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ILTIZAM Act: PSD Focuses On State-level Implementation, Strengthening Cross-agency Understanding

Kuala lumpur: Efforts to strengthen the implementation of the Government Service Efficiency Commitment Act 2025 (Act 867), better known as the ILTIZAM Act, are now focused on fostering a common understanding across government agencies, expanding its implementation at the state government level, and monitoring progress towards achieving the target of reducing the regulatory burden.

According to BERNAMA News Agency, Public Service Department (PSD) Public Sector Reform Division director Syuhaida Abdul Wahab Zen emphasized the importance of shared understanding among ministries and agencies to ensure that the responsibilities and obligations under the ILTIZAM Act are fully understood and implemented effectively. She highlighted the challenge of ensuring a common understanding and consistency in both understanding and implementation.

"The PSD, together with the Malaysia Productivity Corporation (MPC), continuously conducts engagement sessions with relevant ministries and officers to ensure that these responsibilities and obligations are understood and effectively carried out," she mentioned recently.

The ILTIZAM Act, which came into force on Dec 1, 2025, embodies the MADANI Government's commitment under Prime Minister Datuk Seri Anwar Ibrahim's leadership to reduce bureaucracy and accelerate public service delivery by enforcing measures to reduce the regulatory burden. The Act aims to tackle bureaucratic red tape and overlapping regulations, which have long been significant challenges for the public and business community when interacting with government departments and agencies.

Regarding the implementation of the ILTIZAM Act at the state level, Syuhaida noted that developments had been promising, with policy approval secured at the National Council for Local Government meeting. State governments are required to obtain approval from their respective State Executive Councils before adopting the Act.

"The readiness is certainly there. It is just that implementation must go through the proper process, including being tabled before the State Executive Council meeting before it can be adopted at the state level," she explained.

The PSD is collaborating with the Local Government Department and the Ministry of Housing and Local Government to integrate elements of the ILTIZAM Act into the local authority star rating assessment system.

Syuhaida also mentioned that efforts to achieve the target of reducing the regulatory burden by 25 per cent are being reinforced through continuous guidance provided by the MPC to ministries, agencies, state administrations, and local authorities.

"We want to ensure that the target of reducing the regulatory burden is achieved, and the MPC plays the role of a strategic partner and adviser by helping agencies identify areas for improvement in their existing processes and procedures," she stated.

Syuhaida expressed that the government expects the implementation of the ILTIZAM Act to serve as a catalyst for world-class public service delivery by reducing bureaucracy, enhancing efficiency, and providing higher-quality services to the public, the business community, and civil servants.

To ensure comprehensive implementation of the Act, the Cabinet has entrusted the drafting and implementation of the legislation to Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar, with the PSD as the lead agency. Director-General of Public Service Tan Sri Wan Ahmad Dahlan Abdul Aziz is responsible for ensuring its effective implementation.

Syuhaida emphasized that this allocation of responsibilities strengthens the implementation of the ILTIZAM Act from the highest level of national administration throughout the public service, supporting the public service reform agenda aimed at delivering more efficient, world-class public services by 2030.

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