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Implementing Good Regulatory Practice in Malaysia

image of Implementing Good Regulatory Practice in Malaysia

This report examines Malaysia's early experience of implementing regulatory impact analysis (RIA) to support evidence-based rule making. The introduction of RIA is a key element of Malaysia's National Policy on the Development and Implementation of Regulations, launched in 2013. Malaysia has put in place the institutional infrastructure for implementing RIA at a rapid pace, learning from the experiences of a number of OECD countries among them Australia, the Netherlands, Korea and Mexico. However, Malaysia needs to move its attention from advocacy and awareness raising to guiding and supporting regulators to apply RIA. This report's recommendations focus on the need for the government of Malaysia to: consolidate the implementation of RIA over the medium-term; integrate RIA into Malaysia's policy-making processes; and build the capacity inside government necessary for ensuring high-quality RIA. Implementing these recommendations will assist not only Malaysia's domestic policy goals but also promote regional integration in Asia Pacific Economic Cooperation (APEC) and the Association of Southeast Asian Nations (ASEAN) through supporting regulatory convergence.

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Building compliance and strengthening oversight of regulatory impact analysis in Malaysia

Regulatory impacts analysis (RIA) is a systemic tool for improving regulatory quality. It requires well-structured processes of managing the obligations effectively to be successful. This chapter assesses the development of Malaysia Productivity Corporation’s (MPC) systems to assess the adequacy of regulatory impact statements (RIS) and support regulator’s compliance with the National Policy on the Development and Implementation of Regulations (NPDIR). This includes evaluating the quality of RIS, developing guidance, institutionalising compliance and ensuring the provision of capacity building activities, including by the National Institute of Public Administration (INTAN).

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