You are on page 1of 5

REGULATORY ADMINISTRATION Deregulation is currently an important political issue.

Do you think Malaysia is overregulated in some areas of economic social life? Under regulated in any? What criteria can you develop to help you decide?

Deregulation and Political Issues Deregulation causes usually happen when the regulation or policy is not longer to covering problem among public interest and government. Besides that, several pressure legislative who have engage with the regulation or policy do not necessary to implement. or in the other hand, the regulation must be updating with few condition to be more strength. However, deregulation usually also have screened desire for politician to get another benefit. for instance, when the electoral campaign, politician as we know always give political promises addressed to workers/labor voters, if they are elected and sit in legislative chair, they will make wage minimum policy to safe or increasing labor salary. From the case above, we can know the issues about wage minimum and will be influence society to inform government for deregulation the policy. In contrast, overregulations also make several problems to society and various parties who need easily regulation to cooperation with government system. For example, foreign companies want to doing business in one country, the first thing they will looking is easily regulation for administration. This necessary for companies firstly collect the problem with regulation and afterward looking with cost and benefit as business. Therefore, over regulation usually impact to the government who have many regulations and huge bureaucracy and there is make difficult to company doing economic project and as a result impact to social economic life in once country. According to Rosenbloom, deregulation is usually supported by one or more of four basic argument (other than the cost of regulation is too high). One is that free markets can provide more benefit to the society than regulated ones.

Moreover, Rosenbloom (2002:442-447) said several problems in regulatory administration such as: 1. 2. 3. 4. 5. 6. 7. 8. Regulation is expensive. Regulation Dampens Economic Performance. Regulation Produces Delay and Extravagant Red Tape. Incompetence. Corruption. The Ever-Increasing Inclusiveness of Regulation. The Regulatory Process Is Out of Control. Determining Success.

Does Malaysian overregulated? From the Rosenbloom argument, it will connect with the question about whether Malaysia is in overregulation. Thus, in my assessment, if we measure from regulatory problem by Rosenbloom and it will shows regulation in Malaysia is relatively stable based on economic if we look at Malaysia position ranks is 23rd in the World Bank Doing Business 2010 Report (10th Malaysia Plan:73). A Part of that, Malaysian government in 10th Malaysia Plan would be support the private sector and unleash its growth potential, a series of initiatives will be undertaken during the Plan period such as: 1. Modernizing business regulation. 2. Liberalizing the services sector. 3. Removing market distortions by rationalizing subsidies. 4. Introducing competition legislation. 5. Improving the interface between government and business.

Related to Rosenbloom, the discussion of regulation, always make debate and often, engage with an economically oriented approach as cost and benefit analysis. In addition, it faces the legal and political perspectives. Legal principles such as, equal protection application of the law and including social principles is fairness and risk limitation. For government, interest group and politician argue the regulation in general argue regulatory must create safety space for social society life.

Nevertheless, I also found several causes about over regulation in Malaysia such as: 1. Transport Sector, transport sector is affected by regulations imposed fewer than three ministries, namely the Ministry of Transport (MOT), the Ministry of Works (MOW) and the Ministry of Entrepreneur Development (MET). Overall, MOT is the sector regulator and concentrates on transport infrastructure development (other than roads and highways). (Cassey Lee:2004) 2. Cars produced by the national car company, Problems arose with the launching of a new Proton car, namely the Gen.2 on 8th February 2003. Not surprising, Proton chose to initially distribute Gen.2 solely through its wholly owned subsidiary Proton Edar Company. In addition, EON Company will have to obtain its supply of Gen.2 from Proton Edar. Proton has also argued that EON should restrict itself to selling a single brand in a single showroom, referring to EONs current practice of selling Protons cars as well as that of Audi and Chevrolet. (Cassey Lee,2004:7). So as the results, over protective about national product Proton Car by government effect to another automotive company and it was reduce the selling number of other cars. Under regulated in Malaysia and reform the regulatory Furthermore, several sector of policy I found were under regulate because in indicate with lack of clear domain towards government function for regulating administration to create public safe, reduce anxiety and risk of safety. The causes involving migrant workers with their company, police handling, limitation of workers legal and protection of worker are several problem facing by Malaysian government. Malaysian government face seriously problem with that cases because seen by international country toward handling of migrant workers in Malaysia that is very apprehensive. Following the article about A Critical Appraisal of Policies and Laws Regulating Migrant Workers in Malaysia Devadason and Meng said: The policies and laws regulating in-migration has been one of the most erratic. In fact, it has placed Malaysian policymakers on the radar of international organizations for lacking clear direction. Policy reversals (retrenchments, deportations and import bans followed with return migration and lifting of those bans) on in-migration are frequently deployed in the Malaysian case. Similarly, report from Amnesty International, 24 March 2010:

"Migrant workers are critical to Malaysia's economy, but they systematically receive less legal protection than other workers," said Michael Bochenek, the report author and director of policy at Amnesty International. "They are easy prey for unscrupulous recruitment agents, employers and corrupt police." A part of that, Malaysian government is considered an intriguing case study given the paradox of the importance of in-migration to the economy, the misguided perception of the role of migrant workers, followed by conflicting and pervasive laws and regulations said Devadason and Meng in the article. Thus, from this evidence we could say that necessary to deregulated or regulatory reform of migrant workers policy and regulation to make a clear legal of that. Even though, Malaysian government initiative to reduce the number of migrant workers 1.5 Million in 2015. Following the argument of Rosenbloom, regulation, like many other aspects of public administration, confronts the society with some difficult moral problems. (2002:448)

Developing the good way of regulatory In my assessment, what criteria to develop about regulation based on Rosenbloom. Firstly, in the areas of Traditional managerial perspective towards regulatory is emphasizes on effectiveness, efficiency and economy. In the other hand, Rosenbloom also said the major difficulty with cautious approaches from a managerial standpoint is that can undercut efficiency and economy. Added again by Bardach and Kagan in rosenbloom the successful key in regulation namely: (1). Careful training the inspector; (2). Specialization; (3). Controlling the discretion from the inspector; (4). Efficient deployment; (5). Resolves violation rather than formal adjudication; (6). Exploring the possibilities for piggybacking the functions of different agencies to reduce duplication of effort inspection; (7). Supply more the Information; (8). Encouraging self-enforcement and self-regulation by educating enterprises as their obligations and rationale. In Addition, Management regulatory area often require of balancing with different interest, concerns and contexts. That is why this also encourages with political and legal approaches to inform the additional and other perspectives of view to formulate the

regulation for accommodating all of public demand and interest but at the same time might made convenience toward stakeholders On the other hand, political aspect views will require the public assessment to inform the stakeholders, which is in federal or local government for instance participation of evaluation of regulation. After that, I will straight forward to legal perspective to develop my decision on this question, firstly is quality of regulation and empowerment the employees. In the area of jurisdiction, it must strength to implement the element of law. It starts from the investigations of problem/cases of over/under regulated by public/private sector in economic social life. Afterward, at the level of adjudication it should be neutral when they are handling the cases especially in the area of administrative of law judge. Finally, Related to traditional managerial in emphasizes with control, NPM with cooperative partners and Political stress in accountability. Nevertheless, importantly legal perspectives have strong values additionally with protection of truth. Lastly, in legal approach in my assessment also emphasize with procedural and in the result including the reasonable decision.

References:

Evelyn S. Devadason & Chan Wai Meng., A Critical Appraisal of Policies and Laws Regulating Migrant Workers in Malaysia. University of Malaya

Lee Cassey., 2004, Competition Regulation in Malaysia, Faculty of Economics & Administration. University of Malaya

Rosenbloom, D. H., Kravchuk, R.S. & Clerkin, R. M. (2002). Public administration: Understanding management, politics and law in the public sector. (5th ed.). Boston, MA: McGraw-Hill

http://www.amnesty.org/en/news-and-updates/report/malaysia-must-end-abusemigrant-workers-2010-03-24.

You might also like