Malaysia remains easiest place to get credit

Published: 2009/09/10

BANGKOK: Malaysia dropped three rungs to rank 23rd out of a total of 183 economies surveyed in the World Bank's Doing Business 2010 Report released yesterday.

Ranked fourth overall in Asia, Malaysia for the third consecutive year became the easiest place to get credit in the world, as well as the cheapest cost in Asia to export per container at US$450 (RM1,575) and the second lowest to import at US$450.

Malaysia, placed at 24th overall two years ago, ranked fourth in protecting investors, paying taxes (24th), trading across borders (35th), closing a business (57th), enforcing contracts (59th), employing workers (61st), registering property (86th), starting a business (88th) and dealing with construction permits (109th).

The World Bank said Malaysia has eased business start-ups with a new one-stop shop to streamline registration, adding that the service is still new and the government is planning a public awareness campaign on the new system.

In addition, the Malaysian Institute of Chartered Secretaries and Administrators has reduced company incorporation charges and corporate fees.

"Enforcing contracts through the courts was made easier by increased staff and stricter deadlines that have shortened case filing times from 45 days to 30.

"In addition, the commercial court has been reorganised to dispose of interlocutory matters more swiftly," the bank said.

Singapore, a consistent reformer, is the top-ranked economy on the ease of doing business for the fourth year in a row, with New Zealand in second place and Hong Kong third. Thailand is ranked third in Asia and 12th in the world, one rung better than the previous year. Among other Southeast Asian countries, Vietnam is ranked 93rd, the Philippines 144th, Laos 167th, Indonesia 122nd, Cambodia 145th and Brunei 96th.

The World Bank said Singapore introduced online and computer-based services to ease business start-up, construction permits, and property transfers.

According to the report, between June 2008 and May this year, a record 131 of 183 economies around the globe reformed business regulation.

Indonesia, the region's most active reformer, moved up to 122nd spot from 129th on the global ease of doing business rankings.

"Business regulation can affect how well small and mid-size firms cope with the crisis and seize opportunities when recovery begins," said Penelope Brook, acting vice-president for financial and private sector development at the World Bank Group.

The quality of business regulation helps determine how troubled firms survive difficult times and the speed at which local businesses would invest again, he added. - Bernama