

The Logistics andTrade Facilitation Masterplan

2015-2020 launched on16 March 2015

Human CapitalDevelopment4

InstitutionalMechanisms& Regulations

1

2015-2020

LOGISTICS &TRADE

FACILITATIONMASTERPLAN

The Logistics and Trade Facilitation Masterplan 2015-2020, launched by YAB Prime Minister on 16 March 2015, sets out five strategic shifts and twenty-one action items to strengthen institutional mechanisms and regulations, trade facilitation, infrastructure and freight demand, and human capital development. Working closely with the Ministry of Transport, FGTAB’s efforts to reduce time and expenses for inland transportation complement the Masterplan in enhancing inland transportation efficiency, improving last-mile connectivity at Port Klang and addressing bottlenecks at the Padang Besar Terminal.

The Masterplan will be implemented in three phases to address bottlenecks (2015-2016), to promote domestic growth (2016-2019), and to create a regional footprint (2020 and beyond). To ensure implementation, the initiatives proposed in the Masterplan will form part of the Eleventh Malaysia Plan, 2016-2020. The action items are in tandem with the new methodology introduced for Trading Across Borders in World Bank Doing Business Report and are targeted to improve Malaysia’s performance.

ICT - drivenInnovation5

44



TradeFacilitation2

Infrastructure& FreightDemand

3

The Logistics andTrade Facilitation Masterplan

2015-2020 launched on16 March 2015

Human CapitalDevelopment4

InstitutionalMechanisms& Regulations

1

2015-2020

LOGISTICS &TRADE

FACILITATIONMASTERPLAN

The Logistics and Trade Facilitation Masterplan 2015-2020, launched by YAB Prime Minister on 16 March 2015, sets out five strategic shifts and twenty-one action items to strengthen institutional mechanisms and regulations, trade facilitation, infrastructure and freight demand, and human capital development. Working closely with the Ministry of Transport, FGTAB’s efforts to reduce time and expenses for inland transportation complement the Masterplan in enhancing inland transportation efficiency, improving last-mile connectivity at Port Klang and addressing bottlenecks at the Padang Besar Terminal.

The Masterplan will be implemented in three phases to address bottlenecks (2015-2016), to promote domestic growth (2016-2019), and to create a regional footprint (2020 and beyond). To ensure implementation, the initiatives proposed in the Masterplan will form part of the Eleventh Malaysia Plan, 2016-2020. The action items are in tandem with the new methodology introduced for Trading Across Borders in World Bank Doing Business Report and are targeted to improve Malaysia’s performance.

ICT - drivenInnovation5

ENFORCING CONTRACTSON-GOING POLICY INITIATIVES

The Focus Group on Enforcing Contracts is undertaking initiatives to enhance:

The professional capability,

integrity and effectiveness

of the Court’s enforcement

agents

The efficiency, greater

accessibility and

transparency in the judicial

auction processes

The objectives of initiatives undertaken are to:

ENFORCEMENT

1 2

Review and reform

standard operating

procedures, practices

and records of

executions made under

Writ Seizure and Sale by

the Court’s enforcement

agency

1

Develop standards for

appraisal of seized

properties

3Set up a task force in

collaboration with the Office

of the Registrar of Lower

Courts of Malaya to draft a

Practice Direction with

regard to the payment of a

deposit upon an application

being made for the

enforcement of a judgement

4

Review and reform the

Bailiff’s role and

functions

2

45



The development and use of a judicial e-bidding system known as eLelong, the result of consultations between the Malaysian Bar, Attorney General’s Chamber, Association of Banks in Malaysia, Association of Islamic Banking Institutions Malaysia, and state auctioneer associations is scheduled to have its soft launch in September 2016. The objectives are to:

JUDICIAL AUCTION e-BIDDING SYSTEM ( eLELONG )

Review legislation,

procedures and

administrative orders

1

Collaborate with

stakeholders to

establish policies and

standard operating

procedures

2

Draft a legislative

framework and an

eLelong system

process flow

3

Auction30km

3

4

5

21

Bid

de

rs RM

GenuineBuyers

Unscrupulous auctioneers can play favourites with certain bidders

Syndicates can pay off genuine buyers to withdraw as bidders

Fewer bidders are able to participateBidders must travel to the various auctions

By being present, they risk intimidation by syndicate members

Some Downsides to the Current Court Auction Process

The current scenario of auction processes in High Court of Malaya

46

The time, cost and outcome of insolvency proceedings and the strength of the legal framework of liquidation and reorganisation proceedings are assessed under Resolving Insolvency. The rehabilitation of financially-distressed companies or an orderly and expeditious liquidation to maximise recovery will bolster investor confidence, attract investments and also safeguard lenders’ interests.

A new Companies Bill is expected to be tabled in Parliament for its approval in 2016 to reform corporate insolvency law provisions in the form of corporate rescue mechanisms known as Judicial Management and Corporate Voluntary Arrangement. The Focus Group on Resolving Insolvency will assist in raising public awareness of the new provisions and in facilitating their smooth implementation.



The development and use of a judicial e-bidding system known as eLelong, the result of consultations between the Malaysian Bar, Attorney General’s Chamber, Association of Banks in Malaysia, Association of Islamic Banking Institutions Malaysia, and state auctioneer associations is scheduled to have its soft launch in September 2016. The objectives are to:

JUDICIAL AUCTION e-BIDDING SYSTEM ( eLELONG )

The current scenario of auction processes in High Court of Malaya

RESOLVING INSOLVENCYON-GOING POLICY INITIATIVES

The time, cost and outcome of insolvency proceedings and the strength of the legal framework of liquidation and reorganisation proceedings are assessed under Resolving Insolvency. The rehabilitation of financially-distressed companies or an orderly and expeditious liquidation to maximise recovery will bolster investor confidence, attract investments and also safeguard lenders’ interests.

A new Companies Bill is expected to be tabled in Parliament for its approval in 2016 to reform corporate insolvency law provisions in the form of corporate rescue mechanisms known as Judicial Management and Corporate Voluntary Arrangement. The Focus Group on Resolving Insolvency will assist in raising public awareness of the new provisions and in facilitating their smooth implementation.

47



LABOUR MARKET REGULATIONON-GOING POLICY INITIATIVES

The Ministry of Human Resources (MOHR) is reviewing key labour legislations namely the Employment Act 1955, Industrial Relations Act 1967 and Trade Unions Act 1959 and 5 other labour legislations, as well as inputs received from stakeholders during engagement sessions as required under the Trans-Pacific Partnership Agreement (TPPA).

The Focus Group on Labour Market Regulation and its Task Forces have initiated the following to improve the welfare of local and foreign workers and to reduce the dependency on foreign workers.

Guidelines issued on the minimum standard of accommodation for foreign workers

Proposal initiated to establish an Employment Insurance System (EIS) as a social safety net for workers who have lost their jobs

Task Force on Automation and Reduction of Foreign Workers

48

at the nation’s



The Ministry of Human Resources (MOHR) is reviewing key labour legislations namely the Employment Act 1955, Industrial Relations Act 1967 and Trade Unions Act 1959 and 5 other labour legislations, as well as inputs received from stakeholders during engagement sessions as required under the Trans-Pacific Partnership Agreement (TPPA).

The Focus Group on Labour Market Regulation and its Task Forces have initiated the following to improve the welfare of local and foreign workers and to reduce the dependency on foreign workers.

Guidelines issued on the minimum standard of accommodation for foreign workers

Proposal initiated to establish an Employment Insurance System (EIS) as a social safety net for workers who have lost their jobs

Task Force on Automation and Reduction of Foreign Workers

The Ministry of Home Affairs (MOHA) has targetted to reduce the index crime rate by 5 per cent annually as Malaysia approaches 2020. In 2015, MOHA and the Focus Group on Safety and Security enhanced safety and security by implementing the following initiatives:

SAFETY AND SECURITYCOMPLETED EFFICIENCY IMPROVEMENTS

Engagement between local

authorities and the public to curb social problems

Police presence at community,

business and worship areas

Strengthening the NBOS Certified

Security Guards(CSG)

Programme

Blue Ocean Policing

surveillance and joint patrols by

Royal Malaysian Police and

Malaysian Armed Forces

Improved biometric vetting of foreigners at KLIA to prevent

illegal entry

Strengthening security and enforcement

at the nation’s border areas

Reducing smuggling activities

Combatting drug trafficking

NGO and private sector engagements

for crime prevention

My Beautiful Neighbourhood

Programme between MOHA

and local communities for

safety and security awareness

49



Key Performance Indicators (KPI) on Safety and Security 2015

Area TargetReduction

ReductionAchievement

Reduction of Crime Index

Reduction of House Break-Ins

Reduction of Street Crimes

5%

10%

15%

10.1%

6.3%

16.9%

50

Effective 15 June 2015, the amended Housing Development (Control & Licensing) Act 1966 (Act 118) was enforced concurrently with the Strata Management Act 757 and Strata Title Act 318 to curb the abandoning of housing projects. The following are some of the initiatives undertaken:

Prosecute errant housing developers with fines of between RM250,000 and RM500,000 or an imprisonment term not exceeding 3 years or both upon conviction.

Require applicants for a developer’s licence to be financially stable.



Key Performance Indicators (KPI) on Safety and Security 2015 ABANDONED HOUSING PROJECTSCOMPLETED POLICY IMPROVEMENTS

Effective 15 June 2015, the amended Housing Development (Control & Licensing) Act 1966 (Act 118) was enforced concurrently with the Strata Management Act 757 and Strata Title Act 318 to curb the abandoning of housing projects. The following are some of the initiatives undertaken:

Prosecute errant housing developers with fines of between RM250,000 and RM500,000 or an imprisonment term not exceeding 3 years or both upon conviction.

Require applicants for a developer’s licence to be financially stable.

MONITORINGACTION

INITIATIVES

The National Housing Department monitors the progress work at abandoned projects through regular site visits and via the quarterly submission of Form 7F by developers.

A list of blacklisted developers is posted on the website of the Ministry of Urban Wellbeing, Housing and Local Government (KPKT).

51



Between 2009 and 2015, a total of 226 housing projects involving 61,009 houses were declared

abandoned under the Housing Development (Control & Licensing) Act 1966 (Act 118).

The Task Force on Abandoned Housing Projects has revived 178 projects, i.e. 79 per cent of the total,

including the 15 projects revived in 2015. Seventeen projects are being constructed while 31 projects

are at the planning stage.

Current New TotalYear

Number of Projects

Planning Construction Completion

144 4 148

133 13 146

110 6 116

84 11 95

60 27 87

57 10 67

52 11 63

2009

2010

2011

2012

2013

2014

2015

87 (59%)

50 (34%)

22 (19%)

9 (9%)

24 (28%)

32 (48%)

31 (49%)

46 (31%)

60 (41%)

62 (53%)

51 (54%)

33 (38%)

20 (30%)

17 (27%)

15 (10%)

36 (25%)

32 (28%)

35 (37%)

30 (34%)

15 (22%)

15 (24%)

Progress

ABANDONED HOUSING PROJECTSCOMPLETED EFFICIENCY IMPROVEMENTS

LOCATION

KM.

OFFERS

$

BUYORRENT

ARE YOU LOOKING FOR A HOME?

52

Eliminating unnecessary regulations, rules and compliance costs in the delivery systems of Federal

Ministries, agencies and state and local authorities that hamper the ease in doing business

Creating new value-added services by government institutions and local authorities

The Focus Group on Business Process Re-Engineering in Business Licensing (FGBPR) targets:

The Implementation Coordination Unit (ICU) of the Prime Minister’s Department, the Modernisation Administrative and Management Planning Unit (MAMPU) and MPC are spearheading this initiative.

System efficiencies

Eliminating overlapping requirements by different licensing authorities for better coordination

Collecting better information & achieving a clearer understanding about varying impact of licences on different businesses to see how businesses best comply with regulations

Improving local authorities’ online portal information on how to comply with requirements for approval of licence applications

Providing more flexible regulatory treatment or exemptions for businesses

Shortening work cycle by improving work systems, eliminating non value-added activities and standardising procedures

Eliminating non-relevant rules and regulations; Compositing an application form based on Business Premises and Advertising Licence, Hawker Licence & Business Permit to shorten time to submit, process & approve licence applications

Developing a Business Licensing Manual to provide clear guidelines for business licence applications

Simplifying and expediting licence applications and submissions, modernising the processing and approval of applications and the enforcement of business regulations go towards building a sound regulatory environment that facilitates the ease in doing business as well as ensures orderly business activities and growth.

In 2015, the FGBPR helped standardise and streamline business licensing operations at the local authority level by:



Eliminating unnecessary regulations, rules and compliance costs in the delivery systems of Federal

Ministries, agencies and state and local authorities that hamper the ease in doing business 1

Creating new value-added services by government institutions and local authorities 2

BUSINESS PROCESS RE-ENGINEERINGIN BUSINESS LICENSINGCOMPLETED EFFICIENCY IMPROVEMENTS

The Focus Group on Business Process Re-Engineering in Business Licensing (FGBPR) targets:

The Implementation Coordination Unit (ICU) of the Prime Minister’s Department, the Modernisation Administrative and Management Planning Unit (MAMPU) and MPC are spearheading this initiative.

Modernising Business Licensing (MBL) Initiative to Reform Licensing System

ObjectivesEnhancements

System efficiencies Reduce number of licences

Review & revise licence approvalprocess & procedures

Reduce regulatory burdenReview licence relevancy

Quality new licences

Accessibility

Transparency

Public servicedelivery

Expected Outcomes

Productivity

Savings

GRP in rule-making

Transparency inlicence administration

Eliminating overlapping requirements by different licensing authorities for better coordination

Collecting better information & achieving a clearer understanding about varying impact of licences on different businesses to see how businesses best comply with regulations

Improving local authorities’ online portal information on how to comply with requirements for approval of licence applications

Providing more flexible regulatory treatment or exemptions for businesses

Shortening work cycle by improving work systems, eliminating non value-added activities and standardising procedures

Eliminating non-relevant rules and regulations; Compositing an application form based on Business Premises and Advertising Licence, Hawker Licence & Business Permit to shorten time to submit, process & approve licence applications

Developing a Business Licensing Manual to provide clear guidelines for business licence applications

Simplifying and expediting licence applications and submissions, modernising the processing and approval of applications and the enforcement of business regulations go towards building a sound regulatory environment that facilitates the ease in doing business as well as ensures orderly business activities and growth.

In 2015, the FGBPR helped standardise and streamline business licensing operations at the local authority level by:

53



The Task Force on Implementation of e-Payment Facilities works with the Ministry of Finance (MOF)

agencies of EPF, IRB and RMCD to roll-out more e-Payment facilities for the convenience of

contributors and taxpayers as well as raise the efficiency of revenue collection and lower

administrative and compliance costs.

Utilisation of e-Payments was recorded at 36 per cent in 2015 amongst 36 selected Federal Agencies

including the Royal Malaysian Customs Department (RMCD), Immigration Department, Road

Transport Department and Royal Malaysian Police. A total of 91 mobile payment services were also

made available to the public.

Promoting Greater Use of e-Payment Facilities

MAMPU awards the Malaysia Trustmark for Public Sector (MTSA) as a form of a trust seal that is

displayed on the online website of a public sector e-Payment service provider to certify the security

worthiness of information provided in payment transactions in order to raise users’ confidence with the

service. As at 31 December 2015, 20 government agencies’ portals providing 22 applications have

been awarded the MTSA.

e-Payment Strategic Plan for the Public Sector (2016 – 2020)

This plan is expected to be launched by 2016 to guide the further development and increased

provision of e-Payment facilities.

A list of e-Payment services by the agencies, state agencies, GLCs, local authorities and public

universities can be viewed at the PEMUDAH Portal. For details, please log on to:

IMPLEMENTATION OF e-PAYMENT FACILITIESCOMPLETED EFFICIENCY IMPROVEMENTS

Agencies/local 2015 (2014)Authorities/Institutions Number e-Payment Services Implemented

Federal Agencies 135 324GLCs 10 12State Agencies 110 119Public Universities 17 58PBTs 150 229Total 422 (402) 742 (712)

www.pemudah.gov.my

54

DBKL’s Task Force on Illegal Posters, established on 1 June 2015, has reduced the proliferation of unsightly outdoor illegal advertisement posters in Kuala Lumpur, thereby ensuring that the environs, cleanliness and aesthetics reflect the world standard metropolis that Kuala Lumpur is. The anti-illegal advertisement posters programme has made the following impact:

Enforcing Agency Enforcement Results

DBKL Petty Traders Licensing 1.34 million illegal posters removed & Development Department in 2015.Alam Flora Sdn. Bhd. DBKL Enforcement Department Short message service (SMS) blasting of caution to offenders that public advertisements in Kuala Lumpur are regulated under the Advertisement Bye-Laws (Federal Territories) 1982 and offenders are liable to one-year imprisonment or a fine not exceeding RM2,000 or both.

Royal Malaysian Police Compound fines issued.

Malaysian Communications Termination of telephone numbers of & Multimedia Commission and offenders. Telephone Companies.



KUALA LUMPUR CITY HALL (DBKL)COMPLETED EFFICIENCY IMPROVEMENTS

DBKL’s Task Force on Illegal Posters, established on 1 June 2015, has reduced the proliferation of unsightly outdoor illegal advertisement posters in Kuala Lumpur, thereby ensuring that the environs, cleanliness and aesthetics reflect the world standard metropolis that Kuala Lumpur is. The anti-illegal advertisement posters programme has made the following impact:

Enforcing Agency Enforcement Results

DBKL Petty Traders Licensing 1.34 million illegal posters removed & Development Department in 2015.Alam Flora Sdn. Bhd. DBKL Enforcement Department Short message service (SMS) blasting of caution to offenders that public advertisements in Kuala Lumpur are regulated under the Advertisement Bye-Laws (Federal Territories) 1982 and offenders are liable to one-year imprisonment or a fine not exceeding RM2,000 or both.

Royal Malaysian Police Compound fines issued.

Malaysian Communications Termination of telephone numbers of & Multimedia Commission and offenders. Telephone Companies.

DBKL Facilitating Development ActivitiesThe Kuala Lumpur Integrated Submission Be Efficient, Systematic & Transparent (KLIS BEST) System

is used to obtain development approvals. The KL Trax Online Tracking and Submission System is

used to process and approve construction permit applications.

DBKL Enhancing Quality City LivingVehicular traffic flow leading into and exiting from Kuala Lumpur and within the city roads is being

improved to ease traffic congestion by implementing better traffic management measures including

acceleration lanes along Jalan Sungei Besi, the convergence of Jalan Tun Razak with the MEX

Highway and with Jalan Pahang, Jalan Kuching, Jalan Ampang, Jalan Segambut and the Middle Ring

Road 2 (MRR2).

DBKL tow trucks are deployed at strategic locations to tow away motor vehicles parked illegally or

broken down so as to restore smooth traffic flows.

55



The Focus Group on Private Sector Efficiency and Accountability Towards Consumerism addresses a

diverse range of business-related issues that concern consumers’ rights and interests. The following

are some issues that have been dealt with/on-going:

PRIVATE SECTOR EFFICIENCY ANDACCOUNTABILITY TOWARDS CONSUMERISMCOMPLETED EFFICIENCY IMPROVEMENTS

1MCMC drafted an action plan to reduce the number of telecommunications “dropped” calls

2The Government assisted the private sector to change the network from copper to fibre-optic based in order to increase broadband speed

3MCMC acted against service providers that placed misleading advertisements on their websites

4The Association of Banks in Malaysia and the Bar Council are in discussion on a reduction in the number of lawyers required in the conveyancing of sales and purchases of properties

5BNM, LIAM, PIAM and other relevant bodies are in discussion to reduce the number of procedures that need to be complied with by medical insurance policyholders before admission to a hospital

56



GOOD REGULATORY PRACTICE (GRP)IN MALAYSIA

The National Policy on the Development and Implementation of Regulations (NPDIR) guides the

improvement of the regulatory regime in Malaysia through the adoption of best regulatory

management practices as implemented in the Organisation for Economic Cooperation and

Development (OECD) countries.

Gaps in the rule-making process that result in ineffective regulations and unnecessary regulatory

burdens on industries and businesses are identified and then replaced with Good Regulatory

Practices (GRP) that have undergone Regulatory Impact Analysis (RIA).

A dynamic and responsive regulatory framework eliminates cumbersome and costly bureaucratic

procedures that discourage investments, increase the costs of doing business and adversely affect

returns on investments. Such a framework supports Malaysia’s aspiration to become a progressive,

high-income nation with a competitive economy that enables sustainable development.

MPC is the key coordinating agency to propagate , implement and sustain GRP initiatives under the

NPDIR among the ministries and agenciest to achieve greater productivity and competitiveness. MPC

has set up a network of Regulatory Coordinators to assist in implementing the initiatives.

GRP implementation is to be strengthened by institutionalising GRP into the planning and

decision-making processes, as well as the performance indicators within the Government.

YB Dato’ Sri Mustapa Mohamed, Minister, Ministry of

International Trade and Industry (MITI) launched

the OECD assessment report on Malaysia, 10 March

2015, in Kuala Lumpur

ASEAN-OECD Conference and Meetings on

Good Regulatory Practice, 12 March 2015

57



ROADMAP OF GRP IMPLEMENTATIONSTATUS OF GOOD REGULATORY PRACTICE

(GRP) IMPLEMENTATION IN MALAYSIA

Develop Policy

& Guidelines of

Best Practice

Regulation

Pilot Projects

Implementation

Implementation

of Best Practice

Regulation By

Batches

Full Implementation

and Compliance to

Regulatory

Requirement by

Regulators

Accelerating GRP

Implementation

Strengthening and

Monitoring GRP

Implementation

2011

2012

2013

2014

2015

2016

PROGRESS OF GRP IMPLEMENTATIONFEDERAL MINISTRIES & AGENCIES (2014-2015)

We Provide Services

79Enquiry

Attended

19Top

ManagementBriefing

95Regulatory

Notification

12RIS

Submission

28Workshop

On Ria

63RIA

Project

28SUCCESS

ParticipatingRegulator

GRP second

review at Ministries

Annual Report

Modernising Regulations

In Progress

319Regulatory

Coordinator

24Advisory

Service Project

5GuidanceMaterial

We Do Assessment We Facilitate

12%

32%

26%

58



PEMUDAH CHALLENGE

32winningideas

9,408entries

127entries

18winningideas

The PEMUDAH Challenge competition encourages Primary 6 school pupils and university undergraduates to practise critical thinking in understanding issues and in problem-solving so as to enrich the pool of quality human capital which is essential to sustaining continuous national growth and development. The competition showcases the pupils’ and undergraduates’ innovative ideas that can improve the learning environment.

The PEMUDAH Challenge helps mould the young minds of primary school pupils and university undergraduates, thus nurturing a large and ever-growing pool of bright and innovative entrepreneurs, efficient administrators and a productive workforce who will together generate progress for the well-being of the nation.

The PEMUDAH Challenge: “Back to School Season 4” in 2015 invited entries from all Primary 6 schools throughout Malaysia. Previously, the PEMUDAH Challenge competition was opened to primary school children in selected Federal Territories and States only. Sixteen State Education Departments coordinated the competition. The competition rules require entries to be submitted online through a system developed jointly by the Co-Curricular and Arts Division and the Information Management Division of the Ministry of Education. Winning ideas from previous competitions have been implemented by schools, wherever feasible.

For the first time ever, the PEMUDAH Challenge: “Back to Campus” was also organised in 2015 for undergraduates at Universiti Malaya, Universiti Putra Malaysia, Universiti Kebangsaan Malaysia and Universiti Teknologi Mara. Panelists also selected the undergraduate winners online. The theme of the competition for the undergraduates was “Improving the Efficiency of Service Delivery in the Ministry of Higher Education”.

Undergraduate Entries

Primary School Entries

PEMUDAH Challenge 2015:Back to School

PEMUDAH Challenge 2015:Back to Campus

60

PEMUDAH Challenge 2015 Award Ceremony

Winners from Schools and Universities



PEMUDAH Challenge 2015 Award Ceremony

Winners from Schools and Universities

61



NURUL AZREEN AFIQAH

SJK(C) Keong Hoe

Pulau Pinang

MOHAMAD FARISH SAFWAN BIN

SHAHRIZAN

SK Penaga Jaya

Pulau Pinang

NUR AFRINA NABISYA BINTI

AZMIRSekolah Kebangsaan Senawang 3

Negeri Sembilan

NUR DAMIA IZZATI BINTI

HASSAN

SK Tunku Munawir

Negeri Sembilan

AHMAD BASYIR HANIF BIN

HANAFIAH

SK Taman Tuanku Jaafar

Negeri Sembilan

SHARON ANGELINA LIFENGSJK(C) Boon BengPulau Pinang

MIFZAL MIKHAEL BINABDUL RAOFSK Pokok SenaPulau Pinang

JOCELYN KOAY XIN YENSJK(C) UnionPulau Pinang

NUR AISYAH BALQIS BINTI

SAHUDIN

SK Alam Damai

Wilayah Persekutuan KL

SCHOOL

back to

Provide more suitable

reading materials for pupils

and establish a cyberspace

that allows easy access for

pupils.

Conduct learning through

notes in a website which is

more interactive, interesting

and does not burden pupils

to carry heavy books

every day.

Improve the school canteen

by displaying the calorific

values of each menu. Train

pupils to count calorific

intake for healthy eating

and to maintain a balanced

diet so as to prevent

obesity.

Teachers can teach pupils by using various technology gadgets such as laptop, notebook, desktop and projector.

Provide smartboards

in the classroom.

Pupils can use their thumbprints

to register their school attendance daily.This proposal can reduce the

burden on class teachers and

saves on their time which can

be used for teaching.

School examinations should be reduced from 4 to 2 times in order to reduce the stress faced by pupils currently.

Computers and projectors are

to be provided in every

classroom as the use of

visuals can enhance pupils’

understanding and IQ. Also,

learning through exposure to

the use of visuals is very

limited in schools.

Facilitate pupils with free Cyber Café to search forthe latest educational information, widen ICT use

to all pupils and nurture pupils of high innovativeness.

(Fill every leisure time with knowledge).

62

ANWAR BIN RIDZWAN

Universiti Malaya

NATASYA BINTI AZMIUniversiti Malaya

WARDATUL JANNAH BT

AWANGUniversiti Malaya

NUR MUHAMAD ALIFF BINMAT SHARIFFUniversiti Teknologi Mara

AHMAD AKEM BIN

MOHAMAD SAID

Universiti MalayaMOHAMMAD SYUKERI BINHASHIMUniversiti Malaya

back to

LAM JIAN JIAUniversiti Malaya

AZRA MUQAFFA BIN

ABDULLAH

Universiti Teknologi Mara



NURUL AZREEN AFIQAH

SJK(C) Keong Hoe

Pulau Pinang

MOHAMAD FARISH SAFWAN BIN

SHAHRIZAN

SK Penaga Jaya

Pulau Pinang

NUR AFRINA NABISYA BINTI

AZMIRSekolah Kebangsaan Senawang 3

Negeri Sembilan

NUR DAMIA IZZATI BINTI

HASSAN

SK Tunku Munawir

Negeri Sembilan

AHMAD BASYIR HANIF BIN

HANAFIAH

SK Taman Tuanku Jaafar

Negeri Sembilan

SHARON ANGELINA LIFENGSJK(C) Boon BengPulau Pinang

MIFZAL MIKHAEL BINABDUL RAOFSK Pokok SenaPulau Pinang

JOCELYN KOAY XIN YENSJK(C) UnionPulau Pinang

NUR AISYAH BALQIS BINTI

SAHUDIN

SK Alam Damai

Wilayah Persekutuan KL

back to

Provide more suitable

reading materials for pupils

and establish a cyberspace

that allows easy access for

pupils.

Conduct learning through

notes in a website which is

more interactive, interesting

and does not burden pupils

to carry heavy books

every day.

Improve the school canteen

by displaying the calorific

values of each menu. Train

pupils to count calorific

intake for healthy eating

and to maintain a balanced

diet so as to prevent

obesity.

Teachers can teach pupils by using various technology gadgets such as laptop, notebook, desktop and projector.

Provide smartboards

in the classroom.

Pupils can use their thumbprints

to register their school attendance daily.This proposal can reduce the

burden on class teachers and

saves on their time which can

be used for teaching.

School examinations should be reduced from 4 to 2 times in order to reduce the stress faced by pupils currently.

Computers and projectors are

to be provided in every

classroom as the use of

visuals can enhance pupils’

understanding and IQ. Also,

learning through exposure to

the use of visuals is very

limited in schools.

Facilitate pupils with free Cyber Café to search forthe latest educational information, widen ICT use

to all pupils and nurture pupils of high innovativeness.

(Fill every leisure time with knowledge).

ANWAR BIN RIDZWAN

Universiti Malaya

NATASYA BINTI AZMIUniversiti Malaya

WARDATUL JANNAH BT

AWANGUniversiti Malaya

NUR MUHAMAD ALIFF BINMAT SHARIFFUniversiti Teknologi Mara

AHMAD AKEM BIN

MOHAMAD SAID

Universiti MalayaMOHAMMAD SYUKERI BINHASHIMUniversiti Malaya

CAMPUS

back to

LAM JIAN JIAUniversiti Malaya

333

Establish a One-Stop Centre

(OSC) on the main campus of

every university for an e�cient

service delivery system that

ensures e�cient and e�ective

implementation of national

development strategies and

policies.

In order to raise service delivery e�ciencies, the Government should follow in the footsteps of the DIGI Center management who use the RATE US method.

The Ministry of Higher Education

can enhance service delivery

e�ciencies through the use of

video interactions. In this way,

information to be imparted can be

received clearly and in detail.

Provide a link in the o�cial

website of the Ministry of Higher

Education for companies and

institutions to publicise

employment opportunities

so that students can obtain

information quickly.

Increase educational opportunities and facilities

for handicapped groups.Register more handicapped

students by providing funding, training, special

learning materials, facilities and teaching aids.

Develop smartphone applications.

The applications are to be developed

with cooperation from Ministrie

s and

their contents are to be made suitable

by universities. The applications

should contain breezy, easy and

interactive information to attract

students’ attention and cover

promotion, couponing and other

bene�ts for students.

Use smartphone applications to

guide students in the campus

area. The system is to be developed to reduce fresh

students’ dependency on the

current system as well as to

ease the managing of the

induction of fresh students.

AZRA MUQAFFA BIN

ABDULLAH

Universiti Teknologi Mara

Use e-newsletters and send

them through emails to the

stakeholders of KPT. This is

an e�ort to maintain and

strengthen good

relationships with

users/stakeholders.

63



PEMUDAH SARAWAK

CO-CHAIRS

YBhg. Tan Sri Datuk Amar Haji Mohamad Morshidi bin Abdul Ghani, State Secretary of Sarawak & YBhg. Datuk Abang Haji Abdul Karim bin Tun Abang Haji Openg, President, Sarawak Chamber of Commerce and Industry (SCCI).

SECRETARIAT

Jointly administered by Ministry of Industrial Development Sarawak & Sarawak Chamber of Commerce and Industry (SCCI).

MEMBERS

Representatives from public & private sectors.

PEMUDAH Sarawak organised several programmes in 2015 to increase public awareness, promote

entrepreneurship as well as identify and address business issues in order to ease doing business and

accelerate growth and development in the state.

PEMUDAH AT STATE LEVEL

Public-private sector collaborations through PEMUDAH in the various states are also upgrading

service delivery in support of economic activities and to benefit the people.

SARAWAK

GST SEMINAR

MUKAH

SARIKEI

SRI AMAN

BETONGKUCHING

KAPIT

LIMBANG

MIRI

BINTULU

LAWAS

SIBU

OIL & GAS INDUSTRY SEMINARS

FOOD INDUSTRY

SHIPBUILDING & REPAIR SEMINAR

SAMARAHAN

64

To facilitate the smooth implementation of the Goods & Services Tax (GST), PEMUDAH Sarawak in collaboration with the Ministry of Finance Malaysia held GST seminars in Mukah, Seri Aman, Betong, Limbang, Lawas, Kapit and Sarikei for the business community.

Business opportunities in the oil and gas industry in Sarawak were highlighted to SMEs and potential SMEs in seminars held in Kuching, Miri and Bintulu. To promote the development and expansion of rural area SME business communities in terms of technological expertise and product innovations, food industry workshops were organised in Mukah and Samarahan. A shipbuilding and repair seminar was held in Sibu for industry players to create awareness of government assistance and incentives and to share information on the challenges of and prospects for the industry.

Members of the media were briefed at the Samalaju Industrial Estate in November 2015 on the latest progress of the Sarawak Corridor of Renewal Energy (SCORE) projects and the business and employment opportunities under these projects. They also visited the operations of several companies located in the industrial estate. After the briefing, articles were published in the media to update the general public and the business community about the progress of SCORE.

PEMUDAH Sarawak also arranged for Suarah Petroleum Group to conduct a briefing on the status of the oil and gas industry in Sarawak from the points of view of experienced professional stakeholders and with the objective of exploring possible next action steps to further develop the industry.

The PEMUDAH Sarawak Portal is expected to be launched in the near future and will serve as an effective platform to inform the people of Sarawak of the state government’s initiatives taken in collaboration with the private sector to improve the service delivery system in resolving issues faced by businesses and investors. Feedback and proposals on enhancing public-private sector service delivery can also be submitted via the portal.



YBhg. Tan Sri Datuk Amar Haji Mohamad Morshidi bin Abdul Ghani, State Secretary of Sarawak & YBhg. Datuk Abang Haji Abdul Karim bin Tun Abang Haji Openg, President, Sarawak Chamber of Commerce and Industry (SCCI).

Jointly administered by Ministry of Industrial Development Sarawak & Sarawak Chamber of Commerce and Industry (SCCI).

Representatives from public & private sectors.

SARAWAK

To facilitate the smooth implementation of the Goods & Services Tax (GST), PEMUDAH Sarawak in collaboration with the Ministry of Finance Malaysia held GST seminars in Mukah, Seri Aman, Betong, Limbang, Lawas, Kapit and Sarikei for the business community.

Business opportunities in the oil and gas industry in Sarawak were highlighted to SMEs and potential SMEs in seminars held in Kuching, Miri and Bintulu. To promote the development and expansion of rural area SME business communities in terms of technological expertise and product innovations, food industry workshops were organised in Mukah and Samarahan. A shipbuilding and repair seminar was held in Sibu for industry players to create awareness of government assistance and incentives and to share information on the challenges of and prospects for the industry.

Members of the media were briefed at the Samalaju Industrial Estate in November 2015 on the latest progress of the Sarawak Corridor of Renewal Energy (SCORE) projects and the business and employment opportunities under these projects. They also visited the operations of several companies located in the industrial estate. After the briefing, articles were published in the media to update the general public and the business community about the progress of SCORE.

PEMUDAH Sarawak also arranged for Suarah Petroleum Group to conduct a briefing on the status of the oil and gas industry in Sarawak from the points of view of experienced professional stakeholders and with the objective of exploring possible next action steps to further develop the industry.

The PEMUDAH Sarawak Portal is expected to be launched in the near future and will serve as an effective platform to inform the people of Sarawak of the state government’s initiatives taken in collaboration with the private sector to improve the service delivery system in resolving issues faced by businesses and investors. Feedback and proposals on enhancing public-private sector service delivery can also be submitted via the portal.

65



Ever since the first state-level PEMUDAH was established in Perak in November 2007, as proposed by the Federation of Malaysian Manufacturers (FMM), Perak, PEMUDAH Perak has undertaken multiple initiatives to improve the public-private sector delivery system to reduce the cost of doing business, enhance trade and business opportunities and increase inflow of investments.

PEMUDAH PERAK

PEMUDAH Perak facilitates collaboration among district offices, local authorities, government bodies, regulatory authorities and the private sector to further improve the delivery system.

PEMUDAH Perak provides valuable feedback and input for federal and state policies pertaining to:

• Application procedures for foreign workers; • State housing policy; • Development charges;• Business license modernisation; • Exclusion of planning permission; • Implementation of the Industrial Park Management Committee (JPTI); • Funding of gas pipeline extension to Kinta Valley; • Underground water charge rates; and • Standardised assessment by PBT.

PEMUDAH AT STATE LEVEL

66

To assist in making Visit Perak Year 2017 a success, PEMUDAH Perak is holding discussions and exploring proposals on optimising the use of the Sultan Azlan Shah Airport, improving the public transport system and holding tourism-related programmes together with the local business community.

PEMUDAH Perak continues to push for initiatives to be carried out in the state under the general transformation of the economy and government delivery service so as to generate more growth and development in the state which will provide greater employment opportunities for the people and raise the quality and standard of living in the state.



Ever since the first state-level PEMUDAH was established in Perak in November 2007, as proposed by the Federation of Malaysian Manufacturers (FMM), Perak, PEMUDAH Perak has undertaken multiple initiatives to improve the public-private sector delivery system to reduce the cost of doing business, enhance trade and business opportunities and increase inflow of investments.

PEMUDAH Perak facilitates collaboration among district offices, local authorities, government bodies, regulatory authorities and the private sector to further improve the delivery system.

PEMUDAH Perak provides valuable feedback and input for federal and state policies pertaining to:

• Application procedures for foreign workers; • State housing policy; • Development charges;• Business license modernisation; • Exclusion of planning permission; • Implementation of the Industrial Park Management Committee (JPTI); • Funding of gas pipeline extension to Kinta Valley; • Underground water charge rates; and • Standardised assessment by PBT.

To assist in making Visit Perak Year 2017 a success, PEMUDAH Perak is holding discussions and exploring proposals on optimising the use of the Sultan Azlan Shah Airport, improving the public transport system and holding tourism-related programmes together with the local business community.

PEMUDAH Perak continues to push for initiatives to be carried out in the state under the general transformation of the economy and government delivery service so as to generate more growth and development in the state which will provide greater employment opportunities for the people and raise the quality and standard of living in the state.

67



Time Taken to Resolve Non-Business-Related Feedback

47%

29%

24%

not more than 3 days4 to 7 daysmore than 7 days

Time Taken to Resolve Business-Related Feedback30%

18%

52% not more than 3 days4 to 7 daysmore than 7 days

Portal Dynamics in

2015

The Focus Group on Public Relations promotes the role and objectives of PEMUDAH to enhance

awareness and understanding among the public, and, facilitates greater stakeholder participation in

PEMUDAH initiatives. The Focus Group organised and supported several events and activities held

during the year and contributed articles to business publications. These include activities such as:

Visit to PEMUDAH by Association for Political

Science Students at Leiden University,

Netherlands.

The Focus Group also arranges engagement sessions with various

interest groups such as Chambers of Commerce and Trade and

Industry associations to obtain feedback on current policies,

procedures, issues and suggestions for improvements that can be

considered for reform initiatives.

PEMUDAH also receives international visitors who are keen to learn

from Malaysia’s best practices, such as, Columbia Law School,

ASEAN + 3 Macroeconomic Research Office (AMRO), Leiden

University, Republic of Senegal and Tanzania President’s Delivery

Bureau (PDB).

Engagements with Doing Business team on their missions to

Malaysia were undertaken.

The PEMUDAH Challenge 2015: Back to School Season 4 and Back to Campus which encouraged schoolchildren and university undergraduates to practise problem-solving critical thinking in their educational environments

PUBLIC RELATIONS

OUTREACH

Participation in the SME Show 2015 – ASEAN held in the Mid-Valley Exhibition Centre, Kuala Lumpur from 4 to 6 December 2015

The PEMUDAH Journalism Competition 2015 which enabled journalists to feature real-life business issues that required reform interventions or improvement initiatives

Contribution of articles to Infoniaga and the International Business Review publications.

NEWS

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45

Publication of the Doing Business 2016 Booklet

3PROGRAMMES

PUBLIC RELATIONS

69



The PEMUDAH Journalism Competition 2015 received good response from journalists who submitted 30 entries in total over three

categories. This competition is held to increase journalists’ awareness and understanding of reform initiatives taking place in Malaysia and

their importance in enhancing the ease of doing business for greater national competitiveness and sustainable economic growth and

development.

Fifteen articles were received under the English category, 10 under the Bahasa Malaysia category and five under the Broadcasting category.

Various media organisations were well represented in the entries such as The New Straits Times, Berita Harian, The Star, Utusan Melayu,

RTM, TV3, Astro Awani, Malaysia SME, Focus Malaysia and Malay Mail Online.

The New Straits Times’ Ms. Rupa Damodaran won the first prize in the printed/online English category with her article entitled “Going Beyond

Scores in Age of “New Normal” – Improving Regulatory System”. The first prize in the printed/online Bahasa Malaysia category went to Encik

Mohd Rafi Mamat with his article entitled “OSC Atas Talian Lebih Cekap”. Cik Nurul Hana Ismail and her team from Astro Awani were

awarded a prize in the Broadcasting category.

PEMUDAH JOURNALISM COMPETITION 2015

First Prize : Printed/Online English Category

Title : Going Beyond Scores in Age of “New Normal” – Improving Regulatory System

By : Ms. Rupa Damodaran

Media Organisation : New Straits Times

REGULATIONS, if not looked at periodically, can become like a cluttered home. Some laws are no longer relevant and should be replaced, according to Datuk Seri Saw Choon Boon, co-chair of the Special Task Force to Facilitate Business (PEMUDAH). A lot of work or outreach programmes have been going on behind the scenes and top of the list is the five decades old Companies Commission. The new legislation, which is waiting to be tabled in Parliament, will also reform the way of doing business in the country. “The other major project we have started to work on is electronic filing in the

New law set to change how business is doneCompanies Commision and we should see the results in 2017,” Saw told the Business Times. He does not think Malaysia is obsessed with global rankings, arguing that a task force like PEMUDAH does from the public sector, but aim to make Malaysia a better pace in term of doing business. “Kuala Lumpur, our capital city, must also be attract investments.” Towards this end, it is working closely with InvestKL and Performance Management and Delivery Unit by providing feedback. All the work being undertaken does not point fingers at the public sector as

Going beyond scores inage of ‘new normal’IMPROVING REGULATORY SYSTEM: A country’s ranking profile determines its trade and investment attractiveness, and Malaysia has done well in three main global rankings annually. However, more needs to be done for Malaysia to remain at the top percentile of global economies, reports Rupa Damoran

MPC director-general Datuk Mohd Razali Hussain says addressing the ease of doing business ranking is only the tip of the iceberg

Rehda chairman (Malacca branch) Datuk Anthony Adam Cho says regulatory reform must work in the context of the community

NST

Malaysia ChallengesThe most problematic factors for doing business

Inefficient government bureaucracyAccess to financingInsufficient capacity to innovateCorruptionInadequately educated workforcePoor work ethic in labour forceTax ratesPolicy instabilityComplexity of tax regulationsRestrictive labour regulationsInflationCrime and theftForeign currency regulationsGovernment instability/coupsPoor public health

Score*

10.8

10.2

9.2

8.6

7.6

7.0

6.5

6.4

6.1

5.3

5.1

4.7

3.3

2.4

0.5

0 5 10 15 20 25 30

* From the list of factors, respondents were asked to selected the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings.

NSTMalaysia’s rankings

in 2015

World Bank Ease of DoingBusiness Report 2016

World Economic ForumCompetitiveness Report2015-2016

IMD World CompetitivenessYearbook 2015

18

18

14

Down 1 spot

Up 2 spots

Down 2spots

not being in the know. Saw, who is also president of the Federation of Malaysian Manufacturers, said tackling issues is not the only draw for the private sector in this partnership, which has been in place since 2007. There is trust and confidence placed in the private sector and the proof is in the pudding. Renewal of a lost passport in a day without the need for a police report is one of its well-received public efforts. Likewise, there there is a reduction in the number of procedures and time taken to obtain applicationa for approvals via the one-stop centre.

The KL Trax by the Kuala Lumpur City Hall online system to enhance delivery and status update for both the private sector and local authorities or agencies, by monitoring construction permit applications, is also a significant step. It provides benefits such as faster approvals, less holding cost, a sigle window and simplified procedures. Business licensing is being modernised further and the task force is working on 767 licences involving 23 ministries and two Prime Minister’s Office agencies at the federal level, with costs of compliance estimated at RM729 million, and 2,546 licenes at the state level were

reviewed. Thirty-two licences are in the process of simplification or amalgamation. A lot of public money has also been saved through this excellent platform the government can consult the private sector for input to improve processes. “The tasks are never-ending and there is always room for improvement as it is a competitive world out there, as countries race to attract investments to their shores.” What is in store in 2016? “We have so many tasks in the pipeline, such as trading across borders and making it easier for our exports, enforcing contracts, improving the construction

permit processes as well as addressing issues. “We are not here to cure world hunger,” he said in response to numerous complaints againts government agencies regarding service delivery. Rupa Damodaran

THE reduction and removal of tariffs have

lifted the growth of merchandise goods trade

and on that score, Malaysia stands proudly as

among the top trading nations in the world.

But in the current “new normal” of lower

economic growth globally, it needs to improve

the productivity level through efficient use of

resources.

For such change to be recognised by the

annual global rankings, regulatory reforms

need to be in place. Although Malaysia has

embarked on the journey, more needs to be

done, according to the Malaysia Productivity

Corporation (MPC).

New Zealand, which boasts a 30 years old

regulatory stewardship, says the regulatory

system need to be designed to adapt to

changes.

In a forum in Kuala Lumpur recently, Mark

Steel, from the Ministry of Business,

Innovation and Employment in New Zealand,

described benchmarking as a wonderful

stimulus to change.

“Benchmarking is a reality and many of the

global indicators are used as proxy. We all

want to make our countries the destinations

for trade andinvestments, productivity and

growth.”

MPC director-general Datuk Mohd Razali

Hussain said Malaysia has been working on

improving the regulatory framework, in line

with the work done at the Asean Summit and

Asia Pacific Economic Cooperation levels.

It has taken a step further and will be

shifting its focus to be sub-national (or state),

as for far too long, there has been a gap in

“operationalising” decisions made at

goverment-to-goverment levels. Studies on

comparing ease of doing business at the state

level have started and will be enhanced

further.

Inefficient goverment bureaucracy, access

to finance, insufficient capacity to innovate,

corruption and inadequately educated

workforce are the top five most problematic

factors for doing business, according to the

business community.

This “whole of Malaysia” approach in

ensuring a facilitative and conducive business

environment for the country shows that the

government is serious about balanced and

inclusive development to close existing gaps.

“Addressing the ease of doing business

ranking is only the tip of the iceberg, or the

first basic scope, as there are many other areas

beyond this scope, or non -tariff measures,

which need to be addressed.”

The Federation of Malaysian Manufactur-

ers has been working on many case studies to

simplify the approval process, export and

import procedures, logistics and trade

facilitation.

With the new normal of lower economic

growth, countries like Malaysia have

earmarked productivity at the core of policy

agenda which could be due to a number of

reasons, including lack of infrastructure, rigid

labour and goods market, under-developed

financial markets, inefficient use of talents,

poor education quality, slow adoption to

technologies and low innovation rates.

Althrough Malaysia’s ranking on the World

Bank’s Ease of Doing Business this year

showed a dive from six to 18 places due to a

change in methodology, which now focuses

more on quality, Razali was not discouraged.

“There are mixed feelings as it ensured that

Malaysia continues to improve processes and

not slip into complacency.”

Under the “whole of Malaysia” approach,

which started last year, the target is to raise the

efficiency of local councils, which are the

front-liners of the government’s performance.

Regulatory impact assessments are being

undertaken when new regulations are drafted

to ensure that they are efficient and there is no

overlapping between goverment agencies.

Ultimately, this leads to a more efficient and

transparent civil service.

“There are public complaints that althrough

the Companies Commission needs only a day

to grant an approval for starting a business, in

reality, it takes longer because of the

numerous licences required by local

councils.”

Self-certification by applicants is one of the

processess being looked at as part of changes

to improve the regulatory regime through the

Good Regulatory Practices.

The government is targeting to save RM1

billion in compliance costs and already for the

first 10 months of the year, some RM430

million has been saved.

Liberalising the services sector has opened

the doors to foreign profesionals to practise in

Malaysia and engineers are pleased with the

new regulation that has taken effect since July.

The reform is timely as Malaysia has become

a hub for international companies due to the

infrastructure and macro economic stability,

said Board of Engineer Malaysia ecxecutive

director Ashari Mohd Yakub.

“Being a signatory of accreditation bodies,

like Washington Accord, has raised the profile

of Malaysian engineers globally,

benchmarked against the best in the industry.”

Construction job opportunities have risen

sharply worldwide, providing registered

members opportunity to gain exposure

elsewhere.

Board member Datuk Dr Abdul Rashid

Maidin said with the reform, engineering

companies can now open their business to 30

per cent foreign equity participation.

Interpretation of regulation by various

government agencies can be frustrating to the

engineering community.

Rashid, who is involved in the construction

of hospitals across the country, said he is

baffled by the interpretation of regulations by

the various government agencies in the

approval process.

Housing developers are all for regulatory

reforms to ensure profesionalism in the

industry but they seek joint consultation with

the authorities before regulations are

enforced.

Real Estate and Housing Developers’

Association Malaysia (Rehda) chairman

(Malacca branch) Datuk Anthony Adam Cho

said for instance, the enforcement of the

intelligent building system is still too early

although it brings down the costs in the long

run.

“It’s a good system but we have to look at the

costs versus the efficiency which could

subsequently impact house buyers.”

The regulatory reform should be carefully

studied by the industry players, he said.

“It must work in the context of the

community and its tolerance level before a

reform can be introduced.” Successful

regulatory reform requires the support of the

community and the country’s leaders, added

Cho.

Malaysia stands proudly as among the top trading nations in the world but in the current global economic scenario, it needs to improve productivity level through the effiecient use of resources.

70



Malaysia’s rankings

PEMUDAH JOURNALISM COMPETITION 2015

First Prize : Printed/Online Bahasa Malaysia Category

Title : OSC Atas Talian Lebih Cekap

By : Encik Mohd Rafi Mamat

Media Organisation : Berita Harian

Nabila SyazwaniMat Yusoffbersama PengurusProjek, Mohd FaizalMohs Shafiemenggunakanaplikasi OSC yangmempermudahkanurusanpengeluaranpermitpembinaandi Pejabat MajlisPerbandaranKuatan.

[FOTO FARIZUL HAFIZ

AWANG/BH]

Zulkifli Yaakob

Mohd Yazid Abdul Majid

Kuantan: Pelaksaan sistem One Stop Centre (OSC) atas talian oleh Majlis Perbandaran Kuantan (MPK) sejak dua tahun lalu, memudahkan urusan pengeluaran permit pembinaan kepada syarikat pemaju. Penolong Pengurus Syarikat Jurukur Mohd Norudin, Ruziana Jais, 47,berkata, sebelum ini pihaknya terpaksa menunggu sehingga tiga bulan untuk mendapatkan kelulusan daripada MPK namun kini tempoh menunggu menjadi lebih cepat.Katanya, sistem OSC atas talian iti membolehkan setiap permohonan yang lengkap dan mematuhi semua syarat akan diluluskan tanpa sebarang masalah dalam tempoh tiga minggu hingga sebulan. “Sebelum ini setiap kali proses permohonan lesen berkaitan pembinaan saya terpaksa berulang alik ke pejabat MPK namun dengan adanya sistem OSC, saya hanya perlu melengkapkan maklumat yang disediakan dalam komputer sebelum menghantarnya.

Kuantan: Kemampuan Majlis Perbandaran Kuantan (MPK) menggunakan sistem One Stop Centre (OSC) 3.0 dengan berkesan wajar menjadi contoh kepada pihak berkuasa tempatan (PBT) lain di negara ini dalam mengendalikan urusan pengeluaran permit pembinaan (DCP).Sistem OSC secara atas talian MPK hanya mengambil masa tiga minggu sahaja untuk meluluskan permohonan berkenaan.Pengurus Unit PCD Perbandanan Produktiviti Malaysia (MPC), Mohd Yazid Abdul Majid berkata,

Jimat kos syarikat

Zulkifli berkata, sebelum ini

syarikat pemaju terpaksa

mengeluarkan perbelanjaan

sehingga RM11,700 untuk proses

mendapat kelulusan DCP namun

kini mereka hanya perlu

menyediakan kira-kira RM2,200

sahaja.

Katanya, sebelum ini pemaju

terpaksa menyediakan

sekurang-kurangnya 16 dokumen

permohonan kepada MPK namun

dengan sistem OSC mereka

hanya perlu memmenuhi lima

dokumen sahaja.

Beliau berkata, kejayaan MPK

menggunakan sistem itu turut

dibantu oleh agensi kerajaan lain

yang bertanggungjawab

meluluskan setiap permohonan

pembinaan yang akan

dibangunkan.

‘Bagi memantapkan lagi sistem

sedia ada, kami akan terus

berusaha menambah baik

beberapa kelemahan bagi

kemudahan semua pihak yang

berurusan dan sedia berkongsi

pengalaman dengan pihak

berkuasa tempatan (PBT) lain,”

katanya.

Jimatkan masa pemohon

“Penggunaan sistem OSC

online membolehkan semua

maklumat lengkap

permohonan DCP diisi dalam

masa 15 minit dan dimajukan

terus kepada MPK secara atas

talian.

“Kecekapan yang ada pada

pegawai MPK membolehkan

mereka menyelesaikan proses

kelulusan dalam masa yang

singkat, malah sekiranya

tiada masalah permohonan

Selesai masalah kelewatan

Beliau berkata, masalah

utama yang dihadapi syarikat

pembinaan sebelum ini ialah

kelewatan mendapatkan DCP

daripada PBT dan sistem

OSC berjaya menyelesaikan

permasalahan berkenaan.

“Kami akan terus

berusaha memperluaskan lagi

penggunaan sistem OSC

online kepada semua PBT

seluruh negara, untuk

kebaikan semua pihak

terutama pengguna yang

inginkan keselesaan.

”Dalam Rancangan

Malaysia Ke-11 (RMKe11)

MPC bersama-sama KPKT

akan terus mempergiatkan

usaha agar semua PBT

menggunakan sistem OSC

atas talian yang terbukti

berkesan diamalkan menjelang

2020 apabila Malaysia menjadi

negara maju,” katanya.

ada 10 PBT menjadi perintis pelaksanaan sistem OSC atas talian didapati MPK berjaya melaksanakan dengan berkesan dan mencapai matlamat.Beliau berkata, menerusi sistem itu, pihak syarikat pembinaan tidak lagi perlu berulang-alik ke pejabat MPK membawa pelbagai dokumen bertemu dengan pegawai bagi urusan permohonan DCP.

Sistem cekap“Malah, pemaju atau syarikat pembinaan boleh menyemak status permohonan mereka sama ada berlaku kesilapan atau sebaliknya dari semasa ke semasa dan paling penting dalam tempoh singkat sahaja kelulusan diterima,” katanya.Ruziana berkata, sebagai syarikat yang sentiasa berurusan dengan MPK, beliau berpuas hati dan kagum dengan kecekapan agensi berkenaan mengguna-kan sepenuhnya sistem OSC atas talian yang diperkenalkan oleh Kementerian Perumahan, Kerajaan Tempatan dan Kesejahteraan Bandar (KPKT).

Urusan lebih mudah, cepatNabila Syazwani Mat Yusoff, 24, yang bertugas dengan syarikat pembinaan Aamar Planningx Consultant menegaskan dengan adanya sistem OSC atas talian membolehkan semua urusan dengan MPK berjalan lancar, mudah dan cepat.“ Sebelum ini saya terpaksa menunggu sehingga tiga bulan untuk mendapatkan kelulusan namun kini dalam sebulan sahaja keputusan diterima.“Selain menjimatkan masa, sistem OSC atas talian yang digunakan turut dapat mengurangkan lebih daripada separuh kos. Sebelum ini kertas banyak digunakan untuk surat menyurat dan borang namun kini semuanya menggunakan komputer.” katanya yang sudah lebih dua tahun berurusan dengan MPK.

OSC atas talian lebih cekap

Kejayaan MPK

wajar jadi contoh

“Pemaju atau syarikat

pembinaan boleh

menyemak status

permohonan mereka

sama ada berlaku

kesilapan atau sebaliknya

dari semasa ke semasa

dan paling penting dalam

tempoh singkat”

Sistem efisien, mudahkan urusan syarikat pemaju

» MPK tingkat

perkhidmatan,

percepat urusan

dokumen DCP

Oleh Mohd Rafi Mamat

Kuantan

a j l i s

P e r b a n d a r a n

Kuantan (MPK)berjaya menyelesaikan 731

permohonan pengeluaran

permit pembinaan (DCP)

menggunakan sistem One Stop

Centre (OSC) 3.0, sepanjang

tahun lalu.

Yang Dipertuanya, Datuk

Zulkifli Yaakob berkata, dalam

tempoh sembilan bulan tahun

ini, pihaknya berjaya

memproses sebanyak 468

permohonan daripada syarikat

pemaju yang turut berpuas hati

dengan perkhidmatan secara

atas talian berkenaan.

Beliau berkata, MPK kini

menggunakan 100 peratus

sistem OSC secara atas talian

yang menyediakan

perkhidmatan lebih mudah dan

cepat serta menjimatkan kos

proses permohonan oleh

syarikat pemaju dan pembinaan.

Perkhidmatan lebih cekap

Katanya, berikutan perubahan era

teknologi maklumat dan

komunikasi (ICT) yang semua

perkhidmatan perlu diuruskan

dengan cepat, MPK juga

menyahut cabaran Kementerian

Perumahan, Kerajaan Tempatan

dan Kesejahteraan Bandar

(KPKT) dan Pasukan Petugas

M

[email protected]

Khas Pemudahcara Perniagaan

(PEMUDAH) untuk

menggunakan OSC atas talian.

“Selepas memasuki tahun

kedua menggunakan sistem

OSC ini, kejayaan yang dicatat

membanggakan dan kami

banyak menerima pujian dari

syarikat pembinaan yang

berpuas hati apabila

permohonan DCP mereka cepat

diluluskan.

“Permohonan yang dihantar

secara atas talian akan segera

diproses dan sekiranya tidak

berlaku sebarang masalah,

dalam tempoh tiga minggu

hingga sebulan surat kelulusan

dikeluarkan,” katanya pada

majlis taklimat sistem OSC atas

talian di bilik mesyuarat MPK

di sini. “ S e l e p a s

memasuki tahun kedua

menggunakan sistem OSC ini,

kejayaan yang dicatat

membanggakan dan kami

banyak menerima pujian dari

syarikat pembinaan yang

berpuas hati apabila

permohonan DCP mereka

cepat diluluskan.

“Permohonan yang

dihantar secara atas talian

akan segera diproses dan

sekiranya tidak berlaku

sebarang masalah dalam

tempoh tiga minggu hingga

sebelum surat kelulusan

dikeluarkan,” katanya pada

majlis taklimat sistem OSC.

71



Malaysia was ranked 18th out of 189 economies in the World Bank Doing Business Report

2016, joining the world’s top 10 percent in the ease of doing business. Malaysia is ahead of

countries such as Switzerland (26th), France (27th), Netherlands (28th), UAE (31st), Japan (34th),

Thailand (49th), China (84th) and India (130th). Malaysia has set the frontier in regulatory quality

and efficiency under the Getting Electricity indicator.

INTERNATIONAL COMPETITIVENESS

The three major international reports which analyse competitiveness among countries include the following:

• World Bank Doing Business Report;

• The Global Competitiveness Report, World Economic Forum; and

• Institute for Management Development World Competitiveness Yearbook.

HIGHLIGHTS OF MALAYSIA’S PERFORMANCEA. World Bank Doing Business Report 2016 (DB 2016)

Doing Business Report 2016: Global Launching at The World Bank O�ce, Sasana Kijang

72

Table 1 : Doing Business 2016 - Top 10 Asia-Pacific Economies

Economy DB 2016 DB 2015 ( Revised)

Singapore 1 87.34 1 87.34

New Zealand 2 86.79 2 86.75

Korea, Republic 3 83.88 3 83.91

Hong Kong SAR, 4 83.67 4 82.87 China

Taiwan, China 5 80.55 5 80.53

Australia 6 80.08 6 80.09

Malaysia 7 79.13 7 79.08

Japan 8 74.72 8 74.72

Kazakhstan 9 72.68 10 69.34

Thailand 10 71.42 9 71.33



HIGHLIGHTS OF MALAYSIA’S PERFORMANCE

Although Malaysia’s position shifted from 17th position in 2015 to 18th in 2016, Malaysia

achieved a Distance to Frontier (DTF) score of 79.13, an improvement from the revised DTF

score of 79.08 in DB 2015. Malaysia recorded the closest DTF score of 95.34 for Starting a

Business indicator. The DTF scores of Malaysia in the indicators covered in the report are:

Dealing with Construction Permits (81.10), Getting Electricity (90.05), Registering Property

(76.32), Getting Credit (70.00), Protecting Minority Investors (78.33), Paying Taxes (84.31),

Enforcing Contracts (66.61), Trading Across Borders (86.74) and Resolving Insolvency

(62.49). Malaysia’s overall performance and trends show that the country has retained its

position among the top 20 economies in the past 3 years.

Within the Asia-Pacific region, Malaysia was ranked among the top ten countries in the ease

of doing business (Table 1).

Table 1 : Doing Business 2016 - Top 10 Asia-Pacific Economies

Economy DB 2016 DB 2015 ( Revised)

Singapore 1 87.34 1 87.34

New Zealand 2 86.79 2 86.75

Korea, Republic 3 83.88 3 83.91

Hong Kong SAR, 4 83.67 4 82.87 China

Taiwan, China 5 80.55 5 80.53

Australia 6 80.08 6 80.09

Malaysia 7 79.13 7 79.08

Japan 8 74.72 8 74.72

Kazakhstan 9 72.68 10 69.34

Thailand 10 71.42 9 71.33

73



B. THE GLOBAL COMPETITIVENESS REPORT(GCR) 2015-2016 BY

WORLD ECONOMIC FORUM (WEF)

The Global Competitiveness Report (GCR) 2015-2016, released by the World Economic Forum, has ranked Malaysia 18th amongst 140 countries which is an improvement of two positions over the previous year. This is the highest ranking achieved by Malaysia since 2005.The Index Score achieved also improved from 5.16 to 5.23. Malaysia has, therefore, consolidated its position as one of the top 20 most competitive economies in the world after having entered into this grouping for the first time in 2014.

The GCR uses the Global Competitiveness Index (GCI) methodology since 2006 to measure competitiveness through 12 pillars of competitiveness with 114 indicators. Analytical measurement data is compiled from statistical data employing 34 criteria which forms the basis of 30 per cent of the GCR while data compiled from an Executive Opinion Survey employing 80 criteria provides the balance of 70 per cent.

In the GCR 2015-2016, Malaysia was ranked among the top 10 countries in the Goods Market Efficiency (6th) and Financial Market Development (9th) pillars of competitiveness. Malaysia also achieved significant improvements in the Technological Readiness pillar, moving up from the 60th to the 47th rank and in the Higher Education and Training pillar, switching rank from 46th to 36th (Table 2).

THE GLOBAL COMPETITIVENESS REPORT 2015-2016

Published by - WORLD ECONOMICFORUM (WEF), Geneva, Switzerland.Since 1979.

The Global Competitiveness Index (GCI)measure based 12 pillars incorporating114 indicators. The report is based on70% perception and 30% statisticaldata.

Malaysia ranks 18th out of 140 countrieswith a score of 5.23 (GCR 2014-2015:20th / 144: 5.16).10

20

30

40

50

60

74

Table 2 : Malaysia’s Performance & Rankings in GCI Competitiveness Pillars

With a GDP per capita of USD10,804 in 2014, Malaysia is in transition from efficiency-driven to innovation-driven development. The trajectory seen in the trending of Malaysia’s GCR performance from 2011 to 2015 in Figure below confirms that Malaysia is in the right direction towards achieving the status of a developed economy with high per capita income, a high level of industrialisation, excellent widespread infrastructure and a knowledge-based economy emphasizing on innovations to drive further growth and development.

Five-Year Trend of Malaysia's Performance in GCR



The Global Competitiveness Report (GCR) 2015-2016, released by the World Economic Forum, has ranked Malaysia 18th amongst 140 countries which is an improvement of two positions over the previous year. This is the highest ranking achieved by Malaysia since 2005.The Index Score achieved also improved from 5.16 to 5.23. Malaysia has, therefore, consolidated its position as one of the top 20 most competitive economies in the world after having entered into this grouping for the first time in 2014.

The GCR uses the Global Competitiveness Index (GCI) methodology since 2006 to measure competitiveness through 12 pillars of competitiveness with 114 indicators. Analytical measurement data is compiled from statistical data employing 34 criteria which forms the basis of 30 per cent of the GCR while data compiled from an Executive Opinion Survey employing 80 criteria provides the balance of 70 per cent.

In the GCR 2015-2016, Malaysia was ranked among the top 10 countries in the Goods Market Efficiency (6th) and Financial Market Development (9th) pillars of competitiveness. Malaysia also achieved significant improvements in the Technological Readiness pillar, moving up from the 60th to the 47th rank and in the Higher Education and Training pillar, switching rank from 46th to 36th (Table 2).

THE GLOBAL COMPETITIVENESS REPORT 2015-2016

Published by - WORLD ECONOMICFORUM (WEF), Geneva, Switzerland.Since 1979.

The Global Competitiveness Index (GCI)measure based 12 pillars incorporating114 indicators. The report is based on70% perception and 30% statisticaldata.

Malaysia ranks 18th out of 140 countrieswith a score of 5.23 (GCR 2014-2015:20th / 144: 5.16).

Table 2 : Malaysia’s Performance & Rankings in GCI Competitiveness Pillars

With a GDP per capita of USD10,804 in 2014, Malaysia is in transition from efficiency-driven to innovation-driven development. The trajectory seen in the trending of Malaysia’s GCR performance from 2011 to 2015 in Figure below confirms that Malaysia is in the right direction towards achieving the status of a developed economy with high per capita income, a high level of industrialisation, excellent widespread infrastructure and a knowledge-based economy emphasizing on innovations to drive further growth and development.

Pillar 1 - InstitutionsPillar 2 - InfrastructurePillar 3 - Macroeconomic EnvironmentPillar 4 - Health & Primary Education

BASIC REQUIREMENTS 22nd

Pillar 5 - Higher Education & TrainingPillar 6 - Goods Market EfficiencyPillar 7 - Labour Market EfficiencyPillar 8 - Financial Market DevelopmentPillar 9 - Technological ReadinessPillar 10 - Market Size

EFFICIENCY ENHANCERS

Pillar 11 - Business Sophistication Pillar 12 - Innovation

23rd

24th

35th

24th

36th

6th

19th

9th

47th

26th

13th

20th

23rd

22nd 24th

17th 17th

20th

25th

44th

33rd

46th

7th

19th

4th

60th

26th

15th

21st

SOPHISTICATION FACTORSINNOVATION &

GCR

2015-2016

(n=140)

GCR

2014-2015

(n=144)

Five-Year Trend of Malaysia's Performance in GCR

Ra

nk

Year

21st

25th

24th

20th

18th

2011 - 2012 2012 - 2013 2013 - 2014 2014 - 2015 2015 - 2016

n = 142 n = 144 n = 148 n = 144 n = 140

75



Malaysia’s Performance Compared With Top 10 Countries

The Malaysian economy remained the highest ranked when compared with all the other developing Asian economies. Malaysia had retained its 6th ranking among the top 10 countries in the Asia-Pacific region for global competitiveness in the GCR 2015-2016 as compared to the previous year (Table 3).

0 5score 5.50

0 9score 5.43

0 8score 5.45

0 6score 5.47

0 7score 5.46

0 2score 5.68

0 4score 5.53

1 0score 5.43

0 3score 5.61

0 1score 5.76

Netherlands Switzerland

Sweden

Finland

Japan

Hong Kong SAR

Singapore

Germany

United Kingdom

United State

1 8score 5.23

MALAYSIA’S PERFORMANCE & TOP 10 COUNTRIES

Malaysia

76

Country | EconomyRank Score Rank Score

Malaysia6 18 5.23 20 5.16

Singapore1 2 5.68 2 5.65

Japan2 6 5.47 6 5.47

Hong Kong Sar3 7 5.46 7 5.46

Taiwan, China4 15 5.28 14 5.25

New Zealand5 16 5.25 17 5.20

Australia7 21 5.15 22 5.08

Korea, Rep8 26 4.99 26 4.96

China9 28 4.89 28 4.89

Thailand10 32 4.64 31 4.66

Indonesia11 37 4.52 34 4.57

Azerbaijan12 40 4.50 38 4.53

Kazakhstan13 42 4.49 50 4.42

Philippines14 47 4.39 52 4.40

India15 55 4.31 71 4.21

Vietnam16 56 4.30 68 4.23

Sri Lanka17 68 4.21 73 4.19

Tajikistan18 80 4.03 91 3.93

Lao Pdr19 83 4.00 93 3.91

Cambodia20 90 3.94 95 3.89

Nepal21 100 3.85 102 3.81

Kyrgyz Republic22 102 3.83 108 3.73

Mongolia23 104 3.81 98 3.83

Bhutan24 105 3.80 103 3.80

Bangladesh25 107 3.76 109 3.72

Pakistan26 126 3.45 129 3.42

Myanmar27 131 3.32 134 3.24

Table 3 : GCR Competitiveness Rankings by Asia-Pacific Region & ASEAN

No



Malaysia’s Performance Compared With Top 10 Countries

The Malaysian economy remained the highest ranked when compared with all the other developing Asian economies. Malaysia had retained its 6th ranking among the top 10 countries in the Asia-Pacific region for global competitiveness in the GCR 2015-2016 as compared to the previous year (Table 3).

score 5.50

score 5.43

score 5.45

score 5.47

score 5.46

score 5.68

score 5.53

score 5.43

score 5.61

score 5.76

Netherlands Switzerland

Sweden

Finland

Japan

Hong Kong SAR

Singapore

Germany

United Kingdom

United State

score 5.23

MALAYSIA’S PERFORMANCE & TOP 10 COUNTRIES

Malaysia

Country | EconomyGCI 2015 - 2016

Rank Score

GCI 2014 - 2015

Rank Score

Malaysia6 18 5.23 20 5.16

Singapore1 2 5.68 2 5.65

Japan2 6 5.47 6 5.47

Hong Kong Sar3 7 5.46 7 5.46

Taiwan, China4 15 5.28 14 5.25

New Zealand5 16 5.25 17 5.20

Australia7 21 5.15 22 5.08

Korea, Rep8 26 4.99 26 4.96

China9 28 4.89 28 4.89

Thailand10 32 4.64 31 4.66

Indonesia11 37 4.52 34 4.57

Azerbaijan12 40 4.50 38 4.53

Kazakhstan13 42 4.49 50 4.42

Philippines14 47 4.39 52 4.40

India15 55 4.31 71 4.21

Vietnam16 56 4.30 68 4.23

Sri Lanka17 68 4.21 73 4.19

Tajikistan18 80 4.03 91 3.93

Lao Pdr19 83 4.00 93 3.91

Cambodia20 90 3.94 95 3.89

Nepal21 100 3.85 102 3.81

Kyrgyz Republic22 102 3.83 108 3.73

Mongolia23 104 3.81 98 3.83

Bhutan24 105 3.80 103 3.80

Bangladesh25 107 3.76 109 3.72

Pakistan26 126 3.45 129 3.42

Myanmar27 131 3.32 134 3.24

Table 3 : GCR Competitiveness Rankings by Asia-Pacific Region & ASEAN

No

77



Malaysia’s overall index score of 84.11 in WCY 2015 was an improvement over the score of 82.09 achieved in the previous year. The competitiveness ranking of Malaysia in 2015 had declined from 12th to 14th amongst 61 economies. Nevertheless, Malaysia still remained as one of the top 15 most competitive countries in the world.

WCY 2015 measured the competitiveness of the Malaysian economy in terms of Economic Performance (6th ranking), Government Efficiency (16th), Business Efficiency (10th) and Infrastructure (27th).

Malaysia’s performance measured within the categories of GDP per capita of less than USD20,000, a population size greater than 20 million and selected regions is shown in Table 4.

THE INSTITUTE FOR MANAGEMENT DEVELOPMENT WORLD COMPETITIVENESS YEARBOOK 2015 (WCY 2015)

C.

INSTITUTE FOR MANAGEMENT DEVELOPMENTWORLD COMPETITIVENESS YEARBOOK (WCY 2015)

10

20

30

40

50

60

Published by World CompetitivenessCenter (WCC) of Institute for ManagementDevelopment (IMD), Lausanne, Switzerland

Malaysia ranks 14th out of 61 economies witha score of 84.11 (WCY 2014: 12th/ 60: 82.09)

Measure competitiveness in 4 factors:1) Economic Performance (6th)2) Government Efficiency (16th)3) Business Efficiency (10th)4) Infrastructure (27th)

78

GDP

GDP Per Capita Less Than USD$20,000

1st 1st

Asia - Pacific Region

ASEAN Region34th

rd

Populations Greater Than 20 Million

5th

4th

asean

2nd

2nd

MALAYSIA’S PERFOMANCE BY CATEGORIES

Table 4 : Malaysia’s Performance in WCY by Categories

Five-Year Trend of Malaysia's Performance in WCY

Malaysia had remained, with a ranking of 14th, in the top quartile of the most competitive economies and was ahead of the Netherlands (15th), Ireland (16th), New Zealand (17th), Australia (18th), the United Kingdom (19th), Finland (20th), Korea (25th) and Japan (27th).



Malaysia’s overall index score of 84.11 in WCY 2015 was an improvement over the score of 82.09 achieved in the previous year. The competitiveness ranking of Malaysia in 2015 had declined from 12th to 14th amongst 61 economies. Nevertheless, Malaysia still remained as one of the top 15 most competitive countries in the world.

WCY 2015 measured the competitiveness of the Malaysian economy in terms of Economic Performance (6th ranking), Government Efficiency (16th), Business Efficiency (10th) and Infrastructure (27th).

Malaysia’s performance measured within the categories of GDP per capita of less than USD20,000, a population size greater than 20 million and selected regions is shown in Table 4.

INSTITUTE FOR MANAGEMENT DEVELOPMENTWORLD COMPETITIVENESS YEARBOOK (WCY 2015)

Published by World CompetitivenessCenter (WCC) of Institute for ManagementDevelopment (IMD), Lausanne, Switzerland

Malaysia ranks 14th out of 61 economies witha score of 84.11 (WCY 2014: 12th/ 60: 82.09)

Measure competitiveness in 4 factors:1) Economic Performance (6th)2) Government Efficiency (16th)3) Business Efficiency (10th)4) Infrastructure (27th)

GDP

GDP Per Capita Less Than USD$20,000

2014(n = 29)

1st 1st

2015(n = 30)

Asia - Pacific Region

ASEAN Region34th

rd

2014

2015

(n = 13)

(n = 14)

Populations Greater Than 20 Million

5th

4th

2014(n = 29)

2015(n = 28)

asean

2015(n = 5)

2nd

2015(n = 5)

2nd

MALAYSIA’S PERFOMANCE BY CATEGORIES

Table 4 : Malaysia’s Performance in WCY by Categories

Five-Year Trend of Malaysia's Performance in WCY

Malaysia had remained, with a ranking of 14th, in the top quartile of the most competitive economies and was ahead of the Netherlands (15th), Ireland (16th), New Zealand (17th), Australia (18th), the United Kingdom (19th), Finland (20th), Korea (25th) and Japan (27th).

Ra

nk

Year2011

n = 59 n = 59 n = 60 n = 60 n = 61

2012 2013 2014 2015

16th

(84.12)

14th

(84.22)

12th

(82.09)

14th

(84.11)

15th

(83.15)

*n : number of country

*n : number of country

79



Top 15 Most Competitive Countries in WCY 2015

Competitiveness Rankings by Asia-Pacific Region

Asia - Pacific

Hong Kong1

WCY 2015

Rank Score

WCY 2014

Rank Score

1 96.04 2 90.33

Singapore2 2 94.95 1 90.97

Taiwan3 3 85.41 4 81.23

Malaysia4 4 84.11 3 82.09

New Zealand5 5 81.81 6 74.94

6 6 80.45 5 79.56

China Mainland7 7 76.99 8 73.26

Korea Republic8 8 73.83 9 69.65

Japan9 9 72.83 7 73.76

Thailand10 10 69.79 10 64.98

Philippines11 11 60.15 12 54.95

Indonesia12 12 59.91 11 59.55

India13 13 57.49 13 53.92

Mongolia14 14 47.13 - -

Australia

No

10th

8th

6th

4th

2th 3rd

5th

7th

9th

11th

13th

15th

1st

14th

12th

80



Top 15 Most Competitive Countries in WCY 2015

Competitiveness Rankings by Asia-Pacific Region

Asia - Pacific

Hong Kong1

Rank Score Rank Score

1 96.04 2 90.33

Singapore2 2 94.95 1 90.97

Taiwan3 3 85.41 4 81.23

Malaysia4 4 84.11 3 82.09

New Zealand5 5 81.81 6 74.94

6 6 80.45 5 79.56

China Mainland7 7 76.99 8 73.26

Korea Republic8 8 73.83 9 69.65

Japan9 9 72.83 7 73.76

Thailand10 10 69.79 10 64.98

Philippines11 11 60.15 12 54.95

Indonesia12 12 59.91 11 59.55

India13 13 57.49 13 53.92

Mongolia14 14 47.13 - -

Australia

No

Our journey continues. Out of every challenge surmounted, every risk mitigated and every prospect

materialised, Malaysia emerges stronger and better able to transform into a world-class vibrant

economy that ranks high on competitiveness, innovation, technology, productivity and sustainability.

PEMUDAH facilitates this transformation and paves the way to support dynamic growth and

development in Malaysia in the coming decades. Successful facilitation hinges on well executed

initiatives including:

THE WAY FORWARDPERFORMANCE NOW FOR A BRIGHTER FUTURE

Accelerating the introduction and implementation of Good Regulatory Practices (GRP) to more Ministries and Agencies and also to the state levels

Driving initiatives proactively to seek improvements across all sectors that promote a robust business environment

Monitoring effectively the efficiencies of implemented improvements

Engaging stakeholders in various sectors on Reducing Unnecessary Regulatory

Burden (RURB) initiatives to reduce the number of business-related licences

Enhancing the transparency and accountability of, and efficiencies and productivity within, the public and private sectors for excellence in service delivery

81

PEMUDAH Annual Report 2015

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