Enhancement of policy, business governance accelerate industry transformation, says MPC

Enhancement of policy, business governance accelerate industry transformation, says MPC
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KUALA LUMPUR (Nov 2): The government's efforts to drive the nation's productivity and competitiveness by facilitating enhancements in policy and business governance initiatives can accelerate the transformation of the industry at the sectoral level and further into a higher value chain.

Malaysia Productivity Corporation (MPC) said the proposed Budget 2022, which is aligned to the 12th Malaysia Plan (12MP), is an inclusive, sustainable and balanced budget.

"To achieve this objective, a conducive business environment needs to be strengthened to spur productivity and the nation's competitiveness,” it said in a statement on Tuesday.

Among other things, the government has proposed to set up a special Strategic Investment Fund of up to RM2 billion to attract strategic foreign investments by multinational companies, especially those that complement industry value chains and drive knowledge-based jobs creation as well as development opportunities for local small and medium enterprises.

Furthermore, to intensify the nation’s economic recovery, RM25 million is allocated under the budget to explore high impact investments and new export markets through the Trade and Investment Mission.

“As the secretariat of the Special Taskforce to Facilitate Business (PEMUDAH), the MPC will provide inputs and suggestions in improving the quality of policies and the government's regulations,” it said. 

The MPC added that it has been entrusted to lead one of the initiatives under the Malaysia Digital Economy Blueprint (MyDIGITAL), namely "Adopting an Agile Regulatory Approach to Meet the Business Needs of the Digital Economy".

Under the initiative, the MPC will promote innovative business models which are among the strategies identified to expand the regulatory sandbox.

Director-general Datuk Abdul Latif Abu Seman said the MPC had held several information-sharing sessions with parties experienced in implementing the regulatory sandbox, such as Futurise, ZICO Law, and MaGIC.

“The sessions gave a clearer picture for MPC to expand the use of the regulatory sandbox, and under the initiative, the MPC aims to establish  5,000 start-ups by 2025,” he said.

Commenting on the National Regulatory Sandbox, he said the strategy will boost MPC's initiative for the use of regulatory sandboxes at the ministry level.

"The continuous strengthening of the policy and legal ecosystem can facilitate business governance so that it will be more efficient to attract more foreign investments into the country," he said.

He added that the MPC is also planning to hold engagement sessions with international experts to better understand the implementation methods of the regulatory sandbox.

See more Budget 2022 highlights here.