Kuala lumpur: The implementation of Bureaucratic Red-Tape Reform (RKB) has put Malaysia on a solid path to improving its global competitiveness, although continuous improvements are needed to address several performance indicators that remain weak. Malaysia Productivity Corporation (MPC) deputy director-general Dr. Mohamad Norjayadi Tamam highlighted Malaysia's rise to 15th place in the International Institute for Management Development's (IMD) World Competitiveness Ranking (WCR) 2026, up from 23rd last year.
According to BERNAMA News Agency, Malaysia's ranking for bureaucratic performance also improved, climbing to sixth globally this year from 14th last year. This achievement earned recognition from IMD Competitiveness Centre director Prof Arturo Bris, who attributed Malaysia's notable rise to the reform efforts undertaken, with a significant contribution from the RKB implemented across all ministries and agencies.
Mohamad Norjayadi emphasized that performance indicators serve as a critical reference for ministries and agencies to identify weaknesses and implement structured improvements. The RKB's impact is evident across various ministries and agencies, including the significant reduction in processing time for security vetting and criminal record checks for expatriate pass applications, thanks to data sharing through the e-Vetting platform and cooperation between the Royal Malaysia Police and the Immigration Department of Malaysia.
The RKB initiative has demonstrated the potential to expedite approval processes and reduce business compliance costs by eliminating silos between government agencies. The approach enables ministries and agencies to transition to Risk-Based Approvals and self-regulation for low-risk applications, reducing approval delays and compliance costs for traders and investors.
Beyond the corporate sector, the RKB has also benefited small rural traders through the e-Licence system in collaboration with the Sabah State Public Service Department, significantly reducing the processing time for business licence applications. However, Mohamad Norjayadi cautioned against complacency, emphasizing the need to focus on weaker performance indicators, such as food waste, where Malaysia ranks 68th out of 70 participating economies.
He expressed the commitment of the Special Task Force on Agency Reform (STAR) to address these areas, highlighting the importance of continuous improvement efforts to achieve the 13th Malaysia Plan target of placing Malaysia 12th globally by 2030 while raising the national productivity growth rate to 3.6 percent.