Challenges:
The Government of Malaysia had an ambition to become an advanced economy by 2020. This required the adoption of Good Regulatory Practices (GRP) to ensure effective and transparent governance.
Integrating Regulatory Impact Assessment (RIA) into the policy-making process, as outlined in the National Policy for the Development and Implementation of Regulations (NPDIR), was a key step in aligning Malaysia’s regulatory framework with global standards. The challenge lay in raising awareness, building capacity among government officials, and ensuring that RIA could be systematically applied across ministries and agencies. There was a need for structured training, guidance, and pilot studies to demonstrate the practical application of RIA within the regulatory framework.
Solutions:
To address these challenges, our team provided comprehensive support through a multi-faceted approach:
Development of an Action Plan: We participated in preparing a strategic action plan to implement Good Regulatory Practices (GRP) across Malaysia.
Training Government Officials: Over 500 officials, including those from the Malaysian Productivity Corporation (MPC) and various ministries and their subordinate authorities, were trained to conduct RIA effectively.
This included training sessions for 150 focal points in government and a “Train the Trainers” program to ensure sustainable knowledge transfer.
Pilot RIA Studies: We supported the completion of 10 pilot RIA studies, offering hands-on experience and practical examples for applying RIA across different policy areas.
Awareness Raising: Efforts were made to increase understanding and adoption of RIA among government entities, facilitating a smoother implementation process.
Impact:
The establishment and implementation of a comprehensive institutional ecosystem supporting the adoption of Good Regulatory Practices (GRP) has elevated Malaysia’s position to be comparable with high-income OECD countries, as reflected in international indicators. Malaysia’s Regulatory Policy, which mandates the use of Regulatory Impact Analysis (RIA), has further strengthened its regulatory framework. As a result of these efforts, Malaysia successfully integrated RIA into its policy-making process, with numerous ministries now producing RIAs on a variety of regulatory issues.
Initial pilot studies laid the groundwork for the broader application of GRP across the government, while targeted training programs have developed a skilled pool of government officials equipped to conduct RIAs independently. This has resulted in more informed, evidence-based decision-making and improved regulatory outcomes. In addition, the regulatory framework fostered by GRP promotes transparency, accountability, and proportionality in the decision-making process, ensuring that regulations serve clear policy goals, are justified by data, and avoid unnecessary burdens on businesses and society.
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