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REGULATORY
REVIEW
HIGHLIGHTS
i n
t h i s
i s s u e :
Business Process
Re-engineering
Making Headway
at State level
Boosting
Productivity
Through RURB
BUSINESS PROCESS RE-ENGINEERING
MAKING HEADWAY AT STATE LEVEL
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.
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.
Malaysia in Doing
Business 2015:
Going Beyond
Efficiency
Gaining Useful
Insights on Taiwan’s
Successful OneStop Centre (OSC)
UPCOMING EVENTS:
9 MAR 2015
KUALA LUMPUR
ASEAN-OECD CENTRE OF GOVERNMENT MEETING
10-11 MAR 2015
KUALA LUMPUR
GOOD REGULATORY PRACTICE CONFERENCE
12 MAR 2015
KUALA LUMPUR
GOOD REGULATORY PRACTICE NETWORK
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.
PEMUDAH has saved nearly RM900 million in business compliance
cost through the Modernising Business Licensing (MBL) programme
Publisher:
Regulatory Review Department,
Publisher:
Malaysia Productivity
Regulatory
Review
Corporation
(MPC),
Lorong Produktiviti,
Department,
Malaysia
Off Jalan Sultan,
Productivity
46200 Petaling Jaya,
Corporation
(MPC),
Selangor Darul Ehsan.
Lorong
Produktiviti,
Tel:603-79557266
Off Fax:603
Jalan Sultan,
79540795
46200 Petaling
Portal RIS: Jaya
Selangor
Darul Ehsan.
ris.mpc.gov.my
Email:
regulatoryreview@mpc.gov.my
Tel: 603-79557266
Fax: 603 79540795
Email:
maketing@mpc.gov.my
BPR expanding into states
BPR Project Implementation
Stage 1
Stage 2
Stage 3
Stage 4
Review of
licences, formation
of working teams and
action plan.
Presentation of
results to the FGBPR
Review Panel, conduct
public consultation and
implementation of the
new framework.
Formulating
operation modules for
online applications,
determining standards
of services and finalising
online licensing
processes.
Raising public
awareness on the
changes in regulatory
matters and impact
analysis on the
regulatory initiative.
Northern and East Coast Regions Joining in the BPR Bandwagon
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, Negeri
Sembilan, 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.
Business Process Re-engineering (BPR)
Lab Sessions in The Northern Region
(Sept-Nov 2014)
YBhg Dato’ Abdul Latif Abu Seman
Deputy Director General MPC
Presenting Welcoming Speech at the BPR Lab
Kuala Terengganu.
Business Process Re-engineering (BPR)
Lab Sessions in The East Coast Region
(Sept-Nov 2014)
“We hope the MBL initiative would
not only enhance Malaysia's international
competitiveness but also create a
conducive 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 been
automated on-line through the Business
Licensing Electronic Support System
(BLESS). This initiative is an innovative
collaboration
between
MPC,
MAMPU and ICU who will continue to
monitor, assess and enhance further
improvements. MPC will continue to
support the National Key Economic
Areas through abolishing irrelevant laws
and requirements. Dato’ Latif added
that MPC has introduced various
initiatives to improve regulations in
Malaysia according to Good Regulatory
Practice.”
REDUCING UNNECESSARY
REGULATORY BURDEN
Boosting Productivity Through RURB
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 an
economy. 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 can
significantly 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
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 of
government 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, the
planning 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; and
information and reporting.
Towards More Transparency and Accountability through Good Regulatory Practices
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 and
relevant 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.
On-going RURB Initiatives cover the following sectors
MALAYSIA
IN DOING BUSINESS 2015
GOING BEYOND EFFICIENCY
MALAYSIA’S
PERFORMANCE IN 10 AREAS OF DOING BUSINESS 2015
• 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.
TOP 5
ASIA COUNTRIES
RANKED IN DB 2015
Malaysia:
Improvements In
5 of 10 Indicators
Way Forward
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.
Gaining Useful Insights on Taiwan’s Successful OSC
12 Malaysian delegates from Focus Group Dealing with
Construction Permits (FGDCP) from Malaysia Productivity Corporation (MPC), Ministry of Urban Wellbeing,
Housing and Local Government (KPKT), Energy Commission (ST), Kuala Lumpur City Hall (DBKL), 
Iskandar
Regional Development Authority (IRDA), Tenaga Nasional Berhad (TNB), Professional Architect and Engineer
 participated
  

Productivity
 

in the
Asian
Organisation

(APO) Individual Country Observational Study.
        
        
        
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,
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overarching
legislation that ensures information sharing and mechanisms to minimise cases of
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non-compliance
as building approvals tend to require technical oversight by multiple agencies.
 
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 

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