Wednesday, April 4, 2012

Mohd Sidek: Govt saved millions from simplifying procedures

PETALING JAYA: Almost 400 irrelevant licences, permits and regulations were abolished or simplified last year, saving the Government a whopping RM790mil.

Chief Secretary to the Government Tan Sri Mohd Sidek Hassan said the millions of ringgit saved stemmed from a reduction in licensing compliance costs.

He said this could actually increase Government revenue via taxes as businesses would post higher profits due to reduced costs of doing business.

"Employing the guillotine approach, in 2011 alone, 395 of the 761 reviewed were eliminated and/or simplified.

"If we cannot now justify the licences' continued existence, we eliminate them. Guillotine them," he said in his talk entitled "Healing the World" at Mahsa University College here Wednesday.

Mohd Sidek said the Government's challenge was to continue to make the public service system less complicated.

He urged the public to participate in the Pemudah Challenge by suggesting irrelevant or archaic rules or regulations which should be eliminated.

The Pemudah Challenge will pay RM1,000 for any suggestion accepted.

"This is but one example of the effort to unclog the licensing bottlenecks in the public service," he said.

Mohd Sidek stressed that merely simplifying licensing procedures was insufficient and said creative thinking was essential in finding alternatives to licensing as a regulatory or revenue earning measure.

Going forward, he proposed that a mechanism was needed to put all new laws, rules or regulations through comprehensive consultation and engagement before they could take effect.

He added that every new rule or regulation released should have a "sunset clause", where they are deemed to lapse after a set amount of years.

"This way, we will avoid a situation where archaic rules remain forever on our books," he said.

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