Compliance with government regulations is part of business operations. But when compliance becomes a substantial operational activity, regulators need to examine whether regulatory procedures are necessary or overly cumbersome, and check whether enforcement personnel execute the procedures appropriately. Prior studies have indicated that compliance cost is inversely correlated to firm size. That is, it is more burdensome to small firms than to larger ones. Therefore, to promote SME development, it is important to create an environment in which regulatory rules and procedures are simple and compliance costs are reasonable and minimal.

The Regulatory Costs Sub-index aims to measure the amount of time firms spend on bureaucratic compliance and waiting periods, as well as how often firms must undergo inspections by local regulatory agencies and the duration of inspections.

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.

In partnership with:

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.