PUTRAJAYA: The government will introduce the Government Efficiency Commitment Act to cut red tape and and streamline procedures for conducting business, according to Economy Minister Rafizi Ramli.

The minister said the Act is expected to be tabled by the end of this year.

Rafizi said burdensome regulations are often a significant barrier for micro, small, and medium enterprises (MSMEs) trying to scale up.

He emphasised that if these challenges persist, they will limit Malaysia's potential for fostering home-grown businesses and talent.

"We recognise that the regulations, particularly those affecting businesses in Malaysia, can be extensive."

"When we compare the time required to establish a company or the number of procedures needed to register a business in Malaysia with neighboring countries, our process is notably slower. People often need to visit multiple agencies, which causes delays."

He said the ministry has been working to improve this situation because a complicated and slow bureaucracy undermines competitiveness.

"Streamlining regulations will enhance public service delivery and reduce obstacles to business growth," he told the reporters at the launch of the 2024 Organisation for Economic Co-operation and Development (OECD) Economic Survey for Malaysia today.

Rafizi further noted that the Government Efficiency Commitment Act shares some similarities with the Fiscal Responsibility Act introduced last year.

He said for instance, while the Fiscal Responsibility Act sets boundaries for fiscal matters, such as the maximum deficit, debt levels, and a minimum of three per cent for development spending, the new Act follows a similar principle of establishing clear guidelines.

"Previously, each ministry and agency developed its own procedures-some with three steps, others with four. When combined, these procedures numbered in the hundreds. "With the new Act, however, the entire government process will be streamlined to prevent the annual addition of new bureaucratic layers," he said. Rafizi also stressed the importance of reducing bureaucracy even when new regulations are introduced, to ensure that overall government bureaucracy does not exceed a certain limit.

https://www.nst.com.my/business/corporate/2024/08/1097508/government-introduce-act-cut-red-tape-businesses-rafizi