NATIONAL CONVENTION ON GOOD REGULATORY PRACTICE (GRP) 2018 Better Regulation, Enhance Productivity

REGULATORY POLICY AND GOVERNANCE

Reinforcing Economic and Social Outcomes

APEC PEER REVIEW ON PUBLIC CONSULTATION INITIATIVES A Baseline for Compendium Report

ISSUE : 03/2018 1. Seminar Amalan Baik Peraturan GRP Wilayah Sabah dan Majlis Pelancaran Modernising Business Licencing (MBL) , Manual Dealing with Construction Permits (DCP) dan Pensijilan Produktiviti Champion , 23 Nov 2018. Sutera Harbour Resort ,Sabah

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PUBLISHER: Smart Regulation, Productivity and Competitiveness

Development Division Malaysia Productivity Corporation (MPC) , Lorong Produktiviti, Off

Jalan Sultan, 46200 Petaling Jaya , Selangor Darul Ehsan Tel : 603- 79557266 Fax : 603- 79540795

GRP Portal : grp.mpc.gov.my Email: regulatoryreview.mpc.gov.my

HIGHLIGHTS In this issue :

“A public consultation portal through a collaboration between the World Bank and the Malaysia Productivity Corporation (MPC) is in the pipeline to provide a tracking tool for better monitoring and evaluation of evidence-based and quality rule-making. Enhancement of public con-sultation and citizen engagement across the regulatory cycle for a wider outreach to stakeholders and affected parties will boost transparency, inclusiveness and trust in government rule-making processes. A regulatory governance system that is robust, accountable and transparent is an important building block in sustaining a dynamic and resilient economy in the face of a rapidly changing marketplace. As promised in Buku Harapan which contains the Pakatan Harapan election manifesto, the MPC and the Special Task Force to Facilitate Business (PEMUDAH) will be given more authority and provisions to conduct a comprehensive study on regulatory burdens faced by the industries” - (Opening Speech by YAB Dato' Seri Dr. Wan Azizah Wan Ismail, Deputy Prime Minister of Malaysia).

NATIONAL CONVENTION ON GOOD REGULATORY PRACTICE (GRP) 2018

Better Regulation, Enhance Productivity

The one-day convention, officiated by YAB Dato' Seri Dr. Wan Azizah Wan Ismail, Deputy Prime Minister of Malaysia with the theme ‘Better Regulation, Enhance Productivity’, attracted 1,693 participants, including policy-makers, regulatory agencies, experts, members of the trade indus-tries, government officials and foreign delegates. It was a meeting of minds in addressing the challenges of implementation of GRP as a national transformation strategy, in collaboration and support of 28 speakers from local and international organisations, showcasing the best practices on GRP.

Advisor : Dato' Mohd Razali Hussain Chairman : Dato' Abd. Latif Hj. Abu Seman

Editorial Team : Mr Mohamad Muzaffar Abdul Hamid, Ms Nurul Farahaton Najihan Jusoh, Ms. Nik Nur Atiqah Saidi

MPC Associate : Mdm Lok Lee Lee

NATIONAL CONVENTION ON GOOD REGULATORY PRACTICE (GRP) 2018 Better Regulation, Enhance Productivity

Source: OECD 2010 DRIVING PRODUCTIVITY OF THE NATION 02

YB Dr. Ong Kian Ming, Deputy Minister of International Trade and Industry in his welcoming speech hoped that the sharing of GRP best practices will be used to conceive ways for improvements and be able to set a standard for an improved rule-making and participation in regulatory process. He added that MPC, together with several other ministries and agencies have been continuously reviewing new and existing regulations in order to improve the quality of regulations through various GRP initiatives:

• NPDIR, RIA – implementation at the respective minis-tries and agencies has strengthened the regulatory systems in the form of accountability and transparency through evidence-based processes;

• SPDIR – established for the respective states to provide the necessary support for the development of GRP and RIA infrastructure, which will be linked at the national level;

• MyCURE – to improve existing regulations, removing red tapes and bureaucratic requirements within the government delivery processes;

• RURB – to improve existing regulations by improving regulatory requirements at specific sectors ; and

• Guillotine approach and NTMs – analyses the domestic trade barriers and licences/permits requirement to improve efficiency undertaken by government

In 2017, the following achievements on GRP initiatives were recorded:

• 17 Notifications for new and amended regulations were received from 29 ministries and agencies, out of which, 55 regulations were identified through RIA processes

• 11 MyCURE projects were completed (Pahang and Kedah), 16 projects are currently being implemented in Perak, Penang and Perlis.

• 659 NTMs have been reviewed for 6 agencies (Ministry of Land and Water Resources, Ministry of Health, Ministry of Agriculture and Agro-based Industries, Ministry of Human Resources, Ministry of Primary Industries and Ministry of Works).

Launching of Report on Modernisation of Regulations 2018

As highlighted in the report, for the period of 2016 to 2017, 32 projects under Modernising Business Licensing, Reducing Unnecessary Regulatory Burden and Cutting Red Tape Programs were completed. These had resulted in potential compliance cost savings of RM1.18billion (2016) and RM1.20billion (2017). During 2016-2017, a series of programmes involving the participation of regulatory coordinators (RCs) of ministries were held. These programmes sought to increase the understanding of RCs and to obtain feedback on challenges encountered in the implementation of NPDIR. RCs have been appointed in each regulatory agency/ministry to coordinate and liaise with Malaysia Productivity Corporation (MPC) on regulatory activities. As at 31 Dec 2017, 360 RCs have been registered with MPC .

GRP Award Recognition

Recipients of the award – an appreciation to the Regulatory Coordinators (RCs) for their relentless efforts and dedication in strengthening the implementation of GRP and improving the regulatory environment through adoption of GRP requirements and completion of Regulatory Impact Analysis (RIA) process .

At the event, Dr Wan Azizah also launched the Report on Modernisation of Regulations 2018, the second biennial report since 2016. The publication provides useful infor-mation on Malaysia’s regulatory reform journey and aims to inform stakeholders on improvements taking place in the regulatory environment and the progress achieved in the implementation of the National Policy on the Develop-ment and Implementation of Regulations (NPDIR).

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NATIONAL CONVENTION ON GOOD REGULATORY PRACTICE (GRP) 2018 Better Regulation, Enhance Productivity

Keynote Presentations

Keynote Speaker 1: Regulatory Reform. What’s Now and What’s Next?

by YBhg. Distinguished Professor Dr. Rajah Rasiah , Professor of International Development Asia-Europe Insti-

tute (AEI), University of Malaya (UM)

Keynote Speaker 2: From Sectoral to Whole-of-Government Approach on GRP

by Mr. Nick Malyshev, Head of Regulatory Policy Division, Organisation for Economic Co-operation and Development

(OECD)

Highlights:

7 Key Steps To Get Your Regulations In Order

• Stakeholder Engagement

• Regulatory Impact Assessment

• Importance of Ex-post Reviews and Evaluation

• A Policy for Enforcement (A great regulation is worth nothing if you do not enforce it)

• Regulatory Oversight (It is worth the investment)

• International Regulatory Cooperation (Policy problems do not stop at national borders)

• Behaviour insights (Understand what you are try to do)

Use regulatory policy strategically and not bureaucratically

• Secure political commitment and institutionalize

• It is a long journey…with bumps along the way

• Implementation, implementation, implementation along with some monitoring.

• Regulatory policy is a key ingredient for a healthy democ-racy!

Session 1:

Panel participants:

• YB Dr. Ong Kian Ming, Deputy Minister of Ministry of International Trade and Industry (MITI)

• YBhg. Dato’ Soh Thian Lai, President, Federation of Malaysian Manufacturers

• Mr. Mark Steel, Director, Regulatory Systems, Strategic Policy and Programme, Ministry of Business, Innovation and Employment, New Zealand

• Dr. Ponciano Intal, Jr., Senior Economist, Economic Research Institute for ASEAN and East Asia (ERIA)

Moderated by YBhg. Datuk Isham Ishak, Secretary General, Ministry of International Trade and Industry (MITI)

Session 2: Panel participants:

• Mr. Carlos Kuriyama, Senior Analyst, Asia-Pacific Economic Corporation (APEC)

• Mr. Brennen Young, Director of Policy and Strategic Planning Division, Treasury Board of Canada Secretariat, Ottawa

• Dr. Minho Lee, Director of the Division of Regulatory In-novation Research, Korea Institute of Public Administration (KIPA)

• Mr. Derek Gill, Principal Economist & Head of Public Good, New Zealand Institute of Economic Research (NZIER)

Moderated by YBhg. Datuk Seri J. Jayasiri, former Secretary General, Ministry of International Trade and Industry

Highlights:

Stock-take of current initiatives to improve Good Governance:

• National Centre for Governance, Integrity and Anti-Corruption (GIACC)

• Cabinet Special Committee on Anti-Corruption (JKKMAR)

• National Policy on the Development and Implementation of Regulations (NPDIR)

• Annual Report on Modernisation of Regulations (ARMR) What’s next? Call for Action!!!

• Political commitment to reform agenda (GIACC & NPDIR)

• Promoting a fair business environment (ensure the efficiency, transparency and accountability of regulations based on good rule-making approach, and ensure transparency and accountability by regulatory agencies , as well as reviewing and reforming existing regulations.

Concurrent Sessions

NATIONAL CONVENTION ON GOOD REGULATORY PRACTICE (GRP) 2018 Better Regulation, Enhance Productivity

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RURB Tourism: Recommendation on Short Term Accommodation (STA) Regulatory Framework was presented by Ms. Nuraslina Zainal Abidin , Consultant, MPC Associate

Highlights:

• Uneven Playing field: the technological convergence of platform operators have created an uneven playing field that threatens the position of traditional hotels in the market.

• Public nuisance: homes rented for short-term stays have drawn objections from some homeowners, citing safety concerns and that it is a public nuisance.

Session 1:

Reducing Unnecessary Regulatory Burdens (RURB) on Business Tourism Home Sharing Economy: Recommenda-tions on Short Term Accommodation (STA) Regulatory Framework

The session was officiated by YBhg. Dato’ Sri Haji Moham-mad Mentek, Secretary General, Ministry of Housing and Local Government and Mr. Uzaidi Udanis, Champion of Tourism Productivity Nexus. The objective of the session was to obtain feedback on the draft Recommendations on Short Term Accommodation Regulatory Framework.

Session 2: Streamlining Regulation: “Regulate vs Deregulate” for a

Better Business Environment by Dr. Nuraisyah Chua Abdullah, MPC Associate

Highlights of the presentation:

Purpose of Regulation: for health & safety; remedy for market failure and ensuring standard; protective measure to overcome unfair, misleading and aggressive practices and fulfillment of social agenda. Shared on the various options of self-regulation and co-regulation as well as the advantages and disadvantages of self-regulation. Way forward, cited the Tribunal for Consumer Claims which is an independent body established under Section 85, Part XII of The Consumer Protection Act 1999. The Tribunal operates under the Ministry of Domestic Trade, Co-Operatives and Consumerism. The primary objective of establishing the Tribunal is to provide an alternative forum for consumers to file claims in a simple, inexpensive and speedy manner. Before the establishment of the Tribunal, all disputes between a consumer and a supplier or manufacturer had to be brought before a civil court which involves complicated procedures, high costs and is time consuming. These are some of the reasons why consumers are reluctant to pursue their claims against irresponsible and unscrupulous suppliers or manufacturers especially when the amount claimed is small.

Sharing of Best Practices on Improving the Licensing Proce-dures & Requirements through Modernising Business Li-censing (MBL) by Mr. Mohd Faidrol Mohd Radzi, Licensing Director, Majlis Perbandaran Seberang Prai (MPSP), Penang. Highlighted MBL Improvements:

• 'Streamlining' & ‘BPR' Licence Approval Procedure - Implement 'risk based' approach which is based on the compliance of business premises for the business activities requested; Strengthen compliance inspection activities on the ground for business premises; Cross referencing databases in the Valuation and Property Management to determine premises location and category of licence (development schemes or outside development schemes).

• Application Form & Check List - Reassess critical information essentials needed such as basic supporting documents like Business Registration of applicants, building approvals (CF / CCC / Temporary Building etc). Other documents will be checked during Compliance Visit.

• Development of Application Guides & Licence Regula-tions - Streamline information on compliance require-ments in carrying out business activities ; Harmonisation and coordination of information compliance with regula-tory authorities (overcome duplicate and overlapping processes).

• Impact : Increase in PBT’s revenue, efficiency, workload and improve customers’ satisfaction.

• Way forward: to upgrade online system and shorten the time to approve licence application.

NATIONAL CONVENTION ON GOOD REGULATORY PRACTICE (GRP) 2018 Better Regulation, Enhance Productivity

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Session 3: Town Hall Session: Sustainability on NTMs Implementation & Improving Trade Facilitation in ASEAN Improvement on the Import Process of Food Quality through Risk Management Implementation by Ms. Tosiah Binti Abdullah , Deputy Director, Food Quality & Safety Division (FQSD) MOH

The session was moderated by Mr. Mokhzani Aris Yusof, MPC with the following panelists:

• YBhg. Dato’ Haji Mohd Za’im bin Abdul Wahab Senior Director, Technical Service Division, Mineral and Geoscience Department (JMG)

• Puan Farahana binti Rabidin, Deputy Commissioner of Law Revision and Reform II Attorney General’s Chambers of Malaysia (AGC)

• Mr.Winston Peng President , The Society of Certified Risk Professionals Expert in Risk Based Analysis

MYCURE is one of government's initiatives under Good Reg-ulatory Practice (GRP) in reviewing regulatory pro-cesses and procedures. It adopts the Lean Sigma DMAIC step-by-step approach of Define, Measure, Analyse, Improve and Control focusing to improve process and eliminate wastages. Benefits: cost saving of project compliance: financial cost, administrative burden, substantive compliance cost.

Overview and Implementation of MyCURE Programme by Ir. Riwayat Mansor , MPC Associate Highlights: Presented on an overview and implementation of MyCURE (Cutting Red Tape). Shared on the rationale and political mandate - the National Policy on the Development and Implementation of Regulations (NPDIR) to modernise the current regulatory regime. The capacity of regulatory coordinators in ministries and agencies will be strengthened to ensure adherence to the NPDIR. The regulatory reform will also be aligned to Malaysia’s commitments in existing free trade agreements and unilateral liberalisation initiatives. It provides an understanding of red tape and in-troduces CURE: a simple methodology for cutting red tape/bureaucracy, taking out the complexities and simplifying procedures towards more efficient and effective public service delivery.

Sharing of Case Project on Cutting Red Tape: “Mempercepatkan Tempoh Permo-honan Geran Hilang” by Mr. Muhammad Hakimi Bin Jamil, State Administrative Officer, Pejabat Tanah & Galian, Negeri Kedah.

Highlights: Showcased a successful MyCURE project that of speeding up the application for missing grant. Through its systematic DMAIC approach, they were able to analyse the contributing causes. Embarking on improvements plans and through benchmarking PTG Wilayah Persekutuan Kuala Lumpur, Perlis and Kelantan, the outcome was an estimated compliance cost of RM1,819,250 from 383 applications during the period under study.

NATIONAL CONVENTION ON GOOD REGULATORY PRACTICE (GRP) 2018 Better Regulation, Enhance Productivity

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Session 4: Dialogue Session on Innovative Approach for Better Out-come: Applying Behavioural Insight for Policy Formulation : Behavioural Insights: Mainstreaming New “Thinking” Into Institution by Mr. Mohamad Muzaffar Abdul Hamid, Senior Manager of MPC Highlights:

• Behavioural Insights (BI) is not a fad nor it is a new thing. Based on OECD data, 200 institutions around the world are initiating BI in their countries.

• BI is an application of psychological insights into econom-ic analysis. It often involves the use of experiment and observation to identify patterns of behavior and use these findings to inform policies and regulation.

• BI is about taking an inductive approach to policy-making, where experiments replace and challenge established assumptions based on what is thought to be the rationale behaviour of citizens and business.

• Macro trends show room for improvement, extending throughout policy making cycle and evaluating and communicating results.

• BI case studies show the potential effectiveness of the tool, although its application requires reflection. Unlocking the potential of behavioural solutions will require us to take a systematic approach to identifying key problems, evaluating the potential impact of behavioural economics approaches, and translating these insights into improve-ments in programs.

• Regulations are not always straight forward due to many reasons, one of them could be due to the regulations be-ing outdated or too hard to be understood.

• Adopting the systematic approach towards diagnosis is important not just because it leads to better solutions to the problem but because it provides us with diagnoses and diagnostic techniques that can be carried over to oth-er contexts.

• Simplify the choices so that it becomes easier for people to comply. In the case of tax compliance, by making it eas-ier for tax payers to comply , the Inland Revenue Board (IRB) could reduce the compliance costs to the taxpayers , while collecting more revenues and spending less on col-lecting debts (overdue taxes).

Presentation on Behavioural insights (BI) and Public Policy Lessons from around the world by Ms. Shelly Hsieh, Regulatory Policy Analyst, Regulatory Policy Division, Public Governance and Territorial Development Directorate, OECD.

Dialogue Session with:

• Ms. Shelly Hsieh Regulatory Policy Analyst, Regulatory Policy Division, Public Governance and Territorial Development Directorate, OECD , and

• YBhg. Prof. Datuk Dr. Leow Chee Seng, Chief Consultant, Humanology Sdn. Bhd.

Highlights: Increasingly number of institutions applying BI to public policy around the world.The “behavioural” aspect means that the proposed policies are grounded in a multi-disciplinary approach, where traditional economic strategies are mixed with insights from behavioural economics, cognitive and social-psychology and, to some extent, cognitive design to create policies that take into account the many ‘irrational’ factors that influence consumers’ decision making.

Behavioural insights are increasingly being applied to improve design and implementation. BI has taken roots in governments around the world as an effective tool for improving (regulatory) policy. The key feature is the use of an experimental approach to understand the actual behaviour of people and test possible solutions before implementation.

OECD research has provided a truly global perspective on how BI is being applied in a variety of policy domains and in various institutional settings around the world.Macro trends show room for improvement, extending throughout the policy making cycle and evaluating (and communicating) results. BI case studies show the potential effectiveness of the tool, although its application requires reflection.

Session 5: GRP EXPLORACE

Venue: Putrajaya Grand Ballroom

AGENDA

1.45 pm: Distribution of GRP Explorace Questions

(Environment & Brain Teaser)

2.00 pm: Flag Off

3.30 pm: End of Race

4.00 pm: Prize Giving Ceremony

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NATIONAL CONVENTION ON GOOD REGULATORY PRACTICE (GRP) 2018 Better Regulation, Enhance Productivity

Reducing Time and Cost Through BIM Utilisation by Mr. Rofizlan Bin Ahmad, CEO of CIDB e-Construct Services Sdn Bhd

Closing Ceremony by YBhg Dato’ Mohd Razali Hussain, Director General, MPC “Besides reviewing the regulations, the Government is also looking on improving Malaysia’s international rankings such as in ease of doing business by World Bank and competitiveness ranking by WEF and IMD. Hence, MITI and the private sector are continuously collaborating in order to improve the regulatory framework. In order for the proposed regulatory framework to be resilient and adaptable to continual changes in society, markets and technology, we aim at achieving better regulations to enhance productivity. To ensure realisation of all these initiatives, I urge all of you to work with us and support our efforts in making Malaysia a great nation. The MPC will go all out to ensure that government ministries and agencies continue to implement Good Regulatory Practice (GRP) to modernise business

regulations and boost the country’s productivity and competitiveness. The private sector welcomes this move as it can contribute by providing evidence-based inputs and other data which can boost the quality of regulations. The unified public consultation portal being set up by MPC in collaboration with the World Bank will allow more active and responsive private sector participation before new regulations are formulated.” ...Closing Remarks by YBhg. Dato’ Mohd.Razali Hussain.

Session 6: Sharing Session on Process Improvement on DCP for Private Hospitals DCP for Private Hospitals – Common Mistakes: Where? Why? How? by Dr. Afidah bt. Ali, Deputy Director, Private Medical Practice Division (CKAPS), Ministry of Health

Highlights: Among the common non- compliances : During Application and Approval Process:

• Inconsistencies of the submitted information

• Incomplete applications

• Submission not in accordance to the requirements During Pre-Licensing Visit

• Equipment, apparatus or instruments are not in place

• Hospital not built according to approved floor plan or not in accordance to the requirements

• Incompliance in minimum area or dimension

• Building not ready for inspection

All these errors could cause delay in approval from both business and regulator’s side. Therefore, continuous training such as Training on DCP Private Hospitals should be continued to enhance applicant’s understanding in submission process. MOH on the other hand could publish graphic guideline to further assist applicants in their submission process.

Highlights:

• Business Information Modelling (BIM) is associated with set of tools and processes to produce, communicate, analyse and use of digital information throughout construction life cycle (National BIM Steering Committee, 2014).

• Typical problems in construction include communication between stakeholders, in particular, communicating design vision to the client accurately to gain approvals.

• BIM provides solution to this problem through better visualisation during design, coordinated drawings and clash detection tools built in BIM. BIM is being recognised as a tool to increase construction productivity and it is proven through mandate given by the 11th Malaysia Plan and Construction Industry Transformation Programme (CITP).

• JKR with CIDB has produced 40 sets of Room data Sheet for hospital, such as Paediatric, Assessment Room, Haemodialysis Bay, Ultrasounds, Baby Resus Room, OT Orthopaedic and Labour and Delivery Room, among others.

• CIDB also is working towards implementing National BIM eSubmission (NBes) within selected local authorities to improve submission process. In conclusion, technology provides leeway for businesses to innovate without compromising on public safety or non-compliance towards regulations. Technology such as BIM improves transparency in submission and approval process as well as helps regulators to manage their resources efficiently.

NEWS : DEALING WITH CONSTRUCTION PERMITS (DCP)

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Workshop on Dealing with Construction Permits for Private Hospitals @ Northern Region & Southern Region

Workshop on Dealing with Construction Permits for Private Hospitals @ Central Region

Workshop on Dealing with Construction Permits for Private Hospitals @ Sabah/ Sarawak

WORKSHOP ON DEALING WITH CONSTRUCTION PERMITS FOR PRIVATE HOSPITALS 2018 Review of approval process improved significantly

‘Continuous improvement is better than delayed perfec-tion’. The saying by Mark Twain indicates the MPC’s action in 2018 is in line with workshops held on dealing with con-struction permits for private hospitals. Throughout the year, MPC managed to organise four series of workshops involving Central Region, Southern Region, Northern Re-gion and Sabah/ Sarawak.

This initiative started on 15th July 2018 where Chief Secre-tary to the Government had chaired Problem Solving Meeting Dealing with Construction Permits on Private Hospitals. Subsequently the Ministry of Health Malaysia (MOH), Ministry of Urban Wellbeing, Housing and Local Government (KPKT) and Malaysia Productivity Corporation (MPC) collaborated to review the process of obtaining a construction permits for private hospital.

The State DCP Champion DBKK programme showed positive output in terms of time taken to process the development plan (detailed development plan) from 231 days to 73 days whereas the time taken for processing outlined development plan was reported to be 104 days. Besides, approval time to process the building plan also decreased to 37 days from 179 days prior to the programme. Lastly, time taken to obtain Occupation Certificate (OC) was reduced to 37 days from 90 days. Thus the implementation of State DCP Champion has indeed improved the efficiency of getting approval of construction permits.

The main success factors of DCP State Champion DBKK are the support and commitment from top management of DBKK. Seen here is YBhg. Datuk Yeo Boon Hai, Mayor of Kota Kinabalu and Ms. Sally Edward Ghani, the main focal point for State DCP Champion DBKK.

3 September 2018, Kota Kinabalu City Hall (DBKK), Sabah :

STATE DCP CHAMPION

The focus group members during the Workshop to develop a manual on interim development on 3

September 2018 at DBKK.

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"Alhamdulillah, I feel so glad and special thanks to MPC for organising this workshop as there are many significant improvements in terms of submission of building plans to CKAPS. Previously, I need to review the floor plan 17 times before the application was ap-proved but after the workshop, only several building plans need to be checked twice be-fore being processed"- Dr Afidah Ali, CKAPS (MOH).

"This workshop is very useful because I got clearer explanation on the construction process of private hospitals. Throughout the process, there are several parties involved where they carry different understandings and perspectives even for issues that are related to the Act. This can cause confusion to the agencies involved. I also can say that detailed description by the facilitator makes construction work easier as she explains thoroughly about the processes. Through this workshop, I can widen my networking with participants coming from different backgrounds "- Ms Angela Lee, Sunway Medical Centre.

28-29 July 2018 The Light Hotel, Penang : WORKSHOP ON DEALING WITH CONSTRUCTION PERMITS FOR PRIVATE HOSPITALS 2018 @ NORTHERN REGION

NEWS : DEALING WITH CONSTRUCTION PERMITS (DCP)

"This workshop helped me a lot as an architect especially in drafting a construction plan for private hospitals. I have already attended two similar workshops before in Johor Bharu and Penang. As for content of the presentation, Dr Afidah Ali has indeed enhanced our understanding through her description on the procedures and scope of the require-ments specifically. Therefore, we are able to understand clearly as we architects, act as a coordinator in the production of the plan. I also feel this workshop is the best channel for CKAPS to explain the format and conditions that need to be followed together with what to look for in the plans before sending them to CKAPS "- Mr Cheng Chew Gap, CG Cheng Architect.

RISK-BASED INSPECTION (RBI) INITIATIVE BY FGDCP Reduced interactions between regulators and businesses

Some important elements that will complement RBI are:

• Consultant will certify completion and compliance through notification to the authority;

• Random inspection by agencies can be conducted after CCC has been issued;

• Non-compliances and wrong doings can be taken action by the Local Authorities through Street, Drainage and Building Act (Sub-Section 70(13), (14) and Section 72;

• For external technical agencies, non-compliances and wrongdoings can be taken action through their own Acts.

• RBI will further enhance existing self-certification and self-regulation provided for under Building By-Laws.

• RBI will reduce regulators’ workload and enhance professionals’ credibility and integri-ty.

16 August 2018: Coordination

Workshop with Lembaga

Lebuhraya Malaysia (LLM) to

improve approval process for

development near highway

20 August 2018 : FGDCP team in

action during RBI workshop

17 August 2018: Meeting with

Perbadanan Putrajaya (PP)

PP wants to improve dealing with

construction permits process by

using State DCP Champion Model

DRIVING PRODUCTIVITY OF THE NATION 10

NEWS : REVIEWS ON NON -TARIFF MEASURES (NTM)

13 July 2018, MPC Petaling Jaya: NTM Expert Meeting

YBhg. Dato’ Latif Hj Abu Seman, Deputy Director General of MPC chairing the meeting with experts on NTMs to dis-cuss on issues and progress of projects.

26 July 2018,BKMM, Menara Prisma, Putrajaya

Discussion with Food Safety and Quality Division (FSQD/BKKM), Ministry of Health on NTMs

27-29 July 2018, Hotel Best Western, I-City, Shah Alam

Workshop on Compliance Cost of NTMs and Visit to Health Office, Import Food Quality Control Unit, Ministry of Health, Port Klang

30 July 2018, Department of Standards Malaysia, Cyberjaya

Courtesy Visit to Department of Standards Malaysia and Discussion on NTM Initiatives

6 August 2018, Everly Putrajaya Hotel : NTMs Engagement Session for Imports & Exports Procedures in Agro-Food

Industries

The first session of public consultation with business stakeholders in the agricultural and agro-based industry, particularly dealing with the following agencies:

• Department of Veterinary Services (DVS)

• Department of Fisheries (DoF)

• Lembaga Kemajuan Ikan Malaysia (LKIM)

• Malaysia Quarantine and Inspection Services (MAQIS)

NEWS : REVIEWS ON NON -TARIFF MEASURES (NTM)

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8-9 August,2018, Sunway Putra Hotel, Kuala Lumpur

Seminar on Risk Management for Regulatory Coordinators

4 September 2018: Engagement Session on NTMs with Ministry of MOA- Session for Imports & Exports Proce-

dures in Agro-Food Industries

6 September 2018, Bilik Poinsettia 1 & 2, PJ Hilton Engagement Session between MOA and the industry 7- 8 September 2018, Hotel Royale Chulan, Damansara

Workshop on Compliance Cost with Ministry of Water, Land and Natural Resources (KATS)

24 September 2018, Hilton Hotel, PJ and MPC HQ : Engagement Session with United Nations Conference on

Trade and Development (UNCTAD) on Non-Tariff Measures (NTMs)

26-27 September 2018, Hotel Hilton Petaling Jaya Presentation Session by NTM Facilitators and Discussion

with UNCTAD Adviser

DRIVING PRODUCTIVITY OF THE NATION 12

Supporting Economic Growth & Serving the Public Interest

OECD’s report on “Regulatory Policy & Governance Supporting Economic Growth & Serving the Public Interest” provides an assessment on the recent efforts of OECD countries to develop and deepen regulatory policy and governance. It illustrates the importance to promote regulatory governance including creating accountability and oversight of regulatory agencies and creating a whole-of-government approach for regulatory decision and enforcement. This report sets out a framework to encourage the need to “think big” about the relevance of regulatory policy in support of growth and social welfare as countries emerge from the crisis.

Key messages from the report:

Stronger regulatory governance is needed to move forward ,requiring the following:

a. Institutional leadership and oversight to drive priorities and provide early warning to policy makers of regulatory issues that need to be fixed

b. Evidence-based impact assessment to promote effective regulation in support of policy coherence

c. Paying more attention to the voice of the users who need to be part of the policy process

d. A renewed emphasis on consultation, communication, co-operation and collaboration across all levels of government, not least in the international arena

e. Reviewing the role of regulatory agencies and the balance between private and public responsibilities for regulation, to secure accountability and avoid capture

f. Tools to evaluate and ensure performance and progress to communicate the costs and benefits of reforms

Further reference could be made to the achievements of regulatory policy in support for economic growth and development, mutually reinforcing social and economic outcomes and the need for stronger regulatory governance:

“Regulatory policy has made a significant contribution to growth and the rule of law”

Regulatory policy has already made a significant contribution to economic development and societal well-being. Economic growth and development have been promoted through regulatory policy’s contribution to structural reforms, liberalisation of product markets, international market openness, and a less-constricted business environment for innovation and entrepreneurship. Regulatory policy has supported the rule of law through initiatives to simplify the law and improve access to it, as well as improvements to appeal systems. Increasingly, it supports quality of life and social cohesion, through enhanced transparency which seeks out the views of the regulated, and programmes to reduce red tape for citizens.

“Stronger regulatory governance is the key to success”

Effective regulation to help meet the challenges facing governments will only be achieved through stronger regulatory governance, closing the loop between regulatory design and evaluation of outcomes. This draws attention to a range of issues, including:

• institutional leadership and oversight;

• reviewing the role of regulatory agencies and the balance between private and public responsibilities for regulation with a view to securing accountability and avoiding capture;

• a renewed emphasis on consultation, communication, co-co-operation and co-ordination across all levels of government and beyond, including not least the international arena; and

• strengthening capacities for regulatory management within the public service.

REGULATORY POLICY & GOVERNANCE

Reinforcing Economic & Social Outcomes

Better Regulation for Growth Governance Frameworks and Tools for Effective Regulatory Reform

In the World Bank report by Jacobs, Scott and Ladegaard, Peter, 2010: “Better Regulation for Growth : Governance frameworks and tools for effective regulatory reform - Regulatory governance in developing countries”, the regulatory governance agenda was introduced. The report reviews the evidence of impacts of regulatory governance initiatives, and how regulatory governance tools have been applied in developing countries so far. The learning points are that regulatory reformers should move beyond what is immediately “doable” to what is actually “needed.” What is needed, however, will depend on a careful analysis of the country context, and that the time horizon and tools for successful reforms should go beyond immediate results into the creation of sustainable practices. The impact of regulatory reform on macroeconomic performance is notoriously difficult to measure, and relies on various models, such as input-output and partial equilibrium models.

DRIVING PRODUCTIVITY OF THE NATION 13

Definition

With new emerging technological advancement, new business models, the challenge is to strike a balance between protecting stakeholders and citizen’s interest and overcoming the challenges of these impending disruptions. An article by William D. Eggers, Mike Turley, Pankaj Kish-nani (Deloitte Insights, June 19, 2018), “ The Future of Regulation” explored the unique regulatory challenges posed by digital-age technologies and business models and proposed five principles to guide the future of regulation: 1. Adaptive regulation. Shift from “regulate and forget”

to a responsive, iterative approach. 2. Regulatory sandboxes. Prototype and test new

approaches by creating sandboxes and accelerators. 3. Outcome-based regulation. Focus on results and

performance rather than form. 4. Risk-weighted regulation. Move from one-size-fits-

all regulation to a data-driven, segmented approach. 5. Collaborative regulation. Align regulation nationally

and internationally by engaging a broader set of players across the ecosystem.

Way forward

Regulatory policy: a) It refers to the substantive policy content of regulation.

Some reforms seek to distinguish between regulatory policy and regulatory design. For example, the Doing Business indicators and the Standard Cost Model are based on the assumption that regulatory costs can be reduced while leaving regulatory policy unchanged;

b) “Regulatory policy” is also used by the OECD as a meta-narrative for the multifaceted program of a government to improve its use of regulation. The national regulatory policy agenda aims to improve four major elements: regulatory policies, regulatory tools, regulatory development (policy) processes, and regulatory institutions.

Regulatory governance: a) A holistic term that refers to the systematic

Implementation and operation of government-wide policies on how to use regulatory powers to produce quality regulation.

b) Good regulatory governance is grounded in the view that ensuring the quality of regulation is a permanent and essential role of government, not a one-off set of improvements, and that institutional capacities should be designed around a clear view of the appropriate use of regulation in society.

REGULATORY POLICY & GOVERNANCE

Reinforcing Economic & Social Outcomes

APEC PEER REVIEW ON PUBLIC CONSULTATION INITIATIVES A Baseline for Compendium Report

DRIVING PRODUCTIVITY OF THE NATION 14

APEC Peer Review on Public Consultation Initiatives sets a platform for volunteer economies to undertake a peer-review on public consultation. Through this peer review mechanism, volunteer economies have the opportunity to identify gaps in how they conduct public consultation. Addressing these gaps will assist APEC economies in applying Good Regulatory Practices and improving indicators measured by the World Bank, APEC, OECD and other relevant international organisations. A total of 140 participants comprising APEC member economies, officials from ministries and regulatory agencies (public sector), businesses, trade associations and chambers of commerce (private sector), Academia, civil society and interested parties attended the 2—day workshop held at the Grand Hyatt Hotel Kuala Lumpur on 17-18 July, 2018. In April 2018, APEC Survey on Public Consultation Initiatives were circulated to all APEC economies to capture government wide practic-es on how governments engage with stakeholders about public con-sultation affecting regulatory policy and also identify best practices in public consultation. The results gathered from the responses received through the above surveys are shared during this APEC workshop.

(a) Challenges of government/regulator to be addressed include global connectivity, increasing competitiveness of trading nations to increase market share, the use of advancements in science and technology to drive businesses as well as to embrace Industrial Revolution 4.0. This calls for a comprehensive, current and sustainable policy and regulatory framework for greater and more meaningful engagement with constituencies.

(b) Public consultation process needs to determine who are the stakeholders involved, at which level of the formulation of policy to initiate engagement and how best to conduct such negotiations. There is no one size-fits-all 9approach.

(c) Governments have to ensure a conducive policy and regulatory environment that facilitates business and civil society, while the stakeholders require laws and policies that are transparent, consistent and current.

(d) The desired outcome of public consultations should ultimately be managing and meeting the expectations of both government and society.

Opening Remarks by YBhg. Datuk Norazman Ayob, Deputy Secretary General, Ministry of International Trade and Industry (MITI)

Many prominent international speakers and panel experts from OECD, the World Bank, e-Rulemaking Program Management Office, USA and COFEMER as well as practitioners from Indonesia, Vietnam and Malaysia such as JITN, ANCHAM, Malaysia Institute of Architects, Institute for Democracy and Economic Affairs (IDEAS) and SPAN shared their experiences on the importance of public consultation in GRP; importance of public consultation to stakeholders; the challenge to better govern public consultation and consultation for ex-post evaluation. The participatory APEC economies (Russia, Thailand, Mexico, China, Indonesia, Philippines, Peru and Brunei) also presented their recent development on public consultation initiatives.

DRIVING PRODUCTIVITY OF THE NATION 15

GRP E-newsletter shares information and development of good regulatory practice in Malaysia. It creates interest of the GRP practitioners to learn the best practice of GRP in Malaysia. The content was systematically arranged to capture the interest of the readers. The newsletter was written in simple English so that everyone is able to understand the content easily. In addition, graphical examples are used to illustrate and support the content. In such, it enhances the understanding of the content. The newsletter covers the fundamental concept of GRP, the theory and concept of GRP and also the practical perspectives. In this E-newsletter, it also covers the news and research findings of international bodies. This provides an international exposure to the readers. In addition, the newsletter also covers different activities conducted by the panel (MPC) and the experts for GRP. In short, the newsletter is suitable as a reference for both academicians and practitioners.” … YBhg. Datuk Dr. Leow Chee Seng, Chief Consultant, Humanology Sdn Bhd Malaysia.

Comments/Testimonial from reader:

Boosting Productivity Holistically 5 Strategic Thrusts, 10 National Level Initiatives, 43 Sectoral-level Initiatives

The Productivity Report 2017/2018 can be

accessed through

http://www.mpc.gov.my/productivity-

performance.

Or

http://wayup.my/index.php/the-

productivity-report-20172018/.

The report is the 25th Edition published

by Malaysia Productivity Corporation

(MPC) . The findings & analysis in this re-

port are based on productivity data re-

leased by the Department of Statistics,

Malaysia.

NEWS : LAUNCHING OF PRODUCTIVITY REPORT 2017 / 2018

By YB Datuk Darell Leiking, Minister of International Trade & Industry , 26 July 2018

By Datuk Dr. Leow Chee Seng, Mr. Mohamad Muzaffar Abdul Hamid

In our lives, we might have difficulties to do decisions. Even if

we have the intention to do some activities but sometimes, it is

difficult to convert them into behaviour. For instance, most of

us would want to maintain a good body shape and we should

exercise more, have a healthy diet and stay positive.

Sometimes, we would just give ourselves some excuses and

think, “I will do it tomorrow…”. Some other behaviours include

taking junk food, overspending on credit cards and even drink

and drive. People don’t always act rationally. In fact, they tend

to act irrationally but in predictable ways. Because their

mistakes tend to be predictable, people can be encouraged to

make better choices. Hence, we apply choice architecture and

give them a nudge. A behavioural nudge is getting you to do

something without restraining your freedom of choice or

changing financial incentives.n our lives, we might have

difficulties to do decisions. Even if we have the intention to do

some activities but sometimes, it is difficult to convert them

into behaviour. For instance, most of us would want to

maintain a good body shape and we should exercise more,

have a healthy diet and stay positive. Sometimes, we would

just give ourselves some excuses and think, “I will do it

tomorrow…”. Some other behaviours include taking junk food,

overspending on credit cards and even drink and drive. People

don’t always act rationally. In fact, they tend to act irrationally

but in predictable ways. Because their mistakes tend to be

predictable, people can be encouraged to make better choices.

Hence, we apply choice architecture and give them a nudge. A

behavioural nudge is getting you to do something without

restraining your freedom of choice or changing financial

incentives.

DRIVING PRODUCTIVITY OF THE NATION 16

Understanding human behaviour is important in forming public

policy, good regulatory practice and creating motivated guidelines.

In the private sectors, it helps to form an organisation behavioural

policy, marketing strategies and a sustainable business

environment that the consumers are transformed into your brand

ambassadors. Behavioural insights help us to understand how

people make their decision in their everyday lives. The knowledge

of behavioural insights is beyond that of the rational behaviour

that was described in the economics books. We must understand;

the human being is unique. A human being has mind and soul that

make each and every one of us unique. We have limited attention

and our behaviour is regulated by the limited self-control. Don’t

forget, the human is always heavily influenced by people around

us and by the external environment.

Do you know that human beings can have sudden decision change

just as simple as words used in delivering the message to the

public? Let me illustrate this. In a shopping mall, if a consumer sees

two products, the first, “10% sugar” and “90% sugar-free”, in

human subconscious mind, people tend to choose the product with

“90% sugar-free products”. Why? This is the power of behavioural

insights. Can you see, a simple tweak on the message can influence

human behaviour? Hence, the application of behavioural insights

can help public sector to educate people to follow the regulations.

It creates a voluntary behaviour to comply with the public policy or

the new regulations. Turning to consumer behaviour, several

methods of behavioural insights are applied in product strategies.

For example, if you run a fast food restaurant, red colour is the

best in a restaurant wall. Why? People would feel happy and

cheerful. Red colour increases the food temptation and your

customers would tend to eat more

BEHAVIOURAL INSIGHTS : An Overview By Datuk Dr. Leow Chee Seng, Mr. Mohamad Muzaffar Abdul Hamid

However, after a while, they would feel hot and uneasy. As a

result, they would leave the restaurant and the seats are

automatically vacant for the next customer. If you are running a

hospital, light blue or light green helps the patients to feel calm

and the perception of the waiting time seems shorter when they

are waiting. In the service industry, we apply behavioural insights

through simplifying the process to help people to convert their

intention to behaviour. How do we do it? First, we analyse the

procedures and steps that are involved in the decision making

and action. Then, we remove the unnecessary steps and make the

service more user-friendly. For behavioural intervention, the

rewarding design behavioural is applied to motivate the people

for their behaviour. For example, the Health Promotion Board

(HPB) of Singapore had organised the National Step Challenge.

The participants were given a pedometer to monitor how many

steps they have taken in a day. They can redeem rewards such as

shopping and grocery vouchers if they hit a certain target. This

campaign applies behavioural insights by providing positive

reinforcement to the people. However, the design of the program

must be carefully crafted by considering the behaviour of the

people.

DRIVING PRODUCTIVITY OF THE NATION 17

Understanding human behaviour is important in forming public

policy, good regulatory practice and creating motivated

guidelines. In the private sectors, it helps to form an organisation

behavioural policy, marketing strategies and a sustainable

business environment that the consumers are transformed into

your brand ambassadors. Behavioural insights help us to

understand how people make their decision in their everyday

lives. The during the initial stage. By applying this method, we

can compare the effectiveness of the strategies or intervention as

compared to the control group (current stage).

In behavioural intervention, we apply the framework from

behavioural insight team – the EAST principle.

• Keep it Easy

• Keep it Attractive

• Keep it Social

• Keep it Timely

Behavioural insights provide the tools, framework for

policymakers, department strategies, organisational strategies,

sales and marketing strategies to enhance the traditional ways

and uplift the delivery system. All the interventions are actually

simple and easy to be implemented. Stop selling refrigerators to

the Eskimos now and learn new ways to reach the heart and soul

of the people!

WHAT’S NEXT: MALAYSIA REJOINS TOP 20 ECONOMIES IN WORLD BANK’S DOING BUSINESS 2019 REPORT

• More about how Malaysia advanced nine places to 15th spot in the recently released World Bank Doing

Business Report 2019 in the next issue…