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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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The launch of a whole-of-government regulatory policy in Malaysia

The Recommendation of the OECD Council on Regulatory Policy and Governance recognises that a fundamental basis for a country’s regulatory management system is to have in place a whole-of-government policy underpinning how it develops, implements and evaluations regulation. Malaysia has evolved from a “deregulation” regulatory policy towards one advocating for good regulatory practice (GRP) across the entire regulatory system. This chapter provides an overview of Malaysia’s National Policy on the Development and Implementation of Regulations (NPDIR) and its link to the country’s domestic policy goals and regional commitments.

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