Use Behavioural Insights To Improve Policies, Good Regulatory Practices, SaysTengku Zafrul
30 Jul 2024
Malaysia could do more in integrating behavioural insights (BI) into public policy by examining ways to attract investments, boost international trade and advance industrial reforms, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
He said Malaysia started integrating BI into public policy in 2020 and has been working hard to improve policies to benefit the business community, investors as well as fellow Malaysians.
“The key question is this: How can we leverage BI to improve policies and good regulatory practices to enhance our supply chain and create a robust industrial talent pipeline to drive higher productivity and global competitiveness?” he said in his opening remarks at the National Conference on Behavioural Insights 2024 today.
The minister said BI could transform good governance by simplifying procedures and making forms and documentation more user-friendly through automation.
“In short, making government operations more efficient,” he added.
Tengku Zafrul said this streamlines operational requirements, reduces the burden on businesses and promotes compliance, which frees up resources for innovation and better services.
“Secondly, in education and industrial skills development, we can provide timely reminders about educational opportunities and deadlines to improve reskilling or upskilling efforts,” he said.
He noted that the Kerian Integrated Green Industrial Park project, which has already been implemented, will also have “greener” features such as renewable energy and sustainable industrial waste recycling as its “default settings.”
“This is how leveraging BI will nudge industries towards supporting our net zero goal, as stipulated by the New Industrial Master Plan 2030 (NIMP 2030),” he said.
He also said that it is crucial to include BI in achieving the 12th Malaysia Plan national productivity growth target of 3.7 per cent.
“By leveraging BI, we can better understand the underlying factors influencing productivity at both individual and organisational levels, enabling the creation of more targeted and effective policies,” he said.
In his view, BI is an approach that could also significantly boost government efficiency, particularly by utilising the right tools, techniques and technology that must evolve with the times.
“Deployed correctly across public services, these will generate lowcost and economical interventions to improve service outcomes,” he said.
Tengku Zafrul cited the Kulim initiatives as among an example of BI-based enhanced efficiency, saying that construction of factories has been accelerated from 36 months to just 10 months.
“This increased investments by RM24.56 billion or almost 92 per cent (91.64 per cent); enhanced revenue by RM77 million or 105 per cent; and created an additional 7,225 or over 75 per cent (75.24 per cent) more job opportunities,” he said.
The minister also noted the Kulai initiative, which saw the construction timeline being shortened to just 14 months.
This has significantly boosted investment by RM40.7 billion or 171 per cent, generated RM161 million or 80 per cent more revenue, and created up to 7,000 or 112 per cent more job opportunities, he added.
Source: Bernama
