BACKGROUND GRP



The launching of the National Policy on the Development and Implementation of Regulations (NPDIR) in 2013 was an important milestone in Malaysia’s regulatory reform journey. The NPDIR key goal was to improve regulatory quality so as to eliminate or minimise the impact of less friendly regulations towards businesses. The NPDIR formalised the development processes of quality regulations and emphasises on the use of regulatory impact analysis (RIA) for informed rule-making decisions.

As Malaysia seeks to sustain the dynamism of its economy and to recalibrate its strategy towards transforming into a developed country, there is a greater need to strengthen public sector delivery so as to ensure that the milestones towards this goal are achieved eff­ectively and efficiently as well as being guided by good governance principles. Governmental intervention in the economy, even though necessary, must be done judiciously in order to avoid stifling economic dynamism.

Burdensome and ineff­ective regulations must be avoided and existing regulations must be reviewed to ensure they remain relevant and e­ffective in an increasingly competitive global economy. Rapid technological changes are disrupting businesses in unprecedented ways. Traditional business models governed by existing rules and regulations are facing competition from new businesses which take advantage of opportunities off­ered by new disruptive technologies. Rules and regulations have to be in synchronisation with marketplace dynamics so as not to adversely aff­ect business competitiveness.

It is imperative that regulators recognise of the impact of the regulatory ecosystem on business environment. A more comprehensive regulatory reform approach is needed to give equal emphasis on promoting the entrepreneurial spirit, encouraging orderly transformation and protecting the welfare of the community. Towards this end, the reformation must address the quality of both new and existing regulations.

On 30 July 2021, the Chief Secretary to the Government launched the National Policy on Good Regulatory Practice (NPGRP) issued pursuant to General Circular No. 1/2021. The NPGRP took effect on 22 June 2021 and therefore repeals the previous General Circular No. 1/2013 in relation to the National Policy on Development and Implementation of Regulations (NPDIR).