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Moving forward on its mission to reduce regulatory burden and modernise business licensing, the Special Taskforce to Facilitate Business (PEMUDAH) has set up the Focus Group on Process Re-engineering (FGBPR). The Modernising Business Licensing (MBL) initiative was implemented in March 2010 by FGBPR who works with 23 Ministries and two main agencies in the Prime Minister's Department (JAKIM and SPAD). 843 procedures involved in the application of business related licenses had been reviewed at the Federal level.

For 13 states (excluding Federal Territory), 2,546 procedures weighing heavily on business had been reviewed. MBL aims to reduce the stock of business licenses through a phased program of reviews which include initiatives focused on improving the quality of new licenses and improving the government business interface. These initiatives will result in reducing unnecessary regulatory compliance burden and improve the effectiveness of business licenses to deliver productivity gains and savings to the business community.

Publisher:Regulatory ReviewDepartment, MalaysiaProductivityCorporation (MPC),Lorong Produktiviti,O� Jalan Sultan,46200 Petaling JayaSelangor Darul Ehsan.

Tel: 603-79557266Fax: 603 79540795

Email:maketing@mpc.gov.my

Business ProcessRe-engineeringMaking Headwayat State level

BoostingProductivityThrough RURB

Malaysia in DoingBusiness 2015:Going BeyondEfficiency

Gaining UsefulInsights on Taiwan’sSuccessful One-Stop Centre (OSC)

HIGHLIGHTSi n t h i s i s s u e :

BPR expanding into states

R E G U L A T O R Y

R E V I E W

I S S U E : 0 3 | 2 0 1 4

This newsletter is produced, published and distributed by MPC, for the benefit of all stakeholders. No part of it should be reproduced in any form without the expressed permission from MPC.

BUSINESS PROCESS RE-ENGINEERINGMAKING HEADWAY AT STATE LEVEL

Publisher:Regulatory Review Department,

Malaysia ProductivityCorporation (MPC),Lorong Produktiviti,

Off Jalan Sultan,46200 Petaling Jaya,Selangor Darul Ehsan.

Tel:603-79557266Fax:603 79540795

Portal RIS:ris.mpc.gov.my

Email:regulatoryreview@mpc.gov.my

PEMUDAH has saved nearly RM900 million in business compliance cost through the Modernising Business Licensing (MBL) programme

UPCOMING EVENTS:

ASEAN-OECD CENTRE OF GOVERNMENT MEETING

9 MAR 2015KUALA LUMPUR

GOOD REGULATORY PRACTICE CONFERENCE

10-11 MAR 2015KUALA LUMPUR

GOOD REGULATORY PRACTICE NETWORK

12 MAR 2015 KUALA LUMPUR

Stage 1

Review oflicences, formationof working teams and action plan.

Stage 2

Presentation ofresults to the FGBPRReview Panel, conductpublic consultation andimplementation of thenew framework.

In line with local authorities’(PBT) transformation for better government delivery system, the MBL initiative which commenced at the federal level had been implemented by several states such as Pahang, NegeriSembilan, Melaka, Sarawak, Johor, Perak, Selangor and Sabah . In 2014, the states in the Northern region and East Coast region are making headway on this initiative.

Stage 4

Raising publicawareness on the changes in regulatory matters and impact analysis on theregulatory initiative.

Stage 3

Formulatingoperation modules foronline applications,determining standardsof services and finalisingonline licensingprocesses.

BPR Project Implementation

Northern and East Coast Regions Joining in the BPR Bandwagon

Business Process Re-engineering (BPR)Lab Sessions in The Northern Region(Sept-Nov 2014)

Business Process Re-engineering (BPR)Lab Sessions in The East Coast Region(Sept-Nov 2014)

“We hope the MBL initiative wouldnot only enhance Malaysia's international competitiveness but also create aconducive business environment for foreign and local investors. As of August this year, 454 business licenses have been simplified and composited, 17 abolished, while 156 have beenautomated on-line through the Business Licensing Electronic Support System (BLESS). This initiative is an innovative collaboration between MPC,MAMPU and ICU who will continue tomonitor, assess and enhance further improvements. MPC will continue tosupport the National Key Economic Areas through abolishing irrelevant laws and requirements. Dato’ Latif added that MPC has introduced variousinitiatives to improve regulations in Malaysia according to Good Regulatory Practice.”

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YBhg Dato’ Abdul Latif Abu SemanDeputy Director General MPCPresenting Welcoming Speech at the BPR Lab Kuala Terengganu.

The reduction of unnecessary compliance burdens associated with regulation has become an important part of the reform process to improve the competitiveness of business and the performance of aneconomy. Modernising business regulations will lead to a more competitive growth as it will lower the cost of doing business. The way regulations are implemented, administered and enforced cansignificantly impact on compliance burdens for businesses. Thus a systematic review of the current stock of regulation is pertinent to ensure efficiency and effectiveness as well as to identify priority areas where regulation needs to be improved, consolidated or removed.

Regulatory burdens that are of most concern to the private hospitals in Malaysia

Boosting Productivity Through RURB

In 2013, MPC conducted a study to examine the regulatory regimes of the healthcare services sector with the aim of recommending options to remove unnecessary regulatory burdens (RURB). The regulatory regimes for health in Malaysia are very extensive and complex and range across three levels ofgovernment and involve many different ministries, agencies and departments. The principal regulator is the Ministry of Health (MOH), thus the primary focus of the report was on regulatory aspects of Private Hospital operation by the MOH. From the exploratory interviews, nine key issues of regulatory burdens that are of most concern to the private hospitals relate to: the renewal of operating licenses, theplanning approval for facilities improvements (including upgrading renovation, expansion, any physical changes); approval for advertisements and advertising materials; workforce regulation and quality and availability of professionals; exports of healthcare services (Health tourism); personal data protection; Malaysian Standard for Quality Healthcare (MSQH) accreditation; regulated medical fees; andinformation and reporting.

Pursuing cost-effective service delivery reforms through good regulatory practices’ principles and processes has significant implications for the long term sustainability of the healthcare sector as well as its capacity to deliver world-class health outcome. The concerns raised by the private hospitals and proposed options will be for further deliberation with interested parties. MPC together with MOH andrelevant stakeholders shall be continuously reviewing the existing regulations to ensure that regulatory reforms deliver intended outcomes at the lowest cost to business and with maximum productivity gains. The issues and options will also be the subject for public consultation with relevant stakeholders in order to develop concrete recommendations that will reduce unnecessary regulatory burdens.

Towards More Transparency and Accountability through Good Regulatory Practices

On-going RURB Initiatives cover the following sectors

REDUCING UNNECESSARYREGULATORY BURDEN

REDUCING UNNECESSARYREGULATORY BURDEN

REDUCING UNNECESSARYREGULATORY BURDEN

• At 18th position, Malaysia is ahead of countries such as Taiwan (19th), Switzerland (20th), Thailand (26th), The Netherlands (27th) and Japan (29th)

• Malaysia was ranked 2nd in ASEAN, 4th in Asia after Singapore, Hong Kong and the Republic of Korea.

• Malaysia’s DTF score improved from 76.84 to 78.83. In comparison, Singapore, although at top position, recorded a decline in its DTF score, from 88.3 to 88.27.

• Malaysia improved in 5 of 10 indicators.

MALAYSIA’SPERFORMANCE IN 10 AREAS OF DOING BUSINESS 2015

MALAYSIAIN DOING BUSINESS 2015GOING BEYOND EFFICIENCY

PEMUDAH, established in 2007, drives collaboration to improve service delivery, facilitates ease of doing business in Malaysia, reduce costs and eliminate red tape.

PEMUDAH works with various entities and Local Authorities to further improve service delivery at the federal and state levels.

Going forward, PEMUDAH will collaborate with the IFC World Bank to delve deeper into the areas for improvement, and work with the Government to substantially reduce the costs and time to do business in Malaysia.

This will ultimately make Malaysia a more attractive investment destination.

TOP 5ASIA COUNTRIES

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TOP 5ASIA COUNTRIES

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Malaysia:Improvements In

5 of 10 Indicators

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Malaysia:Improvements In

5 of 10 Indicators

Way Forward

12 Malaysian delegates from Focus Group Dealing withConstruction Permits (FGDCP) from Malaysia Productiv-ity Corporation (MPC), Ministry of Urban Wellbeing, Housing and Local Government (KPKT), Energy Com-mission (ST), Kuala Lumpur City Hall (DBKL), Iskandar Regional Development Authority (IRDA), Tenaga Nasi-onal Berhad (TNB), Professional Architect and Engineer participated in the Asian Productivity Organisation (APO) Individual Country Observational Study.

Gaining Useful Insights on Taiwan’s Successful OSC

Lauding Taiwan For Progress Made in Dealing with Construction Permits (DCP)

The delegates gained useful insights, experiences and acknowledged that Taiwan’s success of One-Stop Centre (OSC) was attributed to good coordination among all agencies involved, overarching legislation that ensures information sharing and mechanisms to minimise cases of non-compliance as building approvals tend to require technical oversight by multiple agencies.