We have been involved in law reform at both domestic and international levels and acts as an advisor to national and international organisations including the local governments and authorities, government-linked companies and the Asian Development Bank. We have a track record of advising regional institutions and government agencies on a wide range of topics and industries such as regional development authority, international offshore finance centre, asset management companies, insurance deposit corporations, electricity, transport, water, wastewater, waste management, shipping, e-commerce and e-government. Several of our lawyers are consulted by government agencies and have provided expert advice to various law reform committees.
The firm is also one of a handful of law firms in the ASEAN region recognised as having the requisite experience to conduct reviews of existing legislation, with a view to advising on law reform catering specifically to a country’s political and social landscape.
The concept of ethics is well entrenched as part of corporate governance within business institution. In Malaysia, practical application of ethics can be seen in the various codes of ethics for industries and sectors, and from government initiatives. However, there is no streamlined application of ethics across national, corporate and individual levels.
In this article, Tan Sri Dr Nik Norzrul Thani, Mohamad Izahar Mohamad Izham, and Liya Saffura Ab. Rashid will delve into the importance of promoting ethical practices within Malaysia’s corporate landscape and review current application of ethical practices. They will also discuss the idea of establishing a “Centre of Ethics” in Malaysia to create a conducive environment for ethics to grow, and play an integral part in transforming the country.
The Case for the Establishment of a Centre Of Ethics in Malaysia
The Malaysia Competition Commission (MyCC) is conducting an online public consultation to obtain feedback on the proposed integration of Competition Impact Assessment (CIA) into Regulatory Impact Analysis (RIA). The aim of the consultation is to oversee the integration of CIA into RIA and its importance to the rule making process. This ensures that new regulations issued (or review of existing regulations) comply with competition law and are in line with Good Regulatory Practice (GRP). The consultation is to allow stakeholders to understand the framework of CIA and obtain feedback to better understand the needs, concerns and perspectives of regulators.
The “Consultation Session for the Proposed Integration of Competition Impact Assessment (CIA) into Regulatory Impact Analysis (RIA)” is available both in English and Bahasa Malaysia.
In addition to submitting general feedback, there is also a survey titled “Survey for Consultation Session for the Proposed Integration of Competition Impact Assessment (CIA) into Regulatory Impact Analysis (RIA)” available both in English and Bahasa Malaysia.
What is Regulatory Impact Analysis (RIA)?
Regulatory Impact Analysis or “RIA” is the process of systematically analysing and communicating the impacts of proposed regulations or review of existing regulations. The essential characteristic of RIA is its informed and evidence-based decision-making for regulatory intervention through analysis of problems and solution options, stakeholder consultation, a cost-benefit analysis, and implementation strategy.
What is Competition Impact Assessment (CIA)?
Competition Impact Assessment or “CIA” is the process of examining the competition effects of laws and regulations to ensure that they are pro-competitive. This integration process intends to show the regulators the methodology that can be adopted to examine the laws and regulations.
CIA is important to ensure that the laws and regulations do not bring unnecessary restraints to competition and help find alternatives that could still achieve the same objectives the regulators had intended to gain.
CIA Integration into RIA
It is important to note that CIA is already an existing component under the RIA framework as provided under the National Policy on Good Regulatory Practice (NPGRP). It is only a matter of putting into effect this requirement after over a decade of Good Regulatory Practice (GRP) implementation in Malaysia.
To support the integration, MyCC has developed a comprehensive toolkit comprising three main components:
- Part I: CIA Framework;
- Part II: CIA Checklist (for the initial screening process); and
- Part III: CIA Guideline (to assist regulators in preparing CIA).
Part I: CIA Framework
The current RIA process currently entails three stages:
- Stage 1: Digital Regulatory Notification (DRN)
- Stage 2: Initial Assessment Stage
- Stage 3: Final Assessment Stage
To incorporate CIA, the current three-stage process will remain but there will be some changes in each stage, as illustrated below.
Part II: CIA Checklist
The CIA Checklist is a set of four main questions each with sub-questions to assist regulators in identifying potential competition concerns early in the policy development process i.e. during Stage 1: Digital Regulatory Notification (DRN).
In the event that the CIA Checklist is triggered i.e. the questions are answered in the affirmative, further investigation of the anti-competitive practices would be required in Stage 2: Initial Assessment Stage.
Part III: CIA Guideline
The CIA Guideline is a detailed technical document on competition assessment which contains key questions to be considered when performing CIA. The CIA Guideline includes requirements that needs to be fulfilled by regulators when the CIA Checklist is triggered.
These requirements are to be undertaken during Stage 2: Initial Assessment Stage and specifically apply for Element 3: Options and Element 4:Impact Analysis of the RIA process.
The consultation is open from 13 June 2023 until 21 July 2023.
For more details on the consultation document, including the survey and feedback submission, please visit Malaysia Productivity Corporation’s Unified Public Consultation (UPC) portal here.
MyCC conducts public consultation on proposed integration of Competition Impact Assessment (CIA) into Regulatory Impact Analysis (RIA)
On 30 September 2022, the Malaysian Government ratified the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), becoming the 9th out of 11 countries to ratify the agreement. One of the key components of the CPTPP is, Chapter 25 titled ‘Regulatory Coherence’ which among others, promotes Good Regulatory Practices adoption across member countries. Our Partner and Head of the Government Advisory Practice, Mohamad Izahar Mohamad Izham will explore these requirements that are required to be adopted into domestic policy and regulation, and the potential impact on our GRP framework.
Good Regulatory Practices in Free Trade Agreements – Insight into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Recently, there has been a shift from traditional regulatory reform (which focuses on reviewing existing legislation and improving them by way of amendments or new laws) towards non-regulatory solutions (such as using behavioural sciences to revise policy framework). This is a global widespread phenomenon where even ASEAN countries are not oblivious to its impact.
In this article, our Partner and Head of the Corporate & Government Advisory practice, Mohamad Izahar Mohamad Izham and Associate Amiza binti Ahmad Murad will uncover among others, the application of Behavioural Insights among the ASEAN countries, and lessons learned from Behavioural Insights projects in select countries.