COLLABORATIVE INNOVATION COMMUNITY (CIC) SESSION:

FOCUS GROUP ON BUSINESS PROCESS RE-ENGINEERING (FGBPR)

IN BUSINESS LICENSING BIL 1/2014

22 DISEMBER 2014

Hotel Impiana Kuala Lumpur

● Impact analysis is conducted to demonstrate that the benefits outweigh the costs

● NDPC is responsible for examining Regulatory Impact Statement (RIS) for adequacy and making appropriate recommendations

● Review existing regulations and removing unnecessary rules and compliance costs

● Undertake a cost-benefit analysis of new policies and regulations

● Make recommendations to the Cabinet on policy and regulatory changes

● GRP system is in

place to manage

regulatory

resource

effectively

● Regulatory policy

is implemented to

promoted a

regulatory process

that is effective,

efficient, and

accountable

Vision 2020

● Aspirations to be high-income nation

● Capacity of the Malaysia economy to generate wealth

● Progressive and competitive Malaysia Economy

“ …changes that improve regulatory

quality by enhancing the performance,

cost-effectiveness, or legal quality of

regulations and related government

formalities…”

GOOD REGULATORY PRACTICE IMPLEMENTATION IN MALAYSIA

RED TAPE CHALLENGE

PUBLIC CONSULTATION

REGULATORY IMPACT

ANALYSIS (RIA)

REDUCING UNNECESSARY REGULATORY

BURDEN (RURB)

GRP INITIATIVES

TOR : REGULATORY COORDINATOR (RC)

Facilitate the implementation of GRP at

ministry and agencies

Monitor the implementation of GRP at

ministries and agencies and report to JITU/ MPC

Disseminate information and facilitate the

implementation of GRP at ministry and agencies

Act as a Focal Point and ensure better coordination

across ministries and regulators

Identifying training and advisory services, seeking

feedback on regulatory changes and recommending

follow-up action

Serve as Champion to raise awareness and the

importance GRP at ministry and agencies

Notify MPC of any proposals for the development or

amendment to regulations

Disseminate information and facilitate the

implementation of GRP at ministry and agencies

Jawatankuasa Integriti dan Tadbir Urus (JITU): Arahan YAB Perdana Menteri 2014

AGENDA 1

JAWATANKUASA INTEGRITI & TADBIR URUS (JITU)

Menentukan keputusan dasar JKKMKPK

JITU KEBANGSAAN

PKP JITU

Mengenal pasti isu, melaksanakan, melaporkan dan Memantau pelaksanaan inisiatif baharu dan tindakan Penyelesaian kepada is/masalah

Menjalankan kajian lanjut dan mencadangkan inisiatif baharu dan cadangan penambahbaikan

Melaksanakan inisiatif dan tindakan Penambahbaikan Melaporkan kepada JITU Kebangsaan

JITU PERINGKAT KEMENTERIAN/

NEGERI/RESIDEN/BAHAGIAN/DAERAH

• Dasar dan perundangan

• Sistem dan prosedur penyampaian perkhidmatan

• Tindakan pengesanan, punitif dan pemulihan

• Pembudayaan nilai-nilai murni dan kod etika

• Pengurusan pelanggan

• Membina permuafakatan dengan pihak berkepentingan

Rajah: Hubungkait peranan Jawatankuasa Khas Kabinet Mengenai Keutuhan Pengurusan Kerajaan (JKKMKPK), JITU Peringkat Kebangsaan dan JITU Peringkat Kementerian/Negeri

Projek Pemodenan Lesen Perniagaan (MBL) ;

Mengurangkan Karenah Birokrasi dalam Sistem Penyampaian Kerajaan

AGENDA 2

Red Tape Challenge or Modernising Business Licensing (MBL) was

initiated in March 2011 at Federal Level and May 2012 at State Level

under FGBPR, PEMUDAH.

OBJECTIVES

RED TAPE CHALLENGE

Systematically, effectively and efficiently review rules and regulations pertaining to doing business,

To improve the quality of and complexity of licenses and how licenses are administered and enforced,

To abolish archaic laws and requirements

To reduce cost-of-doing business

RM1.7 billion

Compliance Cost

2,546 licenses

were reviewed

RED TAPE CHALLENGE AT STATE LEVEL

Reduce

Approval

Time

Reduce

Procedures

Increase

Process

Efficiency

Reduce

Waiting

Time

Reduce

Compliance

Cost

PERFORMANCE INDICATOR

71% PENGURANGAN

Tempoh Masa Kelulusan

30% PENGURANGAN Bilangan Prosedur

17% PENINGKATAN

Kecekapan Proses

18% PENGURANGAN Masa Menunggu

• Keperluan menyediakan maklumat dan dokumentasi yang banyak

• Keperluan syarat dan

kelulusan yang ketat • Tiada pendekatan aspek

pengurusan berisiko • Kurang kesedaran mengenai

beban kepada peniaga

PENDEKATAN SISTEM PELESENAN SEKARANG

BENCHMARKING for PBT

Tempoh Kelulusan (Hari)

Jenis Lesen

Tred & Iklan

Penjaja

Permit Perniagaan

4 (MP Klang, MD

Yong Peng, MD Selama,)

56 (MP Bentong)

1 (MP Nilai, MP

Temerloh)

89 (MBPJ)

1 (MPS, MPPG,

MPAJ)

39 (MP Manjung, MD Jempol)

Bilangan Prosedur

Jenis Lesen

Tred & Iklan

Penjaja

Permit Perniagaan

3 (MP Pasir Gudang)

18 (MD Pekan

4 (MPAJ,

MD Pontian)

15 (MD Pekan)

2 (MD Labis)

13 (MDCH,

MP Bentong)

Kecekapan Proses

Jenis Lesen

Tred & Iklan

Penjaja

Permit

Perniagaan

86 (MD Simpang

Renggam)

1 (MD K.Selangor, MP Selayang)

96 (MD Kuala

Langat)

1 (MBPJ)

97 (MP Seremban,

MPPD)

1 (MD Rompin)

REPOSITORI LESEN DAN SISTEM BLESS

Regulatory Review Management System (RRMS) menyediakan maklumat mengenai status kedudukan lesen-lesen perniagaan yang telah melalui proses pemodenan lesen perniagaan bagi tujuan perkongsian maklumat antara penggubal undang-undang dan pengguna

Business Licensing Electronic Support System (BLESS) merupakan portal dan applikasi yang menyediakan maklumat menyediakan maklumat dan kemudahan kepada syarikat/individu untuk memohon lesen/kelulusan/permit perniagaan di Malaysia secara lebih cekap dan teratur

REGULATORY REVIEW MANAGEMENT SYSTEM (RRMS)

AGENDA 3

REGULATORY REVIEW MANAGEMENT SYSTEM

(RRMS)

22 December 2014

RRMS Database

Data Entry

Data Queries / Data Export

Output

Functionality

Access

Functionality

Reports

PDF

License Review Status

Online Online

Government

Stakeholders

License Sources

RR National Team

Online

Public

SISTEM RANGKAIAN RRMS

Online Online

Government

Stakeholders

Online

Public

OVERVIEW

Simpanan senarai peraturan/lesen perniagaan yang telah disemak melalui

projek FGBPR

Panduan kepada penguatkuasa mengenalpasti peraturan/lesen yang telah

melalui semakan

Simpanan profil lesen-lesen yang disemak dan maklumat penambahbaikan

yang dibuat

‘One Stop Service Centres’ untuk perniagaan, pelaburan dan awam untuk

mengakses maklumat lesen perniagaan

RRMS merupakan online

sistem berasaskan web based

Maklumat lesen

dan semakan yang

dibuat adalah

lengkap dan

komprehensif

Maklumat lesen /

peraturan dapat

dianalisa secara

automatik

RRMS boleh diakses di

mana sahaja melalui fasiliti

internet

Maklumat lesen /

peraturan disimpan

secara sistematik

Sistem dibangunkan

adalah Mesra Pengguna

(User friendly)

Maklumat peraturan /

lesen adalah bersepadu

dan berintegrasi

CIRI-CIRI RRMS

One Stop Referral Centre for the regulators

and business community

REGULATORY REVIEW MANAGEMENT SYSTEM (RRMS)

843 Federal Licenses

2546 States Licenses

http://rr.mpc.gov.my/

Profile of Regulations Profile of Business licenses

Ministries FGBPR Status

Regulators

RRMS MENU

PROFIL NEGERI

PROFIL NEGERI

PROFIL LESEN

Profil lesen merangkumi Objektif, Fi, Status, Kos Pematuhan, Tarikh Semakan dll

PROFIL LESEN

© All rights reserved MPC

Maklumat Kerajaan Negeri

PROFIL LESEN NEGERI

Profil lesen Kerajaan Negeri mengandungi maklumat agensi-agensi dibawahnya termasuklah lesen-lesen yang berkaitan.

REGULATORY IMPACT ANALYSIS

(RIA)

AGENDA 4

22 December 2014

Regulatory Impact Analysis (RIA)

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)

MPC is responsible for the conception, implementation and sustainability of modernising business regulation initiative

27

Good Regulatory Practice (GRP)

• To address the gaps in the management system for regulations;

• To standardise regulatory and rule-making process with emphasis on public consultation and measurement;

• Consistent with International development on regulatory coherence; and

• Recommendation by World Bank that Malaysia to have GRP embedded in its regulatory development process.

28

Ministry AGC Cabinet Parliament Ministry Business R

Flow

Advocacy Role (PEMUDAH) Analyse existing rules & regulations Provide recommendations &

monitoring implementation

Provide feedback on recommendations

Regulators to

fulfill adequacy

criteria

Draft Law Decision-making

Decision-making

Enforce Comply

Train the regulators & assessors

Accountability audit of quality assurance

Guidance material, benchmarks & best practices repository

Advisory Role

AGC: Attorney-General’s Chambers ; R: Rules and Regulations; Proposed new role by NDPC (Secretariat: MPC)

MPC to continue providing service for collaborative innovation

Improvement in the Rule-making Process (Quality Regulatory Management System)

Design or Automatic

Review

29

NDPC

• Waiting for Approval

• Information obligation (Time to fill-up forms and keeping data)

• Acquisitions (monetary value)

Primary

Act

Enactment

Ordinance

Secondary

Regulation

Rules

By Law

Orders

Guideline

Standards

Legislation Consequences to Business

Consequences of Legislation to Business

30

31

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)

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

Important Documents on GRP

31

Establish guiding principles and requirements for

carrying out an adequate public consultation exercise

Guideline on Public Consultation Procedures

Regulatory Impact Analysis (RIA)

32

WHAT? Regulatory Impact Analysis (RIA) The process of examining the likely impacts of a proposed regulation and a range of alternative options which could meet the government’s policy objectives

WHY? RIA requirements are intended to achieve better regulation by supporting:

• Sound Analysis • Informed Decision Making • Transparency

Elements of RIA

1. Identify the Problem or Issues

2. Explain the Objectives

3. Identify a Range of Alternative Options (Regulatory and Non Regulatory)

4. Provide Adequate Impact Analysis (Cost, Benefits and Risks)

5. Describe How Consultation was Conducted

6. Clearly State Conclusion and Recommended Option

7. Provide Strategy to Implement and Review

33

RIA Process Flow

Regulator Notifies MPC

Regulator fill in ‘Regulatory Notification Form’ and submit to MPC

Need to Undertake

RIA

Regulator carry out Regulatory Impact Analysis (RIA) and consultation

Regulator submit Regulatory Impact Statement (RIS) to MPC

• Phone Call • Email • Walk-in • RIS Portal

NO

YES

34

Regulatory Coordinator Terms of Reference

Duties and Role • Act as the focal point for the Ministry or

Regulators • Facilitate the implementation of NPDIR

Responsibility • Facilitate the implementation of

regulatory policy in ministry or agency • Monitoring and Ensuring Good

Governance • Report to MPC annually

35

Progress of RIA Implementation

Enquiry Top Management Briefing

Workshop on RIA

RIA Project RIS Submission

Regulatory Proposal Plan

Advisory Services (projects)

Regulatory Coordinators

Regulatory Notification Form

36

*Updated as of 2 December 2014

*Organisation

GRP Briefing

RIS Portal h t t p : / / r i s . m p c . g o v. m y 37

Like to Know More?

• Visit MPC Website: www.mpc.gov.my

• Visit RIS Portal: ris.mpc.gov.my

• E-mail: regulatoryreview@mpc.gov.my

PUBLIC CONSULTATION

AGENDA 5

GUIDELINE ON PUBLIC

CONSULTATION PROCEDURES

OBJECTIVES

To establish the guiding principles and

requirements for carrying out an adequate public consultation exercise.

Public Consultation enables the regulator to: • Develop better and more practical regulations • Identify the full range of affected parties • Minimize the risk of unexpected

consequences • To discover better implementation methods.

This guide book is a KPI of MITI Minister

METHODOLOGY

1 Fact finding and information search on best practices in other countries

BEST PRACTICES

2 REVIEW

Review of existing local good practices – Case example from National Land Code Review and KPDNKK consumer protection Review of existing public consultation document and process (Pekeliling Am Bilangan 2 Tahun 2012, Seranta Awam Atas Talian (Online Public Engagement) Bagi Sebarang Cadangan Baru Atau Pindaan Undang-Undang).

3 Develop and complete draft for consultation

DRAFT

CONTENTS OF GUIDELINES

PART 1

An Introduction to Public Consultation

PART 2

The Guiding Principle for Public Consultation • Principle 1 : Transparency with accessibility • Principle 2 : Accountability • Principle 3 : Commitment • Principle 4 : Inclusiveness that is equitable • Principle 5 : Timely and informative • Principle 6 : Integrity with mutual respect

PART 3

Requirement for Public Consultation • Consultation documents – clarity of

scope & document • Planning the consultation exercise • Accessibility to the consultation

exercise • Stakeholders analysis

PART 4

Public Consultation Process

WHAT WHY WHO WHEN ON-

LINE

PUBLIC CONSULTATION PROCESS

Furnish relevant

data, information

and findings

Notification Preliminary

Feedback Consultation Conclusion

Provide

consultation

session details

Publish draft

concept

Publish draft act

or legislation

Publish results of

consultation

Collect feedback Collect feedback

Government

issues feedback

on results

Brings in the required expertise

Allows for preparation and foster

better understanding of the issues

being consulted

Boost public confidence in

government rule –making process

Instil accountability in government in

rule-making

Key benefits

Current Circular: “Online Public Consultation”

So

urc

e: P

wC

Re

po

rt 2

01

3

PLEASE

G E T I N V O L V E D …