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Malaysia
October 27, 2016
Jean Arlet
Dorina Peteva GeorgievaCo-authors
Global Indicators Group, Development Economics
I. Doing Business in Malaysia at a glance
II. Overview of indicator results
III. Looking ahead: best practices on selected indicators
Doing Business in Malaysia is based on the feedback of about 200
professionals in Kuala Lumpur (city covered)
2
Number of contributors rose by +50% in past five years
Contributors include:- Private law firms and notaries
- Accounting firms
- Freight forwards and customs brokers
- Contractors and architects
- Utilities
- Government agencies
Examples of contributors- Ernst and Young
- Credit Bureau Malaysia
- Tenaga Nasional Berhad
- Energy Commission
- Freight forwards and customs brokers
- Customs Westport
Malaysia performs better than its neighbors…
3
Rank by country
…and better on average than OECD high-income economies
4
2
23
46
78
26
94 94
0
10
20
30
40
50
60
70
80
90
100
Singapore Malaysia Thailand China OECD high-income
Upper middle-income
East Asia andthe Pacific
Average DTF Score Rank
0
10
20
30
40
50
60
70
80
90
100
Dis
tance
to
fro
ntie
r sco
re (
0-1
00)
Malaysia performs well thanks to a good performance across topics
Source: Doing Business database.
Note: The distance to frontier scores reflected are those for the 10 Doing Business topics included in this year’s aggregate distance to frontier score.
Average of highest 3 topic scoresAverage of all topic scoresAverage of lowest 3 topic scores
5
Starting a business (112)
Dealing with construction permits (13)
Getting electricity (8)
Registering property (40)
Getting credit (20)
Protecting minority investors (3)
Paying taxes (61)
Trading across borders (60)
Enforcing contracts (42)
Resolving insolvency (46)
81
94
Malaysia’s rankings across topics can be misleading
6
Rankings and DTF scores across topics (Scale: Rank 190 center, Rank 1 outer edge)
Source: Doing Business 2017
84
76
75
80
79
82
67
62
Regulatory improvements in Malaysia in the past decade have
resulted in tangible improvements
7
Dealing with the construction permitting
process now takes 28% of the time it did a
decade ago
Number of payments to comply with tax
obligations has been reduced threefold
0
5
10
15
20
25
30
35
40
2006 2016
Number of payments
0
50
100
150
200
250
300
2006 2016
Days to build a warehouse
I. Doing Business in Malaysia at a glance
II. Overview of indicator results
III. Looking ahead: best practices on selected indicators
Jan1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
Starting a Business in Malaysia
Cost: 6.2% of
income per capita
Time: 18.5 days Procedures: 8.5
8.5
9
Paid-in minimum
capital: NONE
East Asia & Pacific average
0
2
4
6
8
10
12
Hong KongSAR, China
Singapore Malaysia China Indonesia
Procedures
East Asia & Pacific average
0
5
10
15
20
25
30
35
40
Hong KongSAR, China
Singapore Malaysia Indonesia China
Time, days
East Asia & Pacific average
0
5
10
15
20
25
Singapore Hong KongSAR,China
China Malaysia Indonesia
Cost (% of income per capita)
In the past year, Malaysia made starting a business more difficult by requiring that
companies with an annual revenue of more than MYR 500,000 register as a GST payer.
Starting a Business: incorporation was made more difficult in terms
of steps and time required
10
0
2
4
6
8
10
12
14
16
18
20
Time (days) Procedures
DB2016 DB2017
Procedures added
Procedure 5: Open a Bank account in order to
register for GST
Agency: Local Bank
Net impact: no time added and free of charge
Procedure 6: Register for GST
Agency: Royal Malaysian Customs
Net impact: +11 days; free of charge
Gender component: is the process of starting a business different for woman entrepreneurs?
- Approval from spouse required to own a business or leave the house?
- Documents or permission required by only one gender for company registration and operation, opening
a bank account or obtaining a national ID (since showing proof of ID is a normal requirement in
business registration).
Starting a Business: a gender component was added, resulting in
+0.5 procedure
11
No. Procedure Time to
complete
Cost
♀1
Net impact:
+0.5
procedure
Obtain husband's permission to leave the home
According to Islamic Family Law, Art. 59(2)(b), the woman must obtain
permission from her husband to leave her home.
[According to Islamic Family Law, Art. 59: (1) The Court may, subject to Hukum Syara',
order a man to pay maintenance to his wife or former wife. (2) Subject to Hukum Syara'
and confirmation by the Court, a wife shall not be entitled to maintenance when she is
nusyuz, or unreasonably refuses to obey the lawful wishes or commands of her
husband, that is to say, inter alia - (a) when she withholds her association with her
husband; (b) when she leaves her husband's home against his will; or (c) when she
refuses to move with him to another home or place, without any valid reason according
to Hukum Syara'. (3) As soon as the wife repents and obeys the lawful wishes and
commands of her husband, she ceases to be nusyuz.]. Source:
http://www2.esyariah.gov.my/esyariah/mal/portalv1/enakmen2011/Eng_act_lib.nsf/b3ac9
c218c8efdc4482568310022d8b3/8c3ddf4fb0c41c4d482569810025f17d?OpenDocument
Agency: Domicile
1 day
Net impact:
+0.5 day
N/A
Dealing with Construction Permits in Malaysia
Building quality control index:
13 out of 15
Jan1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
Feb1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29
Mar1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
Cost: 1.4% of
warehouse value
Time: 79 days
Procedures: 15
15
12
East Asia & Pacific average
0
5
10
15
20
25
Singapore Hong KongSAR, China
Malaysia Indonesia China
Procedures
East Asia & Pacific average
0
50
100
150
200
250
300
Singapore Hong KongSAR, China
Malaysia Indonesia China
Time, days
East Asia & Pacific average
0
2
4
6
8
10
12
14
Malaysia Indonesia Singapore Hong KongSAR,China
China
Building quality control index (0-15)
Jan1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
Getting Electricity in Malaysia
Cost: 26.6% of GNI
per capita
Time: 31 days Procedures: 4
4
Reliability of supply
and transparency of
tariffs index: 8 out of 8
13
East Asia & Pacific average
0
1
2
3
4
5
6
Hong KongSAR, China
Malaysia Singapore Indonesia China
Procedures
East Asia & Pacific average
0
50
100
150
200
Hong KongSAR, China
Singapore Malaysia Indonesia China
Time, days
East Asia & Pacific average
0
2
4
6
8
Hong KongSAR, China
Malaysia Singapore China Indonesia
Reliability of supply and transparency of tariffs index (0-8)
14
Registering Property in Malaysia
East Asia & Pacific average
0
10
20
30
40
50
60
70
80
Singapore Malaysia China Indonesia Hong KongSAR, China
Time, days
East Asia & Pacific average
0
10
20
30
Singapore Malaysia Hong KongSAR,China
China Indonesia
Quality of land administration index (0-30)
Jan1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
Cost: 3.4% of property
value
Time: 13 days Procedures: 8
8
Quality of land
administration
index: 28 out of 30
East Asia & Pacific average
0
2
4
6
8
10
China Hong KongSAR, China
Indonesia Singapore Malaysia
Procedures
Getting Credit in Malaysia
Depth of credit information index: 8 out of 8Credit
bureau
Credit
registry
Are data on both firms and individuals distributed? Yes Yes
Are both positive and negative credit data distributed? Yes Yes
Are data from retailers or utility companies reported and distributed? Yes No
Are at least 2 years of historical data reported? Yes No
Are data on loan amounts below 1% of income per capita reported? Yes Yes
By law, do borrowers have the right to access their data ? Yes Yes
Can financial institutions access borrowers’ credit information online? Yes Yes
Are credit scores offered to help banks and financial institutions? Yes No
Coverage (% of adult population) 62 76
15
Strength of legal rights: 7 out of 12Measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and
lenders
The law allows a business to grant a nonpossessory security right in a single category of movable assets
(such as machinery or inventory), without requiring a specific description of the collateral.
The collateral registry has modern features such as those that allow secured creditors (or their
representatives) to register, search, amend or cancel security interests online
Getting Credit: Malaysia strengthened credit reporting, now among
30 economies that score 8 out of 8 on the index
16
How did Malaysia make getting
credit easier in 2015/2016?
7
8
Depth of credit information index (0-8)
DB16
DB17
57
62
Credit registry coverage (% of adults)
• CTOS Data Systems Sdn Bhd (CTOS), the
largest credit bureau in Malaysia, partnered with
FICO and started offering CTOS-FICO
Consumer Credit Scores to banks and other
financial institutions to facilitate their predictive
analytics and decision management in October
2015.
• The credit score is a numerical value that
indicates the credit risk associated with an
individual’s credit profile and ranges between
300 (riskiest) and 850.
Region
Number of
top
performers
Number of
economies in
the region
% economies
that are top
performers
Top performing
economies
East Asia &
Pacific3 25 12%
China; Malaysia;
Taiwan, China
Jan
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
Paying Taxes in Malaysia
Total tax rate:
40% of commercial profit
Time: 26 hours (profit taxes)
50 hours (labor taxes)
88 hours (consumption taxes)
Payments: 9
9
17
East Asia & Pacific average
0
10
20
30
40
50
HongKongSAR,China
Singapore Malaysia China Indonesia
Payments, number
East Asia & Pacific average
0
100
200
300
Singapore Hong KongSAR,China
Malaysia Indonesia China
Time, hours
Paying Taxes: Malaysia made paying taxes easier but also more
complex in the past year
18
0.92 correlation
Comply with CIT audit: 5.25 h
Complete CIT audit: 20.6 weeks
Comply with VAT refund: N/A
Obtain VAT refund: N/A
In Doing Business 2017: Malaysia made paying
taxes easier by introducing an online system for
filing and paying goods and services tax (GST)
while also making it more complex by replacing
sales tax with GST.
Paying Taxes: economies that have efficient tax filing and payment
procedures also tend to have efficient postfiling processes
19
Main findings on CIT Audits
• Correcting the corporate income tax (CIT) return
complying with an audit when applicable is most
simple in OECD high-income economies and
Europe and Central Asia.
• In 74 economies, correcting a minor error in the
CIT return is likely to trigger an audit.
Audit time resulting from a simple mistake in a CIT return
Source: Doing Business database.
Main findings on VAT Refunds
• In only 93 economies case study company can
refund VAT.
• VAT refunds are processed most efficiently in
OECD high-income (refund in 14.4 weeks on
average) and Europe and Central Asia (refund in
16 weeks on average).
Pre- and postfiling compliance time
0
10
20
30
40
0
100
200
300
400
Most difficult Easiest
Pre-filing compliance time Postfiling compliance time
Economies sorted by time for filing and paying VAT (quintiles)
0
3
6
9
12
LAC EAP SA SSA MENA ECA OECD
Waiting time (weeks)
Protecting Minority Investors: Malaysia among the best economies
in the world
20
9.39
8.7
5.7
5
0
1
2
3
4
5
6
7
8
9
10
Extent of conflict of interest regulation index (0-10)
Singapore Hong Kong SAR, China
Malaysia Indonesia
China
7.3 7.37
5.7
4
0
1
2
3
4
5
6
7
8
Extent to shareholder governance index (0-10)
Malaysia Singapore
Hong Kong SAR, China Indonesia
China
Jan
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
Trading across Borders in Malaysia
EXPORT IMPORT
Cost: US$ 45.0 (documentary compliance) +
US$ 321.2 (border compliance)
Time: 10 hours (documentary compliance) +
48 hours (border compliance)
Jan
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
Cost: US$ 60.0 (documentary compliance) +
US$ 321.2 (border compliance)
Time: 10 hours (documentary compliance) +
72 hours (border compliance)
21
0
250
500
750
1,000
Hong KongSAR,China
Malaysia Singapore Indonesia China
Export cost, US$
Border compliance
Documentary compliance
0
250
500
750
1,000
Singapore Hong KongSAR,China
Malaysia Indonesia China
Import cost, US$
Border compliance
Documentary compliance
Enforcing Contracts in Malaysia
22
East Asia & Pacific average
0
100
200
300
400
500
600
Singapore Hong KongSAR, China
Malaysia China Indonesia
Time, days
East Asia & Pacific average
0
3
6
9
12
15
18
Singapore China Malaysia Hong KongSAR, China
Indonesia
Quality of judicial processes index (0-18)
Resolving Insolvency in Malaysia
Recovery rate:
81.3 cents on the dollar
Time: 1 year
Strength of insolvency
framework index (0-16): 6
23
Month1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
12
Cost: 10% of estate
Outcome:
Going concern
East Asia & Pacific average
0
1
2
3
Singapore Hong KongSAR, China
Malaysia China Indonesia
Time, years
East Asia & Pacific average
0
25
50
75
100
Singapore Hong KongSAR,China
Malaysia China Indonesia
Recovery rate, cents on the dollar
I. Doing Business in Malaysia at a glance
II. Indicator results
III. Looking ahead: best practices on selected indicators
Where is Starting a Business easy and what do these economies
have in common?
Global good practices
Putting procedures online
No paid-in minimum capital requirement
Creation and improvement of one-stop shops
Streamline and merge registration and post-registration procedures
Standardized forms (no need of third party to draft incorporation documents)
Fixed registration fee
No requirement to publish in legal journal
New Zealand
Canada
Hong Kong SAR, China
The Republic of Macedonia
Azerbaijan
Singapore
Australia
Georgia
Armenia
Ireland
Top Ten Economies
Good Practices on Paying Taxes
Self-assessment systems make it
possible to collect taxes earlier and reduce the
likelihood of disputes over tax assessments. They
also reduce opportunities for corruption.
E-system for filing and paying taxeslightens the workload, reduces operational costs
and time for tax administrations and increases tax
compliance. For taxpayers, it saves time by
avoiding errors and making it easier to prepare,
file and pay taxes.
The same tax treatment for taxes
with the same tax base makes tax
compliance convenient and easier.
Practice Economies* Examples
Allowing self-
assessment161
Argentina,
Canada, China,
Rwanda, Turkey
Allowing
electronic filing
and payment
90
Australia,
Colombia, India,
Mauritius, Tunisia
Having one tax
per tax base49
Angola, Morocco,
Namibia,
Norway,
Paraguay
Trading across Borders: implementation of electronic systems has the most
significant impact on time among all the trade reforms in 2015/16
-516
-288
-234
-31
-600
-500
-400
-300
-200
-100
0Electronic systems
Customsadministration Inspection Infrastructure
Total time reduction in time (hours)
Average export border compliance time (hours) Average import border compliance time (hours)
Trade digitalization leads to efficiency gains for both exporters and
importers
111
86
34
0
20
40
60
80
100
120
Paper only Paper andelectronic
Electronically
82
65
26
0
10
20
30
40
50
60
70
80
90
Paper only Paper andelectronic
Electronically
Note: The relationship is significant at the 1% level after controlling for income per capita. The three categories are: only paper
submission of customs declaration is possible; both paper and electronic submissions are in use; only electronic submission is
possible.
DB 2015: Slovenia made resolving insolvency easier by introducing:
• simplified reorganization procedure for small companies
• preventive restructuring procedure for medium-size and large ones, by allowing creditors
greater participation in the management of the debtor and by establishing provisions for
an increase in share capital through debt-equity swaps.
DB 2013: Slovenia strengthened its insolvency process by requiring that the debtor offer
creditors payment of at least 50% of the claims within 4 years:
• This gave greater power to the creditors’ committee in a bankruptcy proceeding;
prohibiting insolvency administrators from allowing relatives to render services
associated with the bankruptcy proceeding; and establishing fines for members of
management that violate certain obligations or prohibitions.
DB 2012: Slovenia simplified and streamlined the insolvency process and strengthened
professional requirements for insolvency administrators.
Good practices in Resolving Insolvency: Slovenia
29
Doing Business
THANK YOU!
Questions www.doingbusiness.org
?! ?!
Annex 1. Findings of Doing Business 2017
62
67
75
76
79
80
81
82
84
94
0 20 40 60 80 100
Resolving insolvency
Enforcing contracts
Getting credit
Registering property
Paying taxes
Protecting minority investors
Dealing with construction permits
Trading across borders
Starting a business
Getting electricity
DTF score
Results on individual indicators
32
0
10
20
30
40
50
60
70
80
90
100
Malaysia scored
78 points in DTF
in Doing Business
2017, giving it a
ranking of 23rd
overall.
Source: Doing Business 2017
Malaysia performs well thanks to a good performance across topics (2/2)
Distance to frontier scores remain similar under the new
methodology
Source: Doing Business database.
Note: The figure compares distance to frontier scores based on this year’s data computed using the old (Doing Business 2016) methodology
with scores based on the same data computed using the new methodology. The differences between the two series are in starting a business,
registering property, protecting minority investors, paying taxes and enforcing contracts. The 45-degree line shows where the scores under
the old and new methodologies are equal. The correlation between the two scores is 0.99.
30
40
50
60
70
80
90
100
30 40 50 60 70 80 90 100
Dis
tance t
o f
rontier
score
under
old
meth
odolo
gy
(0–100)
Distance to frontier score under new methodology (0–100)
33
Following Doing Business best practices would significantly
decrease the time to start a business
34
Sources: Doing Business database; World Bank’s Entrepreneurship Database; http://www.dailymail.co.uk/.
Not following best
practices:
32.9 million days
1.3 million days
• In the 85 economies covered by both
Doing Business and the World Bank’s
Entrepreneurship Database, an
estimated 2.7 million LLCs were newly
registered in 2015 alone.
• Assuming that these 2.7 million firms
followed the rules and regulations for
company incorporation in their home
economy as measured by Doing
Business 2016, together they spent
32.9 million days to get incorporated.
• Because not all economies followed
best practice, entrepreneurs spent an
extra 31.6 million days satisfying
bureaucratic requirements.
Companies that do not follow good
practices spend 25 times more time to start
a business on average than those that do.
Potential time savings is
almost 850 centuries
In this time, a person can
walk 7,721 times around
the Earth
49 reforms were recorded in starting a business in 2015/16
35
18 reforms were recorded in dealing with construction permits in
2015/16
36
22 reforms were recorded in registering property in 2015/16
37
34 reforms were recorded in getting credit in 2015/16
38
The majority of reforms in getting electricity focused on reducing the
time for new electricity connections
39
19 reforms were recorded in protecting minority investors in 2015/16
40
46 reforms were recorded in paying taxes in 2015/16
41
32 reforms were recorded in trading across borders in 2015/16
42
18 reforms were recorded in enforcing contracts in 2015/16
43
24 reforms were recorded in resolving insolvency in 2015/16
44
0
25
50
75
0 10 20 30
Number of gender differences as recorded by Women, Business and the Law
Less equal business regulation is associated with fewer women
running firms
Sources: Women, Business and the Law database; Enterprise Surveys database,
World Bank; World Development Indicators database, World Bank.
Note: A sample of 122 and 158 economies was used for comparison of number of
gender differences against percentage of firms with female top managers and female
employment to population ration, respectively. The relationship between the
percentage of firms with female top managers and the number of gender differences
is significant at the 1% level after controlling for income per capita. The same applies
when the analysis is done using the female employment ratio.
45
Firm
s w
ith
fe
ma
le
top m
ana
ge
rs, %
0
25
50
75
100
0 10 20 30
Fem
ale
em
plo
ym
ent
to p
op
ula
tion
ra
tio, %
Strong convergence across economies since Doing Business 2006
46
113
53
0
50
100
150
Time to start a business (days)
Best 3 Quartiles Worst Quartile
Source: Doing Business database.
Note: These numbers use a consistent sample of 174 economies as measured in Doing Business 2007,
for which data are available starting from 2005.
678
480
0
300
600
900
Time to prepare, file and pay taxes (hours)
Best 3 Quartiles Worst Quartile
228
113
0
100
200
300
Time to register property (days)
Best 3 Quartiles Worst Quartile
340
260
0
150
300
450
Time to deal with construction permits (days)
Best 3 Quartiles Worst Quartile
0
25
50
75
100
0 25 50 75 100
Corr
up
tio
n p
erc
ep
tio
ns ind
ex (
0-1
00
)
Distance to frontier score (0-100)
High income
Upper middle income
Lower middle income
Low income
Higher levels of regulatory efficiency and quality are associated with
lower levels of corruption
Sources: Doing Business database, Corruption Perception Index 2015.
Note: The sample includes 165 economies covered by both Doing Business and the Corruption Perception Index. Both
relationships are significant at the 1% level after controlling for income per capita.
Very
cle
an
Hig
hly
corr
upt
47
Easy to do businessDifficult to do business
Linear trend line
0
2,500
5,000
7,500
10,000
0
25
50
75
100
High income Upper middle income Lower middle income Low income
The cost of doing business remains much higher in low income
economies in 2015/16
48
Source: Doing Business database.
Cost of getting electricity
(% of income per capita)Cost of starting a business (% of income per capita)
Cost of dealing with construction permits (% of warehouse value)
Who improved the most across 3 or more areas measured by Doing
Business in 2015/16?
49
Source: Doing Business database.
Note: Economies are selected on the basis of the number of reforms and ranked on how much their distance to frontier score improved. First, Doing
Business selects the economies that implemented reforms making it easier to do business in 3 or more of the 10 areas included in this year’s
aggregate distance to frontier score. Regulatory changes making it more difficult to do business are subtracted from the number of those making it
easier. Second, Doing Business ranks these economies on the increase in their distance to frontier score from the previous year. The improvement in
their score is calculated not by using the data published in 2015 but by using comparable data that capture data revisions and methodology changes.
The choice of the most improved economies is determined by the largest improvements in the distance to frontier score among those with at least
three reforms.
Worldwide, 137 economies implemented 283 reforms in 2015/16
More than 75% of regulatory reforms in 2015/16 were implemented by developing countries.
East Asia and Pacific implemented 45 regulatory reforms in the past year, with 7 reforms implemented
in Indonesia and 6 – in Brunei Darussalam only.
Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business
since 2004.
Source: Doing Business database.50
OECD high-
income
Europe &
Central Asia
South
Asia
East Asia
& Pacific
Sub-Saharan
Africa
Latin America &
Caribbean
Middle East &
North Africa
96%
2.3
77%
1.7
75%
1.8
69%
1.0
68%
1.863%
1.4
53%
0.7
%Share of economies
that reformed in a
region
Average numbers
of reforms per
economy
1.0
Europe and Central Asia has made a substantially bigger
improvement in business regulation over time than any other region
0
5
10
15
20
25
Europe &Central Asia
Sub-SaharanAfrica
Middle East &North Africa
South Asia East Asia &Pacific
Latin America& Caribbean
OECD highincome
DB2017
DB2016
DB2015
DB2014
DB2013
DB2012
DB2011
DB2010
DB2009
DB2008
DB2007
DB2006
DB2005
Average year-on-year improvement
in distance to frontier score
51
Average global improvement since 2003/04: 11.8
Source: Doing Business database.
Note: The measure is normalized to range from 0 to 100, with 100 representing the frontier. Because of changes over the years in methodology and
in the economies and indicators included, the improvements are measured year on year using pairs of consecutive years with comparable data.
Reforms making it easier to start a business show results over time
in reduced delays
It was possible to start a business in less than 20
days in only 41 economies*, mostly in North
America and Northern and Central Europe.
In Sub-Saharan Africa, entrepreneurs in only 3 out
of 45 countries—Burundi, Ghana and Rwanda—
could incorporate a company in under 20 days.
Now, the time to start a business is less than 20
days for entrepreneurs in 130 economies*
worldwide.
In Sub-Saharan Africa, more than half of economies
allow to start a business in less than 20 days.
2005
2016
Development impact:
Countries that regulate entry more heavily have
greater corruption and larger unofficial economies, but
not better quality of public or private goods.(Djankov, La Porta, Lopez de Silanes, Shleifer, February 2002, Quarterly
Journal of Economics.)
* Based on samples of 174 economies in Doing Business 2006 and 190
economies in Doing Business 2017.
52
Source: Doing Business database.
6 of the 7 regions have an average DTF score above 50
53
0
25
50
75
100
OECD high-income
Europe & CentralAsia
East Asia &Pacific
Latin America &Caribbean
Middle East &North Africa
South Asia Sub-SaharanAfrica
Dis
tan
ce
to
fro
ntie
r sco
re
(0–
10
0)
Worst score Best score Average score
• Worldwide, the difference between the best and worst DTF scores is 67 points.
• Sub-Saharan Africa has the biggest difference of 52 points between the best and worst scores.
• East Asia & Pacific also shows significant variation in the best and worst scores with a difference of 44
points.
• OECD high-income has the smallest difference of 18 points between the best and worst scores.
Source: Doing Business database.
52
44
-400
-300
-200
-100
0
100
200
300
400
-4
-3
-2
-1
0
1
2
3
4
High income Upper middle income Lower middle income Low income
Ave
rage
ch
an
ge
in
co
st fr
om
DB
16
to
DB
17
Ave
rage
ch
an
ge
in c
ost
from
DB
16
to
DB
17
Low income economies are lowering costs to do business at faster
rates than their higher income counterparts
54
Source: Doing Business database.
Selling to the government:
what is measured in the Doing Business 2017 annex?
78 economies covered by the data
measure aspects that are relevant to
improving the ease with which companies can
do business with governments across
economies
97% of the economies analyzed have one or
more online portals dedicated to public
procurement
close to 90% of economies in the sample
impose a bid security deposit requirement for
the bid to be accepted
In 37% of the economies payment occurs
within 30 days on average while in 47% of
economies suppliers can expect to receive
payments between 31 and 90 days following
completion of the contract.
Case study: road maintenance contract valued at
91 times income per capita or 2 million USD,
which ever is higher.
55
56
Good practices in enforcing contracts: Brunei Darussalam
Brunei Darussalam made
enforcing contracts easier by
introducing an electronic filing
system for commercial court cases
at the competent court.
Brunei Darussalam introduced a
system allowing court users to pay
court fees electronically.
Impact: + 2 points in the Quality of
Judicial Processes Index
In Doing Business 2017, Brunei Darussalam ranks
93rd globally on the ease of Enforcing Contracts.
Resolving a standardized commercial dispute
before the Intermediate Court of Bandar Seri
Begawan takes an average of 540 days and costs
36.6% of the value of the claim.
Brunei Darussalam obtains 8.5 out of 18 points in
the quality of judicial processes index.
Brunei Darussalam’s performance is below the East
Asia & Pacific regional average on the time and cost
sub-indicators and slightly above the average on the
quality index.
DTF improvement from 53.54 in DB2016 to 57.25 in
DB2017.