CREATING the enabling environment to facilitate trade and promote investments is a top priority of countries in their quest to maintain economic growth and remain competitive.

Over the years, countries unilaterally or through regional collaboration have undertaken initiatives to review, improve, simplify or eliminate redundant rules, regulations and procedures so that businesses can thrive and prosper.

Malaysia’s Government transformation programme emphasises the need to provide a conducive business environment for the country to remain a major trading nation and favoured investment destination in the region.

The 10th Malaysia Plan, which charts the development of the nation for the next five years (2011-2015), has set a target for Malaysia to be ranked among the top 10 countries on the World Bank’s Ease of Doing Business by 2015.

Malaysia has already initiated regulatory reforms unilaterally in many areas to improve the Government delivery system and business environment.

Among other initiatives, Malaysia’s engagement in Asia Pacific Economic Cooperation (Apec) has contributed to improving the business climate.

Malaysia has been in the forefront in implementing various initiatives that has helped accelerate its integration into the regional economy.

The Asia Pacific region comprises the world’s most economically dynamic countries and is key driver of today’s global economy.

Established in 1989, Apec with its 21 member economies acts as a bridge between Asia and the Pacific.

To put in perspective, Apec collectively accounts for 40% of the world population, 44% of global trade and 56% of world gross domestic product.

In the case of Malaysia, Apec economies account for 75% of its global trade and contribute around 60% of foreign direct investment (FDI) annually.

For easy reference, the consolidated Apec-specific trade and economic data are available online via http://statistics.apec.org/.

Trade and investment facilitation is one of the key pillars of Apec in assisting member economies improve their business environment. In 1994, Apec agreed to meet the Bogor Goals they set out for themselves.

The goals specify that developed member economies will achieve free and open trade and investment by 2010 and by 2020 for developing economies.

The Bogor Goals have assumed an important role in fostering consensus among policy makers in Apec.

The Apec facilitation and capacity building programmes and initiatives have supported Malaysia and other Apec economies in promoting freer flow of trade and investment across the Asia Pacific region.

Over the years, Apec has introduced a wide range of trade and facilitation measures to promote paperless trading, efficient customs procedures, business mobility and mutual recognition of standards.

Trade facilitation took a prominent role with the introduction of the First Trade Facilitation Action Plan (TFAP I) in 2002.

Malaysia used the various elements in the action plan to remove administrative burdens which hamper the smooth flow of goods and services across borders.

These improvements include streamlining of customs, ports, health and quarantine procedures, harmonisation of standards, adoption of paperless procedures and business mobility.

A study by Apec indicated that TFAP I helped reduce trade transaction costs across the region by 5% between 2002 and 2006. The on-going TFAP II (2007-2010) aims to further reduce business transaction costs by another 5% by 2010.

An analysis of import tariff rates in the 21 Apec economies showed that tariff on goods have reduced from an average 16.9% in 1989 to 5% today.

Collectively, this implies substantial savings for consumers and reduced costs for manufacturers who source their inputs from member economies.

The freer flow of goods has enabled Malaysian consumers to enjoy a wider choice of goods and services that meet their needs, price expectations and tastes.

The Apec Business Travel Card (ABTC) is recognised as one of the important contributions of APEC in facilitating the mobility of business people in the region.

Over 4,000 Malaysians holding the ABTC enjoy immigration pre-clearance, visa-free travel and priority immigration processing at major airports in 18 fully participating economies.

However, visas are still required for ABTC holders in the US, Canada and Russia.

Recognising the importance of FDI in promoting regional economic growth, Malaysia has implemented various measures identified in the Apec Investment Facilitation Action Plan (IFAP).

The measures include promoting transparency and accessibility as well as predictability and consistency of investment-related policies, enhancing stability of investment environments and improving the efficiency and effectiveness of investment procedures.

The work programmes under this plan have enabled Malaysia to adopt international best practices.

Adoption of similar practices by other economies will also benefit Malaysian businessmen seeking investment opportunities in Apec economies.

The contribution of small and medium enterprises (SMEs) in employment generation and entrepreneur development in the Asia Pacific remains significant.

Apec has been successful in bringing together the SME promotion organisations in member economies to share best practices, success stories, knowledge and information sharing and undertake trade promotion activities.

These activities have enabled SME Corp Malaysia to identify and adopt appropriate measures to improve services provided as well as to strengthen the economic linkages between SMEs in Malaysia and member economies.

Apec also provides a free and simple online business tool for SMEs to identify and protect their intellectual property assets via http://intellectualpropertyexplorer.com/.

The stiff competition among countries to improve their business environment necessitates that Malaysia remains vigilant and stays ahead of our competitors.

The government will continue to undertake measures by leveraging on the various initiatives, both at the national and regional levels, to improve the business environment and enable Malaysia to be among the desired destinations for trade and investment.