PUBLIC CONSULTATION AND
REGULATORY IMPACT ANALYSIS
26 January 2015
Presented by:
Megat Akbaruddin Megat Ismail
Regulatory Review Department
Malaysia Productivity Corporation
Why Good Regulatory
Practices
•
Government around the world need to
rethink conventional economic policy and
governance strategies in order to
understand what can help economic
growth and make life better for citizen
•
Public services are affected by our
excessive red tape and regulatory
inflation continues to undermine the
clarity of the law
•
Recent financial and economic crises
have put the effectiveness of regulatory
policy to a severe test , and there is
evidence of serious regulatory failures
•
Encourage the Government to “think
big”- the relevance of regulatory policy in
support of sustainable economic growth
and the attainment of Vision 2020
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Do the current regulatory institutions,
tools, and processes failed to deliver “fitfor-purpose” , user-friendly regulations
and regulatory framework ?
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Regulatory Policy and Importance of
Getting Regulations Right
Regulations are indispensible to the proper function of
economies and societies. They create “the rule of the
games” for citizens, businesses, and civil society. The
underpin markets, protect the right and safety of
citizens and ensure the delivery of public goods and
services
Regulatory policy aims to ensure that regulations support
economic growth and development, achievement of broader
societal objectives (eg. Social welfare and environmental
sustainability) as well as strengthens the rule of law.
“…..MPC is to spearhead a comprehensive review of
business regulations and improve processes and procedures
to increase productivity and competitiveness of major
economic sectors
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Sources of Unnecessary
Regulatory Burden
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•
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Excessive coverage of regulations, including ‘the
regulatory creep’ (overused of regulations).
Subject specific regulations that cover much the
same ground as other generic regulation (being over
regulated).
Unduly prescriptive regulation that limits the ways
in which businesses may meet the underlying
objective of regulation.
Excessive time delays in obtaining responses and
decisions from regulators.
Rules or enforcement approaches that inadvertently
provide incentives to operate in less efficient way.
Unwieldy license application and approval
processes.
Unnecessary invasive regulatory behavior, such as
overly frequent inspections or requests for
information.
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Improvements in Reducing Uneccessary
Burden in Business
•
Having a proportionate and targeted response to the
risks being addressed
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Minimizing adverse side effects to only those that
are necessary to achieve regulatory objectives
•
Having a responsible approach to gaining
compliance with regulations
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Being consistence across legislative instruments and
consistency in the application of regulation across
business and industries
.
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Elements of Regulatory
Impact Assessment (RIA)
1.
2.
3.
4.
5.
6.
7.
Identify the Problem or Issues
Explain the Objectives
Identify a Range of Alternative
Options (Regulatory and Non
Regulatory)
Provide Adequate Impact Analysis
(Cost, Benefits and Risks)
Describe How Consultation was
Conducted
Clearly State Conclusion and
Recommended Option
Provide Strategy to Implement and
Review
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Good Regulatory Practices and
Regulatory Impact Assessment
National Policy on the
Development and
Implementation of Regulations
Provides a systematic guideline
based on best practices adopted
from other countries
Best Practice Regulation
Handbook
Chief Secretary to the
Government
Circular dated 15
Tool to facilitate the
July
2013.
implementation of Best Practice
Regulation system and provides
detailed guidance for the
implementation.
•
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Sound analysis
Informed decision
making
Transparency
Regulatory Impact Assessment
The process of examining the likely impacts of a
proposed regulation and a range of alternative options
which could meet the government’s policy objectives
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Public Consultation Guideline
Objective
To establish the guiding principles and
requirements for carrying out an adequate
public consultation exercise.
Public Consultation enables the regulator to:
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Develop better and more practical regulations
Identify the full range of affected parties
This guide
Minimize the risk of unexpected
book is a KPI of
consequences
MITI Minister
To discover better implementation methods.
Public Consultation Guideline
Metodology
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2
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BEST PRACTICES
Fact finding and information search on best
practices in other countries
REVIEW
Review of existing local good practices – Case example
from National Land Code Review and KPDNKK
consumer protection
Review of existing public consultation document and process
(Pekeliling Am Bilangan 2 Tahun 2012, Seranta Awam Atas Talian
(Online Public Engagement) Bagi Sebarang Cadangan Baru Atau
Pindaan Undang-Undang).
DRAFT
Develop and complete draft for consultation
Public Consultation Guideline
Contents
PART 1
PART 3
An Introduction to Public Consultation
Requirement for Public Consultation
• Consultation documents – clarity of
scope & document
• Planning the consultation exercise
• Accessibility to the consultation
exercise
• Stakeholders analysis
WHAT
WHY
WHO
WHEN
ONLINE
PART 2
The Guiding Principle for Public Consultation
• Principle 1 : Transparency with accessibility
• Principle 2 : Accountability
• Principle 3 : Commitment
• Principle 4 : Inclusiveness that is equitable
• Principle 5 : Timely and informative
• Principle 6 : Integrity with mutual respect
PART 4
Public Consultation Process
Current Circular: “Online Public Consultation”
Notification
Provide
consultation
session details
Furnish relevant
data, information
and findings
Preliminary
Feedback
Consultation
Publish draft
concept
Publish draft act or
legislation
Publish results of
consultation
Collect feedback
Government issues
feedback on
results
Collect feedback
Brings in the required expertise
Allows for preparation and foster
Conclusion
Source: PwC Report 2013
Public Consultation Guideline
Process
Brings in the required expertise
Key benefits
Allows for preparation and foster
better understanding of the issues
better understanding of the issues
being consulted
being consulted
If Government Intervention
is Necessary…….
The Need for Public Consultation
• Have those potentially affected been consulted ?
• How will the regulation be enforced ?
• Has advise been sought from the proposed
enforcement body ?
• Does the proposed regulation empower those
who will be responsible for enforcing it ?
• How will the effectiveness of the solutions be
monitored ?
• How and when it will be reviewed ?
• Will SMEs be disproportionately affected ?
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If Government Intervention
is Necessary…….
The Need for Public Consultation
• Have those potentially affected been consulted ?
• How will the regulation be enforced ?
• Has advise been sought from the proposed
enforcement body ?
• Does the proposed regulation empower those
who will be responsible for enforcing it ?
• How will the effectiveness of the solutions be
monitored ?
• How and when it will be reviewed ?
• Will SMEs be disproportionately affected ?
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If Government Intervention
is Necessary…….
Planning a consultation
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setting clear objectives for your consultation;
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planning consultation activities and identifying
stakeholders;
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carrying out any preliminary, informal consultation to
inform the exercise (both in terms of content and
practicalities. E.g. how best to reach people);
•
writing the consultation document and associated
documents, e.g. the Impact Assessment;
•
getting clearance to publish your consultation
documents where appropriate;
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analysing responses to your consultation and
incorporating any appropriate changes into the policy
proposal;
•
giving feedback to your stakeholders, including
through a report of the consultation, summarising the
responses received.
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If Government Intervention
is Necessary…….
Consultation Code of Practices
• the background information to your proposal;
• the objectives of your consultation;
• the reasons for deviating from the Code of
Practice;
• the risks associated with deviating from the
Code, and
• the measures you will undertake to ensure that
the consultation is an effective as possible.
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If Government Intervention
is Necessary…….
Deviating from the Code, you should
• ensure that he consultation is carried out
according to best practice in other respects;
• ensure that your stakeholders are made aware of
the way in which your ;consultation deviates
from the code and the reasons for this, e.g.
include the information on the basic information
page of the consultation document, and
• outline any measure you are taking to
compensate for the such as supplementary ways
of getting involve.
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If Government Intervention
is Necessary…….
Sharing of Confidential Information
• plan your consultation processes more
effectively;
• plan the content of the consultation, including
scoping the potential options and key questions
to be included in your written consultation
document;
• define a comprehensive list ofstakeholders with
whom you should consult, not just the ‘usual
suspects’;
• identify the best methods for targeting these
stakeholders and consulting with them most
effectively; and
• manage potential risks more effectively
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Improving the Quality of
Your Solution
• those affected by regulation, have a good
understanding of what the problem is;
• perspectives and suggestions, on alternative
options from those parties;
• regulators assess competing interests;
• a check on the regulator’s assessment of costs
and benefits and whether/how the proposed
option will work in practice, reducing the risk of
unintended consequences
• identifying interactions between different types
of regulations;
• enhancing voluntary compliance through greater
understanding and acceptance of a proposal,
thereby reducing reliance on enforcement and
sanctions
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Contact Us ?
Regulatory Review Department
Malaysia Productivity Corporation
Website: www.mpc.gov.my
Email: regulatoryreview@mpc.gov.my
Telefon: 03-79557266
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