Putrajaya: Malaysia’s initiative to cut compliance costs to up to 1 percent of its gross domestic product (GDP) is aligned with international standards, including those set by the Organisation for Economic Co-operation and Development (OECD). The Malaysia Productivity Corporation (MPC) is spearheading this effort as part of the civil service reform agenda.

According to BERNAMA News Agency, MPC director-general Datuk Zahid Ismail stated that the government, under the ILTIZAM Act, aims for a minimum 25 percent improvement in various initiatives, particularly by reducing compliance costs, which are often seen as an economic “waste” due to unnecessary expenditures and time consumption. Zahid noted that if compliance costs are estimated at one percent of GDP, for a GDP of RM1 trillion, this would equate to RM100 billion, with the potential for RM25 billion in savings.

In discussing the more than RM2 billion saved so far through the Bureaucratic Red Tape Reform (RKB), Zahid emphasized that this aligns with Malaysia’s current early-phase reform growth trajectory. He highlighted significant achievements such as reducing a 36-month process at the land office to six months, achieving substantial time and cost savings.

Zahid also highlighted the success in Kulim, Kedah, where expedited regulatory and approval processes led to a substantial increase in investment, tripling from RM50 billion to RM150 billion over three years. He emphasized that government efficiency is crucial for economic growth, impacting investment, competitiveness, and the perception of Malaysia’s business ecosystem.

MPC is focusing on reducing compliance costs to boost Malaysia’s competitiveness compared to regional counterparts. Zahid expressed satisfaction with the RKB’s progress over two years but acknowledged the need for continuous improvement and increased public engagement. He also underscored the importance of leveraging technology to enhance solutions and reduce compliance costs further.

The completion of 323 RKB projects, up from 182, has successfully saved over RM2.01 billion per year in compliance costs. This achievement was highlighted during the launch of the ILTIZAM Circular and the Public Service Performance Index (I-PPA) by Chief Secretary to the Government, Tan Sri Shamsul Azri Abu Bakar. These initiatives aim to strengthen performance-based governance across the government delivery system.

The Rancakkan MADANI Programme, part of the national effort organized by the Prime Minister’s Office through the Performance Improvement Coordination Unit (PACU), attracted over 304,107 visitors, surpassing the target of 300,000, showcasing the public’s engagement and interest in the government’s transparency and reform efforts.