Download leading the charge at the world economic forum

Issue 1/2013
LEADING THE CHARGE AT THE
WORLD ECONOMIC FORUM
Prime Minister Dato’ Sri Najib Razak greeting the
Netherlands Prime Minister Mark Rutte before their
bilateral meeting in Davos and a session on
‘Resilience in Diversity with other ASEAN Leaders.
Malaysia scored big in Davos, securing investments
for Malaysia worth over RM5.5 billion at the annual
World Economic Forum (WEF). Prime Minister Dato’ Seri Najib made it clear at the forum that progrowth policies along with incentives to the private
sector were crucial in helping Malaysia
survive
the regional and global economic downturn. He
said the Economic Transformation Programme created in 2010 had led to a remarkable jump in private investments and was really the “engine of
growth”. The Prime Minister said by revitalsing the
private sector, the government had created over
300,000 jobs and had brought down unemployment
to 3.1 per cent. He said he is confident that
Malaysia would become a high income economy by
2010 with a per capita income of US$15,000. The
per capita income jumped to US$9,750 at the end
of 2012 from US$6,700 four years ago.
News Highlights:
· Investing in Asia through
Malaysia
·
Endless Possibilities
· One Stop Service in
Government
· Best Practices in One Stop
Service Delivery
·
Integrated Service Delivery
· Easing Doing Business in
Services
The Prime Minister hosted the Malaysia Night to provide guests of the World Economic Forum, a glimpse
of what the country has to offer in terms of investment and tourism potential. The turnout at Malaysia Night
which was double the initial target, was an indication of investors interest in Malaysia. “We expected only
400 against the estimated number of 1,000 who came,” the Prime Minister said.
· Harmonising Zoning
Requirements
· Regulatory Review for Private
Hospitals
The huge turnout at the Malaysia Night. The Prime Minister with Datin Sri Rosmah, Cabinet Ministers, Prominent Businessmen and Malaysian Celebrities wete present to welcome guests and promote Malaysia as the preferred destination for
investment, trade, education and tourism.
· Focusing on Cleanliness in KL
· KL needs World Class
Management
PEMUDAH e-Bulletin Issue 1/2013
THE ASIAN RUSH
Asia’s phenomenal growth has been a key narrative of the
world economy in recent years. Emerging markets in Southeast Asia, China and India have been at the forefront of this
development with growing affluent populations, modernizing
economies and an attractive business environment. Investors
the world over are scrambling to get a foothold or to build their
presence in the crunchy markets of Asia.
As impressive as this shift in the economic priorities to the
East has been, significant challenges remain for organizations
aiming to navigate the Asian regulatory landscape. Commonly
cited barriers include a lack of government support, restrictive
practices and cultural issues. The choice and strategy of
engaging with Asian markets has never been more important.
For economic and geographic reasons, Malaysia is perfectly
placed to be an easy access point for anyone looking to do
business in the region. Located in the heart of Southeast Asia,
Malaysia is well connected to the rest of Asia through excellent
transport links giving access to a market potential of 3.6 billion
people. Malaysia has crafted a clear 10-year economic plan
and is putting into action a blueprint to modernise its economy
by the end of this current decade. Economic figures all point
towards Malaysia’s increasing standing in the region and
elevation as a destination for global investors. With a vibrant
business environment and structure, Malaysia is now on the
verge of reaping the benefits of accelerated growth together
with investors that understand these advantages.
CHARTING THE RIGHT PATH
In its short history, Malaysia has successfully transformed its
traditional primary resource-based economy into a modern
industrial economy based on high-value manufacturing and
services with an emphasis on exports. As the country further
develops towards a knowledge-based economy. Malaysia’s
track record and ability to define its own path of successful
development will be essential.
Strong government support has been a hallmark of Malaysia’s
transformation so far. The Performance Management and
Delivery Unit (PEMANDU), brainchild of Prime Minister
Dato’ Sri Najib Tun Razak, was formally established to
oversee implementation of the Economic Transformation
Programme (ETP) and the Government Transformation
Programme (GTP). These are ambitious initiatives to ensure
Malaysia has a clear, transparent plan to achieve high-income
nation status by the year 2020 in an effective manner. Through
extensive collaboration with the private sector, PEMANDU has
identified key growth areas to drive the country’s economy
forward.
Page 2
Allied to that are strategic reforms and initiatives to improve
public sector services and Malaysia’s competitiveness globally.
This means many of the difficulties businesses face on entry
into new markets are eased by Malaysia’s forward-thinking
policies. Testament to these efforts is Malaysia’s gross national
income per capital (GNI) which grew by 16% from 2009 to 2011
according to the World Bank. Based on current projections by
PEMANDU, the country is set to achieve GNI targets two years
ahead of the 2020 objective.
IMPRESSIVE FIGURES
Malaysia’s impressive growth figures over the last few decades
have made its economy relatively resilient during the last global
financial crisis and subsequent economic downturn in Western
economies. After a slight GDP contraction in 2009, Malaysia
rebounded strongly and is currently on course to record above
5% growth for the last three years. According to many of the
most well known metrics and rankings used to measure economies, Malaysia continues to perform well not just
compared to other countries in the region but also in the global
sphere. According to the World Bank’s Doing Business 2013, a
measure of business regulations in 185 economies, Malaysia
was ranked the 12th most competitive in the world, ahead of
countries such Sweden, Taiwan, Germany, Japan and
Switzerland. Specific improvements on measures such as ease
of obtaining construction permits, property registration, taxation
processes and cross-border trading were recorded. Malaysia
also continues to be ranked 1st in terms of ease of obtaining
credit and 4th for protection offered to investors.
The World Economic Forum’s Global Competitiveness Report
2012-2013 ranked Malaysia the 25th most competitive country
in the world. Southeast Asian emerging economies performed
well in general but Malaysia led the way for the region. The
World Economic Forum noted Malaysia’s advantages in terms
of creating a competitive market for goods and services, a
supportive financial sector and its business-friendly institutional
framework.
Malaysia performs much better than other
countries in the region in terms of transparency and cutting
down red tape.
The interest in Asia is demonstrated clearly through A.T.
Kearney’s 2012 FDI Confidence Index, which examines the
future prospects of FDI flows into various countries. In the
latest figures, emerging markets have eclipsed developed economies for the first time, accounting for more than half of global
FDI inflows. Malaysia is one of the top emerging market destinations, experiencing a 537 percent jump in FDI inflows from
2010 figures, reinforcing the country’s reputation as an increasingly important destination for foreign investors.
PEMUDAH e-Bulletin Issue 1/2013
Page 3
Malaysia is the second largest exporter of palm oil and
related industries, one of the most important world
commodities. Malaysia is geared to realized its full potential
as a result of key reforms and initiatives crafted to drive
economic growth and to modernize the economy.
Government agencies such as the Malaysian Investment
Development Authority (MIDA) have been created to
specifically help businesses adapt and take advantage of
the local environment. Recognising the critical role Kuala
Lumpur, Malaysia’s capital city, has to play as an iconic city
driving the country’s growth its economic catchment area
encompasses the entire country – urbanising and
modernising Kuala Lumpur has been made a priority.
InvestKL, a government agency, has been entrusted to drive
Kuala Lumpur to be one of the world’s top, dynamic
investment destinations by attracting companies that are
regionally and globally focused. Malaysia has the right mix
of experience and dynamic growth drivers that will push the
nation forward. Add to that the unique attractions of
Malaysia’s diverse and welcoming culture, natural beauty,
and lifestyles, and you have a recipe for economic success.
Prime Minister Dato’ Sri Najib Razak showed an article titled "Investing
in Asia through Malaysia" published in 'The Economist', that was distributed during the World Economic Forum 2013 in Davos.
ON THE VERGE
Malaysia is currently at the tipping point of an accelerated
growth trajectory toward a developed, knowledge-based
economy. With a relatively young, growing population and
a burgeoning middle class.
Malaysia will not only
experience increasing domestic demand but also has the
critical mass of well-educated, talented people with English
as the main business language to ensure sustainable
growth for businesses. As the country matures, its people
are ready to provide the human capital drive for the next
stage of development.
That development is characterized by Malaysian
companies with an increasingly global outlook. Brands
such as Petronas, AirAsia and CIMB Bank are increasingly
visible in the global marketplace. FutureBrands’ Country
Brand index ranks Malaysia 3rd in its list of Future 15
country brands, a collection of brands believed will enjoy
the strongest perceptions in years to come. It has been a
historic year for the Malaysian Bourse, with record figures
recorded in November 2012 and several of the largest IPOs in the world such as Felda Global Ventures, an
integrated agri-based multi-national, and IHH Healthcare,
Asia’s largest healthcare operator, listing in the Malaysian
stock market.
Malaysia is already a world leader in several sectors as a
top regional hub for many multi-nationals and also
established as a premier shared services and outsourcing
destination. Malaysia is leading the way in Islamic finance
with assets reaching more than US$120 billion in 2012 with
a growth rate of 18-20 percent annually. Oil and gas
businesses are congregating in Malaysia, making it a hub
for oilfield services.
RIGHT TIME IS NOW
Malaysia offers an enticing lifestyle and culture. The country
is made up of a multi-cultural society that is harmonious,
friendly and welcoming. From vibrant cities with a thriving
nightlife to its rich and beautiful natural landscape, the
chance to enjoy a varied way of life is easily accessible.
Together with affordable amenities such as transport,
schools and healthcare, Malaysia offers a high quality lifestyle with an excellent work-life balance that has continued
to attract people from all around the world.
Malaysia has created an attractive business environment for
investors through a government that has a lucid vision and
facilitates supportive business policies. The available talent
pool and modern infrastructure are also important elements
in Malaysia’s advantage. With a strategic location and
excellent transport and communication links throughout the
region, Malaysia is set to lead the change of fast-growing
Asian economies.
The signs are already there as Malaysia continues to break
down the barriers for businesses and successfully attracts
significant investments from all over the world. Malaysia’s
highly regarded business environment is now on every
investors radar. At this point in time, Malaysia is poised for
tremendous growth in the years ahead as it transforms itself
into a high-income, knowledge-based economy.
Businesses that are in Malaysia will not only reap the
rewards of Malaysia’s economic growth, but will also be in
position to take advantage of Asia’s increasing importance
to the global economy. To accelerate your business in Asia,
partner Malaysia as it is the nation of endless possibilities.
For more information, visit
www.malaysia.my.
PEMUDAH e-Bulletin Issue 1/2013
Page 4
ONE-STOP SERVICE IN GOVERNMENT
“Governments around the world are implementing
One-Stop Government Services for two main
reasons; to make government services easier to
find, and to get one-stop government services
around events such as starting a
business,
getting a passport, a death in the
family or
retiring. One-Stop Government Services also
reduce costs and make services delivery more
efficient through co-location, and
integrated
service delivery on other channels such as
government-wide web portals, and one stop call
centres.”
Mr. Brian Marson, Co-Founder and Senior Fellow, Institute for
Citizen Centred Service at the Malaysia Productivity Corporation’s
Conference on One-Stop Service In Government: Best Practices
and Lessons Learned, held in Kuala Lumpur.
WHAT OUR CITIZENS EXPERIENCE
The “Outside-In” View
Citizens’
Needs &
Expectations
Over 90% of
Citizens expected
as good or better
service from the
public sector than
the private sector.
Citizens often
needed more than
one government
service – especially
when dealing with
life events such as
birth, death, travel,
unemployment and
migration
10
How Businesses Experience Public Services
Their “Outside-In” View
Business
Needs &
Expectations
87% of businesses
agree good service
from government is
essential to a
healthy business
climate
TCOB2 research
demonstrates
empirical link – good
service increases
confidence in public
institutions
Finding
the
Service
Accessing
the Service
Two-thirds of business clients
reported access problems – each
access problem causes a substantial
drop in satisfaction – e.g. getting
bounced from one person to another and
lack of response to telephone messages
each reduce satisfaction levels by 25 out
of 100 points
Telephone is the most used channel –
62% of clients used it at some point
during their recent experience
Two-thirds of service experiences are
multi-channel – business clients report
using 2.1 channels per service
Service Delivery:
Businesses’
Experience with
Government Services
The 5 drivers of satisfaction are
the same as for citizens.
The overall service quality trend
is upward – the average rating
across all services to business
in Canada is currently 65 out of
100, and rising.
61/100
TCOB-1
65/100
TCOB-2
Finding
the
Service
Accessing
the
Service
40% of Citizens did not know
where to start to find the service
they needed:
-confusing blue or Web pages
-services not well advertised, (CF5)
Two thirds of Citizens said it was
difficult to access the people or
information they needed:
-busy telephones
-voice mail or IVR
-“not my department”
- broken links on Web sites (CF5)
Citizens are often required to
manage the “white space”
between related services
(service bundles/clusters)
*Canadian research
Service Delivery:
Citizens’ Experience
with the Service
Provider
Public services received an
average service quality score of 72
out of 100 (CF5)
Five factors drive service
satisfaction: timeliness,
knowledge & competence,
courtesy/extra mile, fairness
and outcome.
When all five are performed well,
public services score 87 out of
100; when one driver fails the score
drops to 74/100, when four fail –
37/100 (CF3)
Timeliness is most important
driver across all services & the
telephone channel remains their
priority for improvement.
PEMUDAH e-Bulletin Issue 1/2013
Page 5
BEST PRACTICES IN ONE-STOP SERVICE DELIVERY
Creating Integrated, One-Stop
Service Delivery Solutions
across the Public SectorWhy Citizens and Businesses Need
One-Stop Government Service
}
}
}
}
}
}
The private sector has built one-stop shopping centers for citizen and
business convenience, and citizens expect the same convenience from
government
Citizens and Businesses often need more than one government service
– especially when dealing with life events such as birth, death, travel,
migration, unemployment, and business registration
40% of Citizens did not know where to start to find the service they
needed
Two thirds of Citizens said it was difficult to access the people or
information they needed
Citizens are often required to manage the “white space” between
related services
( e.g. Business Registration, Deaths, Travel, Migration)
Governments are also trying to reduce service delivery costs through
the development of one-stop service.
In Canada, citizens can access 70 Government of
Canada services, through more than 600 one-stop
Service Canada Offices. Businesses can access
one-stop offices for business registration delivered
by Canada Business Service Centres that have
staff co-located from all three levels of government.
Singapore has implemented a one-day, one-stop,
online business registration system called BizFile
while
Australia has developed 300 one-stop
Centrelink government offices across the
country. In the United Kingdom, residents can
access integrated health and social services in
convenient store-front locations called Gateway
Offices. Hong Kong and USA adopted one-stop
web portals, and the 24/7/365 Call Center.
Singapore: One-Stop Portal for Business BizFile-
Hong Kong SAR Government: One-Stop
Register a Business Online
Citizen Portal and 24/7/365 Call Center
(The World Bank Ranks Singapore Number 1 in East Asia for Ease of Doing Business)
Canada: Has One-Stop Service Delivery for citizens
and business at the National, Provincial and Local
Government Levels: over 600 offices, plus a 1-800OCANADA call center, and award winning E-service
USA.gov: One-Stop Web Portal
PEMUDAH e-Bulletin Issue 1/2013
Page 6
INTEGRATED SERVICE DELIVERY
In 2008, the Malaysian Public Service Commitment was launched to provide a customer-focused public
service, geared towards “One Service, One Delivery, No Wrong Door”. Thus, like many other countries such
as Canada, Australia, Singapore, Hong Kong, United Kingdom and the United States, Malaysia has also
embarked on improving the efficiency and effectiveness of the public sector service delivery. The Urban
Transformation Centres (UTCs) in Melaka and Kuala Lumpur that were opened in 2012 demonstrate the
Government’s commitment to be citizen-centric and is a successful collaboration between the private and
public sector in providing the consumer easy access to a wide range of services.
Which Strategies for Service Excellence?
Emerging One-Stop Landscape in Malaysia
National
Where does Malaysia fit?
Government
One-Stop
Services
Strategy
Canada
Department
Stores
-On line
-In-person
UK
Boutiques
-Life events
-Service
clusters
Australia
Information
Gateways
-Call centres
-Websites
-Counters
USA
Many Countries
and Jurisdictions
Copyright B. Marson 2012
New Zealand
State
Local
Co-location
UTCs
RTCs
MIDA- investing
Business licensing
Government
Website
Main Governance Model: co-location
Government Service Excellence
Strategy for all Departments
The Malaysia Productivity Corporation (MPC) has published a Guide Book “A Manager’s Guide to One-Stop Service
(OSS) Delivery Centre”, giving an interesting overview of how this OSS concept is dealt with in various countries with their
different features and models to suit their requirements. More information on the Guide Book is available on MPC’s website
at www.mpc.gov.my.
Four Trends in One-Stop Service
Integrated Service Delivery Maturity
Models: Governance Arrangements
Co-located/Virtual
Collaboration
• O tawa City Hall
Government Service
Centre
• Texas.Gov
Integrated
Management,
Individual
Ownership
• Canada Business
Service Centres;
• Service Tasmania
© Institute for Cit zen-Centred Serv ce and B. Marson
Utility and Single
ISD Dept. Models
• Service Canada
• Australia Centrelink
• Service New Brunswick
• New York 311
The Service Improvement Process
PEMUDAH e-Bulletin Issue 1/2013
Page 7
EASING DOING BUSINESS IN SERVICES
The Malaysian Services Development Council (MSDC) together with the Malaysia Productivity
Corporation (MPC), an agency under the Ministry of International Trade and Industry (MITI) as well as the
Services Division of MITI had conducted a review of the regulatory framework for 18 autonomous
liberalisation services sub-sectors. The main objective of the review is to assist Ministries and Agencies
involved to speed up the process of liberalisation. The study focused on the domestic regulations on
these sub-sectors as well as identified regulatory burdens on businesses. An assessment on current regulations for starting a business relating to the Services sub-sectors where business players and regulators were engaged and consulted was initiated in July 2012.
Business Enabling Framework
The team engaged with entrepreneurs to study the regulatory processes from
business regulation until the business is ready for operations, using the
Business Enabling Framework.
Benchmarking studies and literature
reviews
revealed that if information for starting a business is
available and accessible, then the cost of doing
business will be much lower. The study estimated
that the compliance cost of all the 18 Services subsectors is as high as RM35 million a year. The
findings also highlighted various issues such as:
·
·
·
·
·
Difficult to access information on regulatory
requirements for doing business;
Repetitive requests for inspections and
certifications by different approving authorities;
No administrative/regulatory procedures to
facilitate business entry for certain businesses;
Multiple regulators on auditing license
approvals;
Different requirements, documentation and
zoning requirements for private hospitals.
Initiatives to resolve some of the issues above are
being undertaken and these includes consultations
on Harmonising Zoning Requirements and
Regulatory Review on Private Hospitals.
PEMUDAH e-Bulletin Issue 1/2013
Page 8
HARMONISING ZONING REQUIREMENTS
To assist in accelerating Services Liberalisation, a project to streamline zoning and building requirements
for Private Hospitals was initiated with a Workshop on Harmonisation of Zoning Requirements for Private
Hospitals. The workshop was well represented by related Ministries, Agencies and a Private Hospital.
The key issues discussed include different zoning requirements and policy objectives for zoning between
the Ministry of Health (MOH) and Ministry of Housing and Local Authority (KPKT). While KPKT views
zoning policy as a planning instrument for achieving efficient use of land and protection of public safety,
health and environment; MOH’s zoning policy focuses on ensuring equitable access to healthcare
facilities and services.
The Workshop provides the forum for open discussion to study the impact of these policies on private
health care businesses in terms of processing time, information requirements, availability and accessibility
and compliance costs. Among the action plans identified during the workshop includes, a paper on
zoning policy, cost and benefits of zoning policy as well as MOH and a local university collaboration to
develop a module on hospital design pertaining to building and layout.
The Workshop on Harmonisation of Zoning Requirements for Private Hospitals was organised by the Malaysia Productivity Corporation
(MPC) and was participated by related ministries and agencies such as Ministry of Health, Ministry of Housing and Local Government,
Dewan Bandaraya Kuala Lumpur, private hospitals representatives, and Universiti Teknologi Mara .
PEMUDAH e-Bulletin Issue 1/2013
Page 9
REGULATORY REVIEW FOR PRIVATE HOSPITALS
Through preliminary analysis, two key requlatory requirements for the establishment of private hospitals in
Malaysia had been identified; the Zoning Requirements for establishing a private hospital and the
approval requirements for building plans of private hospitals. A discussion between the Government and
private health providers was held specifically to collect inputs, views, opinions and concerns from
regulatory authorities, private healthcare business and professional consultants on current regulatory
requirements and practices was organised by the Malaysia Productivity Corporation (MPC). Key issues
discussed include:
· Section 9, Act 586 of the Services Act 1998 on the needs requirements of healthcare facilities;
· Multiple submissions for approval of building plans of private hospitals; and
· Transparency of approval requirements.
With the inputs gathered, the MPC experts team will
alternative options and suggest recommendations
to policy makers for change actions which can
further facilitate the liberalisation of the sector.
Among the options for improvement from the
discussion include re-interpretation of Section 9;
improve administrative procedures; increase
healthcare services capacity; and ensure data
availability.
The points of concern raised and the proposed
options will be inputs to the Green Paper being
prepared for policy makers.
Participants from the Ministry of Health,
other government
agencies and the
private sector gathered at the Pullman
Putrajaya
to
discuss
regulatory
requirements
for
private
hospitals.
Representing the authorities were officers
from
Ministry
of
Health
(MOH),
Ministry of Housing and Local Government
(KPKT), Dewan Bandaraya Kuala Lumpur
(DBKL), Malaysia Productivity Corporation
(MPC); while the private businesses were
professionals from KPJ Healthcare
Berhad, Lembaga Akitek Malaysia (LAM),
Pertubuhan Akitek Malaysia (PAM), and
legal experts from International Islamic
University Malaysia (IIUM).
PEMUDAH e-Bulletin Issue 1/2013
FOCUSING ON CLEANLINESS IN KL
Page 10
PEMUDAH e-Bulletin Issue 1/2013
Page 11
KL NEEDS WORLD-CLASS MANAGEMENT
Recognising the critical role Kuala Lumpur, Malaysia’s capital city, has to play as an iconic city driving the country’s
growth, urbansing and modernizing Kuala Lumpur has been made a priority.
www.pemudah.gov.my
www.facebook.com/PemudahMalaysia
www.youtube.com/user/MyPemudah