egulatory

EGULATORY
EVIEW
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MPC, for the benefit of all stakeholders. No part of it should
be reproduced in any form without the expressed permission from MPC.
http://www.mpc.gov.my/
2014  Issue 01
Top marks for Focus Group
A
N appreciation ceremony for the Pahang State Business
Licencing Modernisation Project was held at Kompleks
Yayasan Pahang in Kuantan on March 3 where Pahang
Menteri Besar YAB. Dato’ Sri DiRaja Haji Adnan bin Haji Yaakob
extended his congratulations to the Focus Group on Business
Process Re-engineering (FGBPR) at Pahang state-level for their
commendable job in reducing the numbers of business licences and
time required to process them.
Also present at the ceremony were Pahang State Secretary
YB. Dato’ Sri Muhammad Safian bin Ismail, MPC Deputy Director
General YBhg Dato’ Abdul Latif bin Hj Abu Seman and MPC
Regulatory Review Department Director Megat Akbaruddin Megat
Ismail.
According to YAB Dato’ Sri DiRaja Haji Adnan, the project
is a platform for the local authorities and members of the local
business community to work together to create better efficiencies (Standing, front row, from left) MPC Deputy Director General YBhg
in the business ecosystem in Pahang, making it more attractive for Dato’ Abdul Latif Hj Abu Seman, Menteri Besar Pahang YAB Dato’
Sri DiRaja Haji Adnan bin Haji Yaakob and MPC Regulatory Review
investors.
Department Director En. Megat Akbaruddin Megat Ismail.
These were part of the structural reforms outlined under the
long term strategy under the East Coast Economic Region (ECER)
National Transformation Programme which includes the Government
Transformation Programme and the Economic Transformation development programme which aimed to transform areas along the
East Coast of Peninsular Malaysia into a vibrant economy focusing on
Programme.
At the core of the transformation programme was the reformation domestic and international tourism, natural resource and manufacturingof Public Service Delivery (PSD) which aimed to accelerate the based exports, infrastructure and logistics hub and commercial centres.
“Since the inception of ECER five years ago, Pahang has obtained
Government’s efforts to become more efficient and facilitative in both
investments worth RM23.55 billion, almost half of the RM49 billion of
business and public-related services.
One of the ways this was being done was through the Business total investment for ECER. This has resulted in the creation of 25,000
Process Re-engineering (BPR) initiative whose goal was to accelerate jobs in Pahang,” he said.
The reduction in bureaucracy and red tape as a result of the
business licensing processes by adopting a clear governance structure
to ensure execution and compliance, thus reducing redundancies and Modernisation of Business Licenses project would result in a more
investor and business friendly environment.
overlaps.
Consequently, it would result in further development of projects
“It is only by doing this that our national economy can be more
competitive and achieve greater returns and rewards for the rakyat,” he earmarked by the ECER Development Council (ECERDC) chaired by
the Prime Minister of Malaysia YAB Dato’ Sri Mohd Najib bin Tun Haji
said.
He said that within the civil service, a transformation in the delivery of Abdul Razak.
YAB Dato’ Sri DiRaja Haji Adnan called upon the FGBPR to continue
their work capacities had to be founded on principles of good governance
and an innovative and proactive approach towards implementing with their sterling work in the area of Modernising Business Licenses
as it was an initiative central to the transformation of the nation towards
changes and improvements identified to increase standards of PSD.
“The Modernisation of Business Licenses project was pioneered achieving high income, developed nation status by the year 2020.
by Pahang in 2013 and involved the cooperation of 16 organisations,
namely 11 local authorities and five state departments including the
PENCAPAIAN PEMODENAN LESEN
Land and Mineral Department, Pahang Forestry Department, the
Islamic State Department of Pahang and Water Regulatory Authority
of Pahang,” he said.
“A total of 214 business licences were reviewed with 60 per cent of
these re-engineered while the rest were retained.”
According to him, there were a number of positive impacts from this
project.
TOTAL LICENSES AS-IS & TO-BE
The
approval
time for business
trading licences in
TO BE
AS IS
the risky category
LOCAL AUTHORITIES
(PIHAK BERKUASA
was reduced to an
100
32
TEMPATAN)
average of only 8
LAND & MINERAL
12
12
DEPARTMENT
days while hawker
licences
were
LOCAL COUNCILS
(MAJLIS DAERAH )
9
8
reduced from 25 to 7
FORESTRY
days.
8
8
DEPARTMENT
Such
vast
ISLAMIC STATE
DEPARTMENT OF
1
1
improvements
PAHANG
PAHANG
WATER
were in line with
REGULATORY
2
2
AUTHORITY
the
Government’s
The PDF version of this newsletter is available at www.mpc.gov.my
2005
2006
2007
2008
2009
2010
2011
02 ¡ Regulatory Review ¡
I
http://www.mpc.gov.my/
Raising awareness of Good
N continuing with its work to champion the cause of Good
Regulatory Practice (GRP) in Malaysia, the Malaysia
Productivity Corporation (MPC) recently conducted a threeday workshop to raise awareness and build capacities within
government ministries, departments and agencies.
The illuminating and informative sessions were conducted
by regulatory experts from the Organisation for Economic
Cooperation and Development (OECD) namely Faisal Naru,
Senior Economic Adviser, Regulatory Policy Division of the
OECD, James Sheppard, Policy Analyst with the OECD, and
OECD experts Dr Maggie Kamal and Sherif Fawzi Abdel Gawad.
Representing MPC were Deputy Director General Y.Bhg. Dato’
Abdul Latif Hj Abu Seman and Regulatory Review Department
Director Megat Akbaruddin Megat Ismail, who were both on hand
to facilitate the events held on Feb 26 at INTAN, Bukit Kiara,
Kuala Lumpur and on March 3 and 4 at MPC in Petaling Jaya.
The primary purpose of the workshops was to update key
officials on the status of GRP implementations and to give them
an in-depth understanding of the Regulatory Impact Assessment
(RIA) process so that Regulatory Coordinators (RCs) from
government ministries,
(From left) Faisal Naru, Senior
Economic Adviser, Regulatory
departments
and Status of RIA Implementation
Policy Division of the OECD and
agencies would gain
MPC Deputy Director General
the technical ability
No
Proposal Undertaking RIA
YBhg Dato’ Abdul Latif bin Hj
Organisation
RIS Notification Received
.
Process
Abu Seman.
in terms of skills and
knowledge to comply
1.
CIDB
5
4
He added that RCs now
with the requirements of
had an additional role to report
2.
1
1
DOSH
the Regulatory Process
annually to MPC and provided
Management.
3.
1
1
the audience the progress of
FAMA
In his welcoming
RIA implementation as of
address, YBhg Dato’
4.
1
1
KPDNKK
March 2014.
Abdul
Latif
said
In his presentation, Faisal
programmes
like
5.
2
2
MITI
Naru referred to RIA as a
these were fitting in
key tool which was used by
Standards
light of the launch of
6.
1
1
OECD countries to manage
Malaysia
the
National
Policy
the regulatory environment.
on the Development
7.
1
1
SKM
“The real purpose of RIA is
and
Implementation
to ensure that the regulations
8.
1
1
of
Regulations
and
SPAN
which come through the
Pekeliling Am Bilangan
1 enhance and improve
system
1 Tahun 2013 on July
the system and are beneficial
15, 2013 which made it mandatory for a RIA and a Regulatory
to all stakeholders,” he said.
Impact Statement (RIS) for all new regulations and amendments
He added that the OECD would share the Best Practice
to existing regulations.
Regulation Handbook which was launched in Malaysia in
“The National Development Planning Committee (NDPC) has
conjunction with the National Policy as a Malaysian Best Practice
a gatekeeping function for all regulations before it goes to the
model with other countries.
Attorney-General’s Chambers to be drafted or to Parliament to
The Best Practice Regulation Handbook is a document
be passed. The NDPC is a high-level committee which will vet
prepared by MPC which has all the information required for the RIA
through any regulatory proposal to see whether the regulation has
gone through the RIA process,” he said.
Important Documents on Good Regulatory Practise (GRP)
He said, there would be an Annual Regulatory Review Report,
coming from respective agencies and ministries, which will report
Reference should be made to the government circular on Na<onal on regulatory progress and practice of GRP in the country.
Policy on the Development and Implementa<on of Regula<ons issued by the Chief Secretary to the Government of Malaysia on 15 Megat Akbaruddin noted that good quality regulations should
July 2013 (Pekeliling Am Bilangan 1 Tahun 2013) achieve the intended objective of being proportionate with the
outcomes required.
He said there should not be any redundancies which were costly
to both the Government and businesses as well as consistency in
the regulatory framework so people would not be confused.
“Thus, it is important to obtain good quality feedback through
targeted engagement with stakeholders,” he said.
He outlined the duties and role of RCs as the focal point for the
Ministry or Regulator and also facilitating the implementation of
Na<onal Policy on the the National Policy.
Development and Best Prac<ce Regula<on Handbook Quick Reference Implementa<on of Regula<ons Best Prac<ce Regula<on Tool to facilitate the implementa.on of Handbook “RCs are also responsible for facilitating the implementation of
Best P
rac.ce R
egula.on s
ystem a
nd Provides a systema.c guideline based on best prac.ces adopted provides detailed guidance for the Summarised version of Best regulatory policies in any Ministry or agency as well as fulfilling a
implementa.on. from other countries Prac.ce Regula.on 2 monitoring and governance role,” he said.
100%
100
%
75%
77
%
60
15
%
20
%
25
%
35
49
%
50%
%
%
25%
http://www.mpc.gov.my/
¡
Regulatory Review ¡
03
Regulatory Practice
Outcomes of Recent Surveys
Conducted by MPC on GRP/RIA
Survey 1 : Survey on the level of awareness and
knowledge Regulatory Coordinators have on
the Regulatory Impact Statement (RIS)
Out of 50 respondents, the following findings were:
—83% said they are aware of the launching of National Policy on the
Development and Implementation of Regulations and Pekeliling
Am Bilangan 1 Tahun 2013 on July 15, 2013.
—To what extent RCs have knowledge on GRP and RIA, 39%
agreed that they have moderate knowledge of GRP & RIA, 26.5%
said they have little knowledge and 22% answered that they don’t
have any knowledge.
— 8.1% agreed that they understand GRP and RIA and were able
to explain to their colleagues and only 4.1% were able to explain,
teach and assist their colleagues in undertaking RIA.
—Almost 100% (fully agreed: 21.7% and agreed: 78.3%) agreed
that the implementation of GRP will give more benefits to ministries
and agencies.
—91.3% agreed and 8.7% fully agreed that RIA can be applied and
implemented when they want to draft any new regulation or amend
existing regulation.
—Only 26.1% of the Ministries/agencies are planning either
to come out with new regulation or amend their existing
regulation this year.
Survey 2 : Survey on Best Practice Regulation
Findings confirmed the need for Regulatory Process Management
Requirements in the rule-making process as follows:
—97% of respondents agreed a good or quality regulation is
one that has characteristics of good governance and must fulfil
“adequacy” and “gatekeeping” requirements to ensure the quality
or effectiveness of a new business regulation.
—95% of respondents agreed that the Special Task Force to
Facilitate Business (PEMUDAH) holds an advocacy role in
improving public service delivery.
—97% of respondents agreed rule-making process can be
enhanced through coordinating advisory functions which include
training for regulators, accountability audit of quality assurance and
repository of best practices.
process readily available for
all RCs to access.
According to him, for
RIA to truly come alive in
the regulatory framework
in Malaysia, there was a
need to build support for
implementing
GRP
by
disseminating and updating
information in Ministries and
agencies.
Referring to the Better
Regulation
Unit
(BRU)
which is present within
each Ministry in the United
Kingdom (UK), he said their
responsibilities were similar
Sherif Fawzi Abdel Gawad, OECD expert.
to RCs in Malaysia.
“Both have to cooperate
with an oversight body which is the Better Regulation Executive
or BRE in the UK and MPC in Malaysia on the implementation and
monitoring of GRP,” he said.
Sherif Fawzi also shared a case study of regulatory reform in
Egypt, looking at the role of RCs and how they helped with the
overall structure of GRP in the country.
“Regulatory reform began in Egypt in 2008 and it was a
different experience from other OECD countries. At the heart of
it was a central unit which provided coherence to all the different
players involved in the process – ERRADA – whose main function
was capacity building in terms of providing training and giving
assistance to RCs,” he said.
There was also a Business Advisory Council (BAC) which
was created as a platform for public-private dialogue on policy
and regulatory related issues so that Ministries and agencies
interested in consulting stakeholders could do so.
“RCs in Egypt had a number of responsibilities but unlike
Malaysia, they did not have a Handbook or a National Policy as
Malaysia does. Therefore it was a more difficult job for them,” he
said.
Sherif Fawzi shared the various difficulties and challenges
faced in building consensus between Ministries and agencies
in Egypt and outlined some of the different ways Egyptian RCs
worked together to find solutions to their challenges within the RC
community.
Some 800 participants from a range of government ministries,
departments and agencies attended the session.
RIA Process Flow
Regulator Notifies MPC
No. Key Performance Indicators (KPI) Number Number of Organisa<on (Ministries/Agencies) 1. Enquiries A.ended 27 22 2. RIS No6fica6on Received 15 9 3. Project Undertaking RIA Process 12 8 4. Advisory Services 9 8 5. Registra6on of Regulatory Coordinators 187 96 *Updated as of 11 March 2014 Regulator fill in ‘RIS
Notification Form’ and
submit to MPC
• PhoneCall
• Email
• Walk-‐in
• RIS Portal
Need to
NO
Undertake RIA
YES
Regulator carry out Regulatory
Impact Analysis (RIA)
and consultation
Regulator submit Regulatory
Impact Statement (RIS) to MPC
A
04 ¡ Regulatory Review ¡
http://www.mpc.gov.my/
World Bank team on fact-finding mission
A
DCP Ranking
The meeting concluded with a
TWO-person team from the
site visit to the KL One-Stop Centre
CONSTRUCTION PERMITS :
World Bank was recently
in Kuala Lumpur to meet
WHY FURTHER IMPROVEMENT IS NEEDED? in DBKL, where the WB team were
given a demonstration of how the
up with several government
WORLD BANK REPORT 2007-­‐2014: new system worked.
ministries,
departments
and
1 Improved OSC system The third meeting by the WB
agencies to collect data on
& Introduced risk based approval team was with the Focus Group on
Doing Business (DB) indicators
system Registering Property (FGRP) which
to update the 2015 edition of the
43 was chaired by YBhg Datuk Dr.
Doing Business Report (DBR).
Introduced OSC System Salehuddin bin Ishak, the Deputy
Frederic Meunier, a Private
Director of the Department Director
Sector Development Specialist
General of Land and Mines.
and Magdalini Konidari, an
96 104 105 108 109 113 His presentation focused on the
Operations Analyst, had a number
Improved processing reduction in time with regards to
of meetings from March 17-21
137 :me property registration in Malaysia
to be updated on Government
Year
where a one-day land registration
reforms on DB indicators.
2007
2008
2009
2010
2011
2012
2013
2014
2015
policy was enforced on May 2010
Their first meeting was with
Performance of Kuala Lumpur
implementing a one piece flow model
representatives of the Malaysia
as a continuous process.
Productivity Corporation (MPC),
“In 2013, our overall performance of the one-day registration
the Special Task Force to Facilitate Business (PEMUDAH), the
Performance Management and Delivery Unit of the Prime Minister’s process achieved a monthly target of over 96 per cent,” he said.
He said the department had also in place support systems for
Office (PEMANDU) and other Government agencies.
The meeting was chaired by YBhg Dato’ Saw Choo Boon, the Co- Land Offices throughout the country.
“We have deployed our staff to assist them to ensure that all
chair of PEMUDAH, who presented on Public Private Partnership
transactions are completed within 24 hours. We also have in place
through PEMUDAH.
Also present were MPC Director General YBhg Dato’ Mohd a number of facilities which cost more than RM11 million and also
Razali Hussain, MPC Deputy Director General YBhg Dato’ Abdul several research and development (R&D) labs which deal with
Latif bin Hj Abu Seman and YBhg Dato’ Dr. Amin Khan, Director, complaints and problems within the system,” he said.
On the final day of their visit, the WB team met the Focus Group
PEMANDU.
In his presentation, YBhg Dato’ Saw highlighted the key on Enforcing Contracts (FGEC) which was chaired by Tuan Zamri
achievements as a result of a number of different initiatives done Bakar, the Registrar for the Subordinate Courts of Malaysia. Along
in collaboration between the public and private sector to improve with Puan Rohani Ismail, a Sessions Court judge, they conducted
a presentation on initiatives and reforms
Malaysia’s competitiveness.
within the KL courts with regards to the
Among the initiatives he
enforcement of contracts.
went through with the WB team
“We introduced a tracking system in
were initiatives introduced by
2009 where cases were categorised and
the Companies Commission of
PRESTASI KESELURUHAN PENDAFTARAN PINDAH MILIK TANAH
(PMT) (BORANG 14A) 1 HARI BAGI TAHUN 2010 - 2013
then distributed accordingly. There was a
Malaysia (CCM) reducing the cost
need to specialise as there were a large
of doing business such as the % ACHIEVED
number of cases and a need to break these
reduction in company incorporation
down to A-Track (Interlocutory application),
fees and the mandatory registration
M-Track (other applications) and T-Track
of
companies
on
Malaysia
(full trial),” explained Rohani.
Corporate Identity (MyCOID) in
The courts also introduced an e-filing
Kuala Lumpur, Selangor and Negeri
system which speeded up the process
Sembilan.
considerably.
According to him, although the
After the meeting, the WB team were
DBR focuses on Kuala Lumpur
taken on a site visit to the e-filing cubicles
(KL) in terms of reforms, the work
for the High Court where they were given a
of PEMUDAH focuses on ensuring
YEAR
3 demonstration
of how the system worked.
efficiencies in the entire country.
“Our work doesn’t just focus
on KL but on the entire country,
to ensure it is efficient. For example, in the area of dealing with
construction permits, KL may be very efficient, but we want it to
be replicated throughout the country. MPC is intensifying its efforts
throughout the country implementing this,” he explained.
The second day of the visit saw the WB team conducting meetings
1 procedure
with the Focus Group on Construction Permits (FGDCP).
1 day
TARGET The chairperson was YBhg Datuk Mahadi Ngah, Deputy Director
RM1,000
3 procedures
6 days
General (Planning) of Kuala Lumpur City Hall (DBKL).
RM1,000
CURRENT YBhg Datuk Mahadi conducted a presentation on improvements
in the time for processing construction permits by DBKL and the
9 procedures
setting up of the One-Stop Centre (OSC) to facilitate applications for
11 days
RM3,000
construction permits.
INITIAL “Our transformational journey in Construction Permits began in
December 2011 when we started conducting meetings with people
in industry to come up with an agreement on a new model. After
much deliberations and public consultations, we came up with a draft
1
PEMUDAH Pasukan Petugas Khas Pemudahcara Perniagaan Special Task Force To Facilitate Business
model which formed the basis of the OSC,” he said.
100%
100
%
75%
77
%
60
100.00%
80.00%
70.00%
60.00%
50.00%
15
20
2004
2005
%
%
25
%
40.00%
30.00%
50%
%
49
90.00%
%
35
%
25%
20.00%
10.00%
2006
0.00%
2010
2007
2011
2012
2008
2013
2009
2010
2011
0%
2004
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