Penang’s Bureaucratic Reform Saves RM2.4 Bln, Approval Times Cut By 73 Pct

By R.Ratcharathan

GEORGE TOWN, Dec 24 (Bernama) -- Penang is undergoing a significant shift in its public service landscape through the implementation of the Bureaucratic Red Tape Reform (RKB) initiative, which has streamlined administrative systems and delivered tangible benefits to the public.

With 20 RKB projects completed so far, processes that previously took months are now completed in a much shorter time, with approval timelines accelerated by an average of 73 per cent.

Penang State Secretary Datuk Seri Zulkifli Long said the estimated compliance cost savings from the completed RKB projects had reached RM2.4 billion, while another 14 projects are currently being implemented.

In an exclusive interview with Bernama, he said the state Land and Mines Office (PTG) was the most active agency with six projects, followed by the Seberang Perai City Council (MBSP) with three projects, while 25 other agencies each carried out one project.

“Among PTG’s initiatives are the shortening of the renewal process for Temporary Occupation Licences from 254 days to 90 days, and the reduction of approval time for State Authority consent for land charges below RM50 million from 49 days to 14 days.

“PTG has also improved assessment for land title registration from 14 days to eight days, and accelerated land surrender and re-alienation under Section 204D (of the National Land Code) from 168 days to 85 days,” he said.

Zulkifli said MBSP’s Seberang Perai Express and Effective Development (SPEED) initiative has reduced approval times for development and building plans from 158 days to 73 days.

Beyond operational savings for the state government, he said RKB has benefited the public through faster processing of land, licence and permit applications, as well as public complaints, supported by streamlined work processes.

Digitalisation has reduced the need for repeated visits to government offices, saving time and travel costs, while enabling more services to be accessed online for applications, checks and payments across both Penang Island and Seberang Perai.

“Standardised operating procedures and digital systems have reduced manual work and duplication, helping to minimise delays, errors and bureaucratic bottlenecks,” he said.

Looking ahead, Zulkifli said the state government, in collaboration with the Malaysia Productivity Corporation (MPC) Northern Region, is preparing to integrate artificial intelligence (AI) into RKB by 2026 by identifying suitable projects for digitalisation.

He said AI would support data integration across departments, reducing the need for the public to submit the same information repeatedly, while also improving response times through smart systems such as chatbots.

Zulkifli expressed confidence that RKB would enhance investor and business confidence in the Eastern Silicon Valley, particularly through improvements in governance, public service efficiency and regulatory certainty.

RKB is a government-led initiative to review existing regulations, enhance administrative efficiency, boost productivity and reduce unnecessary regulatory burdens on the public and businesses.

-- BERNAMA