YAB Dato’ Seri Dr. Wan Azizah Dr. Wan Ismail
Deputy Prime Minister of Malaysia
National Convention on Good Regulatory Practices (GRP)
11th October 2018
Putrajaya Marriot Hotel
YB Dato’ Darell Leiking,
Minister of International Trade and Industry
YB Dr Ong Kian Ming,
Deputy Minister of International Trade and Industry (MITI)
YBhg. Datuk Isham Ishak,
Secretary General of MITI
YBhg. Tan Sri Azman Hashim,
Chairman of Malaysia Productivity Corporation
Secretary-Generals of Ministries and Heads of Agencies,
MPC Board of Directors,
Distinguished Speakers and Panelists,
Members of Trade and Industry Associations,
YBhg. Tan Sri-Tan Sri, Puan Sri, Puan Sri, Dato’-Dato’, Datin-Datin, Tuan-tuan dan Puan-puan yang dihormati sekalian.
Assalamualaikum and Good Morning.
1. Saya amat berbesar hati kerana dapat hadir untuk merasmikan majlis pada hari ini dan seterusnya melancarkan Report on Modernisation of Regulations 2018.
Memandangkan terdapat tetamu antarabangsa pada hari ini, izinkan saya untuk meneruskan ucapan saya di dalam Bahasa Inggeris.
2. I welcome all government officials, Associations and Chambers of Commerce, the private sector, the OECD and ASEAN representatives as well as academicians and students from our local universities to this Convention.
I wish you a warm “Selamat Datang”!
3. Today’s Convention’s theme: ‘Better Regulations, Enhance Productivity’ is very apt in bringing about a cultural change that seems to be required to improve the Government's delivery system.
This change should include reducing regulatory constraints, improving the quality of regulatory proposals and fostering a business-friendly environment that can attract more private investments.
Better regulations are the result of sound policy developments and good regulatory design processes that can create the climate for a competitive and productive economy.
On the other hand, regulations can also impose administrative and compliance burdens on businesses, consumers, governments and communities.
4. The Government of Malaysia will continue to focus on reforming our economic structure so that our productivity improves.
In this regard, we need to ensure our competition policy framework is robust through an effective regulatory governance infrastructure.
A regulatory governance system that is robust, accountable and transparent is an important building block in sustaining a dynamic and resilient economy in the face of a rapidly changing market place.
As we promised in Buku Harapan, the Malaysia Productivity Corporation (MPC) and PEMUDAH will be given more authority and provisions to conduct a comprehensive study on regulatory burdens faced by the industries.
Once these problems are identified, processes and procedures can be drawn up to increase productivity and competitiveness.
Excellencies, Ladies and Gentlemen,
5. Over the past years, Malaysia has emphasised the importance of reforming its regulatory regime towards enhancing the productivity and competitiveness of the nation.
The circular on the National Policy was issued by the Chief Secretary to the Government of Malaysia in 2013.
This requires all federal ministries and agencies to undertake Good Regulatory Practices (GRP) and Regulatory Impact Analysis (RIA) in developing new regulation and in amending existing ones.
This aims to standardise and improve overall regulatory processes through enhancing the transparency, accountability and credibility of regulatory decisions through private-public collaborations and people-centred approaches.
6. In line with this, the Malaysia Productivity Blueprint (MPB) was launched in 2017 as a new milestone in Malaysia’s productivity journey.
The Eleventh Malaysia Plan has set a target of 3.7% productivity growth for the 2016-2020 period.
Through MPB, the Government is focusing on productivity as a key driver for growth and regulatory reforms which are an integral part of this challenge.
Quality regulations will nurture a conducive environment for enterprise competitiveness and boost national productivity.
7. According to the World Bank 'Doing Business Report 2017', Malaysia ranked 24th out of 190 economies.
It was reported that the Malaysian government is steadily working towards improving its business regulatory environment with focus on the development of streamlined, necessary and competent regulatory practices that facilitate private sector development rather than creating unnecessary bureaucratic obstacles and opportunities for rent seeking.
8. Recently, the World Bank presented its preliminary findings based on last year's “Doing Business Report”, acknowledging that Malaysia has designed and widened the reforms beyond what is covered by the “Doing Business” methodology by aiming to leverage on digital technologies for greater efficiency and transparency.
The World Bank also noted that Malaysia is well prepared to do this with a robust reform momentum which has shown high commitment to further reforms and its implementation across all government agencies.
Excellencies, Ladies and Gentlemen,
9. Another important milestone in strengthening GRP is by establishing an innovative policy development engagement mechanism to embrace new technologies.
The enhancement of public consultation and citizen engagement across the regulatory cycle for a wider outreach to stakeholders and affected parties will boost transparency, inclusiveness and trust in government rule-making processes.
A public consultation portal through collaboration between the World Bank and MPC is in the pipeline which will provide a tracking tool for better monitoring and evaluation of evidence-based and quality rule-making.
Distinguished members of the audience,
10. Behavioural Insights is a tool to achieve desired public outcomes in the development of public policies aimed at improving the welfare of citizens and consumers through regulations that are based on empirically-tested results and derived using sound experimental methods.
I am pleased to note that a number of initiatives on Behavioural Insights have been sporadically implemented in Malaysia.
MPC with ministries and agencies are currently working together to promote further Behavioural Insights as a systematic and structured tool for better regulatory designs and delivery.
I have been informed that the OECD has been promoting the application of Behavioural Insights to improve public policy since 2013, most explicitly in the United States and the United Kingdom.
Excellencies, Ladies and Gentlemen,
11. “Ownership to Better Regulations” across ministries and agencies requires further reinforcement, in particular with regards to complying with the implementations of the Regulatory Impact Analysis (RIA).
As in most other OECD countries, ministries and government agencies are responsible to implement better regulation policies and are accountable to provide regular reports on their performance.
Today, we are going to witness the launch of the Report on Modernisation of Regulations 2018.
This is the second report which has been produced every 2 years since 2016 to inform stakeholders on the improvements and progress achieved in the implementation of GRP.
This report will encourage greater adoption of GRP and ensure a quality regulatory environment that is supportive and more responsive towards dynamic economic growth.
For the period of 2016 to 2017, 32 projects under Modernising Business Licensing, Reducing Unnecessary Regulatory Burdens and Cutting Red Tape Programmes were completed.
These had resulted in potential compliance cost savings of RM1.18 billion (2016) and RM1.20 billion (2017).
Ladies and Gentlemen,
12. We are pleased to have the OECD as our knowledge partner at this critical juncture in our journey towards deeper regional economic integration.
The OECD has been engaged in issues of regulatory reforms in South East Asia for over a decade.
I am told that ASEAN and the OECD have also established a GRP network to improve the understanding and capacities for efficient and effective regulations.
The delegates from ASEAN and OECD were here for the past 2 days for the 4th Meeting of the Southeast Asia Regional Policy Network on Good Regulatory Practices (GRPN) and the Economic Research Institute for ASEAN and East Asia (ERIA) Final Workshop on International Regulatory Cooperation in ASEAN.
The meeting deliberated on ways and means in “Supporting SMEs, Growth, and Connectivity through Good Regulatory Practices”.
13. I am sure this convention will enable a meeting of minds in addressing the challenges of the implementation of GRP as a national transformation strategy.
14. With the dedication and commitment of all participants, as well as collaboration and support of speakers from local and international organisations, the goal of showcasing the best practices and improving GRP is within our reach.
On that note, I would like to take this opportunity to thank those involved in strengthening GRP implementation in Malaysia and I wish you all the best in your deliberations.
15. I would also like to take this opportunity to congratulate all recipients of the GRP Productivity Champion from Ministries and Agencies.
They will be awarded with certificate of recognition for the adoption of GRP requirements, completion of regulatory impact analysis (RIA) processes and active participation by the Regulatory Coordinators.
Their continuous efforts in strengthening the implementation of GRP in Malaysia are greatly appreciated.
16. On that note, I am pleased to declare open the National Convention on Good Regulatory Practices 2018 and it is my pleasure to launch the Report on Modernisation of Regulations 2018.