THE private sector should help the government to battle corruption as Malaysia seeks to become one of the top 10 countries in the world where doing business is easy.

The country now ranks 20th of 181 countries in the World Bank's Doing Business 2009 report, compared with the 24th placing obtained in the 2008 edition.

Special Taskforce to Facilitate Business (Pemudah) board member Tan Sri G. Gnanalingam said it is now up to the private sector to respond to the changes implemented by Pemudah.

"One of the areas the private sector must help overcome is corruption, especially in matters that deals with government machinery.

"The private sector will have to go directly to some of the services as opposed to going to agents and consultants who are by and large the conduits of corruption," he said in an interview recently.

The new World Bank rankings take into account the first full year of work done by Pemudah, a top level committee formed to cut red tape.

The report rates countries in 11 categories of doing business, ranging from the ease of doing business, starting a business, employing workers, getting credit and enforcing contracts, among others.

Malaysia was ranked first in the getting credit category and fourth in the protecting investors category.

However, we fared badly when it came to dealing with construction permits, only managing 104th place among all the countries surveyed.

"Since its establishment in February 2007, Pemudah has succeeded in reducing, if not totally removing, various impediments in the business environment."

This includes cutting the time to clear exports and register property as well as enabling online applications for property registration.

Some 86 government agencies in the Klang Valley now accept online payments. It has also set up a one-stop centre to expedite the incorporation of companies, among other functions.

"The private sector should further enhance this situation so the improved business environment can be communicated both locally and abroad to ensure foreign direct investments appreciate the conducive environment for doing business in the country.

"Most of all, the private sector must be totally conversant with all these changes. Many still have the perception that it is the civil service of 10 years ago rather than appreciating and congratulating them for improving in several areas," he said.

Gnanalingam added that the government has done its part through the changes Pemudah has made.

"Now, the private sector needs to sing the same tune and embrace all the changes.

"While the improvement in rankings is certainly a timely boost for Malaysia, there is still much more work to be done if Malaysia is to move into the top 10 in the near future."


By Marc Lourdes
The NST, 20.09.2008