ENTRY COSTS

A positive business environment is one that welcomes new start-ups and has minimal hurdles and barriers as firms establish themselves. To promote a healthy private sector, it is important to streamline the business entry process and minimize entry costs. In Malaysia, starting a small business in most cases requires at least two documents: a business registration and a business license. Business registration can be obtained at the Companies Commission while business licenses are issued by the local offices of different ministries. In addition to these two documents, businesses must comply with social security regulations and provident fund procedures.

The Entry Costs Sub-index aims to measure the time it takes to register and receive licenses to start a business, the official costs of obtaining all licenses/permits, and the ease of obtaining those documents as perceived by businesses.

The higher overall index score along with the individual scores for sub-indices always refer to a better performance within the context of the BEI.

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Credits:

The Malaysia Business Environment Index (2012) is the result of the collaborative efforts of many individuals. The authors of the report were Dr. Jane Terpstra Tong (Monash University Sunway Campus), Nina Merchant-Vega (The Asia Foundation) and Dr. Robert Terpstra (Monash University Sunway Campus). Expert technical advice was provided by Dr. Edmund Malesky (University of California, San Diego). Valuable comments and support were provided by Anthea Mulakala, Reid Hamel, Herizal Hazri, Dr. Yeah Kim Leng, Kristina Fong, Jason Fong, and Munsifah Abdul Latiff. Research assistance was provided by Koh Jen Li, Peg-Gy, and Collin Gerst.

The survey data visualization project "Business Environment Index: Malaysia" was led by John Karr, Director for Digital Media at The Asia Foundation. Steve Ubiera, Production and Systems Administrator for The Asia Foundation served as the project manager and data visualization designer. Site development was conducted by William Wang and Johan Baversjo.