Malaysia saves RM2.95 bln through 447 bureaucracy reforms, climbs to 15th in competitiveness ranking

Tan Sri Shamsul Azri Abu Bakar. Photo credit: Sarawak Information Department (Japen)
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By Amanda L

KUCHING, Aug 12: Malaysia’s bureaucracy reforms have generated an estimated RM2.95 billion in compliance cost savings through 447 completed projects, with the Government targeting 500 projects to further reduce costs and streamline public services, Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar says.

He said the reforms were carried out through the Public Service Reform Agenda (ERPA), particularly the Bureaucracy Reform Initiative (RKB) under the Special Task Force for Agency Reform (STAR).

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“The target next is 500 Reformasi Kerenah Birokrasi projects with estimated savings of RM2.5 billion,” he said at Sarawak Integrity Day 2026 at Borneo Convention Centre Kuching (BCCK) today.

Shamsul said the reforms had contributed to Malaysia’s improved government and business efficiency with the country climbing eight places to 15th out of 70 economies in the World Competitiveness Ranking 2026.

Government efficiency rose 11 places to 14th, while business efficiency improved by 16 places. Malaysia also ranked sixth globally for its bureaucracy indicator.

He said integrity was central to sustaining these gains, particularly as investors increasingly demanded transparency and accountability.

“Integrity is not merely compliance or avoiding corruption. It is the alignment between the values we believe in, the decisions we make and the actions we carry out, including the willingness to do the right thing even when no one is watching,” he said.

Shamsul also said the new Hybrid Working Policy, which took effect on Aug 1, required greater integrity, accountability and trust among eligible civil servants working remotely two days a week.

“Hybrid work is not a ticket to extend the weekend,” he said, stressing that flexibility must not compromise productivity or public service quality.

He said integrity had become a strategic necessity amid artificial intelligence, the digital economy, cybersecurity threats and rising demands for transparency. — DayakDaily

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