RM4 BLN IN SAVINGS IF TARGET UNDER REGULATORY BURDEN REDUCTION PROGRAMMES MET
SUBANG JAYA, Jan 18 (Bernama) -- -- Malaysia can save about RM4 billion if it manages to achieve a 25 percent reduction target under the regulatory burden reduction programmes, says International Trade and Industry Deputy Minister Datuk Mukhriz Mahathir.
Mukhriz said statistics had revealed that the annual costs of regulatory burden expressed as a percentage of gross domestic product (GDP), was 1.4 per cent in the UK, 2.4 per cent in Denmark and 3.6 per cent in the Netherlands.
"If we assume that the regulatory burden constitutes a modest figure of 2.5 per cent of GDP in
Malaysia, in 2009 it would have imposed a cost of RM17 billion when the GDP was at RM662 billion," he said at the Conference on Modernising Business Regulation here today.
Mukhriz said removing unnecessary regulatory burden through a comprehensive review of regulations that impacted business innovation and was a priority on the national agenda.
He said the effort would ensure that Malaysia would be on par with global developments and on the right track to achieve high-income economy status, through enhanced productivity and competitiveness at the firm level.
On Dec 3, 2010, the concluding part of the New Economic Model endorsed the National Economic Advisory Council``s support of Malaysia Productivity Corp``s (MPC) assignment to design the regulatory burden reduction plan and to follow up on the effective implementation of regulatory reform initiatives, he said.
Mukhriz said he was confident MPC would be better positioned to undertake the new tasks entrusted to it.
"I understand that MPC will be organising programmes to enculturise regulatory review in organisations and agencies, through conducting regulatory impact analysis, regulation impact statement, cost benefit analysis and business cost calculator," he said.
The conference is organised by MPC to provide an understanding on the importance of regulatory review in the current economic scenario, as well as to explore the opportunities and options on the benefits of regulatory review on business operations.
At the conference, MPC also signed a memorandum of understanding with the Malaysian Centre of Regulatory Studies, University of Malaya to have a common focus to understand key regulatory issues and their implications, and develop strategic responses and solutions. –