etp_handbook_chapter_1-4_economic_model

Gengineersanddesignersforsolid state lighting

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Unformatted text preview: online immigration applications and processing • Oil, Gas and Energy: Implement short, fixed approval times for applications to obtain and renew work and residence permits • Healthcare: Shorten the time required by private hospitals to bring in foreign doctors, nurses and other health professionals • E&E: Reduce processing time (to less than one month for new applications and less than two weeks for renewals) Remove restrictive immigration and right-to-work policy 9 EPPs, including • E&E: Provide automatic approval for foreign talent involved in knowledge work (e.g. engineers and designers) for solid state lighting companies • Business Services: Abolish restrictions on expatriates for key services subsectors; provide one-year working visa to foreign students with CGPA of 3.5 and above from local universities • Tourism: Allow foreign students studying hospitality or tourismrelated courses to work up to 20 hours a week Total Lead agency Ministry of Home Affairs GNI impact (RM billion) 6.4 5.6 12.0 Economic Transformation Programme 103 A Roadmap For Malaysia IMPROVING THE BUSINESS ENVIRONMENT The general business environment in Malaysia is a source of substantial competitive disadvantage for Malaysia. Malaysia has made improvements in recent years, including the setting up of PEMUDAH (a special task force to facilitate business), which coordinated improvements such as halving the processing time for expatriate employment pass applications from 14 to 7 days and implementing an online business licence application system. In spite of these improvements, consistent feedback from private sector investors indicates that the business environment is still a major factor constraining investment. Too often, businesses face a tangle of regulations that have accumulated over the years and now constrain growth. Examples of how this affects the Education and E&E sectors follow as Box 3-1 and Box 3-2 respectively. Box 3-1 Education Example Malaysia has one of the most liberal regimes in the world for encouraging private investment into the education sector. However, actual investment has remained far short of potential because the general business environment is not seen as attractive by domestic and foreign investors. Establishing a kindergarten, for example, requires obtaining multiple licences, notifications and approvals, e.g. from the Ministry of Education, Ministry of Health, Companies Commission, Electricity Commission, Employees Provident Fund, Social Security Organisation, Inland Revenue, local authority, Occupational Health and Safety Department and Fire Department. Some of these vary by state and even district (e.g. local authority requirements), making national expansion much more difficult. Box 3-2 Electronics and Electrical example As described in the E&E chapter, an industry survey was conducted of E&E companies. On some of the dimensions reported to be less important, such as water availability and the cost structure, Malaysia was very competitive. However, on more important dimensions like government regulations and the ease of dealing with government, Malaysia was ranked about equal with China, and often behind Singapore. Exhibit 3-1 further illustrates how Malaysia lags its regional competitors, as described in the World Bank’s Doing Business Report 2010. Specifically, while Mal...
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This note was uploaded on 02/24/2014 for the course ACCOUNTING financial taught by Professor Alan during the Spring '14 term at Howard.

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