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Forum Home > News and Updates > World Bank Ranking on Ease of Doing Business in Malaysia ...

Sr Samuel Chong
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Posts: 103

I attended 2-day indicative baseline study on “Dealing with Construction Permits” conducted by Malaysian Productivity Corporation on behalf of RISM Sabah on 10 & 11 October 2012 in Promenade Hotel, KK.The World Bank has a website ranking various countries on ease of doing business.

http://www.doingbusiness.org/rankings

Economies are ranked on their ease of doing business, from 1 – 183. A high ranking on the ease of doing business index means the regulatory environment is more conducive to the starting and operation of a local firm. This index averages the country's percentile rankings on 10 topics, made up of a variety of indicators, giving equal weight to each topic. The rankings for all economies are benchmarked to June 2011.

According to World Bank's website, Malaysia does reasonably well in most categories like

* Starting a Business (No.50)

* Getting Credit (somehow, we got a No1 ranking ! Perhaps due to facilities from Ah Long ?)

* Protecting Investors (No4)

* Paying Taxes (No 41)

* Trading Across Borders (No 29)

* Enforcing Contracts (No31)

* Resolving Insolvency (No. 47)

* Malaysia's Overall Business Ranking = 18 !!


Among the areas / categories Malayisa is NOT doing so well includes, areas which let us down :

* Dealing with Construction Permits (No113)

* Getting Electricity (No59)

* Registering Property (No59)


The Malaysian Government has requested the Malaysian Productivity Corporation to conduct a study on regulatory burdens placed on business (companies) in “Dealing with Construction Permits” to be carried out. The objective of the study is to indentify regulatory and non-regulatory options that will reduce such burdens without compromising the achievement of the underlying policy objectives of the regulations.


Regulation is the lifeblood of a modern, well-functioning economy. Almost all regulations have the potential to impact on productivity, either through the incentives which they provide to businesses to change operating and investment decisions, or more directly through their impacts on compliance costs. It is inconceivable to think of a modern economy functioning without regulation. However, poor regulation can cause frustration and unintended consequences, or simply add red tape that adds nothing useful to the economy.


Among the conclusions or actions that can be taken to improve our overall productivity or efficiency in “Dealing with Construction Permits” and World Bank Ranking are 

* Setting up of One-Stop-Centres

* Online submissions

* Clearer Guidelines for PSPs

* Streamline / simplify the various procedures and reduce the charges


Improving our productivity / efficiency and World Bank Ranking is NOT our main objective or the End that we want to achieve. Improving the Ranking is only the MEANS to an End / Objective. Our real objective in doing this should be so that locals and foreigners will find it very easy to do business in our country, that we can be more competitive compared to other countries, so that there can be more investments in our country which should translate into better employment and a better life for every Malaysian. 


Malaysia Boleh !

November 20, 2012 at 8:57 PM Flag Quote & Reply

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