Malaysia Productivity Corporation (MPC) has projected approximately RM10 billion savings as the result of reduction in regulatory burden and regulatory compliance costs for businesses that the #MyMudah programme aims to achieve. MPC Director General Dato’ Abdul Latif bin Haji Abu Seman said : “MPC’s projections are based on an estimated RM40 billion in terms of regulatory burden costs, and the target of a 25% reduction on regulatory compliance costs for businesses that are among the identified objectives under #MyMudah.”
He added that the #MyMudah programme is conceived as a fast forward solution to counteract the unprecedented economic impacts of the COVID-19 crisis.
“#MyMudah is a structured and effective strategy that will improve national regulatory quality in direct response to regulatory challenges faced by businesses and other stakeholders in the wake of the crisis. This includes looking at temporarily or permanently abolishing, modifying, waiving or exempting regulations that are unnecessarily burdensome to businesses, as well as reducing the number of procedures and processing time to facilitate ease of doing business,” he said.
Continuing with its drive to alleviate the economic impact of the COVID-19 pandemic, Minister in the Prime Minister’s Department (Economy) Dato’ Sri Mustapa Mohamed had announced the MalaysiaMudah or #MyMudah programme yesterday. The decision to implement the #MyMudah programme was made at a recent Economic Action Council (EAC) meeting chaired by Prime Minister Tan Sri Muhyiddin Yassin. Both the EAC and MPC have been tasked with leading the #MyMudah programme which will propose regulatory relief measures to support the nation’s economic recovery.
Five key initiatives focused on removing unnecessary regulatory burdens have been identified under the #MyMudah programme as follows:
1. Businesses are empowered to highlight unnecessary regulatory burdens they encounter by utilising MPC’s Unified Public Consultation (UPC) Portal;
2. Ministry Secretary Generals and State Secretaries have been tasked to address unnecessary regulatory burdens that are hampering job creation and economic growth;
3. Each Ministry has been set a target of reducing regulatory compliance costs on businesses by 25%;
4. The public-private sector partnership The Special Task Force to Facilitate Business (PEMUDAH) of which MPC is the Secretariat, has been tasked with monitoring the progress of all Ministries and reporting its findings to the EAC beginning January 2021; and
5. The Ministry of International Trade and Industry (MITI) through MPC will provide guidance and advisory services on reducing unnecessary regulatory burdens to all Ministries.
A recent survey conducted by MPC revealed that the proportion of businesses significantly affected by the COVID-19 crisis had reduced between April 2020 and June 2020 on the back of fiscal and non-fiscal relief measures introduced by the Government to assist businesses. Businesses significantly affected by the COVID-19 crisis had reduced from 74% in April 2020 to 55% in June 2020.
There were also reductions in the severity of business impacts according to different areas. A total of 78% of businesses reported a reduction in revenue in June 2020 compared to 82% in April 2020. Similarly, only 20% of businesses faced disruptions in their operations in June 2020, compared to 70% in April 2020; 21% faced a reduction in local demand in June 2020 compared to 60% in April 2020; and 17% faced cashflow and liquidity challenges in June 2020 compared to 57% in April 2020.
“The figures indicate that we are on the right trajectory to economic recovery. Now our priority is to leverage on the impetus we have gained to make further inroads into turning the economy around,” said Dato’ Abdul Latif.