PETALING JAYA: Simplified procedures and an oversight body to monitor the performance of government agencies should be included in the proposed Government Efficiency Commitment Act, say business group leaders.

Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry president Nivas Ragavan (pic) said the proposed legislation is mainly aimed at reducing bureaucracy and is part of a broader effort to make the country more competitive, especially when compared to neighbouring countries that are seen as more agile in business processes.

“The Act should focus on cutting down time and procedures required to start and operate a business in Malaysia.

“This is crucial as current processes are seen as lengthy and complex, often requiring years and coordination across multiple agencies,” he said when contacted yesterday.

The government said it is planning to introduce the Act to cut red tape and streamline procedures for conducting business, according to Economy Minister Rafizi Ramli on Tuesday.

The minister said the Act is expected to be tabled by the end of this year.

Nivas said that similar to the Fiscal Responsibility Act introduced last year, the proposed law should establish clear benchmarks the government must follow to ensure efficiency.

“These benchmarks could include time limits for processing business applications, reducing the steps needed for compliance and establishing a framework for continuous improvement.”

Other than that, the legislation should particularly address challenges faced by micro, small and medium enterprises (MSMEs), which are often disproportionately affected by regulatory burdens, Nivas said.“This could involve specific provisions that make it easier for MSMEs to navigate government requirements, such as simplified reporting or tax procedures.

“Incorporating digital solutions to automate and streamline regulatory processes is also a key area to focus on.

“This will not only speed up procedures but also increase transparency and reduce opportunities for corruption.”

To ensure the Act remains relevant and effective, there should be provisions for regular reviews and adjustments based on feedback from the business community, Nivas said.

“This will allow the government to respond to changing needs and improve the business environment over time.”Malay Economic Action Council senior fellow Ahmad Yazid Othman said while the body appreciates efforts to streamline regulatory processes, there is a need to emphasise balancing deregulation with the protection and development of local industries, particularly those involving Malay businesses and MSMEs.

“Any such initiatives must be carefully crafted to protect and promote local industries.

“We propose that the government consider a more balanced approach, where deregulation is coupled with initiatives that directly support the development of local industries.

“This includes policies that ensure access to financing, technology and markets for Malay entrepreneurs, as well as targeted incentives for industries with high growth potential.”

SME Association of Malaysia secretary-general Chin Chee Seong said the Act is long overdue in supporting the private sector.

“It shows that the government is serious about making it easier to do business in the country rather than just mere talking.“We hope that an oversight body or committee can be formed to monitor the processes or implementation and performance under the legislation.

“There will be many processes that can be streamlined. We are prepared to support the government with our ideas if need be.”

Associated Chinese Chambers of Commerce and Industry of Malaysia treasurer-general Datuk Koong Lin Loong called on the government to consider including elements of ease of doing business as part of the Act.

“The government should make sure it can create a good environment for business and cut the red tape.“Only then will it attract and boost foreign direct investment and encourage domestic direct investment,” he said.

https://www.thestar.com.my/news/nation/2024/08/30/keep-it-simple-for-businesses