KUALA LUMPUR: The implementation of Bureaucratic Red-Tape Reform (RKB) has put Malaysia on a solid path to improving its global competitiveness, although continuous improvements are needed to address several performance indicators that remain weak.
Malaysia Productivity Corporation (MPC) deputy director-general Dr Mohamad Norjayadi Tamam said the impact of RKB was reflected in Malaysia’s rise to 15th place in the International Institute for Management Development’s (IMD) World Competitiveness Ranking 2026, up eight places from 23rd last year.
Malaysia’s ranking for bureaucratic performance also improved, climbing to sixth globally this year from 14th last year, earning recognition from IMD Competitiveness Centre director Prof Arturo Bris during the report’s launch.
“He specifically mentioned that Malaysia’s notable rise was largely driven by reform efforts undertaken and we are confident that a key contributor is the RKB implemented across all ministries and agencies,“ Mohamad Norjayadi told Bernama.
The performance indicators were not merely about improving Malaysia’s rankings but also served as an important reference for ministries and agencies to identify weaknesses and implement structured improvements, Mohamad Norjayadi said.
The impact of RKB could be seen across various ministries and agencies, including the processing time for security vetting and criminal record checks for expatriate pass applications.
The process now takes just 15 minutes, compared with up to 50 days previously, following data sharing through the e-Vetting platform and close cooperation between the Royal Malaysia Police and the Immigration Department of Malaysia.
Mohamad Norjayadi said the initiative demonstrated how breaking down silos between government agencies could speed up approval processes and reduce business compliance costs.
“Previously, both high-risk and low-risk applications were managed equally within the same ‘basket’, causing approval delays and increasing compliance costs for traders and investors. Through RKB, we guide ministries and agencies to transition to risk-based approvals and self-regulation for low-risk applications.”
He added that RKB was also part of the government’s efforts to improve Malaysia’s standing in the annualCorruption Perceptions Index.
Beyond the corporate sector, Mohamad Norjayadi said, RKB had also benefited small rural traders through the e-Licence system implemented in collaboration with the Sabah State Public Service Department.
He said under the Menumbok, Banggi and Tungku sub-district offices in Sabah, the processing time for business licence applications had been reduced from 14 days to just three, with some applications approved immediately, depending on internet connectivity.
However, Mohamad Norjayadi cautioned both the public service and private sectors against becoming complacent despite Malaysia’s rise to 15th place, noting that the World Competitiveness Ranking comprises 70 economies.
He said food waste remained among the country’s weakest performance indicators and would be a priority area for improvement.
“We are ranked 68th out of the 70 participating economies and this year we will focus on this indicator.
“In fact, during the STAR meeting chaired by Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar, he expressed his commitment to addressing food waste and how we (MPC) can help reduce it,“ he said.
Mohamad Norjayadi said progress on weaker performance indicators would continue to be monitored through the Special Task Force on Agency Reform (STAR), General Circular No. 3/2024 and the enforcement of the Commitment Act to ensure reforms are implemented in phases and effectively.
He said this continuous improvement efforts were crucial to achieving the 13th Malaysia Plan target of placing Malaysia 12th globally by 2030 while raising the national productivity growth rate to 3.6%.
