1. Simplifying Rules and Regulations Malaysia’s Experience
Session 6
Simplifying Rules and Regulations
Malaysia’s Experience
Mohd Alamin Rehan, Senior Consultant, MPC
Presentation for the 2nd Asian Public Governance Forum on Public Innovation, Hanoi, Vietnam
9 – 10 September 2015

2. Contents Malaysia Regulatory Reform Journey
Regulatory policy and governance framework
Reducing Unnecessary Regulatory Burdens on Business (RURB) as a tool for simplifying regulations
RURB Focus Areas
Case Study: RURB Logistics and Construction
Achievement

3. Malaysia Regulatory Reform Journey
To expand GRP at State and Local Governments
Improve Business Ecosystem
Reduce Red Tape
To get out Middle Income Trap
Establised PEMUDAH
Setting up Regulatory Review Department
Introduce GRP
Expand GRP to State and LGs
Monitor & implement DB reforms till present
Issued NPDIR Circular
Conducted RURB
To develop state & LG GRP Policy
Liberalisation of Services Sectors
Public-Private Collaboration
High Income Nation
Conducive Business Environment
Integrated and Comprehensive Governance Reform
9th Malaysia Plan
New Economic Model (GTP & ETP)
10th Malaysia Plan
11th Malaysia Plan

4. 9th Malaysia Plan 2006-1010 – Reviewing Regulations
26.32 Statutes and regulations will be reviewed to further simplify and eliminate cumbersome regulations and procedures. More self-regulation approaches will be considered to ensure faster approvals for business permits and licences while promoting greater transparency. Efforts will also be undertaken to empower professional bodies to monitor and certify compliance with administrative and statutory provisions. (Chapter 26-2)

5. 10th Malaysia Plan 2011-1015 – Modernising Business Regulations
MPC to spearhead a comprehensive review of business regulations and improve processes and procedures to increase productivity and competitiveness of major economic sectors (Chapter 3; pages 73-74)
MPC will provide support to NKEAs by reviewing and recommending changes to existing regulations and policy with a view to remove unnecessary rules and compliance costs and improve the speed and ease of delivery (Executive Summary; page 25)

6. 11th Malaysia Plan 2016-2020 – Accelerating Regulatory Reforms
1.24. Regulation reforms will be accelerated to ensure new and existing regulations as well as their administration and enforcement are aligned with good regulatory practices. This will be done by expanding the adoption of the National Policy on Development and Implementation of Regulations (NPDIR), and conducting regular regulatory review for ministries and agencies. In addition, a “cost-in, cost-out” evaluation will be applied on all new business regulations to reduce regulatory burden. Under this evaluation, the direct cost of each new regulation on the private sector will be determined and the introduction of the new regulation will need to be accompanied by the abolishment of outdated or unnecessary business regulations to ensure that the total regulatory cost to business does not increase. (Strategy Paper 1)

7. Regulatory policy and governance framework
Open Government
Transparency
Accountability
Coherence
Core Policies
Regulatory Process Management Requirements
Integrated RIA
Reducing Unnecessary Regulatory Burdens (RURB)
Public Consultation procedures
Performance Evaluation
Systems, Processes & Tools
Oversight Body
Regulatory Agencies
Regulatory Coordinators
RIA Assessors
RIA Trainers
Actors, Institutions & Capacity
Economy
Society
Environment

8. Important documents to review regulation
Reference should be made to the government circular on National Policy on the Development and Implementation of Regulations issued by the Chief Secretary to the Government of Malaysia on 15 July 2013 (Pekeliling Am Bilangan 1 Tahun 2013)
Guideline on
Public Consultation Procedures
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
Tool to facilitate the implementation of Best Practice Regulation system and provides detailed guidance for the implementation
Quick Reference
Best Practice Regulation Handbook
Summarised version of Best Practice Regulation
Establish guiding principles and requirements for carrying out an adequate public consultation exercise

9. RURB as a tool for simplifying regulations
RURB helps regulated businesses identify regulatory burdens, suggest solutions and then present them to regulators in a credible way. RURB covers written regulation and its administration.
Regulated BUSINESSES insights
identify regulatory burdens
ways to reduce regulatory burdens
ROLES OF MPC
identify least burdensome tools for achieving regulatory ends without slowing economic growth, innovation, competitiveness, and job creation
present recommendations
provide a forum and a process for identifying RURBS and finding answers
review “regulation and regulators”
Regulators Insights
regulatory objectives
how to protect public health, welfare, safety, environment, etc using regulation

10. 5 13 14 RURB Focus Areas 1 Construction Trade Logistics
Environmental Services
Employment

11. 75% RURB Logistics Reduce Processing time
RURB on Business: Commercial Vehicle Licensing
: Remove Unnecessary Processes and
Documentations
Compliance cost savings
: RM61million
Reduce
75%
Processing time
BEFORE
AFTER
Time Saving
Procedure
Before :
4 months 8
After
< 1 month 5

12. RURB Dealing with Construction Permits (DCP)
KL Trax
Strengthen OSC & Introduce risk based system
Streamline OSC to World Bank research
Rank/189
Introduce OSC
EASE OF DOING BUSINESS REPORT

13. DCP team : government and business smart partnership
KWP
KKR
PEMUDAH

14. Achievements
Systematic review of all business licences, legislations and regulation;
Elimination of archaic licences and laws;
Implementation of the proposals to either eliminate or consolidate the licences;
As of April 2014, 735 business licenses were re-engineered or simplified and composited into 454 business licenses. This involved cost savings of RM729 million;
At state level, 2,546 licenses were reviewed with cost savings of RM1.7 billion; and
Second review of Acts/Regulations/Licenses extended to State Level

15. Like to Know More? Visit MPC Website: www.mpc.gov.my
14/4/2018
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Visit RIS Portal: ris.mpc.gov.my