Malaysia now 'easier' for doing business, says World Bank

Friday, 02 Nov, 2018

Turkey now ranks 59 globally in this area, compared with 96 previous year, it noted.

Mr Prabhu said, government has taken several initiatives to improve Ease Of Doing Business in the districts which has led to overall improvement at the national level.

"The ultimate objective is to go to the top of the list", he added. Despite the implementation of the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC), India ranks 121 and 108 respectively on those counts.

The consistent progress has paced India among the "top 10 improvers" for the second consecutive year, said the Secretary of the Department of Industrial Policy and Promotion.

The reforms introduced in the last year - the second highest number of reforms for Thailand in a single year since the beginning of the Doing Business project in 2003 - carried forward the country's regulatory reform agenda, Ms Warwick said. In addition, Mumbai abolished the practice of site inspections for registering companies under the Shops and Establishments Act.

She emphasized that assistance from World Bank was critical to the reform process.

The rank has improved by a whooping 129 notches with regards to "construction permits", 66 points in "trading across borders", 19 in "starting a business", and 7 points in "getting credit".

"It costs 25 percent of the income per capita to start a business in Kenya which is nearly ten times more expensive than in cote d'voire and the process takes 23 days compared to just four days in Rwanda", the report states.

"India has improved in rank in 6 out of 10 indicators and has moved closer to worldwide best practices.The most dramatic improvements have been registered in the indicators related "construction permits" and "trading across borders", the ministry said. We have done some legislation already and if we focus on these areas, touching 50th rank is achievable.

Modi had vowed to improve the ease of doing business when he came to power in 2014.

Nigeria made starting a business easier by introducing an online platform to pay stamp duties.

However, the report found Malaysia to not have made significant headway in the ease of securing credit (32nd), contract enforcement (33rd), and tax payments (72nd).

The report lauded India for investing in port equipment, strengthening management and improving electronic document flow. The reforms resulted in reducing the time needed to register a property by 13 days.

India performs well in the area of Getting Credit. This is because the country enacted a new insolvency law.

According to the report, among south Asian neighbours, Pakistan's regional average score stands at 56.71, with China at 73.6, India at 67.23, and Bangladesh at 41.97.

An economy's ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100 represents the best performance. "The reform applies to both Karachi and Lahore, the two cities measured by the Doing Business report".