Streamlining Business Licensing in Sarawak through Regulatory Experimentation
This initiative in Sarawak focuses on simplifying the business licensing process through regulatory experiments aimed at reducing regulatory burdens and improving the overall business ecosystem. By implementing innovative strategies such as risk-based approvals and composite licenses, the goal is to enhance competitiveness, digital inclusivity, and economic growth while ensuring better regulation and alignment with modern business practices. The regulatory experiment scope covers four divisions in Sarawak with involvement from various government agencies, aiming to achieve a more efficient and effective licensing framework.
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Simplifying Business Licensing in Sarawak using Regulatory Experiment
STRATEGIC ALIGNMENT 1.Assessment tax (over-the-counter, online, total) 2.Business Premises License (over-the-counter, online, total) 3.Planning Permission (over- the-counter, online, total) 1.Digital Inclusivity (Readiness, Awareness & Buy-In, Immersion Adoption) 2.Digital Government (open, data-centric, innovative, excellent service delivery, excellent digital governance) Strategic Thrust 4 Forging a Robust Ecosystem , and Modernising Business Regulations programme to improve the quality of existing business regulations in Sarawak Theme 1 Resetting the Economy, to improve competitiveness and the business ecosystem, Strengthening Socioeconomic Development in Sarawak Strategic Thrusts 2 and 5, Ease of Doing Business, and Digital and Execution, Strengthening the development of micro, small and medium enterprises in Sarawak Malaysia Productivity Blueprint IEDN: Indeks Ekonomi Digital Negeri SMA: Sarawak Multimedia Authority Post COVID-19 Development Strategy (PCDS) 2030 RMKe12 2021-2025 2
BETTER REGULATION Reliable High quality evidence Fit for purpose Protect public interest Good business environment Objective achieved Better regulation Relevant Up to date No unnecessary burden 3
INTRODUCTION TO REGULATORY EXPERIMENTATION Regulatory experiment is a means to deliberately deviate from the current regulatory framework to try out new or different rules in a real-world setting. A regulatory experiment refers to a limited form of regulatory waiver or flexibility for firms, enabling them to test new business models with reduced regulatory requirements. Live testing New innovations Controlled, test environment Regulators relax certain policy requirements Status Quo innovation unsuccessful during experiment, regulation maintained Non-regulatory innovation can be addressed without regulation Regulatory Existing regulation amended, or new regulation developed Definition Characteristics Outcomes 4
BUSINESS LICENSING IN SARAWAK Regulatory Experiment Scope 4 Divisions Kuching, Sri Aman, Sibu, Miri BASELINE PROCESS Multiple Licenses 13 PBTs Majlis Bandaraya. Dewan Bandaraya. Majlis Perbandaran. Majlis Daerah, Majlis Daerah Luar Bandar Single Agency REGULATORY EXPERIMENT 1 Super Form Risk-based Approval <30-day Waiting One Composite License
SCOPE OF REGULATORY EXPERIMENT (RE) Regulatory Experiment (RE) Pilot Scope: 4 of 12 divisions in Sarawak Agencies involved: LHDN, DO, TO, PBT District Office Treasury Office PBTs 4 Divisions Kuching, Sri Aman, Sibu, Miri 13 PBTs Majlis Bandaraya. Dewan Bandaraya. Majlis Perbandaran. Majlis Daerah, Majlis Daerah Luar Bandar District Office PBTs LHDN: Lembaga Hasil Dalam Negeri (Kuching) DO: District Office TO: Treausry Office PBT Pihak Berkuasa Tempatan LHDN - Lembaga Hasil Dalam Negeri Malaysia (Kuching)
COMPARISON OF PROCEDURE & APPROVAL TIME BASELINE PROCEDURE (30 to 60 DAYS) AFTER IMPROVEMENT (RE) LOW RISK: 1 3 DAYS HIGH RISK:< 30 DAYS** SL@PBT ONE FORM@PBT BNR@LHDN TL@LHDN SL@TA OL@PBT BNR: Business Name Registration LHDN: Lembaga Hasil Dalam Negeri (Kuching) SL: Support Letter PBT: Pihak Berkuasa Tempatan TL: Trade License TA: Technical Agency OL: Operating License