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Regulation, as one of the most widely used policy instrument for governments, is a crucial component in the management of the national economy. Ensuring high quality regulation, in compliance

with best practices, is necessary for any government. Realising that, member nations of the Organisation for Economic

Cooperation and Development (OECD) have adopted regulatory reform tools such as Regulatory Impact Analysis (RIA) to boost competitiveness and growth whilst reducing burdens on businesses.

Based on developed countries’ Good Regulatory Practice (GRP), the Malaysia Productivity Corporation (MPC) developed a Quality Regulatory Management System (QRMS) for Malaysia and a Best Practice Regulation Handbook was launched in conjunction with this on July 15, 2013 at the Putrajaya International Convention Centre.

The launch was followed by a seminar on Enhancing Regulatory Quality and the signing of a Memorandum of Understanding between Malaysia and the OECD on lending its expertise and advisory services to assist the Malaysian Government in the implementation of Good Regulatory Practices.

Secretary-General of the Ministry of International Trade and Industry (MITI) Y.Bhg. Datuk Dr. Rebecca Fatima Sta Maria kick-started the event by noting that the seminar was one of various initiatives undertaken to promote good regulatory practice among ministries and agencies.

Chief Secretary to the Government Y.Bhg. Tan Sri Dr. Ali Hamsa launched the National Policy on the Development and Implementation of Regulations.

Y.Bhg. Datuk Dr. Rebecca explained that the handbook should be used in conjunction with the National Policy on the Development and Implementation of Regulations.

“The Best Practice Regulation Handbook is a tool to facilitate the implementation of the national policy with regards to regulations. It is intended for use by civil service employees and those involved in developing regulations,” she said.

“A regulatory framework that is more systematic must be introduced to reduce the regulatory burden on the economy and businesses,” Y.Bhg. Tan Sri Dr. Ali said in his speech.

He said quality regulations would minimise unnecessary compliance costs and fulfil the expectations of the business community.

“The RIA is one of the most important regulatory quality tools, which examines the impact of proposed regulations,” he said.

Under the new regulatory policy, all Federal Government regulators must undertake the RIA and present the Regulatory Impact Statement (RIS) when creating or amending regulations that would impact business, investments and trade.

“The process is also applicable for voluntary adoption by state governments and local authorities,” Y.Bhg. Tan Sri Dr. Ali said.

He said the national policy sets out the core principles that

authorities should adhere to in the development of good regulations.

The policy also outlines steps that will be taken to reduce and eliminate cumbersome and inappropriate bureaucratic procedures.

He said the National Development Planning Committee (NDPC) will oversee the implementation of the policy while MPC will be responsible for assessing the need for RIA and review the RIS before submission to the NDPC.

Also present at the event was OECD senior economic adviser Faisal Naru who signed an MOU with MPC Director General Y.Bhg. Dato’ Mohd Razali Hussain. Faisal also conducted a presentation, during which he explained the benefits of adopting RIA, sharing his previous experience

working for the UK government. Other agencies, like the National Water Services Commission (SPAN)

and Federal Agriculture Marketing Authority (FAMA), also shared their experiences in the seminar.

Over 500 people comprising corporate leaders and representatives of Government ministries and agencies attended the seminar and launch. Participants received a copy of the National Policy on the Development and Implementation of Regulations, the Best Practice Regulation Handbook and a Quick Reference to the Best Practice Regulation Handbook.

EVIEW 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 permis-sion from MPC.

http://www.mpc.gov.my/

EGULATORY032013 Issue

Launch of National Policy on Regulations

(From left) Secretary-general of the Ministry of international trade and industry Y.Bhg. Datuk Dr. Rebecca Fatima Sta Maria, Chief Secretary to the government Y.Bhg. tan Sri Dr. ali Hamsa and MPC Director general Y.Bhg. Dato’ Mohd Razali Hussain, at the launch of the Ria Handbook.

REGULATORY IMPACT ANALYSIS (RIA)PROCESS OF EXAMINING THE LIKELY IMPACT OF PROPOSED REGULATION AND ALTERNATIVES AVAILABLE WHICH COULD

MEET POLICY OBJECTIVES REGULATORY IMPACT STATEMENT (RIS)DOCUMENT PREPARED BY REGULATOR IN SUPPORT OF PROPOSALS FOR NEW AND AMENDED REGULATIONS WHICH STATES:• PROBLEM OR ISSUE WHICH REQUIRES ACTION• DESIRED OBJECTIVES• ASSESSMENT OF IMPACT OF ALL OPTIONS• CONSULTATION STATEMENT • CONCLUSION AND RECOMMENDED OPTION• IMPLEMENTATION STRATEGY AND REVIEW OF PREFERRED OPTION RIS TO BE POSTED ON PUBLICLY ACCESSIBLE RIS PORTAL

The PDF version of this newsletter is available at www.mpc.gov.my

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¡RegulatoRy Review ¡02

in order to ensure an efficient logistics industry which would help in the thrust forward to push the Malaysian economy

into that of a developed nation, the Malaysia Productivity Corporation (MPC) organised a workshop on July 8 and 9, 2013 at Dewan Produktiviti, MPC.

Entitled “Reducing Unnecessary Regulatory Burden Initiative – Depot Performance and Commercial Vehicle Licensing”, the workshop had two concurrent sessions focusing on reducing regulatory burdens for depot performance and commercial vehicle licensing.

It was attended by key industry players as well as representatives from Malaysian ministries and agencies.

In her speech, Secretary-General of the Ministry of International Trade and Industry (MITI) Y.Bhg. Datuk Dr. Rebecca Fatima Sta Maria stressed the importance of the logistics industry in increasing Malaysian exports and the crucial role it played in the development of the economy.

“Bearing this in mind, it is imperative to identify any issues pertaining to the logistics industry and to address them in this workshop,” she said.

“Otherwise, Malaysia will not be able to achieve its export target which would jeopardize our global competitiveness.”

Y.Bhg. Datuk Dr. Rebecca also noted that MITI was working closely with the World Bank to identify road blocks within the logistics supply chain.

Also present at the workshop were MPC Director General Y.Bhg. Dato’ Mohd Razali Hussain, MPC Deputy Director General Y.Bhg. Dato’ Abdul Latif Hj. Abu Seman and Y.Bhg. Datuk Dr. Amin Khan from the Performance

Management and Delivery Unit of the Prime Minister’s Office (PEMANDU).

Key industry players who represented the stakeholders from manufacturers, logistics associations, logistics services providers and Government agencies discussed the on-going issues and potential solutions.

Among the issues highlighted were the burden faced by Small and Medium Enterprises (SMEs)

in approaching all the different Government agencies in the application process, the duration of the current process, high “runner” costs for smaller companies, and the duplication of information submitted to different agencies.

The workshop was initiated in order to get the relevant regulators and industries to understand the overall value chain in the logistics industry. As well as that, it also serves as a stepping stone for all relevant regulators and industries to initiate the improvement initiative with MPC as facilitator.

Reducing unnecessary regulatory burden in logistics

to identify challenges faced by employers of foreign workers in the country, the Regulatory Review Department of the Malaysia Productivity Corporation (MPC) held a roundtable discussion

between Government officials and industry leaders on foreign workers in Malaysia on July 18, 2013 at Bilik Majlis, MPC.

Participants got an overview of the regulatory process from MPC’s Regulatory Review Department Director Megat Akbaruddin Megat Ismail while FOMEMA Sdn Bhd Chief Operating Officer Dr. Kreeson Vengadeson gave a presentation on the medical examination process for foreign workers.

Megat Akbaruddin said the aim of the session was to gather feedback from Small and Medium Enterprises (SMEs) in communicating regulatory issues on Foreign Workers Permit which hinder business growth.

“We would also like to discuss best practices and priority for improvement for quick-win results and to reduce regulatory burdens for SMEs in this area,” he said.

In addressing the participants, Dr. Vengadeson explained that FOMEMA’s role was to ensure that the private panel clinics, the X-ray facilities and laboratories which carry out the medical examinations do so in a proper manner.

“We have inspectors who visit the service providers. Currently we have about 4,000 panel facilities,” he said.

In his presentation, Dr. Vengadeson walked through the medical examination process for foreign workers where they are required to complete a thorough examination within one month after their arrival for the first year of employment, and for the second year, three months before their work permit expires. Work permits can only be obtained from the Immigration Department if their health is deemed suitable.

“They are deemed unsuitable if they are found to have the following diseases: Hepatitis B, syphilis, HIV, malaria, leprosy and tuberculosis, even if inactive,” he explained.

Other non-infectious and chronic diseases like hypertension, cancer, kidney disease, heart diseases and asthma along with conditions such as pregnancy, drug addiction and spine problems will also make them unsuitable.

Dr. Vengadeson also clarified the appeal process for foreign workers.

“All workers, except for those which have syphilis, can appeal. This is just a screening test for other diseases like

HIV and Hepatitis B,” he said, adding that employers and workers could find the results of their medical examination online using the workers’ code or passport numbers.

In the open dialogue held after the presentations, various issues were highlighted to be addressed. Among them were queries related to medical examination results and the appeal process, congestion in state Immigration Departments, suggestions to simplify the work permit process and issues highlighted by petroleum dealers with regards to employing foreign workers.

Roundtable discussion on foreign workers

Dr. Kreeson Vengadeson, Coo of FoMeMa.

MPC’s Regulatory Review Department Director Megat akbaruddin Megat ismail. Participants at the roundtable discussion on foreign

workers.

Participants at the logistics industry workshop.

END

30 Days

14 - 120 Days JPJ ApprovedConsultant

3-7 Days

APPROVAL ONPARKINGFACILITY

New Paln

2 Days 1 Day

VERHICLEREGISTRATION

“LESEN KENDERAANMOTOR” (LKM)

ROAD TAX

NEW OPERATOR & CARRIER

LICENSE A/KA/C

INITIALINSPECTION

LICENSE ISSUANCE

PBT

4 -7 Days 3 -7 Days

Current approval process:

DURATION: 3 – 5 months(average = 4 months )

COMMERCIAL VEHICLE LICENSING PROCESS (AS-IS)

3 Days

APPROVAL ON“PELAN TEKNIKAL

KENDERAAN”

14 Days

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¡RegulatoRy Review ¡ 03http://www.mpc.gov.my/

PRoPeRtY transactions form a large part of business conducted in Malaysia, both for Small and Medium Enterprises (SMEs) as well as individuals. Facilitating a more efficient property registration process

and system will only serve to further boost national earnings from this industry.

In line with this, the Malaysia Productivity Corporation (MPC) recently conducted a workshop on property registration for members of the Focus Group on Registering Property (FGRP) and key stakeholders in the registering property value chain.

In his address to the group, Y.Bhg. Dato’ Abdul Latif Hj. Abu Seman, MPC Deputy Director General, noted that effecting a transformation in the property registration process was congruent with Malaysia’s aspiration to be one of the top 10 nations in the World Bank’s Doing Business (DB) report.

“As this is the ranking being used by potential investors and businessmen globally, we need to ensure that what happens on the ground will effect a transformation in the landscape. Our measures need to be real improvements towards making Malaysia a more competitive country and the DBr as an indicator to benchmark where we stand is a crucial tool,” he said.

Y.Bhg. Dato’ Abdul Latif noted that vast improvements had already been made in various procedures in Malaysia, and as an example, cited how when developing the Penchala Link highway, the procedures dealing with construction permits were dramatically reduced and resulted in more efficiencies.

The session was facilitated by Olin McGill, a regulatory efficiency expert with experience in many countries, including Georgia where he was instrumental in aiding the country achieve top rankings in the DB report rankings.

Based on the feedback, achievable options will be identified and put forward to various agencies to be implemented by May 31, 2014 so it can have a positive impact on the 2015 rankings.

Many stakeholders shared their views on the current situation and improvements which were necessary.

Y.Bhg. Dato’ Sr Lau Wai Seang, Director of the Valuation Services, Valuation and Property Department, Ministry of Finance, was also present to share the experiences of her department with regards to valuation for stamp duty taxation.

“It used to take 14 days to value property but we have now reduced it to five days for non-standard properties and one day for standard properties. We have achieved a lot within a short space of time, but we are looking for more improvements which can be implemented,” she said.

Moving towards efficient property registration

CoMMuniCationS officers of Government ministries and agencies frequently face challenges in queries from journalists and responding to stories in the media.

Their desire to get across their key messages and their side of the story is one they deal with on a daily basis, as journalists cover topics and issues of public interest to keep readers and viewers abreast of current news.

Recently in June, in response to this need, the Malaysia Productivity Corporation (MPC) organised a two-day media training session for Ministry spokespersons, press secretaries, public relations officers, public outreach officials and members of corporate communications units of Government bodies at the Marriott Hotel in Putrajaya.

Officiating at the event was MPC Deputy Director General Y.Bhg.Dato’ Abdul Latif Hj Abu Seman who noted that a slew of initiatives had been undertaken by Government ministries and agencies to improve on their public service delivery. As an example, he cited recent improvements in the tax system which required Lembaga Hasil Dalam Negeri (LHDN) to submit returns on tax payments in a timely manner.

“If the excess taxes aren’t returned on time, then LHDN actually has to pay the person a certain amount of compensation.

These, along with other improvements and changes in the system across the board are all tremendous improvements. However, the question is how many people out there actually understand this and are aware of it? We need to make the public more aware of our deliverables under the new, improved system,” he said.

The manifold objective of the training session was to enhance skills for effective media communication, aid participants in developing strategies for more effective public outreach and help them improve their relationship with journalists.

Stephanie Gruner Buckley, a former Wall Street Journal reporter, conducted the session. Buckley has worked for a number of different financial and business publications and was

shortlisted in 2002 for the “Business Journalist of the Year” award, the UK’s most prestigious award for financial journalists.

Helping communications officers to communicate

Some of the participants at the media training workshop.

LAND FRAUD

STRATA TITLE REGISTRATION PROCESS

Turnaround Time in The documenTaTion and disbursemenT of loans

issues raised

MPC Deputy Director general Y.Bhg. Dato’ abdul latif Hj abu Seman.

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¡RegulatoRy Review ¡04

Y.Bhg. Dato’ Mohd Razali (seated, third from left) and Y.Bhg. Dato’ Saw (seated, fourth from left) at the launch of the journalism award.

AS Malaysia makes radical transformative changes to its business landscape to encourage

the proliferation and growth of the economy, it is imperative that these changes be communicated to business owners and industry practitioners..

To encourage the local media to write more articles on the issues, The Special Task Force to Regulate Business (PEMUDAH) announced the 2013 Journalism Competition for journalists who write articles on the range of Ease of Doing Business initiatives which have been implemented in the country. And the prize is a whopping RM10,000 for the best article to be published between January and September 2013.

The competition was launched at the PJ Hilton on June 24 by Y.Bhg. Dato’ Saw Choo Boon, the Co-Chairman of PEMUDAH and the Chairman of the Focus Group on Public Relations, who gave an overview of activities rolled out under the initiative.

“PEMUDAH is about the public-private partnership to improve service delivery to bring about an economic transformation for Malaysia,” he said. “To encourage investment, we need to create a very competitive environment and this is the purpose of the various initiatives we have implemented.”

Y.Bhg. Dato’ Mohd Razali Hussain, Director General of Malaysia Productivity Corporation (MPC), who was present at the launch, noted the sense of urgency with which the Government, through its partnership with the private sector in PEMUDAH, has responded to the way in which it allows businesses to operate.

“We are cognisant of the need to ensure that businesses are facilitated, rather than hindered by too much red tape; that corruption is rooted out and that only so much regulation as is necessary is in place, and no more,” he said.

Y.Bhg. Dato’ Mohd Razali elaborated on the need for the Journalism Competition as a vehicle to communicate these reform initiatives to the public and businesses at large as being necessary to assure stakeholders of the Government’s on-going commitment and efforts to improve efficiency at all levels.

“We would like business and financial journalists to better understand why the reforms matter, and what impact they might have,” he said.

In his presentation, Y.Bhg. Dato’ Saw elaborated on how PEMUDAH is working on the digitisation of the regulatory landscape to remove human discretion and interface, employing a guillotine strategy in removing regulations which cannot be justified, adapting Best Practices, and effecting radical change through Business Process Re-engineering.

“Using rankings is one of the ways we determine where we stand and how we can improve, and in this regard, the World Bank Doing Business report ranking is a key one we use,” he said.

He noted that the need to publicise efforts in the area tied in closely with obtaining feedback on how the initiatives were faring on the ground.

“We would like to know how the public are coping with the changes implemented, whether they have any complaints. Complaints are good as we can use them as a basis for improvement and we need suggestions for further improvement,” he clarified.

The 2013 Journalism Competition is open to all journalists working in broadcasting and print media (English, Bahasa Malaysia and Mandarin). Three main prizes are up for grabs in each language category. Winners in all media categories will get a main prize of RM10,000, followed by RM5,000 for the second prize and RM3,000 for third. Entry forms are available at www.pemudah.gov.my or www.facebook.com/pemudahmalaysia.

Articles written should be between 800 and 1,200 words in length and should cover any of the 10 areas of doing business in Malaysia. These would be starting a business; dealing with construction permits; getting electricity; registering property; getting credit; protecting investors; paying taxes; trading across borders; enforcing contracts and resolving insolvency.

The launch was followed by an engagement session for journalists

PEMUDAH INITIATIVESMYCOID (Malaysia Corporate Identity) GATEWAY SYSTEM• Simultaneousincorporationofcompanyandregistration with5agencieswithin1dayBLESS(BusinessLicensingElectronicSupportSystem)• Registeredcompaniescanapplyforlicenses&permitsin theconstruction,manufacturingandhotelsectorsBUSINESSPROCESSRE-ENGINEERING• Businesslicenseconsolidationfrom687licensesto452 licensesREGISTERPROPERTYIN1DAY• Utilisinge-Stamping,SistemTaksiranPindahMilikTanah& StampAssessmentPaymentSysteminlandofficesFASTERPROCESSING• Re-engineeringsystemforconstructionpermits• Gettingelectricitywithin21daysNEWCOMMERCIALCOURTS• Fasterprocessingofcommerciallitigationwithin9monthsREVAMPEDCOMMERCIALLEGALSYSTEM• ImprovedprocessforenforcingcontractsMYBAYAR• e-Paymentfacilitiescovering250Agencieswith551servicesPOLICYIMPROVEMENTS• ReviewofForeignInvestmentCommitteeguidelines• EstablishmentofNationalWagesConsultativeCouncil& amendmentstoEmploymentBill2011foremploymentof workers• Liberalisationof17sub-sectorsintheServicesSector allowingfor100%foreignequityparticipationinsome sub-sectors• Expatriatesallowedresidentspassforupto10yearsunder newImmigrationregulations• ComprehensivereviewofNationalLandCodeand InsolvencyAct

RM10,000 business journalism prize

http://www.mpc.gov.my/

with international experts. On hand was Olin McGill, a regulatory efficiency expert who covered the topics of “Economics and Economic Reforms” and “Creative Journalism on Malaysia’s Reform Initiatives” to assist writers understand the subject matter. Also present was Stephanic Gruner Buckley, a former Wall Street Journal reporter, who spoke on creating higher impact reporting and also shared on global best practices on reporting related to investigative journalism and ethics.

Publisher: Regulatory Review Department , Malaysia Productivity Corporation, Lorong Produktiviti, off Jalan Sultan, 46200 Petaling Jaya, Selangor Darul Ehsan Tel: +603-7955 7266 Fax: +603-7954 0795 Email: marketing@mpc.gov.my