ANNUAL REPORT 2014 YOUR BUSINESS OUR PRIORITY www.pemudah.gov.my ANNUAL REPORT 2014 BREAKTHROUGH IDEAS THROUGH PUBLIC-PRIVATE SECTOR COLLABORATION ISSN 2289-7275 Published by PEMUDAH in collaboration with Malaysia Productivity Corporation (MPC) CONTENTS 04 Message from the Honourable CHAPTER 1 Prime Minister ENHANCING BUSINESS GROWTH 06 Foreword from the PEMUDAH 18 Snapshot of Initiatives Chairman 28 Completed Efficiency Improvements 08 Foreword from the PEMUDAH Co-Chair u Trading Across Borders 10 Vision and Values u Enforcing Contracts 11 About PEMUDAH u Dealing with Construction Permits 12 Members of PEMUDAH u Kuala Lumpur City Hall (DBKL) 14 Structure of PEMUDAH u Abandoned Housing 15 Collaboration Driven by Equality u Implementation of e-Payment Facilities u Safety and Security u Private Sector Efficiency and Accountability Towards Consumerism u Business Process Re-Engineering in Business Licensing u Halal Certification Management Focus Group u Public Relations 40 Completed Policy Improvements CHAPTER 2 u Paying Taxes PROPELLING THE CHANGE u Abandoned Housing Projects 52 Good Regulatory Practice (GRP) u Implementation of e-Payment 52 PEMUDAH at State Level Facilities 53 PEMUDAH Challenge 42 On-Going Efficiency Initiatives u Trading Across Borders 56 PEMUDAH Portal u Enforcing Contracts 58 Engagement with International Experts u Getting Credit u Safety and Security 59 Outreach Programmes u Getting Electricity 59 International Competitiveness u Business Process Re-Engineering in 67 The Way Forward Business Licensing u Registering Property u Employing Workers u Public Relations 48 On-Going Policy Initiatives 70 Appendices u Starting a Business u Implementation of e-Payment Facilities u Bumiputera Participation u Resolving Insolvency u Protecting Minority Investors (PMI) 04 PEMUDAH Annual Report 2014 MESSAGE FROM THE HONOURABLE PRIME MINISTER Prime Minister YAB Dato’ Sri Mohd Najib Tun Haji Abdul Razak Public-Private Sector Collaboration Towards a Globally Competitive Malaysia PEMUDAH Annual Report 2014 05 We recently witnessed the launch of the 11th Malaysia I am confident that PEMUDAH will continue to give Plan (11MP) which represents the final leg of the its best to exceed this achievement. This is especially country’s journey to become a developed and so as our target is for Malaysia to be among the top 5 high-income economy by year 2020. nations in ease of doing business. I am also optimistic that the public and private sectors are making good Under the 11MP, a number of initiatives would be progress towards attaining this target, given their close implemented to accelerate growth, development, collaboration and determined sense of purpose. investment and create jobs, mostly high skilled. Among the main areas of focus are income-generating The roles and functions of PEMUDAH are, therefore, activities and further efforts to enhance facilitation increasingly important as we face intense global for investors. competition for investment - from new and emerging markets. As we look ahead of the 11MP, which will take us through the next five years (2016-2020), the country’s I am certain that PEMUDAH members will rise to the economic fundamentals are strong and our national challenge. I take this opportunity to thank PEMUDAH transformation agenda has put it on track to achieve members, both past and present, for their invaluable Vision 2020. contributions that have enabled Malaysia to make its mark on the global front as a preferred business- The Special Task Force to Facilitate Business (PEMUDAH) friendly destination. is thus an important platform to ensure smooth and efficient delivery of public-private sector initiatives, integral to realising the objectives of the Economic Transformation Programme (ETP), the Government Transformation Programme (GTP) and the New “PEMUDAH is an Economic Model (NEM). Since PEMUDAH’s establishment 8 years ago, it has important platform stayed resolute in promoting closer public-private sector collaboration to improve service delivery and to ensure smooth and enhance the business environment. To assist in the transformation agenda to become a progressive and united nation, PEMUDAH has also continued to efficient delivery of uphold its sense of urgency towards achieving an enabling business environment that is underpinned by public-private sector effective public-private sector collaboration, minimal regulations and zero tolerance for corruption. initiatives ...” Affirming the growing list of achievements of PEMUDAH is Malaysia’s improved ranking, having been placed among the top 10 per cent easiest-to- do-business economies in the world, as stated in the World Bank Dong Business Report 2015. The report ranked Malaysia 18th out of 189 economies. This is an improvement from the 20th position in the previous year. Public-Private Sector Collaboration Towards a Globally Competitive Malaysia 06 PEMUDAH Annual Report 2014 FOREWORD FROM THE PEMUDAH CHAIRMAN Chairman YBhg. Tan Sri Dr. Ali Hamsa The Special Task Force to Facilitate I am pleased to highlight the following positive Business (PEMUDAH) successfully completed its eighth outcomes from the various initiatives that PEMUDAH year of operation on 7th February 2015. spearheaded during the year: Today, this public-private sector collaboration u Mandatory online incorporation through the continues to forge ahead with whole-hearted efforts MyCOID portal by the Companies Commission of to facilitate further improvements in the processes, Malaysia (SSM) has led to the closure of over-the- procedures and policies which positively impact counter services for incorporation of companies the business community in Malaysia. Through such nationwide. Name search and application for synergies and driven by its vision and guiding values, registration can thus be done simultaneously. PEMUDAH presses on in its quest to promote a vibrant, competitive and resilient national economy. u Kuala Lumpur City Hall (DBKL) has reformed the processes involved in dealing with construction In 2014, PEMUDAH continued to diligently examine permits by reducing the number of processes from the challenges faced by the business community as 15 to 9. This has reduced the time taken to obtain well as initiate solutions and foster changes that will approvals. Among the reformed processes are further facilitate an even more conducive environment seamless online monitoring system and submission, for commerce and industry. streamlined procedures, transparent assessment criteria, a strengthened One-Stop Centre (OSC) team and streamlined processes for inspections. Public-Private Sector Collaboration Towards a Globally Competitive Malaysia PEMUDAH Annual Report 2014 07 u Department of Director General of Lands and local authorities and institutions implemented a Mines (JKPTG) has implemented a Secured Land total of 712 e-payment services as compared to 399 Management System (SELAMAT) to prevent implementors for 708 services in 2013. fraudulent land transactions. A web-based e-Consent form has been introduced in a pilot programme to u Assessments on 6 completed Regulatory Impact further facilitate transfer approvals. Assessment (RIA) projects – submitted by Construction Industry Development Board (CIDB), u The Focus Group on Paying Taxes undertook a Ministry of International Trade and Industry (MITI), baseline study on the time taken to prepare, file and Department of Safety and Health (DOSH) and pay labour-related taxes and contributions to the Standards Malaysia to Malaysia Productivity Inland Revenue Board (IRB), Employees Provident Corporation (MPC) – have been undertaken. This Fund (EPF), Social Security Organisation (SOCSO) showed that the commitment by Ministries and and Human Resources Development Fund (HRDF). agencies to Good Regulatory Practices is This succeeded in reducing the time taken from the gaining traction. initial 77 hours (as registered in the Doing Business Report 2014) to 40.8 hours (a 47 per cent reduction). u The Focus Group on Public Relations organised This has reduced the administrative burden faced by the second series of the PEMUDAH Journalism businesses in complying with payments of Competition. For the Printed/Online category, labour-related taxes and contributions. a total of 28 journalists participated in the competition, producing an overwhelming number u The Focus Group on Trading Across Borders continued of 32 articles. its outreach programmes with the Royal Malaysian Customs Department (RMCD) on Authorised u The Task Force on Abandoned Housing Projects Economic Operator (AEO) to accredit operators or succeeded in resolving 15 abandoned traders as AEO companies. In 2014, 52 more operators housing projects. were accredited under the programme, in addition to the 48 accreditations made in 2013. At 18th position in the Doing Business Report 2015, Malaysia is well-placed among the top 10 percentile of u A court guidebook entitled Buku Panduan Mahkamah the 189 economies. It is also a recognition by the World Malaysia (Kes-Kes Sivil di Mahkamah Rendah) was Bank of our untiring efforts to improve the business published by the Focus Group on Enforcing Contracts environment in Malaysia. The role of PEMUDAH has as a quick reference for the public on court processes been vital to this achievement, and becomes more in the subordinate courts. so as the push intensifies to propel Malaysia to be among the top 5 ranked countries as envisioned by the u A complete review of the Companies Act, 1965 was Honourable Prime Minister. undertaken as part of the SSM strategic direction