KUCHING: Sarawak is strengthening productivity and economic resilience through the Malaysia Productivity Corporation’s (MPC) flagship programmes namely the Reformasi Kerenah Birokrasi (RKB), the huband-spoke model, and the Premier of Sarawak Industry Excellence Award (PSIEA).
According to MPC Sarawak Director Mazlina Shafi’i, these initiatives are already delivering measurable outcomes, including RM500 million in regulatory cost savings, faster approvals, improved satisfaction levels, and wider SME participation in performance benchmarking.
“These efforts are aligned with the state’s ambition to double its GDP by 2030 and build a more efficient, competitive, and innovation-driven economy,” she said.
She emphasised that reforms must support both business and government performance to sustain productivity gains across the board.
“To ensure sustained productivity growth and national economic competitiveness, the efficiency of both the government and the private sector must advance in tandem.
“The private sector is the backbone of our economy, contributing 91 percent to employment and 90.8 percent to economic output. But without a conducive environment, that potential remains limited,” she said. Citing the International Institute for Management Development (IMD) World Competitiveness Yearbook 2024, she also pointed out that Malaysia’s overall competitiveness dropped to 34th out of 67 countries, a decline driven by reduced business and government efficiency.
One System, Many Sectors
In response, Mazlina said that MPC introduced the Reformasi Kerenah Birokrasi (RKB) using a Whole-of-Government approach to reduce red tape, modernise delivery systems, and drive productivity from within the public sector.
To deliver this effectively, she noted that MPC has adopted a structured hub-and-spoke model.
“Under this system, MPC acts as the central ‘hub’, setting frameworks and facilitating reform, while ministries, agencies, and local authorities act as ‘spokes’ responsible for executing changes within their respective jurisdictions.
“Progress is tracked through the Pasukan Petugas Khas Reformasi Agensi (STAR), ensuring measurable, cross-agency coordination,” she said.
She stated that the model has already led to 30 percent faster approval processes, a 25 per cent increase in satisfaction levels, and reduced compliance costs especially for businesses that previously relied on hiring runners to manage forms and permits.
“Nationally, this model has contributed to estimated government cost savings of over RM500 million annually,” she added.
She also shared that previously delayed projects such as petrol stations and schools have since resumed after bottlenecks were resolved through RKB.
In addition, Sarawak’s public service has adopted the ‘3R’ strategy (Revisit, Rethink, Recharge) to modernise regulations, embrace innovation, and strengthen delivery readiness.
Awards That Uplift Local Businesses In tandem with RKB, Mazlina said MPC Sarawak introduced the PSIEA to help companies assess performance, strengthen operations, and gain recognition.
Organised once every two years, the 2025 cycle is now open for submissions until June 20, 2025, with participation free of charge.
“Excellence isn’t reserved for big companies. Many small businesses practise it without even realising. PSIEA helps them document, reflect, and grow,” she said. Since 2017, the award has recognised 94 organisations, contributing RM188 million in value creation to the state economy.
Eligible companies must be Sarawak-registered under the Companies Act 1965, and fall under one of four categories, Micro, Small, Medium or Large, based on turnover.
To help SMEs apply, capacity building workshops will begin in mid-May, offering practical support on preparing submissions based on the Malaysia Business Excellence Framework (MBEF).
The framework evaluates seven key areas such as leadership, strategy, customer focus, workforce, information, process, and results.
“Many SMEs struggle with documentation. That’s why we hand-hold them through workshops from understanding MBEF to writing submissions,” she said.
The top five shortlisted finalists will also undergo on-site assessments to evaluate how their systems are implemented in realworld operations.
Winners will receive a trophy, a three-year licence to use the PSIEA logo, and the opportunity to represent Sarawak at the nationallevel Anugerah Kecemerlangan Industri (AKI) 2026.
Digital Tools for Growth
Moreover, Mazlina added that PSIEA is also linked to digital transformation initiatives such as MyReskill IoT and AI for Productivity, which help SMEs adopt new technologies to improve efficiency and competitiveness.
“We’re not just training people about digitalisation but we also guide them through real projects. Some even get free access to test solutions that fit their operations,” she said.
MPC connects businesses with trusted technology providers, provides trial tools, and offers sixmonth free subscriptions in some cases.
She added that companies are also taught to develop digital dashboards to monitor KPIs, track operational processes, and identify areas for improvement.
A Shared Vision for Sarawak’s Future
Mazlina emphasised that both RKB and PSIEA reflect a long-term strategy to embed productivity into the fabric of Sarawak’s economic and institutional systems.
“When the government becomes more efficient and businesses become more competitive, that’s when real growth happens,” she said.
She added that productivity is not a one-off campaign but it is a sustained practice rooted in systembuilding.
“Our job is to support growth in a way that lasts. That means embedding these reforms and excellence programmes across the state. It’s not just about running initiatives but it’s about changing how we do things,” she said.
