Good Regulatory Practice (GRP)

INTRODUCTION TO GRP


The government of Malaysia is continuously striving to maintain and enhance efficiency and competitiveness through private-sector driven and people-centred growth. GRP is one of the proven instruments to harness national efforts and resources for competitiveness and sustaining economic growth. GRP ensured that all regulations are effective in addressing the desired public policy objectives and in serving the country in a balanced and equitable approach and implemented in a transparent manner. Rule-making process will be improved to ensure that cumbersome regulations that create unnecessary burdens to society and business, discourage competition and innovation or alienate stakeholders are reduced and avoided.

Principles of Good Regulatory Practice (GRP)

Government intervention is Necessary and Justifiable


Governmental intervention in the economy should be based on clear evidence that such action is necessary and justifiable. Implementing regulations should not be the default option as non-regulatory options should be considered first. Regulator should avoid imposing unnecessary regulatory burden which may stifle economic activities.


Accountability


Regulator must be answerable/responsible for their decisions which should be able to withstand public scrutiny. Regulator must also ensure regulatory actions are backed by legal provisions and inter-agency coordination to avoid conflict of policies.


Transparency, Accessibility and

Effective Stakeholders consultation

Transparency is of the utmost importance for a credible regulatory process. Regulators are to disclose information on the regulatory process, issues, decisions, and their bases unless there is justification for non-disclosure. Regulator must ensure that parties which will be directly or indirectly affected by any proposed regulatory action are duly informed and their views are sought after and considered. Affected parties should have access to the regulations affecting them.


Benefits Outweight Costs


Ex-ante assessment of costs, benefits and risks is an essential component of regulatory analysis. The costs and benefits to all affected parties must be taken into account. Such analysis should be based on quantitative data whenever possible and qualitative analysis is to be used when necessary. A regulation should be imposed only when it can be shown to offer a net benefit to the community as a whole and that any adverse impact is minimized.

Proportionality

Proportionality ensures that regulators’ actions do not ‘over-reach’ or unnecessarily extend beyond addressing the specific problem(s). The scope or nature of governmental action should be commensurate with the magnitude of the problem, its impacts, and the level of risk involved. The principle of proportionality is applicable to the analysis, design and implementation of regulations including the use of appropriate risk assessment and management approaches.


  • GRP ENSURES THE REGULATIONS

    1. Serve clearly identified policy goals
    2. Are effective in achieving those goals
    3. Have a sound legal basis
    4. Produce benefits that justify costs
    5. Promote innovation, are fair and equitable
    6. Are clear, simple, and practical for users
    7. Are consistent with other regulations and policies
    8. Are compatible with trade and international trade agreements
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