KUALA LUMPUR: The World Bank has identified three indicators for Malaysia to improve its score of ‘Doing Business’, which would rank the country from the current 12th position and be listed on the top 10 in the following years.
The World Bank representative to Malaysia and country manager Dr. Firas Raad said the areas of improvements include getting credit, enforcing contracts and resolving insolvency.
“The country cannot be complacent as its performance does not depend on the nation alone but rather external factors of the other countries.
“Everybody is continuing to reform to move forward. Governments, private sectors or the stakeholders have to keep their eye on the globe and continue the momentum.
“Hence, substantial energy is required to reforms, which is associated with the increase activity in relative to both domestic and foreign investments, job creation and productivity of the economy,” he said at a press conference after presenting the World Bank Group’s latest Doing Business 2020 report, here today.
Malaysia was ranked 12th with 81.50 points amongst 190 global economies in the World Bank Doing Business 2020 Report, recording an improvement from 15th position in the previous year.
International Trade and Industry Minister said Malaysia’s improved performance in the Doing Business 2020 Report was a testament of the ongoing reform initiatives to enhance competitiveness, productivity and governance in the ease of doing businesses.
Dr. Firas said the improvement identified was in line with Malaysia’s ambition to become a high-income and develop country with the shared prosperity vision.
Commenting on Malaysia’s current achievement, he said the country deserved to be congratulated over the past years with the improvement from 15th to 12th position.
“We have seen Malaysia’s three top areas such as dealing with construction permits, getting electricity and trading across borders,” he added.
Dr. Firas said reforms were difficult to undertake and it would become tougher as the country climbing up the ranking.
The survey regulations governed business activities in the economies, which are then ranked according to their ease of doing business scores based on quantitative indicators of the regulations.
The World Bank senior economist Arvind Jain said the country’s improvement in doing business would be dependent on its policymakers to undertake the reforms.
“It remains to be seen whether Malaysia will enter the top 10 list. I hope Malaysia Productivity Corporation (MPC) and The Special Task Force to Facilitate Business (PEMUDAH) have strong agenda of reforms, he said, adding that it would difficult to undertake as it takes time to implement it.
He said the result from the World Bank Doing Business 2020 would serve as a tool kit for policymakers to decide the areas that they want to reform, guided with the best practices.
Meanwhile, PEMUDAH member Datuk Dr. Ir Andy Seo Kian Haw said the government should find ways to mandatorily speed up the process of collecting taxes.
“We also must get more businesses to come and thus more people would be paying tax, while creating more employment,” he said.
He said Malaysia should improve its trading across borders for export and import and register properties to benefit from the gain of property tax and trade revenue.