Kuala Lumpur, October 23, 2012—A new report from IFC and the World Bank finds that Malaysia remains among the world’s most business-friendly countries.
Released today, Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises notes that Malaysia made dealing with construction permits faster by improving the one-stop center for new buildings and by reducing the time to connect to telephone services.
“Malaysia is to be commended for its ongoing efforts to reduce the costs of doing business,” said Annette Dixon, World Bank Country Director for Malaysia. “This will help the private sector drive growth, especially if Malaysia can build on its success by continuing to tackle long-term challenges, such as improving the quality of education.”
Malaysia also cut the number of days it takes to register property transfers by introducing a new caseload management system at the land registry. Inspired by effective supply chain management strategies employed by the private sector, the registry reduced registration time from 41 days in 2011 to 7 days in 2012 for non strata properties (those that are not part of a subdivision or common-interest community).
“Malaysia continues to improve the quality of domestic regulations. This has great potential to energize the private sector when combined with stepped-up implementation of strategic reform initiatives, especially the liberalization of services sectors and the enforcement of the new competition law,” said Frederico Gil Sander, World Bank Senior Economist for Malaysia.
The Doing Business 2013 report, which covers the period from June 2011 to June 2012 and which uses data for indicators that measure regulation affecting 10 key areas of the life cycle of local businesses, finds that Singapore tops the global ranking on the ease of doing business for the seventh consecutive year, while Hong Kong SAR, China, holds onto the second spot.
The report finds that 23 economies in East Asia and the Pacific have made their regulatory environment more business-friendly since 2005. During that time, China made the greatest progress in improving business regulations for local entrepreneurs. The report also notes that 11 of 24 economies in East Asia and the Pacific improved business regulations in the past year.
Joining Singapore and Hong Kong SAR, China, on the list of the 10 economies with the most business-friendly regulations are, in this order, New Zealand; the United States; Denmark; Norway; the United Kingdom; the Republic of Korea; Georgia; and Australia.
About the Doing Business report series
Doing Business analyzes regulations that apply to an economy’s businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and protecting investors. The aggregate ease of doing business rankings are based on 10 indicators and cover 185 economies. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure the quality of fiscal management, other aspects of macroeconomic stability, the level of skills in the labor force, or the resilience of financial systems. Its findings have stimulated policy debates worldwide and enabled a growing body of research on how firm-level regulation relates to economic outcomes across economies. This year’s report marks the 10th edition of the global Doing Business report series.