Companies Commission of Malaysia (SSM) Presentation CRF 2009


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Companies Commission of Malaysia (SSM) Presentation CRF 2009

  1. 1. BUSINESS REGISTRATION REFORM - THE SSM PERSPECTIVE Rokiah Mohd Noor Deputy Chief Executive Officer, Companies Commission of Malaysia
  2. 2. HISTORY ON THE FORMATION OF SSM 30 June 1999 The Cabinet instructed for the formation of SSM ROC (Est. 1898) ROB (Est. 1898) COMPANIES COMMISSION OF MALAYSIA ACT 2001 (Act 614) • Established in April 2002 BUSINESSES REGISTERED 3,779,415 COMPANIES REGISTERED 839,853 As at 28 February 2009
  3. 3. AREAS OF REFORMS UNDERTAKEN (2006-2008) Information & Communication Technology Stakeholder Management Enforcement Operational Enhancement Processes Organisation Transformation Process Education <ul><li>Establishment of Enforcement Office </li></ul><ul><li>Enhancement of Manpower </li></ul><ul><li>Balance Enforcement </li></ul><ul><li>Improved Compliance with the legal requirements </li></ul><ul><li>Improvement in counter service </li></ul><ul><li>Introduction of e-Services </li></ul><ul><li>Introduction of Business Registration Mobile Counters & Circuit Counters </li></ul><ul><li>Introduction of e-Enforcement </li></ul><ul><li>ICT Strategic Plan (ISP) </li></ul><ul><li>Organisational Transformation Processes (OTP) </li></ul><ul><li>Introduction of Human Capital Initiatives </li></ul><ul><li>Establishment of Companies Commission of Malaysia Training Academy (COMTRAC) </li></ul>
  4. 4. MOTIVATORS FOR REFORM Globalisation and liberalisation Information & Communication Technology Change in Business Trends Change in public service delivery system Stakeholder Management
  5. 5. DRIVERS FOR REFORM MISSION VISION Key Enabling Strategy SSM Strategic Direction Plan 2004 - 2008 MISSION NATIONAL AGENDA
  6. 6. ENFORCEMENT MISSION Pre-Reform <ul><li>Emphasis on Operational Issues </li></ul><ul><li>Lack of Focus on Enforcement </li></ul><ul><li>Low Compliance with legal requirements </li></ul><ul><li>Lack of corporate governance by Companies </li></ul>Areas of Reform Post-Reform <ul><li>Balance Enforcement – balancing between adequate regulatory control with enhancement of economic growth </li></ul><ul><li>Focus on Enforcement – identification of high risks areas to target concentrated detection/surveillance measures. Shift towards quality from quantity. </li></ul><ul><li>Leveraging on Technology – to achieve benefits of remote, off site and instant data processing – introduction of e-Enforcement </li></ul><ul><li>Establishment of Enforcement Office </li></ul><ul><li>Upgrading of Investigation Section to Division </li></ul><ul><li>Introduction of Complaints Section </li></ul><ul><li>Re-structuring of the Compliance Division </li></ul><ul><li>Increase in manpower combined with increase in technical competency (Prosecution section strengthened to 15 PO from 6 PO in 2004) </li></ul>
  7. 7. ENFORCEMENT MISSION Pre-Reform <ul><li>Emphasis on Operational Issues </li></ul><ul><li>Lack of Focus on Enforcement </li></ul><ul><li>Low Compliance with legal requirements </li></ul><ul><li>Lack of corporate governance by Companies </li></ul>Investigation Prosecution <ul><li>IP opened from 2004-2008 </li></ul><ul><ul><li>736 </li></ul></ul><ul><li>IP disposed from 2004-2008 </li></ul><ul><ul><li>647 </li></ul></ul><ul><li>Note: When an IP is opened it denotes that a full blown investigation is warranted as the matter involves complex and serious issues of non-compliance, corporate governance or elements of corporate fraud. </li></ul><ul><li>2004-2008 – 24,374 cases prosecuted </li></ul><ul><li>17,000 of these cases concern various issues of corporate governance (including breach of mandatory reporting requirements under the Companies Act 1965) </li></ul>
  9. 9. OPERATIONAL ENHANCEMENT PROCESSES MISSION VISION <ul><li>Constrains on public accessibility to SSM </li></ul><ul><li>Menace of Touts/Unscrupulous Management Companies </li></ul><ul><li>Many businessmen unaware of legal requirements to register their businesses </li></ul><ul><li>Labour Intensive Processes – data entry, scanning of documents </li></ul><ul><li>Storage of documents </li></ul><ul><li>Time consuming processing of data </li></ul>Pre-Reform Areas of Reforms Post-Reform <ul><li>Introduction of e-Services </li></ul><ul><li>Introduction of Business Registration Mobile Counters & Circuit Counters </li></ul><ul><li>Introduction of e-Kiosks </li></ul><ul><li>Introduction of e-Enforcement </li></ul><ul><li>Introduction of ISP </li></ul><ul><li>Creating different modes of conducting business with SSM </li></ul><ul><li>Introduction of new, faster services </li></ul><ul><li>Eradication of touts/unscrupulous management companies </li></ul><ul><li>Reduce labour intensive processes </li></ul><ul><li>Reduce issue on Storage of document/data </li></ul><ul><li>Reduce time taken for processing of data </li></ul><ul><li>Reduction of Manual Processes, </li></ul><ul><li>Scanning of documents </li></ul><ul><li>Storage of documents/data </li></ul><ul><li>Faster processing of data </li></ul>
  10. 10. IMPROVED BUSINESS METHODS (e-SERVICES) Company e-Lodgement Business e-Lodgement <ul><li>BENEFITS OF e-SERVICES </li></ul><ul><li>24/7 </li></ul><ul><li>Fast, efficient, facilitative </li></ul><ul><li>Real time data/information </li></ul><ul><li>Beyond counter </li></ul><ul><li>Multi-payment channel </li></ul><ul><li>CHALLENGES FACED FOR e-SERVICES </li></ul><ul><li>Slow take-up rate – Create awareness, education, free hands-on training, introduce mandatory e-Filing, closure of counters </li></ul><ul><li>Low IT Literacy </li></ul>
  11. 11. IMPROVED BUSINESS METHODS (e-Lodgement) Take up Rate of Business e-Lodgement (Nationwide)
  12. 12. IMPROVED BUSINESS METHODS (e-Lodgement) Take up Rate of Companies e-Lodgement (Nationwide)
  13. 13. IMPROVED BUSINESS METHODS (e-Info) Achievement of e-Info Service from July 2006 – February 2009 Comparison on Information Supply Over-the-Counter (OTC) and SSM e-Info Before and After Closure of Counters (HQ & 2 State Offices) Month Application OTC % Application via e-Info (online) % Average Jan-Sept applications (before closure of counters) 60,948 (80%) - 35% (-21,303) 15,637 (20%) +115% (+17,980) Average Oct, Nov & Dec applications (After closure of counters at HQ & 2 State Offices) 39,645 (54%) 33,617 (46%)
  14. 14. BUSINESS REGISTRATION MOBILE COUNTERS (BRMC) Purpose of Introducing these initiatives was to allow the petty traders new avenues for conducting business with SSM, dissemination of information and informing on the requirements of the law. <ul><li>BENEFITS </li></ul><ul><li>Improving of service delivery </li></ul><ul><li>Reaching out to stakeholders and clients – beyond counters </li></ul><ul><li>e-Enabled – Mobile & Remote Access Service (MoRSe) </li></ul><ul><li>Carried out nationwide – emphasis on remote areas </li></ul><ul><li>Collaboration with local councils, agencies </li></ul><ul><li>Enhancing stakeholder awareness </li></ul><ul><li>ISSUES FACED </li></ul><ul><li>Touts. Management Companies unhappy with BRMC/Circuit Counters/e-Kiosks </li></ul><ul><li>Cuts into their livelihood </li></ul><ul><li>Death Threats against SSM officers </li></ul>
  15. 15. MOBILE BUSINESS REGISTRATION & CIRCUIT COUNTER ACTIVITIES 2006 – 2008 Overall BRMC progress Overall Circuit Counters progress YEAR 2005 2006 2007 2008 No of Locations 10 118 265 1,277 No of Registrations 1,963 2,272 4,876 19,759 YEAR 2005 2006 2007 2008 No of Locations 10 118 265 1,277 No of Registrations 1,963 2,272 4,876 19,759 YEAR 2007 2008 No of Registrations 779 1,210 No. of Renewals 4,151 5,954
  16. 16. ORGANISATIONAL TRANSFORMATION PROCESSES MISSION VISION <ul><li>Lack of adequate infrastructure </li></ul><ul><li>Duplicity of tasks </li></ul><ul><li>Centralisation of processes </li></ul><ul><li>Old world mentality </li></ul><ul><li>Poor work culture </li></ul><ul><li>Slowness in delivery </li></ul><ul><li>Lack of Human Capital Initiatives </li></ul><ul><li>Poor Project Management </li></ul><ul><li>Insufficient Specialised Manpower </li></ul>Pre-Reform Areas of Reforms Post-Reform <ul><li>New Clients’ Charter </li></ul><ul><li>Decentralisation of processes </li></ul><ul><li>Introduction of Employee Competency Requirement </li></ul><ul><li>Succession Planning </li></ul><ul><li>Introduction of KEEP </li></ul><ul><li>Introduction of Key Performing Indicators & Key Performance Targets (KPI & KPT) </li></ul><ul><li>Introduction of a Knowledge Management Unit </li></ul><ul><li>Introduction of Project Management Office </li></ul><ul><li>Recruitment of Subject Matter Specialists </li></ul><ul><li>Reviewing of internal processes </li></ul><ul><li>Improvement of Service Delivery </li></ul><ul><li>Reform in Human Resources Initiatives </li></ul>
  17. 17. ORGANISATION TRANSFORMATION PROCESS Continuous knowledge & skill enhancement ORGANIZATIONAL RE-BRANDING ‘Towards a New SSM’ New corporate culture Teamwork Integrity Result driven Customer oriented Services & Corporate resources ICT Training Academy Change of Work Culture Organizational restructuring Work process re-engineering Enablers
  18. 18. RESULT OF REFORM WORK PROCESSES Work process re-engineering Note: Time taken begins from the moment payment is received until the certificate is issued. Activity New Client Charter Previous Client Charter BUSINESS REGISTRATION Approval of business name 1 hour 3 days New business registration 1 hour 3 days Renewal of business registration 15 mins 1 hour Registration for termination of business 15 mins 1 day Registration of changes in registered particulars of business 1 hour 1 day COMPANY REGISTRATION Approval of company name 1 day 5 days Incorporation of a new company 1 day 5 days Conversion of status 1 day 5 days Change of company name 1 day 5 days Commencement of business for public companies 1 day 5 days Registration of charge 2 days 5 days Approval of a trust deed 5 days 14 days Registration of prospectus 3 days 14 days Supply company/business information via computer printout 30 mins 1 hour Uncertified copy of company documents 30 mins 1 hour Certified copy of company documents 1 hour 3 hours
  19. 19. EDUCATION Pre-Reform Area of Reform Post-Reform <ul><li>Directors and Company Secretaries lack knowledge on their duties & responsibilities </li></ul><ul><li>Lack of training facilities to be used as training & awareness vehicle </li></ul><ul><li>Lack of facilities for internal training for employees </li></ul><ul><li>Lack of a centralised Knowledge Centre </li></ul><ul><li>To establish a training academy for the purposes of educating the stakeholders and the employees </li></ul><ul><li>To conduct quality training programmes for internal, external and international participants. </li></ul><ul><li>To provide the necessary infrastructure to support the training academy and programmes. </li></ul><ul><li>To keep abreast with regulatory & governance development. </li></ul><ul><li>Corporate Directors Training Programme (CDTP) </li></ul><ul><li>Licensed Secretaries Training Programme (LSTP) </li></ul><ul><li>Programmes on Corporate Governance & Enforcement </li></ul><ul><li>Conducting collaboration programmes with stakeholders </li></ul><ul><li>Conducting awareness programmes with the public </li></ul><ul><li>Providing internal training for employees </li></ul>
  20. 20. IMPORTANT LESSONS LEARNT Planning Implementation Buying-in/ Awareness <ul><li>Studying of internal & external requirements </li></ul><ul><li>Have back up plan </li></ul><ul><li>Studying the needs and engaging the customers or users </li></ul><ul><li>Either in phases/gradual or “big bang” approach to suit local environment </li></ul><ul><li>Effective monitoring </li></ul><ul><li>Stakeholders engagement </li></ul><ul><li>No matter how good the system is, if there is no buy-in by the users, the initiatives will not work </li></ul>
  21. 21. WAY FORWARD Law Reform Improving the business methods <ul><li>Reviewing of current legal framework to modernise, simplify the procedures and reduce the costs of doing business: </li></ul><ul><ul><li>Companies Act 1965 – Corporate Law Reform Committee (CLRC) </li></ul></ul><ul><ul><li>Registration of Businesses Act 1956 </li></ul></ul><ul><li>Introducing new business vehicles – e.g. Limited Liability Partnership </li></ul><ul><li>Organisational Transformation Processes </li></ul><ul><li>Introducing new and improved enhancements </li></ul><ul><li>Advisory Services </li></ul><ul><li>One stop information centre </li></ul><ul><li>One stop business centre </li></ul><ul><li>Business research centre/knowledge hub </li></ul><ul><li>Continuous Product Innovation </li></ul>
  22. 22. THANK YOU