The Special Task Force to Facilitate Business (PEMUDAH) was formed to be a consultative body for improving public services delivery systems and help the private sector grow.
Making it easier to do business goes a long way in ensuring the country remains competitive in an increasingly borderless world.
One key factor is by improving the way the public sector delivers its services to businesses and commercial entities.
From this need, the Special Task Force to Facilitate Business (PEMUDAH) was formed on Feb 7, 2007 to be a consultative body to provide input for improving the public services delivery system and how it could help the private sector grow.
Deliberation of issues and proposal for improvements are then carried out by Ministries and agencies concerned.
However, the concerned Ministry or Agency will have to carefully undertake a study and evaluate the suggestions raised by PEMUDAH to determine the effectiveness of the proposals.
Oversight for overall reforms in the Government administration is done by the Malaysian Administrative Modernisation and Management Planning Unit (MAMPU).
MAMPU as a central agency under the Prime Minister’s Department plans and issues guidelines and standards for public sector transformation.
It provides consultancy services in areas such as stragetic planning and management, business process reengineering, (BPR) and the utilisation of ICT.
MAMPU also monitors the implementation of transformation programmes and evaluates the effectiveness of implementation through rating mechanisms.
In addition, MAMPU also coordinates public awareness programmes through various media in order to inform and encourage the public to utilise the various improvements created by the Government.
There are many components under PEMUDAH which looks at various aspects of bridging the gap between the public and private sectors.
Firstly, there are two working groups that look into efficiency and policy issues each.
Two working groups under PEMUDAH were set up to look into the efficiency of public service delivery system and government policy impacting business.
The working group on efficiency issues (WGEI) deals with registering property, paying taxes, trading across borders, enforcing contracts, closing a business, hotel sub-sector, dealing with licenses, improving perceptions, change management and public relations.
There are also various task forces looking into specific issues which require focused attention such as implementing of e-payment facilities, government procurement, immigration matters, MalaysiaMySecondHome, taxi services, abandoned housing projects, foreign workers, DBKL and halal matters.
Reflecting the close working relationship between the public and private sectors, PEMUDAH is co-chaired by Chief Secretary to the Government Tan Sri Mohd Sidek Hassan and Federation of Malaysian Manufacturers (FMM) past president Tan Sri Yong Poh Kon.
Engagement of the relevant stakeholders is necessary to garner the necessary support for the successful implementation of reforms.
“Many ministries adopt an open policy and encourage feedback from the private sector or public with regards to problems faced on a daily basis.
Improvements implemented will be continuously monitored by respective ministries and government agencies to ensure the effectiveness of the public delivery system.
Issues raised by them are brought up by members to be discussed in forums such as the PEMUDAH meeting in attendance of various ministries and agencies with the authority to make decisions pertaining to those issues.
Subsequent to the discussion of the issues raised at length, the relevant Ministry or Agency will carefully undertake a study and evaluate the suggestions raised during the meeting to determine the cost and benefit of such a proposal.
According to Federation of Malaysian Manufacturers Vice President Datuk Dr Andy K.H. Seo, there are commitments in the government to win together.
“Good things have evolved through this collaboration in improving the delivery system, especially in reducing procedure, time and cost in doing business.
“A good example is in registering property. This wind of change is in the right direction, we need to accelerate more.
“This will be a continuous improvement process and we need to institutionalise the improvements in the delivery sytem otherwise the efforts of PEMUDAH will be wasted,” he said.
Even though discussions in PEMUDAH are typically held at federal level, local authorities have also joined in improving their service delivery system by reforming and coming out with initiatives such as the One Stop Centre to process licenses and permits for construction.
Several initiatives have also been launched to effectively monitor the efficiency of improvements implemented.
Processes and procedures for government procurement (GP) have been streamlined to enhance transparency and accountability.
It is by setting measurable targets on the achievements and effectiveness of GP programmes to promote development of specific groups such as local manufacturers, SMEs and Bumiputera.
Another important and on-going initiative is to reduce the country’s dependence on foreign workers in a holistic manner.
The scope of discussions include short and medium term solutions such as standardisation of levy across sectors and review on the operations of outsourcing companies to control the intake of foreign workers while longer term solutions include implementation of productivity linked wage system and minimum wage.
Malaysian Associated Indian Chambers of Commerce and Industry Immediate Past President Datuk Pardip Kumar Kukreja said the initiative is truly brilliant.
“It is far sighted and it gave a very good understanding to the Public and Private sector of the work culture and needs of each other.
“It brought about an understanding to each other as to how we need to work together and how we need to move forward together, as a team.
“The achievements thus far have been just remarkable and the commitment of the team has been exemplary,” he said.
Other notable achievements that have taken place are: Establishment of Business Licensing Electronic Support System (BLESS) to facilitate on-line application for licenses in manufacturing, construction and services.
“The system will show the time taken by the various departments to process the applications, ensuring Government departments and agencies adhere to their respective client’s charter.
“It provides on-line feedback between the Government departments and the applicants it enables on-line tracking and monitoring of applications and on-line payment of fees,” he said.
Establishment of One Stop Centre (OSC) in local government to expedite and streamline development and construction approvals process.
“This system enables all applications to concurrently submit for processing. Prior to 2007, the rules and regulations for processing development proposals are under the purview of the respective local government.
“With the inception of OSC, the procedures and regulations that govern the processing of development proposals have been streamlined.
“This reform has ultimately reduced the time taken to process development proposals to less than 180 days, from 261 days previously.”
Establishment of New Commercial Courts to speed up in resolving commercial disputes.
“The court will utilise more IT applications and appoint judicial commissioners who specialise in commercial matters. The Courts are expected to reduce the time taken to resolve commercial disputes to only 270 days from 600 days previously.
“There are also various tax administration improvements such as on-line services for companies to file tax returns and provide clear guidelines for tax payment requirement.
“And the Foreign Investment Committee (FIC) guidelines on acquisition of equity stake, mergers and takeovers has also been repealed” he noted.
The Malaysian Productivity Corporation (MPC) has also taken the lead in improving efficiency in various areas based on the World Bank Doing Business indicators.
These indicators relate to areas such as starting a business, registering a property, enforcing contracts, paying taxes and construction permits.
“These efforts are parallel to the government’s objective as articulated by PEMUDAH’s vision to achieve a globally benchmarked, customer-centric, innovative and proactive public service in support of a vibrant, resilient and competitive country, driven by the following values:
“A sense of urgency; Proactive public-private collaboration; Facilitation, not hampering; No more regulation than necessary; and Zero tolerance for corruption,” he said.
