Reduction in regulatory costs for smes many

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Unformatted text preview: and restructured to ensure it has the necessary capabilities and resources. Further Liberalisation of the Services Sector The Government will act to liberalise the services sector to encourage greater investment. For example, removing equity ownership requirements from services sub-sectors (e.g. Retail) to encourage foreign investment; broader recognition of qualifications, e.g. for architects, engineers, allied healthcare professionals and educators; and removing restrictions on the composition of Boards. Several agencies will be involved in driving this work: Ministry of International Trade and Industry, Ministry of Education, Ministry of Science, Technology and Innovation and Ministry of Home Affairs. Reduction in Regulatory Costs for SMEs Many regulatory issues are felt disproportionately by SMEs, who typically do not have the financial resources to deal with regulatory requirements in a cost-effective manner. In order to encourage entrepreneurial activity, the Government will exempt some of the more costly business regulations for companies employing five or fewer people until the company expands beyond five employees. Regulations will be eased for these companies in areas such as business registration and requirements for employers. International experience has shown that this can be a highly-effective method of stimulating entrepreneurship. Streamlined Government-to-business Interface In addition to reforming the policy and regulatory environment, the Government will also undertake a series of actions to improve the interface between business and Government to make investing and operating in Malaysia more attractive. Improving the quality and timeliness of Government services and increasing transparency and certainty in government decision-making will yield significant productivity gains. 106 Chapter 3 Enabling the Success of the ETP BUILDING INFRASTRUCTURE Malaysia’s physical infrastructure has grown significantly in the last five years. However, substantial additional infrastructure investments are now required to support the economic growth that will be delivered through the ETP. We will not provide infrastructure in a reactive manner. Rather, we will put in place forward-looking infrastructure development plans, with a view to future-proof the Malaysian economy. Two types of infrastructure will receive particular attention due to their central roles in driving GNI: broadband and logistics. Broadband Broadband is a critical piece of enabling infrastructure for the success of EPPs in areas like Communications Content and Infrastructure, Electronics and Electrical, Financial Services, Wholesale and Retail, Business Services and Education. For instance, broadband will: • Increase capacity (bandwidth) to spur data centre hubs (Business Services); • Enhance speed to facilitate transmission of large IC design documents (E&E); and • Widen coverage and access to boost virtual mall (Wholesale and Retail). Beyond the EPPs, broadband is also critical to the growth of other sectors of our economy. The Government’s objective is to raise Malaysia’s broadband penetration rate to 75 percent of households by the e...
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