Kuala Lumpur: The Malaysia Productivity Corporation (MPC) says it expects the #MyMudah programme to generate approximately RM10 billion in savings for businesses, following the reduction in regulatory burden and regulatory compliance costs.
MPC Director-General Datuk Abdul Latif Abu Seman said the projection is based on the target of 25 per cent reduction from an estimated RM40 billion regulatory compliance costs for businesses identified under #MyMudah.
“The #MyMudah programme is conceived as a fast-forward solution to counteract the unprecedented economic impacts of the Covid-19 crisis,” he said in a statement on Friday.
He said the programme is a structured and effective strategy that would improve national regulatory quality in direct response to regulatory challenges faced by businesses and other stakeholders in the wake of the crisis.
“This includes looking at temporarily or permanently abolishing, modifying, waiving or exempting regulations that are unnecessarily burdensome to businesses, as well as reducing the number of procedures and processing time to facilitate ease of doing business,” he said.
According to the MPC, #MyMudah was announced by Minister in Prime Minister’s Department Datuk Seri Mustapa Mohamed on July 21 as part of efforts to alleviate the economic impact of the Covid-19 pandemic.
It said the decision to implement the programme was made at a recent Economic Action Council (EAC) meeting chaired by Prime Minister Tan Sri Muhyiddin Yassin.
“Both the EAC and MPC have been tasked with leading the #MyMudah programme which will propose regulatory relief measures to support the nation’s economic recovery,” it said.
It said five key initiatives on removing unnecessary regulatory burdens identified under the programme include empowering businesses to highlight unnecessary regulatory burdens they encounter by utilising MPC’s Unified Public Consultation (UPC) portal, and tasking ministry secretaries-general and state secretaries to address unnecessary regulatory burdens that are hampering job creation and economic growth.
Other initiatives are the setting of a target to reduce regulatory compliance costs on businesses by 25 per cent for each ministry, tasking the Special Task Force to Facilitate Business (Pemudah) to monitor the progress of all ministries and reporting its findings to the EAC beginning in January 2021, and providing guidance and advisory services on reducing unnecessary regulatory burdens to all ministries via the Ministry of International Trade and Industry (Miti).
Meanwhile, a recent survey conducted by MPC reveals that the proportion of businesses significantly affected by the Covid-19 crisis had reduced to 55 per cent in June from 74 per cent in April due to fiscal and non-fiscal relief measures introduced by the government to assist businesses.
Abdul Latif said there were also reductions in the severity of business impacts according to different areas.
He said 78 per cent of businesses reported a reduction in revenue in June 2020 against 82 per cent in April 2020.
“Similarly, only 20 per cent of businesses faced disruptions in their operations in June 2020, compared to 70 per cent in April 2020, 21 per cent faced a reduction in local demand in June 2020 compared to 60 per cent in April 2020, and 17 per cent faced cash flow and liquidity challenges in June 2020 compared to 57 per cent in April 2020,” he said.
He said the figures indicate that Malaysia is on the right trajectory to economic recovery.
“Now our priority is to leverage on the impetus we have gained to make further inroads into turning the economy around,” he added.