UPDATES ON GOOD REGULATORY PRACTICE (GRP) IMPLEMENTATION IN MALAYSIA

Engagement Session with Regulatory Coordinators (RCs)Engagement Session with Regulatory Coordinators (RCs)

GRP for better quality

ByMalaysia Productivity Corporation

2

MPC to spearhead a comprehensive review of businessregulations and improve processes and procedures toincrease productivity and competitiveness of majoreconomic sectors (Chapter 3; pages 73-74)

MPC will provide support to NKEAs by reviewing andrecommending changes to existing regulations andpolicy with a view to remove unnecessary rules andcompliance costs and improve the speed and ease ofdelivery (Executive Summary; page 25)

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

Regulation reforms will be accelerated to ensure newand existing regulations as well as their administrationand enforcement are aligned with good regulatorypractices. This will be done by expanding theadoption of the National policy on Developmentand Implementation of Regulations (NDPIR), andconducting regular regulatory review forministries and agencies.(Strategy Paper1:Unlocking the Potential of Productivity) 2

3

18.11 Although Malaysia has undertaken significant effort to modernize businessregulations, it still lags behind many developed countries in regulatory qualityand environment. The regulatory framework for services sector which spansacross various government ministries and agencies has led to difficulty innavigating and streamlining regulations of the sector. In addition, industry playeroften find existing regulations and practices to be either outdated orcumbersome. There is also insufficient stakeholder consultation in theformulation of new regulations and change in existing oneswhich could lead to ineffective regulationsand higher cost of doing business.

Source : Eleventh Malaysia Plan : Strategy Paper 18 Transforming Services Sector

Regulatory Framework

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Roadmap of GRP Implementation

2011

2012

2013

2014

Accelerating GRP implementation

Awareness and Advisory Services

Implementation of Best Practice RegulationBy Batches

Pilot Projects Implementation

Program for Regulatory CoordinatorsDevelopment of RIS Portal & awarenessIntroduction to Digital RIS Application to Regulators

Engagement and networking with stakeholders and affected parties

Survey on Readiness towards Best Practice Regulation Seminar Launching of NPDIRCapacity building for Regulators

Full Implementation and Compliance to Regulatory Requirement by Regulators

Build Gatekeeper Function

Build Assessor Audit & Capacity Function

Develop Policy & Guidelines of Best Practice Regulation

Collaboration and Engagement with experts

Training for Trainers on RIA

Briefing on Second Review of GRP to accelerate implementation of NPDIR

Developing systems, procedures and processes to operationalize GRP implementation

Developing framework to monitor and evaluate NPDIR implementation

Engagement & consultation with theindustry

Expand outreach to strengthen regional connectivity and global competitiveness

Awareness and GRP at State Level

Hands on Workshop on RIA

Briefing on GRP to Top Management in Ministries Coaching and Advisory on RIA to Ministries and agencies

Lab on RIA to develop training manual

Seminar on GRP

ASEAN-OECD GRP Conference

Workshop on Sharing Best Practices on Public Consultation

Clinic Session for Pilot participants

Focus Group Consultation with Business Associations

2015

Awareness program by RIA Start up TeamEnquiries by RIA Helpdesk

Survey on Degree of Awareness of RCs on NPDIR

2016

Strengthening and Monitoring GRP Implementation

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Framework of Regulatory Policy & Governance

Economy

SocietyEnvironment

• Regulatory Policy• Open Government• Transparency• Accountability • Coherence

Core Policies

• Regulatory Process Management Requirements

• Integrated RIA• Public Consultation procedures• Performance Measurement

Systems, Processes &

Tools

• Oversight Body• Regulatory Agencies• Regulatory Coordinators• RIA Assessors• RIA Trainers

Actors, Institutions & Capacity

Source : Adapted from OECD 5

Role of Regulatory CoordinatorTerms 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

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7

RNF ASSESSMENT FLOW CHART

5. MPC issueFeedback on RNF

10. Update and record status

2. MPC receives Regulatory Notification

Form (RNF)

1. Regulator Notify MPC

5. MPC issueFeedback on

RNF

Y

N7. RNF to be revised and

resubmitted to MPC

4. MPC assess the needr for RIA

6. RIA is not required N

3. MPC records RNFreceived

9. RNF AssessmentCompleted

RNF Assessment by

RIA Team

Record in GRPportal and

RRMS

Record RNF in GRP portal and

RRMS 7

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RISASSESSMENT FLOW CHART

Record in GRP

Progress of GRP Implementation (2014-2015)

Top Management

Briefing

Advisory Services

(projects)

Workshop on RIA

EnquiryAttended

We provide services:

RISSubmission

Regulatory Notification

We do assessment:

Guidance Materials

RIA Project

Regulatory Coordinators

We facilitate :

Regulatorsparticipated

In progress…

Annual Report Modernising Regulations

GRP second review at ministries

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RNF RECEIVED95

EXEMPTION22

UNDERGO RIA PROCESS60

RNF UNDER PROCESSING (RESUBMIT)

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RNF WITHDRAWN4

95 regulatory proposals (RNF) received from 24 regulators

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Compliance with Regulatory Management Requirements (2014-2015)

Veterinary, 21%

Domestic Trade and Consumer Affairs, 20%

Health, 18.8%

Occupational Safety and Health, 6.3%

Local Authorities, 6.3%

Construction, 5.3%

Agriculture, 5.3%

Administration, 4.2%

International Trade and Industry, 4.1%

Communication & Multimedia, 3.2%

[CATEGORY NAME], 1.1%

Utilities, 1.1% Transport, 1.1%

[CATEGORY NAME], 1.1%

Standard and Accreditation, 1.1%

Ministry /AgencyNo.

Regulatory Proposal

1. Ministry of Agriculture (MOA) 25

2. Ministry of Domestic Trade, Co-operative and Consumerism

(KPDNKK)

20

3. Ministry of Health (MOH) 18

4. Ministry of Human Resource (MOHR) 6

5. Ministry of Works (KKR) 5

6. Ministry of International Trade & Industry (MITI) 5

7. Ministry of Federal Territories (KWP) 5

8. Ministry of Communication and Multimedia (KKMM) 4

9. Ministry of Science Technology and Innovation (MOSTI) 2

10. Ministry of Energy, Green Technology & Water (KETTHA) 1

11. Ministry of Urban Wellbeing, Housing and Local Government

(KPKT)

1

12. Prime Minister Office (JPM) 1

13. Ministry of Education (MOE) 1

14. Ministry of Transport (MOT) 1

TOTAL 95

Regulatory Proposal By Ministry (2014-2015)Regulatory Proposal By Category (2014-2015)

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Regulatory Proposals Submitted compared to Annual Regulatory Plan (2014-2015)

16

17

2

1

3

1

2

1

20

7

13

5

2

2

1

1

0 5 10 15 20 25 30 35 40

MOA

MOH

KPDNKK

KWP

KKMM

MOHR

MPIC

MOT

MOE

PLANNED RNF SUBMITTED UNPLANNED RNF SUBMITTED

1

1

2

3

5

9

13

2037

17

9

5

5

1

2

4

1

1

1

1

2

1

1

5

5

2

7

4

7

2

1

1

2

1

0 5 10 15 20 25 30 35 40 45 50

MOH

KKMM

MOA

MITI

KKR

KPDNKK

MOHR

KPKT

KETTHA

MOSTI

JPM

KWP

MNRE

MPIC

PLANNED RNF SUBMITTED UNPLANNED RNF SUBMITTED

2014

9

1

1

2

1

1

4

7

5

5

5

2015

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Challenges in GRP Implementation

RIA is Long Term Agenda with Impacts

over Long Term

Compliance with Regulatory Process Management

Requirements

Create Incentives and Demand

Effective Communication Strategy and Reaching out

Build capability and regulatory literacy

InstitutionaliseGRP

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1. Strengthen and monitor implementation at

Federal Level

2. Create awareness at State Level

3. Create mechanism for evaluation review in

measuring regulatory performance

4. Implementation of GRP at regional levels to

strengthen regulatory coherence

Malaysia’s GRP Way Forward

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ANNUAL REGULATORY PROPOSAL PLAN 2016NO. MINISTRY AGENCY TITLE OF REGULATORY

PROPOSAL PURPOSE MONTH/TIMELINE

NO. YEAR MINISTRY / AGENCIES TOTAL

1

2016

MINISTRY OF SCIENCE, TECHNOLOGY & INNOVATION (MOSTI) 42 MINISTRY OF YOUTH AND SPORT (KBS) 13 MINISTRY OF URBAN WELLBEING, HOUSING AND LOCAL GOVERNMENT (KPKT) 164 MINISTRY OF HEALTH (MOH) 245 MINISTRY OF HUMAN RESOURCE (MOHR) 86 MINISTRY OF FEDERAL TERRITORIES (KWP) 127 MINISTRY OF AGRICULTURE (MOA) 388 MINISTRY OF ENERGY, GREEN TECHNOLOGY & WATER (KETTHA) 39 MINISTRY OF DOMESTIC TRADE, CO-OPERATIVE AND CONSUMERISM (KPDNKK) 13

10 MINISTRY OF HIGHER EDUCATION (MOHE) 211 MINISTRY OF WORKS (KKR) No plan12 MINISTRY OF HOME AFFAIRS (KDN) No plan13 MINISTRY OF RURAL AND REGIONAL DEVELOPMENT (KKLW) 14 MINISTRY OF TOURISM AND CULTURE (MOTAC) 15 MINISTRY OF PLANTATION INDUSTRIES AND COMMODITIES (MPIC)16 MINISTRY OF TRANSPORT (MOT)17 MINISTRY OF EDUCATION (MOE)18 MINISTRY OF FINANCE (MOF)19 MINISTRY OF INTERNATIONAL TRADE & INDUSTRY (MITI) 20 MINISTRY OF COMMUNICATION AND MULTIMEDIA (KKMM) 21 MINISTRY OF NATURAL RESOURCES & ENVIRONMENT (MNRE)22 MINISTRY OF WOMEN, FAMILY AND COMMUNITY DEVELOPMENT (KPWKM)23 PRIME MINISTER'S OFFICE

GRAND TOTAL REGULATORY PROPOSAL PLAN 121 15

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Like to Know More?

Visit MPC Website: www.mpc.gov.my

Visit GRP Portal: grp.mpc.gov.my

E-mail: regulatoryreview@mpc.gov.my

Assistance Offered:

Q&A on RIA

OnlinePublic

Consultation

Information &References

on GRP & RIA

Calculator forCompliance Cost

We provide lots of information:

RIA process Flow

Registry ofregulation

RIS Adequacy Assessment Checklist