KUALA LUMPUR: Malaysia Productivity Corporation (MPC) has voiced concern on the regulatory burdens encumbering the oil and gas (O&G) industry.
It said efficient and competitive regulation scheme with less regulatory burdens were essential to attain the causal objectives in fetching the utmost potential profit to the nation.
MPC said this in its report on “Reducing Unnecessary Regulatory Burdens on Business: Downstream O&G”, mainly for the petrochemical manufacturers, petrol stations and liquefied petroleum gas distributors.
MPC Director-General Datuk Mohd Razali Hussain said the report also suggested methods on how these unnecessary regulatory burdens could be reduced, mainly via new institutional arrangements, namely regulation quality improvement as well as administration to improve flexibility and productivity.
The report, based on public and private stakeholders’ expertise and views, has identified regulations’ contents as well as the overlap and poor administration as the key burdens coercing market players with administrative costs, approval delay and loss of potential revenue.
Among the examples are delay in obtaining certificate of fitness for machinery and plants for petrochemical manufacturers, and the management of controlling subsidised diesel faced by petrol station operators.
In this regard, MPC is seeking feedback from the public and private sectors to achieve consent to remove the unnecessary compliance costs and enhancing regulatory consistency for the downstream O&G sector to promote a conducive environment for the industry. — Bernama