1. Malaysia’s regulatory reforms continue to be closely linked to Government’s development plans. In addition to the initial GRP reforms initiated under the 10th and 11th Malaysia Plans, regulatory reform efforts are also a key element of the 12th Malaysia Plan (2021-2025), which seeks to consolidate GRP reforms and expand GRP provisions to modernize the current regulatory regime not only at the federal government level, but also at the state and local level.

2. The very close connection between gradually more advanced GRP reforms and the Malaysia Plans’ reflect the country’s journey towards becoming a high-income nation. The reforms and activities supported under this proposal are likely to further strengthen GRP’s contribution to Malaysia Plan and development goals and will contribute to achieving the objectives in other strategic plans including Malaysia Productivity Blueprint (MPB).

3. While progress has been made on the GRP agenda, important implementation challenges are emerging. A number of ministries and regulatory agencies are following the regulatory management requirements set out in the NPDIR and subsequent MPC guidelines. However, despite many pockets of excellence, the implementation pattern is uneven. Mainstreaming of the GRP agenda into the day-to-day policy-making of line ministries and regulatory agencies can be challenging and complex, as in some cases GRP is considered “just another level of bureaucracy.” At the same time, many reform processes – both domestically and internationally – are driven forward at the sectoral level.

3. Reflecting these challenges and opportunities, it is important to complement economywide GRP efforts with GRP initiatives at the sector-level. Supporting specific application of GRP tools in selected sectors will incentives ministries and agencies to apply GRP in their development and delivery of regulations which is help them avoid creating unnecessary regulatory burdens to businesses and citizen.