The economy of Malaysia is expected to accelerate between 5 percent and 6 percent in 2015, even as a new World Bank Group report declares a further improvement in the country’s business environment over the past year.
Minister in the Prime Minister’s Department Datuk Wee Ka Siong said, “This year, Malaysia is expected to achieve strong economic growth of between 5.5 percent and six percent, barring unforeseen circumstances in the global, regional and national spheres.”
He said the administration’s focus in the coming year will not only be on traditional resources such as petroleum, oil palm, and minerals, but also on incorporating new dimensions like ideas, creativity and innovation, according to a report by Bernama, Malaysia’s national news agency.
“Economic growth will also be more targeted with an efficient use of resources in sectors that Malaysia has a competitive advantage,” he added.
Ease of doing business
As this developed, the World Bank’s Doing Business 2015: Going Beyond Efficiency said further improvements in the nation’s business climate over the past year have enabled it to remain among the top 20 economies worldwide and to be first among emerging economies in East Asia on the ease of doing business.
Malaysia’s standing in the ease of doing business ranking improved from 20th in last year’s Doing Business report to 18th in this year’s report. The higher ranking this year reflects improvements in the ease of dealing with construction permits, as the one-stop shop for permits implemented in 2013 led to further reductions in the time required to obtain a development approval.
Doing Business shows that since 2005, Malaysia has improved its business regulatory framework through 17 reforms in the areas measured by the report—compared with the global average of 12 reforms per economy in that period. Its efforts have reduced the time required to start a business from 37 days in 2005 to less than six days today.
“Through an ambitious reform agenda, Malaysia has gradually improved the ease of doing business. This has benefited local entrepreneurs, who now have fewer regulatory hurdles to deal with and more resources to focus on their business,” said Rita Ramalho, Doing Business lead author, World Bank Group.
“Malaysia’s case also shows how the latest technologies can be used to improve the regulatory environment for businesses. Over the past five years, for example, the implementation of electronic systems has made it easier for businesses to pay taxes and execute contracts.”
The report finds that Malaysia ranks among the top five economies in East Asia and the Pacific (excludes Australia, Japan, the Republic of Korea, and New Zealand, which are classified as OECD high-income economies) in seven areas: protecting minority investors, trading across borders, starting a business, getting credit, enforcing contracts, paying taxes, and resolving insolvency.
Challenges persist, though, noted the paper. For example, further adapting the legal framework to internationally recognized good practices in the area of insolvency would better protect entrepreneurs involved in insolvency procedures.
The report finds that Singapore tops the global ranking on the ease of doing business. Joining it on the list of the top 10 economies with the most business-friendly regulatory environments are New Zealand, Hong Kong, Denmark, the Republic of Korea, Norway, the United States, the United Kingdom, Finland, and Australia.
Photo: Stefan Fussan
