VAST IMPROVEMENT IN GOVT DELIVERY SYSTEM, SAYS WORLD BANK

PUTRAJAYA, April 7 (Bernama) -- Tremendous improvements have been made in
the government service delivery system in the last two years -- thanks to the
relentless efforts of the special task force to facilitate business (PEMUDAH).

The success had enabled Malaysia to move up four notches from 24th to 20th
position in the World Bank's Ease of Doing Business Index 2009.

According to PEMUDAH's latest report made available here Tuesday,
improvements have been made in tax administration, immigration, e-payment,
customs and logistics which would further enhance business environment in the
country.

It was PEMUDAH's objective to make Malaysia the world's top 10 destination
for business and living.

Set up in 2007, PEMUDAH comprises members from the government and private
sectors, headed by co-chairmen namely the Chief Secretary to the Government,
Mohd Sidek Hassan and Federation of Malaysian Manufacturers president Yong Poh
Kon.

The report said this year the task force aimed to continuously and
systematically monitor effectiveness of the initiatives achieved so far.

It would also work towards institutionalising the way the government
engages with the private sector and all key stakeholders.

PEMUDAH also wanted to entrench the spirit of trust and inclusive
collaboration with the private sector and all key stakeholders such that it
becomes second nature to members of the civil service.

On tax administration, companies and individuals from now on can register
their tax files electronically through e-daftar.

Companies can also submit their estimates and revisions of corporate tax
liability on-line, thus saving time.

With PEMUDAH's intervention, the Immigration Department had reduced the time
taken to process expatriate applications from 14 days to seven days.

For example, from January 2007 to June 2008, 51 per cent of the 9,041 such
applications were processed within 14 days, but this was reduced to seven days
last year in 97 per cent of the cases.

The department also improved rules and regulations pertaining to
expatriates' family members and maids whereby spouses, family members and maids
were given the same treatment as their principals, the report said.

As for improvements in e-payment, the report said as of Dec 31 last year, 89
government departments and agencies were accepting on-line payments for 148
services.

Payment via the portal can be made either by direct debit or credit card.

To facilitate smooth trade, the Customs Department had introduced document
verification or cargo clearance based on estimated time of arrival.

The department also allowed deferred payment of duties if the total amount
of bank guarantee equalled the amount of tax payable and done through electronic
fund transfer.

The report said PEMUDAH also participated in deliberations on issues
related to foreign workers.

As an initial step, PEMUDAH had recommended downsizing of foreign workers
through freezing issuance of new approvals for frontline posts such as cashiers,
customer service operators and petrol kiosk attendants.

Industries are encouraged to use technology and automation to lessen their
dependence on foreign labour, it added.
-- BERNAMA