‘Public sector can save RM1 bln through good regulatory practices’

KUALA LUMPUR: The Malaysia Productivity Corporation (MPC) estimates that the public sector can save at least RM1 billion in costs through Good Regulatory Practice (GRP).

Director-General Datuk Mohd Razali Hussain said the government’s move to promote a competitive business environment, had contributed significantly in accelerating economic and social development.

“At the enterprise level, we aim to generate RM650 million in cost savings from programmes designed to tap the optimal capabilities of enterprises,” he told reporters after delivering his speech at the Innovation for Productivity Enhancement Showcase yesterday.

Organised by MPC, the one-day event is aimed at showcasing the effectiveness of strategic partnership platforms in enhancing productivity. Also present were the Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed and the Second Minister of International Trade and Industry, Datuk Seri Ong Ka Chuan.

Mohd Razali said last year, 198 business regulations were reviewed, which resulted in an estimated compliance cost savings of RM1.13 billion.

At the enterprise level, he said more than RM650 million in cost savings were generated through process innovation projects, and RM6.4 million from lean projects involving 302 companies. Mohd Razali said several initiatives had been implemented to boost productivity in Malaysia since the mid-90s, resulting in productivity improvements over the years.

“But the progress is relatively slower by international comparison,” he said. — Bernama