LEADING THE CHARGE AT THE WORLD ECONOMIC FORUM News Highlights: • Investing in Asia through Malaysia • Endless Possibilities • One Stop Service in Government • Best Practices in One Stop Service Delivery • Integrated Service Delivery • Easing Doing Business in Services • Harmonising Zoning Requirements • Regulatory Review for Private Hospitals • Focusing on Cleanliness in KL • KL needs World Class Management Issue 1/2013 Prime Minister Dato’ Sri Najib Razak greeting the Netherlands Prime Minister Mark Rutte before their bilateral meeting in Davos and a session on ‘Resilience in Diversity with other ASEAN Leaders. The Prime Minister hosted the Malaysia Night to provide guests of the World Economic Forum, a glimpse of what the country has to offer in terms of investment and tourism potential. The turnout at Malaysia Night which was double the initial target, was an indication of investors interest in Malaysia. “We expected only 400 against the estimated number of 1,000 who came,” the Prime Minister said. The huge turnout at the Malaysia Night. The Prime Minister with Datin Sri Rosmah, Cabinet Ministers, Prominent Busi- nessmen and Malaysian Celebrities wete present to welcome guests and promote Malaysia as the preferred destination for investment, trade, education and tourism. Malaysia scored big in Davos, securing investments for Malaysia worth over RM5.5 billion at the annual World Economic Forum (WEF). Prime Minister Da- to’ Seri Najib made it clear at the forum that pro- growth policies along with incentives to the private sector were crucial in helping Malaysia survive the regional and global economic downturn. He said the Economic Transformation Programme cre- ated in 2010 had led to a remarkable jump in pri- vate investments and was really the “engine of growth”. The Prime Minister said by revitalsing the private sector, the government had created over 300,000 jobs and had brought down unemployment to 3.1 per cent. He said he is confident that Malaysia would become a high income economy by 2010 with a per capita income of US$15,000. The per capita income jumped to US$9,750 at the end of 2012 from US$6,700 four years ago.
Transcript
LEADING THE CHARGE AT THE WORLD ECONOMIC FORUM News Highlights:
• Investing in Asia through Malaysia
• Endless Possibilities
• One Stop Service in Government
• Best Practices in One Stop Service Delivery
• Integrated Service Delivery
• Easing Doing Business in Services
• Harmonising Zoning Requirements
• Regulatory Review for Private Hospitals
• Focusing on Cleanliness in KL
• KL needs World Class Management
Issu
e 1/
2013
Prime Minister Dato’ Sri Najib Razak greeting the Netherlands Prime Minister Mark Rutte before their bilateral meeting in Davos and a session on ‘Resilience in Diversity with other ASEAN Leaders.
The Prime Minister hosted the Malaysia Night to provide guests of the World Economic Forum, a glimpse of what the country has to offer in terms of investment and tourism potential. The turnout at Malaysia Night which was double the initial target, was an indication of investors interest in Malaysia. “We expected only 400 against the estimated number of 1,000 who came,” the Prime Minister said.
The huge turnout at the Malaysia Night. The Prime Minister with Datin Sri Rosmah, Cabinet Ministers, Prominent Busi-nessmen and Malaysian Celebrities wete present to welcome guests and promote Malaysia as the preferred destination for investment, trade, education and tourism.
Malaysia scored big in Davos, securing investments for Malaysia worth over RM5.5 billion at the annual World Economic Forum (WEF). Prime Minister Da-to’ Seri Najib made it clear at the forum that pro-growth policies along with incentives to the private sector were crucial in helping Malaysia survive the regional and global economic downturn. He said the Economic Transformation Programme cre-ated in 2010 had led to a remarkable jump in pri-vate investments and was really the “engine of growth”. The Prime Minister said by revitalsing the private sector, the government had created over 300,000 jobs and had brought down unemployment to 3.1 per cent. He said he is confident that Malaysia would become a high income economy by 2010 with a per capita income of US$15,000. The per capita income jumped to US$9,750 at the end of 2012 from US$6,700 four years ago.
PEMUDAH e-Bulletin Issue 1/2013 Page 2
THE ASIAN RUSH Asia’s phenomenal growth has been a key narrative of the world economy in recent years. Emerging markets in South-east Asia, China and India have been at the forefront of this development with growing affluent populations, modernizing economies and an attractive business environment. Investors the world over are scrambling to get a foothold or to build their presence in the crunchy markets of Asia.
As impressive as this shift in the economic priorities to the East has been, significant challenges remain for organizations aiming to navigate the Asian regulatory landscape. Commonly cited barriers include a lack of government support, restrictive practices and cultural issues. The choice and strategy of engaging with Asian markets has never been more important.
For economic and geographic reasons, Malaysia is perfectly placed to be an easy access point for anyone looking to do business in the region. Located in the heart of Southeast Asia, Malaysia is well connected to the rest of Asia through excellent transport links giving access to a market potential of 3.6 billion people. Malaysia has crafted a clear 10-year economic plan and is putting into action a blueprint to modernise its economy by the end of this current decade. Economic figures all point towards Malaysia’s increasing standing in the region and elevation as a destination for global investors. With a vibrant business environment and structure, Malaysia is now on the verge of reaping the benefits of accelerated growth together with investors that understand these advantages. CHARTING THE RIGHT PATH In its short history, Malaysia has successfully transformed its traditional primary resource-based economy into a modern industrial economy based on high-value manufacturing and services with an emphasis on exports. As the country further develops towards a knowledge-based economy. Malaysia’s track record and ability to define its own path of successful development will be essential.
Strong government support has been a hallmark of Malaysia’s transformation so far. The Performance Management and Delivery Unit (PEMANDU), brainchild of Prime Minister Dato’ Sri Najib Tun Razak, was formally established to oversee implementation of the Economic Transformation Programme (ETP) and the Government Transformation Programme (GTP). These are ambitious initiatives to ensure Malaysia has a clear, transparent plan to achieve high-income nation status by the year 2020 in an effective manner. Through extensive collaboration with the private sector, PEMANDU has identified key growth areas to drive the country’s economy forward.
Allied to that are strategic reforms and initiatives to improve public sector services and Malaysia’s competitiveness globally. This means many of the difficulties businesses face on entry into new markets are eased by Malaysia’s forward-thinking policies. Testament to these efforts is Malaysia’s gross national income per capital (GNI) which grew by 16% from 2009 to 2011 according to the World Bank. Based on current projections by PEMANDU, the country is set to achieve GNI targets two years ahead of the 2020 objective. IMPRESSIVE FIGURES Malaysia’s impressive growth figures over the last few decades have made its economy relatively resilient during the last global financial crisis and subsequent economic downturn in Western economies. After a slight GDP contraction in 2009, Malaysia rebounded strongly and is currently on course to record above 5% growth for the last three years. According to many of the most well known metrics and rankings used to measure econ-omies, Malaysia continues to perform well not just com-pared to other countries in the region but also in the global sphere. According to the World Bank’s Doing Business 2013, a measure of business regulations in 185 economies, Malaysia was ranked the 12th most competitive in the world, ahead of countries such Sweden, Taiwan, Germany, Japan and Switzerland. Specific improvements on measures such as ease of obtaining construction permits, property registration, taxation processes and cross-border trading were recorded. Malaysia also continues to be ranked 1st in terms of ease of obtaining credit and 4th for protection offered to investors.
The World Economic Forum’s Global Competitiveness Report 2012-2013 ranked Malaysia the 25th most competitive country in the world. Southeast Asian emerging economies performed well in general but Malaysia led the way for the region. The World Economic Forum noted Malaysia’s advantages in terms of creating a competitive market for goods and services, a supportive financial sector and its business-friendly institutional framework. Malaysia performs much better than other countries in the region in terms of transparency and cutting down red tape.
The interest in Asia is demonstrated clearly through A.T. Kearney’s 2012 FDI Confidence Index, which examines the future prospects of FDI flows into various countries. In the latest figures, emerging markets have eclipsed developed econ-omies for the first time, accounting for more than half of global FDI inflows. Malaysia is one of the top emerging market desti-nations, experiencing a 537 percent jump in FDI inflows from 2010 figures, reinforcing the country’s reputation as an increas-ingly important destination for foreign investors.
PEMUDAH e-Bulletin Issue 1/2013 Page 3
Prime Minister Dato’ Sri Najib Razak showed an article titled "Investing in Asia through Malaysia" published in 'The Economist', that was dis-tributed during the World Economic Forum 2013 in Davos.
ON THE VERGE Malaysia is currently at the tipping point of an accelerated growth trajectory toward a developed, knowledge-based economy. With a relatively young, growing population and a burgeoning middle class. Malaysia will not only experience increasing domestic demand but also has the critical mass of well-educated, talented people with English as the main business language to ensure sustainable growth for businesses. As the country matures, its people are ready to provide the human capital drive for the next stage of development. That development is characterized by Malaysian companies with an increasingly global outlook. Brands such as Petronas, AirAsia and CIMB Bank are increasingly visible in the global marketplace. FutureBrands’ Country Brand index ranks Malaysia 3rd in its list of Future 15 country brands, a collection of brands believed will enjoy the strongest perceptions in years to come. It has been a historic year for the Malaysian Bourse, with record figures recorded in November 2012 and several of the largest IP-Os in the world such as Felda Global Ventures, an inte-grated agri-based multi-national, and IHH Healthcare, Asia’s largest healthcare operator, listing in the Malaysian stock market. Malaysia is already a world leader in several sectors as a top regional hub for many multi-nationals and also established as a premier shared services and outsourcing destination. Malaysia is leading the way in Islamic finance with assets reaching more than US$120 billion in 2012 with a growth rate of 18-20 percent annually. Oil and gas businesses are congregating in Malaysia, making it a hub for oilfield services.
Malaysia is the second largest exporter of palm oil and related industries, one of the most important world commodities. Malaysia is geared to realized its full potential as a result of key reforms and initiatives crafted to drive economic growth and to modernize the economy. Government agencies such as the Malaysian Investment Development Authority (MIDA) have been created to specifically help businesses adapt and take advantage of the local environment. Recognising the critical role Kuala Lumpur, Malaysia’s capital city, has to play as an iconic city driving the country’s growth its economic catchment area encompasses the entire country – urbanising and modernising Kuala Lumpur has been made a priority. InvestKL, a government agency, has been entrusted to drive Kuala Lumpur to be one of the world’s top, dynamic investment destinations by attracting companies that are regionally and globally focused. Malaysia has the right mix of experience and dynamic growth drivers that will push the nation forward. Add to that the unique attractions of Malaysia’s diverse and welcoming culture, natural beauty, and lifestyles, and you have a recipe for economic success. RIGHT TIME IS NOW Malaysia offers an enticing lifestyle and culture. The country is made up of a multi-cultural society that is harmonious, friendly and welcoming. From vibrant cities with a thriving nightlife to its rich and beautiful natural landscape, the chance to enjoy a varied way of life is easily accessible. Together with affordable amenities such as transport, schools and healthcare, Malaysia offers a high quality life-style with an excellent work-life balance that has continued to attract people from all around the world. Malaysia has created an attractive business environment for investors through a government that has a lucid vision and facilitates supportive business policies. The available talent pool and modern infrastructure are also important elements in Malaysia’s advantage. With a strategic location and excellent transport and communication links throughout the region, Malaysia is set to lead the change of fast-growing Asian economies.
The signs are already there as Malaysia continues to break down the barriers for businesses and successfully attracts significant investments from all over the world. Malaysia’s highly regarded business environment is now on every investors radar. At this point in time, Malaysia is poised for tremendous growth in the years ahead as it transforms itself into a high-income, knowledge-based economy.
Businesses that are in Malaysia will not only reap the rewards of Malaysia’s economic growth, but will also be in position to take advantage of Asia’s increasing importance to the global economy. To accelerate your business in Asia, partner Malaysia as it is the nation of endless possibilities.
For more information, visit www.malaysia.my.
ONE-STOP SERVICE IN GOVERNMENT
PEMUDAH e-Bulletin Issue 1/2013 Page 4
WHAT OUR CITIZENS EXPERIENCE
10
Citizens’ Needs &
Expectations
Finding the
Service
Accessing the
Service
Service Delivery: Citizens’ Experience
with the Service Provider
The “Outside-In” View
Over 90% of Citizens expected as good or better service from the
public sector than the private sector.
Citizens often needed more than one government
service – especially when dealing with life events such as birth, death, travel, unemployment and
migration
40% of Citizens did not know where to start to find the service
they needed:-confusing blue or Web pages
-services not well advertised, (CF5)
Two thirds of Citizens said it was difficult to access the people or
information they needed:-busy telephones-voice mail or IVR
-“not my department”- broken links on Web sites (CF5)
Citizens are often required to manage the “white space”
between related services (service bundles/clusters)
Public services received an average service quality score of 72
out of 100 (CF5)
Five factors drive service satisfaction: timeliness,
When all five are performed well, public services score 87 out of
100; when one driver fails the score drops to 74/100, when four fail –
37/100 (CF3)
Timeliness is most important driver across all services & the telephone channel remains their
priority for improvement.*Canadian research
How Businesses Experience Public Services
BusinessNeeds &
Expectations
Finding the
Service
Accessing the Service
Service Delivery: Businesses’
Experience with Government Services
Their “Outside-In” View
87% of businesses agree good service from government is essential to a healthy business climate
TCOB2 research demonstrates empirical link – good service increases confidence in public institutions
Two-thirds of business clients reported access problems – each access problem causes a substantial drop in satisfaction – e.g. getting bounced from one person to another and lack of response to telephone messages each reduce satisfaction levels by 25 out of 100 points
Telephone is the most used channel –62% of clients used it at some point during their recent experience
Two-thirds of service experiences are multi-channel – business clients report using 2.1 channels per service
The 5 drivers of satisfaction are the same as for citizens.
The overall service quality trend is upward – the average rating across all services to business in Canada is currently 65 out of 100, and rising.
61/10065/100
TCOB-1 TCOB-2
“Governments around the world are implementing One-Stop Government Services for two main reasons; to make government services easier to find, and to get one-stop government services around events such as starting a business, getting a passport, a death in the family or retiring. One-Stop Government Services also reduce costs and make services delivery more efficient through co-location, and integrated service delivery on other channels such as government-wide web portals, and one stop call centres.”
Mr. Brian Marson, Co-Founder and Senior Fellow, Institute for Citizen Centred Service at the Malaysia Productivity Corporation’s Conference on One-Stop Service In Government: Best Practices and Lessons Learned, held in Kuala Lumpur.
BEST PRACTICES IN ONE-STOP SERVICE DELIVERY
Page 5 PEMUDAH e-Bulletin Issue 1/2013
Creating Integrated, One-Stop Service Delivery Solutions across the Public Sector-Why Citizens and Businesses Need One-Stop Government Service
} The private sector has built one-stop shopping centers for citizen and business convenience, and citizens expect the same convenience from government
} Citizens and Businesses often need more than one government service – especially when dealing with life events such as birth, death, travel, migration, unemployment, and business registration
} 40% of Citizens did not know where to start to find the service they needed
} Two thirds of Citizens said it was difficult to access the people or information they needed
} Citizens are often required to manage the “white space” between related services ( e.g. Business Registration, Deaths, Travel, Migration)
} Governments are also trying to reduce service delivery costs through the development of one-stop service.
Singapore: One-Stop Portal for Business BizFile-Register a Business Online
(The World Bank Ranks Singapore Number 1 in East Asia for Ease of Doing Business)
In Canada, citizens can access 70 Government of Canada services, through more than 600 one-stop Service Canada Offices. Businesses can access one-stop offices for business registration delivered by Canada Business Service Centres that have staff co-located from all three levels of government. Singapore has implemented a one-day, one-stop, online business registration system called BizFile while Australia has developed 300 one-stop Centrelink government offices across the country. In the United Kingdom, residents can access integrated health and social services in convenient store-front locations called Gateway Offices. Hong Kong and USA adopted one-stop web portals, and the 24/7/365 Call Center.
Hong Kong SAR Government: One-StopCitizen Portal and 24/7/365 Call Center
Canada: Has One-Stop Service Delivery for citizens and business at the National, Provincial and Local Government Levels: over 600 offices, plus a 1-800-OCANADA call center, and award winning E-service
USA.gov: One-Stop Web Portal
PEMUDAH e-Bulletin Issue 1/2013 Page 6
INTEGRATED SERVICE DELIVERY
Four Trends in One-Stop Service
Integrated Service Delivery Maturity Models: Governance Arrangements
Emerging One-Stop Landscape in MalaysiaWhich Strategies for Service Excellence?
GovernmentOne-StopServicesStrategy
Government Service Excellence Strategy for all Departments
Canada
UK
Australia
New ZealandMany Countriesand Jurisdictions
USA
Where does Malaysia fit?
Copyright B. Marson 2012
The Malaysia Productivity Corporation (MPC) has published a Guide Book “A Manager’s Guide to One-Stop Service (OSS) Delivery Centre”, giving an interesting overview of how this OSS concept is dealt with in various countries with their different features and models to suit their requirements. More information on the Guide Book is available on MPC’s website at www.mpc.gov.my.
In 2008, the Malaysian Public Service Commitment was launched to provide a customer-focused public service, geared towards “One Service, One Delivery, No Wrong Door”. Thus, like many other countries such as Canada, Australia, Singapore, Hong Kong, United Kingdom and the United States, Malaysia has also embarked on improving the efficiency and effectiveness of the public sector service delivery. The Urban Transformation Centres (UTCs) in Melaka and Kuala Lumpur that were opened in 2012 demonstrate the Government’s commitment to be citizen-centric and is a successful collaboration between the private and public sector in providing the consumer easy access to a wide range of services.
PEMUDAH e-Bulletin Issue 1/2013 Page 7
EASING DOING BUSINESS IN SERVICES
The Malaysian Services Development Council (MSDC) together with the Malaysia Productivity Corporation (MPC), an agency under the Ministry of International Trade and Industry (MITI) as well as the Services Division of MITI had conducted a review of the regulatory framework for 18 autonomous liberalisation services sub-sectors. The main objective of the review is to assist Ministries and Agencies involved to speed up the process of liberalisation. The study focused on the domestic regulations on these sub-sectors as well as identified regulatory burdens on businesses. An assessment on current reg-ulations for starting a business relating to the Services sub-sectors where business players and regula-tors were engaged and consulted was initiated in July 2012.
Business Enabling Framework The team engaged with entrepreneurs to study the regulatory processes from business regulation until the business is ready for operations, using the Business Enabling Framework.
Benchmarking studies and literature reviews revealed that if information for starting a business is available and accessible, then the cost of doing business will be much lower. The study estimated that the compliance cost of all the 18 Services sub-sectors is as high as RM35 million a year. The findings also highlighted various issues such as: • Difficult to access information on regulatory
requirements for doing business; • Repetitive requests for inspections and
certifications by different approving authorities; • No administrative/regulatory procedures to
facilitate business entry for certain businesses; • Multiple regulators on auditing license
approvals; • Different requirements, documentation and
zoning requirements for private hospitals. Initiatives to resolve some of the issues above are being undertaken and these includes consultations on Harmonising Zoning Requirements and Reg-ulatory Review on Private Hospitals.
HARMONISING ZONING REQUIREMENTS
Page 8 PEMUDAH e-Bulletin Issue 1/2013
The Workshop on Harmonisation of Zoning Requirements for Private Hospitals was organised by the Malaysia Productivity Corporation (MPC) and was participated by related ministries and agencies such as Ministry of Health, Ministry of Housing and Local Government, Dewan Bandaraya Kuala Lumpur, private hospitals representatives, and Universiti Teknologi Mara .
To assist in accelerating Services Liberalisation, a project to streamline zoning and building requirements for Private Hospitals was initiated with a Workshop on Harmonisation of Zoning Requirements for Private Hospitals. The workshop was well represented by related Ministries, Agencies and a Private Hospital. The key issues discussed include different zoning requirements and policy objectives for zoning between the Ministry of Health (MOH) and Ministry of Housing and Local Authority (KPKT). While KPKT views zoning policy as a planning instrument for achieving efficient use of land and protection of public safety, health and environment; MOH’s zoning policy focuses on ensuring equitable access to healthcare facilities and services.
The Workshop provides the forum for open discussion to study the impact of these policies on private health care businesses in terms of processing time, information requirements, availability and accessibility and compliance costs. Among the action plans identified during the workshop includes, a paper on zoning policy, cost and benefits of zoning policy as well as MOH and a local university collaboration to develop a module on hospital design pertaining to building and layout.
REGULATORY REVIEW FOR PRIVATE HOSPITALS
Page 9 PEMUDAH e-Bulletin Issue 1/2013
Through preliminary analysis, two key requlatory requirements for the establishment of private hospitals in Malaysia had been identified; the Zoning Requirements for establishing a private hospital and the approval requirements for building plans of private hospitals. A discussion between the Government and private health providers was held specifically to collect inputs, views, opinions and concerns from reg-ulatory authorities, private healthcare business and professional consultants on current regulatory requirements and practices was organised by the Malaysia Productivity Corporation (MPC). Key issues discussed include: • Section 9, Act 586 of the Services Act 1998 on the needs requirements of healthcare facilities; • Multiple submissions for approval of building plans of private hospitals; and • Transparency of approval requirements.
With the inputs gathered, the MPC experts team will alternative options and suggest recommendations to policy makers for change actions which can further facilitate the liberalisation of the sector. Among the options for improvement from the discussion include re-interpretation of Section 9; improve administrative procedures; increase healthcare services capacity; and ensure data availability.
The points of concern raised and the proposed options will be inputs to the Green Paper being prepared for policy makers.
Participants from the Ministry of Health, other government agencies and the private sector gathered at the Pullman Putrajaya to discuss regulatory requirements for private hospitals. Representing the authorities were officers from Ministry of Health (MOH), Ministry of Housing and Local Government (KPKT), Dewan Bandaraya Kuala Lumpur (DBKL), Malaysia Productivity Corporation (MPC); while the private businesses were professionals from KPJ Healthcare Berhad, Lembaga Akitek Malaysia (LAM), Pertubuhan Akitek Malaysia (PAM), and legal experts from International Islamic University Malaysia (IIUM).
FOCUSING ON CLEANLINESS IN KL
Page 10 PEMUDAH e-Bulletin Issue 1/2013
KL NEEDS WORLD-CLASS MANAGEMENT
Page 11 PEMUDAH e-Bulletin Issue 1/2013
Recognising the critical role Kuala Lumpur, Malaysia’s capital city, has to play as an iconic city driving the country’s growth, urbansing and modernizing Kuala Lumpur has been made a priority.
