Malaysia Sees Improvement in World Bank’s Ease of Doing Business Rankings
In its new report, entitled “Doing Business 2015: Going Beyond Efficiency”, the World Bank has found that Malaysia ranks first out of the emerging economies in East Asia and ranks fourth out of all the countries in Asia.
Malaysia’s ease of doing business ranking improved two positions over last year, moving from 20th to 18th place. The main reason for the climb in the country’s standings has been the ongoing improvements with respect to dealing with construction permits.
The World Bank’s ranking metrics include such areas as start-up and operations, trading across borders, paying taxes, and resolving insolvency. Malaysia’s more developed neighbor, Singapore, once again topped the list of countries with the easiest environment in which to conduct business.
Malaysia was particularly high ranking in the following areas:
- Protecting minority investors
- Trading across borders
- Starting a business
- Getting credit
- Enforcing contracts
- Paying taxes
- Resolving insolvency
The lead author of the World Bank report, Rita Ramalho, explained the importance of Malaysia’s improvements: “Through an ambitious reform agenda, Malaysia has gradually improved on the ease of doing business. This has benefited local entrepreneurs, who now have fewer regulatory hurdles to deal with and more resources to focus on their business.”
Over recent years, Malaysia has worked strenuously to improve its business environment. These measures have included:
- The implementation of electronic systems which have made it easier for businesses to pay taxes and execute contracts
- Merging the company, tax, social security, and employment fund registrations into a one-stop shop
- Reducing the time required to start a business from 37 days in 2005 to less than six days in 2014
However, Malaysia is not content to sit upon its laurels, the government has set the ambitious goal of breaking into the top ten rankings in the coming years. Malaysia Productivity Corp director-general Datuk Mohd Razali Hussain, has stated that “for 2016, [the] World Bank’s new focus will be on registering property, dealing with construction permits, getting electricity, paying taxes, and enforcing contracts. Malaysia will focus on these five areas to improve further and be competitive.”
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email firstname.lastname@example.org or visit www.dezshira.com.
Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.
Tax, Accounting, and Audit in Vietnam 2014-2015
The first edition of Tax, Accounting, and Audit in Vietnam, published in 2014, offers a comprehensive overview of the major taxes foreign investors are likely to encounter when establishing or operating a business in Vietnam, as well as other tax-relevant obligations. This concise, detailed, yet pragmatic guide is ideal for CFOs, compliance officers and heads of accounting who need to be able to navigate the complex tax and accounting landscape in Vietnam in order to effectively manage and strategically plan their Vietnam operations.
An Introduction to Tax Treaties Throughout Asia
In this issue of Asia Briefing Magazine, we take a look at the various types of trade and tax treaties that exist between Asian nations. These include bilateral investment treaties, double tax treaties and free trade agreements – all of which directly affect businesses operating in Asia.