It will be implemented in mechanisms to ensure comprehensive structural reforms
by ASILA JALIL / pic by BERNAMA
EVIDENCE-BASED policy (EBP) must be pushed to the forefront in the government’s efforts to initiate regulatory reform in the country.
Prime Minister (PM) Datuk Seri Ismail Sabri Yaakob (picture) said it will be implemented in planning, evaluation and monitoring mechanisms to ensure comprehensive structural reforms that enable sustainable productivity and economic growth.
“Malaysia Productivity Corp (MPC) via Malaysia Digital Economy Blueprint adopts the EBP approach in meeting the needs of digital economy businesses through regulatory experimentations.
“This initiative aims to develop 5,000 start-ups by 2025,” he said during the launch of MPC’s Good Regulatory Practice (GRP) virtual conference yesterday.
In light of the current economic recovery post-pandemic, Ismail Sabri said productivity growth rate is also emphasised in the long-term economic growth.
Under the 12th Malaysia Plan (12MP), labour productivity is projected to rise at a yearly rate of 3.6% compared to 1.1% through the period of the 11MP.
He said quality policies and regulations will facilitate business operations, improve transparency and minimise the burden on cost and resources.
Although Malaysia is ranked 12 out of 190 global economies in the World Bank’s Ease of Doing Business report, the PM said more must be improved.
“For example, in the 12MP the government has aimed to be among the ninth best global economies under the government efficiency sub-index in the World Competitiveness Yearbook (WCY) published by the Institute of Management Development.
“According to WCY, business regulation is one of the important indicators to achieve efficiency within the government.
“However, the business regulation indicator for Malaysia has shown a significant downward trend for the past decade as it dropped to the 47th rank in 2021 from the 19th place in 2010. This is a strong call for regulatory reform. We need to do something,” he added.
Ismail Sabri also highlighted the need to improve the involvement of the private sector as well as business industries and communities intheGRP.
The principles, elements and processes in the GRP approach need to be adopted by all ministries and regulatory agencies in the formulation and review of policies as well as regulations.
Among the GRP elements that must be implemented include regulatory impact analysis, cost benefit analysis and notification regulatory evaluation.
With the enforcement of National Policy for GRP (NPGRP) effective June 22, 2021, the chief secretary to the government will cooperate with every ministry’s chief secretary and the MDs of all government agencies and departments to ensure a holistic implementation of the NPGRP.
Meanwhile, in his opening remarks, International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said he had presented two papers relating to productivity growth to all chief ministers and mentri besar on Nov 23.
He said all state governments have agreed to work together with MPC via the state’s productivity programme to enhance the transparency in the delivery of regulations relating to investment, trade and productivity.
“This proves the solid cooperation between the federal and state governments. This is productivity in action,” he added.