ANNUAL
REPORT
Financial Year 2019
JULY 2018 - JUNE 2019
FOR PUBLIC DISCLOSURE
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ANNUAL
REPORT
Financial Year 2019
JULY 2018 - JUNE 2019
ANNUAL REPORT | FINANCIAL YEAR 2019 1
About the World Bank Group
Knowledge and Research Hub
in Malaysia
The Global Knowledge and Research Hub in
Malaysia (the Hub) reflects a long-standing
development partnership between Malaysia and
the World Bank Group (WBG). It the first of its
kind within the WBG and serves as a platform
for: incubating and generating innovative policy
solutions with global impact; sharing expertise
and global experience in support of Malaysia’s
development goals; disseminating development
experiences and organizing South-South learning
activities; and producing cutting-edge economic
research and global public goods.
2 ANNUAL REPORT | FINANCIAL YEAR 2019
Table of Contents
Abbreviations 5
Executive Summary 6
Overview 7
FY19 Year in Summary 8
FY19 Malaysia Economic Monitor and Development Digest 12
FY19 Key Activities in Pictures 14
Pillar 1: Sharing Policy Innovations and Development Experiences 25
Introduction 25
Theme 1: Supporting Equitable Economic Growth 26
FY19 Year in Review 27
FY20 Moving Forward 31
Box Stories
Theme 2: Enhancing Finance, Competitiveness, and Innovation 34
FY19 Year in Review 35
FY20 Moving Forward 43
Box Stories
Theme 3: Strengthening Public Sector Management 47
FY19 Year in Review 48
FY20 Moving Forward 49
Box Stories
Theme 4: Boosting Social Protection and Jobs Outcomes 52
FY19 Year in Review 53
FY20 Moving Forward 54
Box Stories
Pillar 2: Learning Together for Global Solutions 57
Introduction 57
Development Research Group 58
FY19 Year in Review 59
FY20 Moving Forward 61
Box Stories
Global Indicators Group 73
FY19 Year in Review 74
FY20 Moving Forward 75
Box Stories
Appendices 79
Appendix 1: FY19 Progress Made & FY20 Plans 80
Appendix 2: List of Products and Work Delivered 95
ANNUAL REPORT | FINANCIAL YEAR 2019 3
Abbreviations
AARG ASEAN Audit Regulatory Group MaGIC Malaysian Global Innovation & Creativity
ACMF ASEAN Capital Markets Forum Malaysian Administrative Modernization and
MAMPU
Management Planning Unit
AFA ASEAN Federation of Accountants
MEA Malaysia Economic Association
AFC Asian Financial Crisis
MEM Malaysia Economic Monitor
APEC Asia-Pacific Economic Cooperation
MENPANRB Ministry of Administrative and Bureaucratic Reform
ASEAN Association of Southeast Asian Nations
MFM Macroeconomics and Fiscal Management
B2B Business to Business
MIA Malaysian Institute of Accountants
BAPPENAS Ministry of National Planning & Development
MITI Ministry of International Trade and Industry
BEN Bayesian-Entropy
MNER Ministry of Natural Resources and Environment
BKN National Civil Service
MOF Ministry of Finance
BNM Bank Negara Malaysia
MODUG Malaysia Open Data Users Group
CMU Country Management Unit
NESDB National Economic and Social Development Board
CoP Community of Practice
NSU National Strategy Unit
CSDU Civil Service Delivery Unit
ODRA Open Data Readiness Assessment
DB Doing Business Organisation for Economic Co-operation and
OECD
Development
DECIG Global Indicators Group
OSA Office Support Agreement
DECRG Development Economics Research Group
PCoP Planning Community of Practice
DFI Development Financial Institution
PADU Education Performance & Delivery Unit
DOSM Department of Statistics Malaysia
PEMNA Public Expenditure Management Network in Asia
EAP East Asia and Pacific
PEMUDAH The Special Taskforce to Facilitate Business
EBA Enabling the Business of Agriculture
PFM Public financial management
EPU Economic Planning Unit
PRC People’s Republic of China
EPF Employees Provident Fund
PSD Public Service Department
ESG Environmental, Social and Governance
RAS Reimbursable Advisory Services
Environmental and Social Impact Assessment
ESIAF
Framework SC Securities Commission Malaysia
FAEA Federation of ASEAN Economists Association
SDG Sustainable Development Goal
FinTech Financial Technology
SME Small and medium enterprise
GFC Global Financial Crisis
SPIRIT Strengthening Reforming Institutions
GFDR Global Financial Development Report
SOE State-Owned Enterprise
Global Forum on Remittances, Investment and
GFRID SRI Socially Responsible Investment
Development
GLC Government-linked company STAR Scholarship Talent Attraction and Retention
GP Global Practice SVP Senior Vice President
GRP Good Regulatory Practices TA Technical Assistance
GST Good and Services Tax TFP Total Factor Productivity
Human Resources Development for Bureaucratic TTL Task Team Leader
HRDBR
Reform
International Bank for Reconstruction and UKM National University of Malaysia
IBRD
Development
UM University of Malaya
IDA International Development Association
UNDP United Nations Development Programme
IDEAS The Institute for Democracy and Economic Affairs
VAT Value Added Tax
IFAD International Fund for Agricultural Development
WB World Bank
IFRS International Financial Reporting Standards
WBG World Bank Group
IMF International Monetary Fund
WC-FINC Working Committee on Financial inclusion
INCEIF International Center for Education in Islamic Finance
ISRA International Sharia Research Academy
ANNUAL REPORT | FINANCIAL YEAR 2019 5
Executive
Summary
EXECUTIVE SUMMARY
Overview
Overview
Navigating Change and Looking Ahead
The 14th General Election in Malaysia in May 2018 marked program commitments. These commitments covered both
an important milestone in the history of the country. the knowledge and research work programs, as well as the
The electoral outcome witnessed a peaceful and stable advisory and technical assistance activities, covering various
transition of authority, from a ruling coalition in power since development sectors.
independence, to a new alliance of political parties under
the leadership of former Prime Minister Tun Dr. Mahathir While continuing to serve as a global platform for sharing
Mohamad. This transition demonstrated the resilience and knowledge and generating cutting-edge policy innovations
effectiveness of Malaysia’s democratic institutions despite and global research, the Hub has responded to the
growing weaknesses related to transparency, accountability, Malaysian Government’s desire to intensify efforts towards
and good governance prior to the election. It also opened supporting the country’s internal policy agendas. WBG’s
up opportunities for change, and a renewed focus on discussions with Prime Minister Tun Dr. Mahathir Mohamed
sharing the benefits of economic prosperity more broadly in December 2018 focused on the importance of good
across all segments of society, particularly among the lower- governance and devoting efforts towards improving public
income households in Malaysia. sector performance. In response, a decision was taken to
refocus the Hub’s next Malaysia Economic Monitor (MEM)
While the country’s longer-term aspirations still include report on the topic of administrative reform, and to produce
avoiding the ‘middle-income trap’ and entering high- a Governance Report on combating corruption.
income and developed nation status, the Malaysian
Government is placing higher priority on achieving greater Hub discussions with the Ministry of Finance (MOF) and Bank
‘shared prosperity’ along this expected development Negara Malaysia (BNM) officials also focused on stimulating
journey. It is also focused on ensuring the existence of the job creation and entrepreneurship; boosting productivity
right ‘building blocks’ for a higher-quality and more rapid and new drivers of growth including the digital economy,
transition including: (i) good governance, accountability, improving fiscal management, and taxation policies; and
and transparency; (ii) higher levels of economic productivity, pushing the boundaries of innovation in the areas of Islamic
innovation, and competition (iii) larger investments finance and sustainable finance. Across these different areas,
in human capital, particularly in improving childhood Hub teams worked on producing deliverables, organizing
learning outcomes; and (iv) improved systems to target knowledge-sharing events, and building capacity among
social assistance for the vulnerable groups and individuals members of Malaysian counterpart teams. The work on the
in society. Alongside these broader objectives, the digital economy, for example, undertaken in collaboration
Government is also focused on several near-term priorities with MOF, was disseminated in a national conference, and
revolving around expenditure rationalization and domestic helped inform important policy reforms in this area.
resource mobilization.
As the Hub focused on delivering on its FY19 commitments,
The fourth year of the Hub’s operations in Malaysia coincided WBG Management also looked ahead and initiated
with changes in the surrounding country environment as consultations with the Malaysian Government about the
well as changes within its own management structure. A next phase of its operation from 2021-2025. Over the past
new WBG Country Director and a new Country Manager year, the Hub discussed with the Malaysian Government the
for Malaysia took over the management reins around the thematic focus of the work of the Hub during the second
time of the General Election, and worked on ensuring phase, and agreed on several guiding principles governing
business continuity and the delivery of scheduled work its work going forward.
ANNUAL REPORT | FINANCIAL YEAR 2019 7
EXECUTIVE SUMMARY
FY19 Year in Summary
FY19 Year in Summary
This section summarizes the Hub’s key engagements and results over the past year
in collaboration with the Malaysian Government. The Hub continues to deliver on its
commitment to generate innovate knowledge and research solutions for the benefit of
Malaysia and countries around the world.
Engagements and Results
Global Hub as Partner in Promoting Policy Reforms by developing new knowledge,
carrying out original research, and bringing in global expertise to develop policy
recommendations and engage policymakers, industry, and academia
• This two-year work program on Malaysia’s Digital • Development of a modelling tool to determine the
Economy - A New Driver of Growth and a Source Critical Occupations list, an innovation that combines
of Fiscal Revenue was completed during the year in qualitative and quantitative information on labor market
review. The program examined three inter-related issues shortages, and has attracted widespread attention in
– digital connectivity, entrepreneurship and taxation of countries across the East Asia and Pacific region that are
digital platforms. The policy reforms supported by this grappling with skills imbalances on the labor market.
work program have yielded impressive results such as
the number of fixed broadband subscriptions increasing • Development of ESG Framework for Value Based
from 150,000 in 2017 to 1.2 million in 2018; and fixed Intermediation (VBI) Guidelines. The WB team
broadband speeds increasing three fold over the same supported the International Centre for Education in
time period. A service tax on foreign digital services Islamic Finance (INCEIF) and BNM in the development
including software, music, video and digital advertising of the VBI Framework, and organized workshops to
will also go into effect on January 1, 2020. share both the framework and other examples from
around the world. This framework provides guidance
• An Agriculture Public Expenditure Review was to facilitate the implementation of an impact-based risk
completed to support the Government to increase the management system for assessing the Islamic banking
efficiency of public spending, service delivery, programs institutions’ (IBIs’) financing and investment activities in
in paddy and rice, and other agro-food subsectors, as line with their respective VBI commitment.
well as learning from good international practice.
• Analysis on women’s economic empowerment in
• A Global Report on Public Sector Performance was Malaysia, which draws on new findings from in-depth
prepared by a Hub team in coordination with Malaysian quantitative, qualitative, and legal (civil and Syariah laws)
Government counterparts. The report features 15 case research. The report explores the issues of promoting
studies on how reformers have overcome persistent economic opportunities for women, recognizes inherent
public sector management challenges and includes values, and provides recommendations for policies
analyses and examples of what works in improving and programs reforms, within the context of Malaysia’s
policy and interagency coordination, and why it matters transition into a developed nation
to national prosperity.
• Peer review of Mid-Term Review (MTR) of the 11th
Malaysia Plan, by providing detailed peer review
comments, drawing from extensive inputs from the Hub
team as well as regional expertise. Comments were
focused on the Ministry of Economic Affairs (MEA)’s
assessment of past progress against the Plan, as well as
recommendations to enhance the clarity and targeting
of future measures.
8 ANNUAL REPORT | FINANCIAL YEAR 2019
EXECUTIVE SUMMARY
FY19 Year in Summary
Malaysia as a Contributor to Global Development Financing Solutions by leveraging
Malaysia’s leadership in Islamic finance and the WBG’s global expertise experience
in green and socially-responsible finance
• Commemorating the one-year anniversary of the development in many parts of the world. The rapid growth
issuance of the world’s first green sukuk, the World of Islamic finance in recent years has drawn attention
Bank’s Green Bond Proceeds Management & to its enormous potential. WBG has collaborated with
Reporting Guide was launched. The Guide, a joint Bank Negara Malaysia, SC, International Organization of
Hub and World Bank Treasury initiative, aims to guide Securities Commissions (IOSCO), INCEIF, International
green bond/sukuk issuers in managing the issuance Shari’ah Research Academy for Islamic Finance
proceeds and post-issuance reporting. The Guide (ISRA), Islamic Financial Services Board (IFSB), Islamic
was launched jointly with World Wildlife Fund (WWF) Development Bank (IsDB), and the General Council for
at the Sustainable Finance Forum in October 2018, Islamic Banks and Institution (CIBAFI).
which brought together more than 100 regulators,
bankers, market participants, and international experts • South-South Knowledge Exchanges: Delivered
for discussions on sustainable finance and responsible workshops on green/sustainable finance for government
investing. officers in Indonesia and Vietnam. The WB Malaysia
Hub and Jakarta teams co-organized a Sustainable
• Aligning SDGs to Islamic Finance and maximizing Finance Forum at the WB-IMF Annual Meetings in Bali
Social Impact through Waqf Solutions. The use of in October 2018 to share the work done on green and
Islamic social finance tools has been instrumental in the sustainable financing in the EAP region.
alleviation of poverty and promoting socioeconomic
ANNUAL REPORT | FINANCIAL YEAR 2019 9
EXECUTIVE SUMMARY
FY19 Year in Summary
“There are a lot of exciting things happening in the green
industry in Malaysia because we have an ambition not
only to make Malaysia a very green country, but also
to make this an ASEAN hub, for companies who want
to invest in ASEAN, to be a place where they operate in
this ASEAN region. We need help from everyone, so we
are very open to collaborate with the World Bank.”
YB Yeo Bee Yin
Minister of Energy, Science, Technology, Environment and
Climate Change, Malaysia
10 ANNUAL REPORT | FINANCIAL YEAR 2019
EXECUTIVE SUMMARY
FY19 Year in Summary
Global Hub as a Convener of Local and Global Stakeholders on development topics to
share knowledge, research, and implementation lessons amongst policymakers and
planners
• The Hub’s Global Research team organized the third team co-organized the subsequent third workshop in
international conference on Globalization: Contents Manila in May 2019.
and Discontents. The goal was to understand the
processes underlying globalization, and how they • ASEAN technical working committees, the WB Hub
may be oriented towards welfare-enhancing results. team has contributed to learning and policy discussions
The challenge is creating ’smart’ globalization, where by leveraging the WBG knowledge and experience.
international integration becomes a force for economic Some examples are the use of WBG Global Findex
growth, sustainable development, and equality of database, the WBG Remittances Worldwide Prices
opportunities. It featured keynote speeches by Shanta database, WBG/CGAP work on regulatory sandboxes
Devarajan (World Bank), Bill Easterly (New York and digital finance, and WB’s treasury experience on
University), and J.P. Singh (George Mason University), green bond standards.
as well a strong set of research papers and discussions
by economists and social scientists from renowned • Global Payments Week 2018 was held for the first
universities around the world, the Federal Reserve time in Asia, when BNM and the World Bank co-hosted
Board, and the International Monetary Fund (IMF). The the event in December 2018. It recorded the largest
Ministry of International Trade and Industry (MITI) hosted number of participations - over 160 participants from all
an engagement follow-up session with the speakers and regions. It convened over senior officials from over 60
researchers. central banks including ECB, Federal Reserve Bank of
New York, Federal Reserve Board, and Southeast Asian
• Malaysia hosted the second Southeast Asia Planning and Latin American countries. GPW2018 covered the
Community of Practice (PCoP) for government officials development of financial market infrastructures since
involved in national economic planning. MEA and the the last financial crisis in 2008, a deep dive of innovative
Hub convened 50 government officials from seven payment system development and oversight, and
countries in a two-day workshop which was held in cybersecurity.
November 2018. These officials play an important role
in shaping national development objectives and were
eager to learn from each other’s experience. The Hub
Global Hub as Supporter of Malaysia’s Research Ecosystem through joint work, global
and regional conferences, and hands-on training workshops
• Updated the Malaysia Macro-Econometric Model • Regional training on small area estimation of poverty
and enhanced the capacity of MOF to fully utilize and well-being using a method of combining household
and sustain the use of the model. The new model survey and population census data.
is now fully operational and is supporting informed
policymaking, including the Economic Report, as part of • A s ses s ment s of Malaysia’s Outcome Based
the Federal Budget preparation process. Budgeting, Good Regulatory Practices, and National
Development Planning system, which enabled the
• A week-long course in Impact Evaluation Methods Malaysia Hub team to provide informed advice and
was conducted for 64 researchers and teachers from develop policy recommendations relevant to the local
13 countries. The course had a positive impact on context.
the researchers’ agenda, and for teaching advanced
undergraduate and master’s courses. It also provided • 23 DECRG research seminars and 20 Half-Baked
a platform for an enriching exchanges of practical seminars were held, where Malaysian and international
challenges and experiences. researchers and PhD students present their published
or upcoming work. These events foster critical discourse
• Training on Debt Management Per formance and the exchange of ideas among the academic and
Assessment for government officials from Asia Pacific. research community in Malaysia.
ANNUAL REPORT | FINANCIAL YEAR 2019 11
EXECUTIVE SUMMARY
FY19 Malaysia Economic Monitor and Development Digest
FY19 Malaysia Economic Monitor
and Development Digest
Malaysia Economic Monitor
Overview
The objective of the Malaysia Economic
Monitor (MEM) series is to contribute to
evidence-based policy analysis on the
key challenges that Malaysia will need
to overcome to become a high-income,
inclusive and sustainable economy with
shared prosperity.
The WBG conducts macroeconomic analyses across
all of its member countries that are fully funded by its
administrative budget, in order to keep abreast of policy
issues in emerging market and developing economies and
to leverage its international expertise. The MEM is a long- Realizing Human Potential
running and high-impact World Bank publication emanating
from the Hub in Kuala Lumpur. FY19 saw the MEM reach its The December 2018 edition of the MEM focuses on human
20th edition. capital, drawing upon insights from the World Bank’s new
Human Capital Index.
The series comprises two semi-annual reports, typically
released in December and June, each structured around Accelerating human capital development will be critical for
two parts: (a) a review of recent economic developments enabling Malaysia’s successful transition to a high-income
and a macroeconomic outlook, with a strong focus on the and developed nation. With the advent of digital and other
impact of economic developments on the bottom 40% of disruptive technologies, there has been a significant change
households; and (b) a thematic chapter zooming in on a in the nature of jobs, with an increasing premium on higher-
topic that is (i) a critical challenge to Malaysia’s achievement order cognitive skills, such as complex problem solving,
of shared prosperity; and (ii) where the World Bank can socio-behavioral skills, reasoning, and self-efficacy. Building
leverage its expertise and the work produced through the these skills requires a transformation in the way that Malaysia
Hub. nurtures, invests, and protects its human capital.
Continual engagement with stakeholders throughout the According to the World Bank’s new Human Capital Index,
preparation of the reports has been a defining characteristic Malaysia ranks 55th out of 157 countries. While Malaysia
of the MEM series. Publication and effective dissemination, performs well in some components of the index, it does less
including in multiple locations across Malaysia, has well in others. To fully realize its human potential, Malaysia
contributed to evidence-based policy analysis and debate on will need to make further advances in education, health
topics that are critical to Malaysia’s development prospects. and nutrition, and social protection outcomes. Key priority
Each edition of the MEM sees a livestreamed public launch areas include enhancing the quality of schooling to improve
event, with significant media outreach and the production learning outcomes, rethinking nutritional interventions
of Web materials. Subsequent follow-up dissemination to reduce stunted growth during childhood (stunting),
events take place across the country, involving partnerships and providing adequate social welfare systems to enable
with universities, thinktanks and state-level governments. households to invest in human capital formation.
12 ANNUAL REPORT | FINANCIAL YEAR 2019
EXECUTIVE SUMMARY
FY19 Malaysia Economic Monitor and Development Digest
Re-energizing the Public Service
The June 2019 edition looks at Malaysia’s overall public of making a successful transition. It will need a renewed
sector governance and the importance of the civil service focus on not just the right form of institutions but the
in that context. While it is well understood that governance functions of these institutions and how they are run.
encompasses a whole range of issues like institutions,
corruption, openness and transparency, and Rule of law, Along with the importance of human resource management
among others, this MEM focuses on the people who are in the civil service, the MEM stresses the importance of
at the heart of public sector governance, namely the civil fostering an open and transparent civil service not just in
servants and their management. hiring and promotions but creating an enabling environment
of openness that would encourage such behaviors in the civil
Across East Asia, as policymakers seek to build increasingly service at large and help build trust in the public service. The
affluent, middle-class societies, they will face increased final section focuses on the impact of new and emerging
demands for more and better-quality services. Rising trends, such as digital technologies on employment in
affluence triggers higher societal expectations about the public sector and its readiness to support Malaysia’s
the range and quality of services delivered by the state. transition to a high-income and developed country.
Enhancing state effectiveness is, therefore, an integral part
Development Digest
In FY19, the Digest had ventured into its fifth and sixth
editions, and had been disseminated through the Hub’s
major conferences and report launches – both in Malaysia
and at our Washington, D.C. headquarters.
Aside from featuring the work from the Hub, the Digest also
houses opinions from key leadership personalities of the
Bank, reflecting on the strategic nature of the Hub and its
value that it presents in the larger, corporate perspective
of the World Bank Group. In the latest April 2019 edition,
Executive Director and Dean of the Board, Merza Hussain
Hasan, contributed the lead article, expressing the
knowledge evolution of the Bank and how the Hub is a
“clear expression” of this agenda.
The Digest also captures key engagements with Government
within the period serving as an aide-memoire for significant
meets. The latest edition featured meets with Prime Minister
YAB Tun Dr. Mahathir Mohamad, Finance Minister YB Lim
Guan Eng, and Bank Negara Malaysia Governor Datuk Nor
Shamsiah Mohd Yunus.
The Development Digest is a half-yearly publication that The Digest also presents a space to capture the Hub’s
features key works from teams based at the Hub in Malaysia. youth engagements where youth leaders engaged with
It is a unique publication, extending the reach of much of the the Hub are welcomed to contribute a piece reflecting on
Hub’s research and analytical work to a broader audience, their experience working together with the World Bank in
offering a lighter read, while demonstrating an updated set Malaysia.
of deliverables over the course of every six months.
ANNUAL REPORT | FINANCIAL YEAR 2019 13
EXECUTIVE SUMMARY
FY19 Key Activities in Pictures
FY19 Key Activities in Pictures
(JULY 2018 – JUNE 2019)
JULY 2, 2018 AUGUST 6, 2018
Launch of the 18th MEM Report - Digital Economy Roundtable Discussion on “Strengthening the
This MEM focuses on the digital economy, describing Performance-Orientation of the Budget for
the key building blocks to unlock its potential in order to Malaysia” (OBB)
spur economic growth, job creation, and enhance public The roundtable discussion gathered over 75 people
revenues. The event was officiated by YB Minister from ministries, academia, and think tanks, with inputs
Azmin Ali. to understand the limitations of OBB and the next steps
to enhance the performance orientation of the budget
process for MOF.
JUL 2018 AUG 2018
JULY 16, 2018 AUGUST 9-10, 2018
Global Findex Presentation DFIs Performance Measurement Framework Forum
A regional launch of the new Global Findex Report 2017 A forum co-organized between WB-BNM to further uplift
with BNM, attended by 120 participants. the current condition of DFIs in the country, with more than
300 participants consisting of senior management of the six
DFIs under BNM.
14 ANNUAL REPORT | FINANCIAL YEAR 2019
EXECUTIVE SUMMARY
FY19 Key Activities in Pictures
AUGUST 18, 2018 SEPTEMBER 13, 2018
Panelist for HPAIR Asia Conference, organized INCEIF-ISRA-WB Roundtable discussion on
by Harvard Project for Asian and International Maximizing Social Impact through Waqf Solutions
Relations 2018 A roundtable discussion provided a platform for
Engaged with 300 students, who provided proposals for discussions among policymakers, development
Malaysia’s reform priorities as part of the Harvard Project practitioners, and market players on how best to deploy
for Asian and International Relations Conference. the Waqf model in addressing various developmental
challenges.
SEPT 2018
SEPTEMBER 12-13, 2018 SEPTEMBER 2018; OCTOBER 2018; APRIL 2019
Digital Economy Conference: Public Policy in a MEM Roadshows
Digital World The Bank engaged with staff officials, academics, and
The flagship report, which was launched at the Public Policy youths in Kedah, Penang, Johor, and Sarawak on policy
in a Digital World conference, is a culmination of a year- recommendations in the MEM report.
long work program including close cooperation and policy
dialogue with the Malaysian authorities.
ANNUAL REPORT | FINANCIAL YEAR 2019 15
EXECUTIVE SUMMARY
FY19 Key Activities in Pictures
OCTOBER 2, 2018 OCTOBER 19, 2018
CIBAFI-WB Conference on Corporate Governance End Poverty Day
The conference aimed to reinforce commitment to help The World Bank’s ‘Poverty and Shared Prosperity Report
foster the development of Islamic finance globally in 2018’ was launched in collaboration with UNICEF and
corporate governance among various stakeholders from UNDP. Deputy Minister of Trade and Industry, YB Dr. Ong
the Islamic finance industry, policymakers, and academia. Kian Ming, officiated the opening. The event also featured
a photo exhibition by UNICEF Malaysia, taken by youth
living in low-cost housing units.
OCT 2018
OCTOBER 2, 2018 OCTOBER 30, 2018
WB-WWF Sustainable Finance Forum Launch of EPF Case Study Report
The forum gathered more than 120 financial regulators, The case study provided practical lessons and actionable
banks, institutional investors, and policymakers to share policy measures, while providing insights for an efficient
their experiences in incorporating ESG criteria into their provident system for developing countries, drawing from
investment and business processes, as well as their Malaysia’s experiences. It was attended by more than 120
approaches to responsible and sustainable investments. people comprising past and present Directors of EPF, its
senior management, and interested members of the public.
16 ANNUAL REPORT | FINANCIAL YEAR 2019
EXECUTIVE SUMMARY
FY19 Key Activities in Pictures
NOVEMBER 1, 2018 NOVEMBER 12-16, 2018
Doing Business 2019 report Launch DECRG Short Course on Impact Evaluation Methods
The report was launched regionally with Australia, A 1-week course with 70 participants, including 35 local
Indonesia, Mongolia, and Thailand participating by academicians, who examined methods to better measure
videoconference. Over 80 representatives from the public the impact of interventions and policies.
and private sector participated.
NOV 2018
NOVEMBER 4, 2018 NOVEMBER 7; NOVEMBER 14, NOVEMBER 11-16, 2018
Greenback Kota Kinabalu: 2018 South-South Knowledge
Remittance Carnival DECRG Seminars Exchange between Tunisia and
An outreach fair was conducted Research seminars about “Green Malaysia on the TVET Sector
in Kota Kinabalu for Greenback Growth” on the potential for The World Bank hosted a high-level
2.0 in Nov 2018 on e-wallet and strategically-crafted environmental delegation from Tunisia as part of a
remittances, which was attended by investments and policies to achieve knowledge exchange initiative, which
about 2,500 people. sustainability at low cost, as well as focused on the lessons learned in the
providing the first comprehensive Technical and Vocational Education
and systematic analysis of inflation and Training (TVET) sector.
in emerging and developing
economies.
ANNUAL REPORT | FINANCIAL YEAR 2019 17
EXECUTIVE SUMMARY
FY19 Key Activities in Pictures
NOVEMBER 12-14, 2018 DECEMBER 10, 2018
South East Asia PCoP Workshop Meeting with Tun Dr Mahathir Mohamad, Prime
Held a technical workshop to support peer learning among Minister of Malaysia
senior technical officials from planning ministries in the World Bank Vice President for East Asia and Pacific Victoria
region, focusing on national development planning and Kwakwa and management team met with Tun Dr Mahathir
public investment management. Mohamad, Prime Minister of Malaysia, who re-affirmed the
strength of the development partnership between Malaysia
and World Bank.
DEC 2018
DECEMBER 3-7, 2018 DECEMBER 11-12, 2018
Conference on Global Payments Week 2018 WB-INCEIF-IRTI Annual Conference on Islamic
BNM and World Bank co-hosted the Global Payments Finance
Week for the first time in Asia. Convened over 160 senior The conference aimed to explore the linkages between
officials from over 60 central banks including ECB, Federal Islamic finance and two SDGs; namely, no poverty and
Reserve Bank of New York, Federal Reserve Board, South zero hunger. The event brought together more than 300
East Asian and Latin American countries. participants of academics, policymakers, market players,
and development practitioners.
18 ANNUAL REPORT | FINANCIAL YEAR 2019
EXECUTIVE SUMMARY
FY19 Key Activities in Pictures
DECEMBER 14, 2018 JANUARY 15-16, 2019 FEBRUARY 28, 2019
Global report on Conference on Globalization: Technical Advisory on Final
Entrepreneurship Contents and Discontents Report of the Agriculture Sector
The launch of the Global High The conference brought together Public Expenditure Review
Growth Entrepreneurship Report, policymakers and academics to The RAS supported the Government
was jointly held with the newly discuss the consequences of various to find solutions on how to increase
formed Ministry of Entrepreneur aspects of globalization. About the efficiency of public spending,
Development, with a view to 160 participants from academia, service delivery, and programs in
undertake similar work for Malaysian policymakers, government paddy and rice, as well as other
firms. The event was attended by counterparts, and think tanks agro-food subsectors. The Final
about 150 people. attended the conference. Report of this 18-month RAS was
delivered in February 2019.
JAN 2019 FEB 2019
DECEMBER 18, 2018 FEBRUARY 20, 2019
Launch of the 19th MEM Report – Human Capital Agricultural Technical and Consultation Workshop
The MEM edition aimed to highlight where Malaysia has in Sarawak
performed when it comes to human capital development, With the participation of 35 attendees from the
with a view to identifying policy options for reforms. government, academia, and NGOs, presentations were
made by the World Bank providing a general picture on
the progress and achievements of the agricultural sector in
Malaysia, and how the transformation compared with other
countries.
ANNUAL REPORT | FINANCIAL YEAR 2019 19
EXECUTIVE SUMMARY
FY19 Key Activities in Pictures
MARCH 12-13, 2019 APRIL 2-3, 2019
BNM-ICLIF Corporate Governance for Development WB-Cagamas Regional Conference on
Financial Institutions “Constructing and Financing Affordable Housing
In the training for DFIs’ Directors, several presentations on Across Asia”
DFIs were given from the global perspective, such as the The two-day event discussed how to reach the SDG goal of
roles of DFIs, findings of the Global Survey on National safe, adequate, and affordable housing for all. More than
Development Banks 2017, corporate governance, and the 400 participants from some 30 countries participated in the
outlook for DFIs to 15 newly-appointed Directors from the event.
six DFIs under BNM supervision.
MAR 2019 APR 2019
MARCH 21-22, 2019 APRIL 12, 2019
Knowledge Exchange between Croatia and Malaysia Spring Meetings, Washington DC: Unlocking the
Sharing Malaysia’s experience in collaboration with MOF, Potential of the Digital Economy
on national development planning, delivery units, and Minister of Finance Lim Guan Eng delivered the keynote
performance budgeting with government counterparts of address in a Malaysia Hub event on Unlocking the Potential
Croatia. of the Digital Economy: Lessons from Early Adopters in
Maximizing Benefits and Minimizing Risks.
20 ANNUAL REPORT | FINANCIAL YEAR 2019
EXECUTIVE SUMMARY
FY19 Key Activities in Pictures
APRIL 22-25, 2019 APRIL 23; APRIL 30; MAY 3, 2019
Technical Advisory on Subnational Doing Business Seminars on Macro financial conditions, SDGs, and
in Malaysia 2020 DFIs in MOF, Putrajaya
A mission was undertaken to officially kick off the WB conducted several seminars for the MOF on macro-
subnational Doing Business in Malaysia 2020 study. The financial conditions, aligning sustainable finance with SDGs,
event gathered more than 60 participants, including local and performance measurement for DFIs. The seminars
officials from the six cities measured. were attended by more than 40 Government officials in
the efforts to foster policy dialogue among policymakers,
practitioners, and all relevant parties in Malaysia.
APRIL 22-26, 2019 APRIL 24-25, 2019
Regional Debt Management Performance WB-BNM Regional Conference on NPL Resolution
Assessment (DeMPA) Training The conference laid out the building blocks necessary
A training, which provided a module on developing country for an effective NPL resolution strategy. More than
specific reform plans in the Asia-Pacific region and aimed 90 participants from 14 countries from Asian national
to provide an understanding of the rationale, scope, regulatory and supervisory authorities, standard-setting
coverage, and application of the DeMPA methodology. The bodies, and public and private sector agencies joined the
workshop was attended by 25 government officials from conference.
the Asia-Pacific region.
ANNUAL REPORT | FINANCIAL YEAR 2019 21
EXECUTIVE SUMMARY
FY19 Key Activities in Pictures
APRIL 26 - MAY 3, 2019 MAY 2, 2019
WB-BNM Plenary Sessions & Bilateral Meetings on Impact Reporting Workshop on Green Sukuk/Bond
Performance Measurement Framework for DFIs in with Capital Market Malaysia (CM2)
Malaysia A technical workshop with CM2 to key stakeholders in
Plenary sessions and bilateral meetings with all six DFIs green finance markets development, where WB provides
that focused on the concept of ‘theory of change’ and technical assistance to enable the rapid issuance of
were conducted in preparing the six DFIs for their report green bonds/sukuk in compliance with international best
to BNM under its new Performance Framework for DFIs practices. About 40 people attended the workshop.
Framework which was introduced in 2018. About 110
people participated in this event.
MAY 2019
APRIL 29-30, 2019 MAY 22-23, 2019
WB-SC-IOSCO Conference on Islamic Finance for PCoP Technical Workshop in the Philippines
Financial Inclusion The workshop was on National-Subnational Alignment
The conference discussed the use of Islamic finance to and Coordination, with over 50 participants in attendance
support financial inclusion, including the use of Islamic including officials from MEA.
social finance instruments and FinTech to eradicate poverty
and promote shared prosperity. More than 200 participants
from 15 countries participated in the conference.
22 ANNUAL REPORT | FINANCIAL YEAR 2019
EXECUTIVE SUMMARY
FY19 Key Activities in Pictures
MAY 27-31, 2019 JUNE 18-19, 2019
Regional Training in the Small Area Estimation of WB-APEC Investment Policy Reform Workshop
Poverty The WB Investment Policy and Promotion (IPP) Team, in
Using World Bank-developed software tools, participants partnership with the Australian Department of Foreign
learned how to combine survey and census data to Affairs and Trade (DFAT) and APEC, will co-host a peer-
estimate poverty for small geographic areas. Participants to-peer learning event, which will focus on new trends in
included analysts and statisticians from the statistical investment policy and promotion, and the WB’s work with
offices of Malaysia, Indonesia, the Philippines and Thailand, governments within APEC and abroad to improve their
as well as the planning ministries of Malaysia (MEA) and investment competitiveness.
Indonesia (BAPPENAS).
JUN 2019
JUNE 17-21, 2019
Tech & FinTech Festival Malaysia – Workshops on
Fintech and Financial Inclusion JUNE 20-21, 2019
In collaboration with BNM and MDEC, WB will co-lead Promoting Investment Retention and Expansion P2P
specific sessions at both MyFintech Week and MyTech Learning Event in Southeast Asia
Week, aiming to promote growth and diversity in the
European Commission and World Bank IPP team will jointly
FinTech ecosystem, foster digital transformation of financial
launch a series of peer-to-peer learning events to enable
institutions, and promote FinTech solutions.
the staff of relevant agencies to improve their capacity to
promote investment retention and expansion.
ANNUAL REPORT | FINANCIAL YEAR 2019 23
PILLAR 1
Sharing Policy
Innovations and
Development
Experiences
Introduction
As Malaysia aims to achieve high-income
and developed nation status, the country’s
development experience thus far continues
to generate interest from development
practitioners and policymakers from around
the world.
The Malaysia experience, both successes and challenges, is a source of
solutions and lessons for developing countries in Asia and beyond that
are interested in sustainable and inclusive growth. The Hub supports the
sharing of this experience through analysis, assessment, documentation, and
dissemination of the development journey; facilitates learning exchanges
and best practices; collaborates with the public sector, private players, and
academia; and builds capacity through peer learning, workshops and training
programs.
In this first Pillar, the World Bank Hub work program is based on 4 key
thematic areas, which are:
1. Supporting Equitable Economic Growth
2. Enhancing Finance, Competitiveness and Innovation
3. Strengthening Public Sector Management
4. Boosting Social Protection and Jobs Outcomes
ANNUAL REPORT | FINANCIAL YEAR 2019 25
THEME 1
Supporting Equitable
Economic Growth
OVERVIEW
• Improving The work on this theme includes contributions from a cluster of
Inclusiveness and the World Bank’s Global Practices, including Macroeconomics,
Fostering Economic Trade and Investment; Poverty and Equity; and Agriculture. The
objective of the program is to support Malaysia in sharing –
Growth
and other countries in drawing on – Malaysia’s experience and
• Enhancing Regional expertise in sustaining equitable economic growth.
Integration
To this aim, the Bank seeks to:
• Strengthening • identify, analyze, and work on areas of demand for the
Economic Malaysian experience in economic management, as well as
Management poverty and inequality reduction;
• Unleashing the • systematize good practices and experience, with emphasis on
Malaysia’s knowledge, to share with other countries; and
Potential of
Malaysia’s Digital • build capacity among WBG clients in deploying and using
Economy analytical tools for economic development, including Malaysia
as a benchmark.
26 ANNUAL REPORT | FINANCIAL YEAR 2019
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 1: Supporting Equitable Economic Growth
FY19 Year in Review
(JULY 2018 – JUNE 2019)
Macroeconomics, Trade and Investment
Prudent macroeconomic management has been at the core Malaysia’s Government is making major reforms in these
of Malaysia’s transition from low- to upper-middle-income areas (and starting to see results), laying not just the
status, and will continue to be critical through the next stage foundation for sustainable growth in Malaysia, but also
of this transition to a high-income and developed economy. providing valuable lessons and insights for policymakers in
Advisory work to update the Malaysia Macro-Econometric other countries around the world. Reforms implemented to
Model, build capacity within MOF to fully utilize the model, the regulatory regime for telecommunications have seen
and sustain its use over time, was completed with a final the costs of fixed broadband halve and speeds double.
“reverse training mission” where MOF staff travelled to Most visibly, they have caused a shift in consumer demand
Washington, D.C. to work alongside World Bank modelers. towards faster Internet connections, with the number of
The new model is now fully operational and in use by MOF ultra-fast broadband connections increasingly eight-fold
staff to support informed policymaking, including via the during 2018 as a result of increased competition. Further,
preparation of the Economic Report and as part of the Malaysia is among the first developing countries to extend
federal budget preparation process. Training was also indirect taxation to imported digital services, pushing
provided to MOF staff during the year regarding Debt the development frontier not just in Malaysia but in other
Management Performance Assessment. countries, and helping to balance growth with revenue
sustainability.
The flagship work program activity on Malaysia’s Digital
Economy – A New Driver of Growth and a Source of Fiscal
Revenue was completed during the year under review.
The program examined three interrelated issues— digital
connectivity, digital entrepreneurship, and taxation of digital
platforms —that are closely aligned with Malaysia’s goal of
becoming the e-commerce hub of the region. It began
with an assessment of digital adoption, with an emphasis
on how businesses are using—but failing to fully exploit—
digital technologies to communicate with customers,
market goods, and meet other core business functions.
A discussion of the ICT infrastructure on which the digital
economy is built, including persistent challenges related
to the affordability and quality of fixed broadband Internet REPORT RECOMMENDATIONS
access that arise from high prices, market concentration, • More competition in fixed broadband
and an underperforming regulatory regime followed. The market: infrastructure, regulations, skills,
program also looked at the promise and challenges of digital and public finance
entrepreneurship in Malaysia, highlighting the central role
• Achieve ubiquitous, fast, and inexpensive
of government initiatives to date and what is required to
Internet connectivity for businesses and
fully empower the private sector. The final piece explored households, and fix the way it regulates
options for taxing the digital economy, including the impact the Internet so unfair business practices
of recent reforms to international standards. can be corrected
• Improve human capital through better
The Malaysia digital economy program involved the
curriculum and life-long learning, and
production and organization of a wide-range of activities
encourage private sector finance so digital
over a two-year period from original research, to analyses of entrepreneurs can bring ideas to market
trends in digital adoption, connectivity, entrepreneurship,
and taxation; to numerous knowledge-sharing events • Safeguard future tax revenues from the
digital economy, to reinvest in areas the
including conferences, training workshops, and policy
economy needs most
impact challenge events.
ANNUAL REPORT | FINANCIAL YEAR 2019 27
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 1: Supporting Equitable Economic Growth
A major new activity focusing on Malaysia’s Transition to
High-Income and Developed Country Status began during
the year under review. World Bank projections indicate Reforms will be needed in four
that Malaysia is likely to transition from an upper-middle- broad areas:
income economy to a high-income economy within the
1. boosting competitiveness;
next three to five years. This milestone will be an important
marker in Malaysia’s development journey, as the country 2. creating jobs;
has witnessed a transformation in living standards within a 3. modernizing institutions; and
generation, reducing dollar-a-day poverty to just a fraction
4. promoting inclusion.
of one percent of the population. It will also perhaps put to
rest longstanding fears that Malaysia is at risk of becoming
stuck in the “middle-income trap”. Yet, the transition to high-
income country status also raises a number of questions in
terms of the quality and sustainability of growth, as well the be needed for a fully-developed Malaysia. Work began
broader development aspirations of Malaysian society— during the year in order to develop the analytical framework
especially as Malaysia increasingly compares itself with for this research, with preliminary analysis suggesting that
developed countries. for Malaysia to successfully transition to high-income and
developed country status, and sustain equitable growth
Most significantly, despite high rates of economic growth, beyond, then reforms will be needed in four broad areas.
there is a growing sense that the aspirations of Malaysia’s
middle-class society are not being met. Concerns over The primary output for this activity will be a flagship report
the extent to which the proceeds of growth are being seeking to answer the key question, namely: What will it
shared between the top and bottom ends of the income take for Malaysia to achieve its ambition of achieving
distribution are becoming more apparent. Moreover as the high-income and developed country status within the
country exits that growth period when factor accumulation next decade? The report will be launched at a conference
was a key driver, and increasingly looks towards more allowing for debate and discussion on key reform areas
knowledge-intensive and productivity-driven growth, closer required for Malaysia to successfully make this transition, as
to the technological frontier but with an aging society, it is part of the World Bank’s contribution to the preparation of
clear that a different set of policies and institutions might the 12th Malaysia Plan.
Poverty and Equity
Malaysia has an impressive record of economic growth The World Bank and BNM team devised
and poverty reduction, with a broad array of policies that an innovative approach to using BNM’s
have promoted the well-being of people across Malaysian remittance data to refine estimates of
society, both in increased household incomes and in
the number of irregular foreign workers in
expanded access to public services. Building on these
accomplishments, current policies aim for more inclusive
Malaysia, putting it in the range of 1.23–
development by improving the living standards of the least 1.46 million as of the end of 2017. The
well-off (the bottom 40% of income-earners), reducing collaborative work helped BNM improve
vulnerability, and delivering the high-quality services the quality of remittance data collected
demanded by a growing middle class. and better incorporate the information in
their routine systems and analyses.
The activity on Improving Labor Market Information for
Monetary Policy contributed new insights for enhancing the
evidence base used to conduct monetary policy. In recent Malaysia by the short length of time series data available
years, the historical relationships between unemployment, and limited variation in key variables. As a substitute, the
wages, and inflation appear to be weakening in many team developed an improved analytical framework for
countries, and notably so in Malaysia. Working together BNM’s labor assessments that includes (a) more explicitly
closely, a team of economists from Bank Negara Malaysia incorporating labor force participation and foreign worker
and the World Bank (including a high-level consultant from information in the analysis, (b) making greater use of historical
the U.S. Federal Reserve) determined that econometric data from when the relationship between unemployment
modeling of the relationships is severely constrained in and wages (and inflation) was more evident, and (c) cleaning
28 ANNUAL REPORT | FINANCIAL YEAR 2019
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 1: Supporting Equitable Economic Growth
the historical data series to smooth the spurious spikes In a separate initiative, a regional training was delivered on
related to adjustments in population estimates following the small-area estimation of poverty and well-being (also
decennial population censuses. known as poverty mapping). Eighteen participants from
Malaysia, Indonesia, the Philippines, and Thailand attended
The assessment of unemployment and the effects on the week-long course in Putrajaya, which covered advanced
wages and inflation is further complicated by the large methods and software developed by the World Bank for
number of foreign workers, whose inflows and outflows are estimating income, poverty, inequality, and other indicators
registered imperfectly at best in official labor statistics. This for much smaller geographic units than is possible using
is especially true for irregular foreign workers—those who standard household surveys.
are undocumented, or whose employment status does not
correspond to their documentation.
Agriculture
In the last 50 years, the Malaysian economy has undergone
major structural transformation. The agriculture sector The four thematic areas selected are:
was historically the mainstay of the economy, especially
1. national food security that examined food price
immediately following independence. Agriculture continues
stability, the consumption basket, and changes
to be an important sector to the economy, notwithstanding through time, and a relatively detailed analysis of
its share in total GDP has been falling as expected in rice, poultry, vegetables, and other food products;
successful economic transformation.
2. agro-industry and value chain development
that assessed the evolution of value chains with a
The objective of the Agricultural Transformation and detailed analysis of the palm oil subsector;
Inclusive Growth activity is to distill relevant lessons for
3. roles of policy and institutions in agricultural
other countries, and to identify future options, opportunities, transformation that examined the overall
and challenges facing Malaysia’s agricultural transformation evolution of policy and institutions during
going forward. As Malaysia is a recent transformer, the the different five-year plans, institutional
experience will be invaluable especially for countries dealing mechanisms and variations, and lessons from and
for Malaysia; and
with transformation issues in a globalization environment
and under an open trading regime. The study also explores 4. smallholder agriculture and area-based
what’s next for Malaysia’s agriculture sector on the road development that mapped out types and
arrangements of smallholders, small farms, area
towards deepening agricultural transformation.
developments initiated by the Government, and
regional differences.
No countr y reached high-income status without
transformation of the agricultural sector. In this
process, policies are among the main determinant factors This will provide lessons on the Malaysia experience and
in agricultural transformation accordingly. The first task indicative areas on the next steps in Malaysia’s agricultural
undertaken was the preliminary key policy issues in transformation. As part of an inbound-outbound knowledge
Agricultural Transformation within a comparative study exchange, a two-way knowledge exchange was conducted
framework that assessed the experience of three countries between the Philippines and Vietnam. The knowledge
(France, Chile, and Indonesia) in addition to Malaysia. This exchanges with the Philippines took place in November 2018
comparative study was followed by an in-depth analysis (in the Philippines) and in January 2019 (in Malaysia). Due
of four selected thematic areas that are of significance in to the success of the exchange, authorities have identified
agricultural transformation in Malaysia. areas of further collaboration and modality of cooperation
between the two governments.
A comparative study with Thailand is in the final phase
of preparation that will be the basis for a South-South An impact of this study was improvement in the capacity
knowledge exchange, where Thai counterparts have of academicians in analyzing agricultural transformation.
shown interest to learn from Malaysia in policy, planning, The task allowed sharing the mechanism of understanding
budgeting, and monitoring the implementation of plans. agriculture development projects within the agricultural
transformation framework. Discussions with academicians
The final report on agricultural transformation in Malaysia revealed that they have benefited from the joint research
is entering its final phase and will be completed soon. undertaken.
ANNUAL REPORT | FINANCIAL YEAR 2019 29
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 1: Supporting Equitable Economic Growth
IN FOCUS
Digital Economy Policy reforms help businesses and
consumers through faster and lower cost broadband
The Challenge
Malaysia needs to create a dynamic ecosystem for its digital Results to-date
economy that embodies changes to its infrastructure,
regulations, skills, and public finance. This flagship program • Number of fixed broadband subscriptions:
examined four inter-related issues—digital adoption, increase to 1.2 million subscribers (2018)
digital connectivity, digital entrepreneurship, and taxation from 150,000 (2017)
of digital platforms—that are closely aligned with Malaysia’s
• Fixed broadband download speeds
goal of becoming the e-commerce hub of the region. By
increased 3x.
leveraging the Internet, smartphones, big data, Internet
of Things, artificial intelligence, and other technologies, • Malaysia is now ranked 28th in the
Malaysia can increase productivity, spur innovation, and world, compared with 56th in 2017, on
improve livelihoods. fixed broadband download speeds
The Solution • Service tax on foreign digital services
The country needs to achieve ubiquitous, fast, and
including software, music, video, and
inexpensive Internet connectivity for businesses and
digital advertising will take effect from
households; fix the way it regulates the Internet so that
Jan 1, 2020
unfair and damaging business practices can be corrected; Source:
https://www.skmm.gov.my/media/press-releases/fixed-broadband-subscriptions-
improve human capital through better curriculum and surges-8x-as-consume
ht tps://w w w.thes t ar.com.my/news /nation/2018/10/08/broadband - prices-
life-long learning opportunities; encourage more vibrant c o m e - d o w n - m o r e - t h a n - 3 0 - r e d u c t i o n - f o r- e n t r y l e v e l - p a c k a g e s - a f t e r-
msap/#JAGxhFGlYfX85xry.99
private sector finance so digital entrepreneurs can bring ht tps://w w w.thestar.com.my/tech/tech-news/2018/11/02/ser vice-tax-to-be-
ideas to market; and take measures that will safeguard levied-on-digital-services-budget-2019/#hWQb77iJ1pJA1BP8.99
future tax revenues to improve public services and reinvest
in areas that the economy needs most.
the regulatory regime for telecommunications have seen
The report, which was launched at the Public Policy in a the costs of fixed broadband halve and speeds double.
Digital World conference in September 2018, is a culmination Most visibly, they have caused a shift in consumer demand
of a year-long work program, including close cooperation towards faster Internet connections, with the number of
and policy dialogue with the Malaysian authorities. ultra-fast broadband connections increasing eight-fold
during 2018 as a result of increased competition.
Results
Malaysia’s Government is already making major reforms Instruments
in these areas (and starting to see results), laying not just Technical missions, conferences, advice, training delivery,
the foundation for sustainable growth in Malaysia, but also the application of diagnostic tools formulated as part of the
providing valuable lessons and insights for policymakers in 2016 World Development Report on “Digital Dividends”,
other countries around the world. Reforms implemented to and the preparation of a flagship analytical report.
Knowledge Team: Richard Record, Siddhartha Raja, Brad Larson, Shakira Teh Sharifuddin, and Yew Keat Chong with
overall guidance provided by Ndiame Diop.
30 ANNUAL REPORT | FINANCIAL YEAR 2019
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 1: Supporting Equitable Economic Growth
FY20 Moving Forward
Key activities on areas such as Malaysia’s High-Income This necessitates a rethink
Transition and Agricultural Transformation and Inclusive
Growth will continue into FY20. A major conference on
of the effectiveness of the
the policy priorities for Malaysia to achieve its ambition existing investment strategy
of achieving high-income and developed country status and incentives framework to
within the next decade will be organized, as an input to the
preparation of the 12th Malaysia Plan.
ensure its effectiveness and
relevance in an increasingly
New work that commenced in 2019 on aspects of competitive environment.
Investment, Competition and Business Environment
Reform, which will be necessary for Malaysia to sustain
growth over the years ahead, will intensify during the year offered in terms of tax foregone have increased over time,
ahead. with some estimates suggesting that a large share of
incentives have no marginal impact on investor decisions.
While foreign direct investment (FDI) has benefited the
economy significantly in the past, there is growing evidence Evidence also indicates that Malaysia’s output markets are less
that the net benefits have narrowed in recent years. Malaysia efficient than that of peer countries. Even though Malaysia
has benefited from significant FDI inflows. However, has a competition law and a competition agency in place,
policymakers are increasingly concerned that FDI may not key regulated sectors, including telecommunications and
be delivering some of the intended key policy objectives or energy, remain out of the scope of the competition agency,
spillovers with respect to economic complexity, as well as and there is no merger control to prevent anticompetitive
creation of high-value employment, domestic linkages, and effects of market consolidation. In this context, the level
new industrial clusters. Concurrently, the costs of incentives of competition remains uneven across sectors; while
ANNUAL REPORT | FINANCIAL YEAR 2019 31
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 1: Supporting Equitable Economic Growth
competition in global markets has supported the growth of New work has commenced
the country’s large export-oriented manufacturing sector,
the services sector lags behind, while there are concerns
on Shared Prosperity and
about competition in markets for consumer products and in Inclusive Development, which
sectors where GLCs dominate. analyzes the inclusiveness of
Productivity-enhancing policies for small and medium
Malaysia’s economic development
enterprises (SMEs) in Malaysia are critical for inclusive along both monetary and non-
growth. SMEs are substantially less productive than large monetary dimensions, examining
firms, which limits their capacity to integrate into global
value chains. Thus, undertaking productivity-enhancing
the extent to which economic
reforms that enable SMEs to compete effectively in the disparities have increased or
global market would be essential for future growth. It will decreased across different
be critical to address the constraints that SMEs face to
raise productivity and reap the benefits of an increasingly
segments of the population.
globalized world. In the medium term, a continued focus
on an enabling regulatory framework will be key to foster
strengthened competition, and to facilitate the bankruptcy A key output under the shared prosperity theme is a
process to allow entrepreneurs to reinvent their businesses comprehensive new study on the cost of living, analyzing
and take more risk. the multiple ways in which the rakyat experience challenges
in making ends meet. The factors being considered include
Upstream analytical work on the business environment not only increasing consumer prices, but also spatial
that draw upon the support of activities across the three differences in the cost of living (both housing purchases and
focus areas (investment, competition, and SME support rentals), lagging incomes, and household indebtedness.
programs)—including subnational analysis and policy This study will be complemented by another study focusing
dialogue—would provide an opportunity to strategically on intragenerational economic mobility, analyzing how
influence Malaysia’s business, investment, competition, and household incomes have changed over time—in both
regulatory policies as the 12th Malaysia Plan is prepared. absolute terms and relative to others—for different types
of households.
In line with Malaysia’s priorities, the World Bank will also
provide analytical support in high-priority areas, including
matters relating to Malaysia’s chairing of APEC 2020 and
follow-up advisory services on debt, trade policy, and
fiscal management.
During the year ahead, two new agriculture activities will
be initiated; first, concerning Malaysia’s agriculture sector
future profile, which will be an analysis to define possible
paths for the agriculture sector to support the country’s
overall goal to become a high-income and developed
country. The result will provide a vision for the Government’s
consideration in planning the future of the agriculture sector.
Second, the proposed Agricultural Marketing Structure
will assess existing agricultural product marketing structures
(including institutional arrangements), and will develop
alternatives for future form of arrangements, taking into
consideration the evolving nature of agriculture both within
Malaysia and globally. The analysis will detail how Industrial
Revolution 4.0 will shape the future marketing structures,
and how smallholders and small farmers could be made part
of the new structure. Jointly, these two proposed studies
are expected to provide planners and policymakers some
rationales for change and possible instruments to effect
the change in planning for the transformation of the whole
economy in general, and the agriculture sector in particular.
32 ANNUAL REPORT | FINANCIAL YEAR 2019
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 1: Supporting Equitable Economic Growth
IN FOCUS
What will it take? Malaysia’s ambition to achieve
high-income and developed country status
The Challenge
Malaysia is likely to transition from an upper-middle-
income economy to a high-income economy within the
next few years. However, the transition to high-income
country status also raises a number of questions in terms
of the quality and sustainability of growth, as well the
broader development aspirations of Malaysian society—
especially as Malaysia increasingly compares itself with
developed countries. Most significantly, despite high
rates of economic growth, there is a growing sense
that the aspirations of Malaysia’s middle-class society
are not being met. Concerns over the extent to which
the proceeds of growth are being shared between the
top and bottom ends of the income distribution are
becoming more apparent. Further, as the country exits 3. Modernizing institutions. It has become increasingly
that growth period when factor accumulation was a key clear that Malaysia’s institutional quality lags behind
driver, and increasingly looks towards more knowledge- not just that of key comparators but falls short of the
intensive and productivity-driven growth, closer to expectations of the country’s increasingly middle-
the technological frontier but with an aging society, it class citizenry. Reforms will be needed to strengthen
is clear that a different set of policies and institutions bureaucratic quality, expand the citizen’s voice,
might be needed for a developed Malaysia. increase government transparency, and strengthen
accountability in the policymaking process.
The Solution
Preliminary analysis suggests that for Malaysia to 4. Promoting inclusion. Persistent disparities and
transition successfully to high-income and developed evidence that growth has become less pro-poor
country status, and sustain equitable growth beyond the than in the past, together with a strong sense that
transition, reforms will be needed in four broad areas: growth has not benefitted everyone, have become
central issues in Malaysian society. Reforms will be
1. Boosting competitiveness. As Malaysia increasingly needed to reduce inefficiencies in subsidy programs,
looks beyond factor accumulation to sustain growth deepen Malaysia’s thin social safety net, and increase
into the future, productivity growth and private sector progressivity in the tax framework, together with
innovation will be the primary driver of higher living expanding employment support services to support
standards. This will require deeper efforts to remove job transitions.
economic distortions, encourage innovation and
digital adoption, strengthen competition, improve Results
the investment climate, and facilitate deeper regional This activity, which pulls together multiple strands of
integration. work ongoing across the Hub, will be completed in FY20.
2. Creating jobs. The creation of a sufficient number Instruments
of well-paying and otherwise high-quality jobs is The primary output for this activity will be a flagship
one of Malaysia’s main aspirations. Achieving this report seeking to answer the key question, namely:
aspiration becomes more complicated as the country What will it take for Malaysia to achieve its ambition of
moves toward developed nation status; the world of achieving high-income and developed country status
work is changing, and some jobs are threatened by within the next decade? The report will be launched at
automation. Reforms will be needed to improve basic a conference allowing for debate and discussion on key
nutrition, strengthen learning outcomes, facilitate reform areas required for Malaysia to successfully make
lifelong learning and digital literacy, and attract and this transition, as part of the World Bank’s contribution
retain talent. to the preparation of the 12th Malaysia Plan.
Knowledge Team: The activity draws upon a large team draw from all teams in the Malaysia Hub, led by Richard
Record, Kenneth Simler, and Achim Schmillen.
ANNUAL REPORT | FINANCIAL YEAR 2019 33
THEME 2
Enhancing Finance,
Competitiveness, and Innovation
STRATEGIC OVERVIEW
• Sustainable and Malaysia has successfully built a resilient, inclusive, and progressive financial system that
Green Finance provides effective and efficient financial services to households, private sector firms,
and Government institutions. The Government has also developed a comprehensive
• Islamic Finance ecosystem for promoting and enhancing the capacity and productivity of the private
sector, especially the SMEs, to ensure equity and sustainable growth.
• Financial Inclusion,
FinTech and Building on the partnership between Malaysia and WBG, the Hub has endeavored to
share Malaysia’s development experiences in building resilient, inclusive, and progressive
Payment System financial systems, as well as in creating robust ecosystems for promoting innovations and
enhancing private sector productivity, to assist other countries to reform and develop their
• Financial Stability financial systems and private sector. In the meantime, significant support to Malaysian
and Maximizing counterparts was delivered in FY19 on financial sector stability, DFIs performance review,
Finance for green finance, Islamic finance, remittance, and digital entrepreneurship development.
Development
The objectives of this theme are to:
• ASEAN/Regional • support and facilitate knowledge transfer and capacity-building vis-à-vis ASEAN
Financial Integration countries to foster financial market integration
and Capacity • reinforce financial stability through strengthening the regulatory framework and
Building supervisory capacity, enhancing governance, and the adoption of international
standards
• Private Sector • promote financial inclusion through innovation in financial products, delivery
Competitiveness and channels, and technology, to meet the financial services needs of individuals,
households, and SMEs
Innovation
• create green and sustainable finance markets by building up an enabling green
financing ecosystem, introducing innovation sustainable finance instruments, and
enhancing awareness and capacity of key stakeholders in adoption of sustainable
finance principles
• Improve private sector competitiveness and innovations
34 ANNUAL REPORT | FINANCIAL YEAR 2019
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 2: Enhancing Finance, Competitiveness, and Innovation
FY19 Year in Review
(JULY 2018 – JUNE 2019)
Sustainable and Green Finance
Green and Sustainable Finance is a key pillar under this assistance to enable the rapid issuance of green bonds/
thematic area. In FY19, this work program was expanded to sukuk in compliance with international best practices. The
cover environmental and social impacts financing. A series of issuers are required to report annually on the use of green
awareness raising, capacity building, and knowledge sharing bond proceeds and expected environmental impact of the
activities on global trends and best practices regarding green supported projects, in line with international best practices.
and sustainable finance were delivered with Malaysian and The half-day workshop shared with bankers and supervisors
international partners. These sessions reached audiences the process and information required to develop a green
from financial institutions, government agencies, subnational bond/sukuk impact report, including baselines to measure
governments and municipal governments, policymakers, the impact of eligible green projects. More than 60 bankers
NGOs, environmental, and social development experts. and financial sector supervisors joined the workshop.
New financing instruments/mechanisms for green and social
development projects were explored with local experts and The 2nd technical workshop on Environmental and Social
industry players. Key activities and results are highlighted as Risk Management (ESRM) was jointly organized with BNM
below. For the full set of activities and deliverables, please on June 24, 2019. The objective was to educate participants
refer to Appendix 3. on the importance, techniques, and consequential benefits
of incorporating environmental and social considerations
The WB-WWF Sustainable Finance Forum and the launch into their investment and risk management decision-
of the report on Green Bond Proceeds Management making. The workshop also stressed the importance of
and Reporting was held on October 2, 2018. The forum mainstreaming the integration of environmental and social
gathered more than 120 market players from financial impacts in the credit policy and process in local financial
regulators, banks, institutional investors, policymakers, and institutions. About 60 risk managers, credit officers,
practitioners to share their experiences in incorporating and analysts, as well as sustainability and environmental
ESG criteria into their investment and business processes, managers from local banks and relevant institutions
and their approaches to responsible and sustainable attended this workshop. Case-study-based exercises and
investments. The objectives were to identify best practices activities, as well as peer-to-peer experience sharing from
and relevant policy options for an enhanced incorporation banking practitioners, were also part of the agenda.
of sustainability and responsible investments criteria within
the financial and banking sectors. The event also introduced
participants, especially sovereign issuers, to the recently-
published guide for impact reporting for green and sukuk
bonds. This allowed participants to learn how the World
Bank assists sovereign issuers overcome and manage the
challenges of reporting the impact and performance of
green and sukuk bonds.
Workshop on Implementing Value-Based Impact
Assessment Framework - Learning from Practitioners
with BNM and SBN, October 18, 2018. The 1st Technical
Workshop with bankers, insurance practitioners, as well as
other financial services providers in Malaysia, was organized Supporting the development of
to share the experience of SBN member countries on ESG Framework for Value-based
incorporating ESG into the credit process. Examples from Intermediation Guidelines with INCEIF
European, EAP, and African countries were shared with the and BNM: August 2018– June 2019. The
participants.
World Bank technical team supported
INCEIF and BNM in drafting a high-level
Workshop on Impact Reporting for Green sukuk /bond
ESG Framework for participating banks
with CM2, May 2, 2019. This was the 3rd technical workshop
under VBI. The framework document
with CM2 since 2017 geared towards key stakeholders in
was circulated for consultation with the
green finance market development, with the objectives to
update industry players on best practices and international
industry and finalized in May 2019.
trends in green finance. The World Bank provides technical
ANNUAL REPORT | FINANCIAL YEAR 2019 35
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 2: Enhancing Finance, Competitiveness, and Innovation
The World Bank has developed the fiscal year. One key milestone of these sessions was the
commissioning of the Malaysia Green Finance Roadmap by
harmonized impact reporting metrics
the Minister of MESTECC in early 2019 from a task team led
for green bonds in partnership with by Securities Commission, of which the World Bank team is
international financial institutions, a technical partner.
and published a guide for issuers.
The WB Malaysia Hub and Indonesian team co-organized
A number of awareness raising, capacity building, and a Sustainable Finance Forum at the WB-IMF Annual
knowledge sharing sessions on green and sustainable Meetings in Bali in October 2018 to share the work done
finance were delivered to Government ministries, on green and sustainable financing in the EAP region. The
agencies, and the private sector. For example, a forum Hub also delivered workshops on green/sustainable finance
on ‘Aligning Sustainable Finance with SDGs’ was held in for clients in Indonesia and Vietnam between October 2018
MOF, Putrajaya, on April 30, 2019. The forum discussed how and February 2019.
Malaysian stakeholders can leverage sustainable finance in
the implementation of the SDGs. More than 60 Government Regional Conference on “Constructing and Financing
officials from MOF, MESTECC, KATS, MEA, and other Affordable Housing Across Asia”, April 2-3, 2019, in
Government agencies attended the session. partnership with Cagamas. The two-day event focused on
the SDG goal of safe, adequate, and affordable housing
Internal briefings on green and sustainable financing for all. More than 400 participants from some 30 countries
solutions for public investment projects were also participated in the event. Deputy Governor Rasheed of BNM
conducted for the senior management of MESTECC, MOF, and Minister of Housing and Local Government Zuraida
MOE, KATS and several municipal governments throughout Kamaruddin gave keynote speeches at the conference.
IN FOCUS
New Green Bond Proceeds Management &
Reporting Guide helps Regional Issuers
Context first green sukuk, the World Bank’s
The demand for green investment in Green Bond Proceeds Management
ASEAN until the year 2030 is expected & Reporting Guide was launched. The
to be approximately US$3 trillion, of Guide, a joint Hub and Treasury initiative,
which approximately 9% or US$290 aims to guide a green bond/sukuk issuer
billion, is estimated to be in Malaysia. in managing the issuance proceeds and
post-issuance reporting.
This coupled with the rise of
environmental consciousness and value- The Guide was launched at the World
based (ethical) investors, illustrates the Bank and World Wildlife Fund (WWF)
huge potential for sustainable finance in Sustainable Finance Forum on October
Malaysia and the region. 3, 2018, which brought together more
than 100 regulators, bankers, market
Malaysia’s leadership in Islamic Finance participants and international experts
and more recently in green sukuk, has for discussions on sustainable finance
played a key role in the development of and responsible investing.
sustainable finance in ASEAN, with the
sharing of knowledge and experience Results To-Date
from Malaysia to the other ASEAN The Guide was shared with participants
countries. at the WB/IMF Annual Meeting in Bali
on October 9, 2018 and subsequently
Commemorating the one year disseminated to World Bank clients.
anniversary of the issuance of the world’s
36 ANNUAL REPORT | FINANCIAL YEAR 2019
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 2: Enhancing Finance, Competitiveness, and Innovation
Islamic Finance
The Islamic finance pillar is focused on knowledge generation World Bank-INCEIF-IRTI Annual Conference on Islamic
and sharing of global best practices in the areas of i) Islamic Finance, Inclusion and Poverty Alleviation was organized
finance for PPPs in infrastructure; ii) Islamic finance and on December 11, 2018. The aim is to explore the linkages
the SDGs; iii) Islamic finance for a green future; iv) Islamic between Islamic finance and two Sustainable Development
Social Finance for Poverty Reduction; v) financial inclusion, Goals (SDGs): i) no poverty (SDG 1 - End poverty in all
vi) finance regulatory framework development and market its forms everywhere); and ii) zero hunger (SDG 2 - End
development in Malaysia. hunger, achieving food security and improved nutrition
and promote sustainable agriculture). The event brought
The program has enhanced the standing of Malaysian together more than 200 academics, policymakers, market
institutions in the global Islamic finance landscape, as most players, and development practitioners to discuss recent
activities were designed and delivered jointly with local developments and exchange ideas on policies to eradicate
institutions such as BNM, SC, INCEIF, ISRA, MDEC, and poverty, improve living standards and well-being, and
IFSB. Collaboration was also established with IsDB and promote inclusive societies.
CIBAFI.
A conference on ‘Enhancing Financial Inclusion through
There were four events organized in the last fiscal year, Islamic Finance and FinTech’ was jointly organized by
attended by more than 1500 participants, including Securities Commission-World Bank-IOSCO Asia Pacific Hub
policymakers, financial regulators, practitioners, Conference on April 29-30, 2019. The conference discussed
development partners, and academicians. These the use of Islamic finance to support financial inclusion,
conferences, roundtables, and seminars have increased the including the use of Islamic social finance instruments and
knowledge of participants and stimulated debate among FinTech to eradicate poverty and promote shared
stakeholders, as well as provided inputs into strategies and prosperity. It debated policy, regulatory, and institutional
policymaking in other countries (e.g. Islamic green finance elements required for the sustainable use of Islamic finance
in Indonesia and Kazakhstan). to address these issues. More than 300 participants from 15
countries participated in the conference.
A conference on Corporate Governance of Islamic
Financial Institutions was held on October 2, 2018. The
conference is a CIBAFI and World Bank commitment to
help foster the development of Islamic finance globally in
corporate governance. The conference brought together
various stakeholders from the Islamic finance industry,
multilateral institutions, international and national regulatory
bodies, policymakers, and academia to discuss emerging
issues and best practices in corporate governance.
A Roundtable on Maximizing Social Impact Through
Waqf Solutions was organized by World Bank-INCEIF-
ISRA on September 13, 2018. Islamic social finance tools
have been instrumental in the alleviation of poverty and
socio-economic development throughout history. The
Roundtable discussed (i) the operations and activities
of Waqf organizations in various jurisdictions; (ii) key
instruments utilized by Waqf organizations and challenges
facing their deployment; (iii) linkages between the Waqf A report on Islamic Green Finance:
model and key developmental challenges; and (iv) proposed
Development, Ecosystem and
relevant recommendations to improve the effectiveness
and efficiency of Waqf as an instrument of development.
Prospects was launched in April
These include the provision of education and healthcare, 2019 jointly with SC Malaysia.
infrastructure development and maintenance, as well as
social welfare provisions for the poor and destitute.
ANNUAL REPORT | FINANCIAL YEAR 2019 37
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 2: Enhancing Finance, Competitiveness, and Innovation
IN FOCUS
Partnering for Innovation and Global Solutions
- Bringing Sustainable Finance to the World
Malaysia has developed a new asset class – the Green Sukuk of the global conference on “Harnessing Islamic Finance
(Green Islamic Bond) – which catalyzes global development for a Green Future” held in 2018, which deliberated the
financing solutions. Given Malaysia’s leadership in Islamic potential of Islamic finance to support climate mitigation
finance, and the WBG’s experience in green and socially- and adaptation efforts, including the use of Islamic finance
responsible investment bonds, it was natural for the Hub to instruments to finance green activities. It explored policy,
collaborate with Bank Negara and Securities Commission regulatory, and institutional elements required for the
Malaysia to launch the new asset class in July 2017. This sustainable use of Islamic finance.
has positioned Malaysia as a regional hub for sustainable
financing and cemented Malaysia’s position as an Islamic Islamic finance can be a catalyst for growth of green
finance hub. developments globally. Investors in Europe, the Americas,
Africa and Asia are witnessing the effects of non-sustainable
The lessons from this experience were shared with several investments on assets and portfolios that are exacerbating
countries, including Indonesia, where CIMB and Maybank climate change effects. This trend provides greater
were subsequently appointed among the lead managers opportunities for Islamic finance to attract a wider investor
and bookrunners for the country’s first sovereign green base and expand its role to support sustainable objectives
sukuk. WBG provided technical assistance in developing of finance. This will require continual collaboration between
the capability of local green certifiers. SC provided stakeholders to converge in standards and reporting, spur
incentives for green sukuk /bond issuers to cover additional innovation, reduce barriers and cost for issuers, while
certification costs. To date, RAM has provided a second increasing transparency and awareness for investors.
opinion for the issuance of two green sukuk in Malaysia.
This year, a report on Islamic Green Finance:
Development, Ecosystem and Prospects was launched
in April, jointly with SC Malaysia. The Report is a synopsis
38 ANNUAL REPORT | FINANCIAL YEAR 2019
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 2: Enhancing Finance, Competitiveness, and Innovation
Financial Inclusion and Payment Systems
The program continued to support BNM on Greenback 2.0 practices, and lessons with other countries that face similar
implementation in Kota Kinabalu and knowledge exchanges challenges.
on SME finance, financial inclusion, and payment system
development in FY19. In December 2018, WB co-organized the biennial World
Bank Global Payment Week with BNM. For the first
Regarding Greenback 2.0 support, the program supported time, this global event was held in Asia Pacific. Over 160
the Outreach Fair in Kota Kinabalu for Greenback 2.0 in participants from 60 central banks from all regions joined
Nov 2018 on eWallet and remittances, and the Launch of this event. The forum provided a peer-to-peer exchange
JomKirim in March 2019 in Kota Kinabalu. JomKirim is a platform among national and regional authorities.
one year private sector-led campaign to promote the use of
e-remittances until the end of Greenback 2.0 Kota Kinabalu In FY19, the Hub also hosted several South-South
2020. exchanges on Malaysia’s experience with SME finance,
financial inclusion, insurance supervision, and remittance:
A report on Malaysia’s transformation of the money Upon requests from clients in developing countries, the
services business was also developed to analyze the Hub partnered with BNM, SME Corp, and CGC to support
transformation of the money services business industry South-South exchanges for financial sector regulators
through legal and regulatory reforms over the past decade. and supervisors from India, Indonesia, Bangladesh, Saudi
The objective is to share Malaysia’s experiences, good Arabia, Nepal, and the Philippines.
IN FOCUS
Reimagining the Regulatory Landscape
for Payment Systems
Context
The 2018 World Payments Report estimates that the growth GPW2018 covered the development of financial market
of non-cash transactions in emerging Asia has outpaced infrastructures since the last financial crisis in 2008, deep
Europe and North America by at least four to five times dive of innovative payment system development and
between 2012 to 2016. The trend is expected to continue – oversight, and cyber security. Regional meetings had in-
with a forecast of 250 billion non-cash transactions by 2021, depth discussions on relevant regional topics.
making the region the market leader by volume of electronic
payments for the first time. Results To-Date
Convened over senior officials from over 60 central banks
There are many challenges and risks – evolving technology, including ECB, Federal Reserve Bank of New York, Federal
market fragmentation, shifting consumers expectation and Reserve Board, South East Asian and Latin American
gaps in cross-border transactions. countries.
The Solution The discussions reflected internal standards at the global
Bank Negara Malaysia and the World Bank co-hosted the level and country implementations. The forum provided the
Global Payments Week (GPW) 2018 for the first time in Asia. network platform to exchange experiences and learnings
It recorded the largest number of participations - over 160 between national and regional authorities.
participants from all regions.
ANNUAL REPORT | FINANCIAL YEAR 2019 39
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 2: Enhancing Finance, Competitiveness, and Innovation
Financial Stability and Maximizing Finance for Development
Key activities under this pillar in FY19 are: 1) continued
support to BNM on DFIs Performance Measurement and
Evaluation; 2) Case study on EPF regarding the evolution of Building upon the forum, the
investment governance; 3) Risk-based Supervision for Anti- WBG and BNM organized plenary
Money Laundering for BNM, 4) technical assistance to BNM
and PIDM regarding their preparation for crisis simulation
sessions on performance
exercises. measurement for DFIs and
conducted bilateral meetings
DFIs Performance Measurement Framework Forum. with all six DFIs under the
Pursuant to the success of the previous Global Symposium
purview of BNM in April 2019.
on DFIs, the WBG together with BNM organized a forum on
Performance Measurement Framework for DFIs in August These sessions focused on the
2018. The forum brought more than 300 participants
consisting of directors, senior management, and middle
concept of ‘theory of change’, and
managers of the six DFIs under the supervision of BNM. It reemphasized the importance of
highlighted the new economic landscape and the role of data analytics in undertaking a
DFIs, data analytics, as well as performance measurement holistic monitoring and evaluation
indicators, among other things.
exercise. Also, these sessions
In early May 2019, the WBG had also conducted a half-day were conducted to prepare
forum on Performance Measurement for DFIs in Putrajaya the six DFIs for their reporting
specifically for key ministries and their related agencies requirements to BNM under its
that are involved with DFIs in the country. The forum was new Performance Framework for
supported by the Ministry of Finance and was attended by
more than 30 government officials. It formed an integral
DFIs introduced in 2018.
part of the WBG’s efforts to foster policy dialogue among
policymakers, practitioners, and all relevant parties in the
DFI space in the country.
The WBG was also in discussion with BNM regarding a Global Series on Pension Funds Investment Operations. It
work program in relation to proportionality regulation was officially launched in October 2018, and was attended
for DFIs in Malaysia. At its infancy stage, this work by more than 120 people comprising past and present
program is expected to continue in the following year, with Directors of EPF, its senior management, and interested
comprehensive feedback from BNM regarding its direction members of the public. The case study provided lessons
and expectations on the topics covered. and policy measures, while providing insights for an efficient
provident system for developing countries, drawing from
Additionally, in support of BNM’s effort to enhance the DFI Malaysia’s experiences. It focused on the EPF’s key success
landscape, the WBG had contributed to a training for DFI factors, including its investment and governance strategies,
directors - under the Financial Institutions Directors’ its building blocks for efficient operations, and main
Education (FIDE) program by the ICLIF Leadership and challenges and constraints during its development.
Governance Centre. The WBG gave several presentations
that cover topics on DFIs from the global perspective i.e. Risk-based Supervision for AML Workshop with BNM
the roles of DFIs, findings of the Global Survey on National using a risk-based approach (RBA) tool developed by
Development Banks 2017, corporate governance, and World Bank FCI’s Stability and Integrity team in January
outlook for DFIs. This training took place in March 2019, and 2019. 30 participants representing BNM, SC, and Labuan
was attended by 15 newly-appointed directors from the six Financial Services Commission joined this workshop.
DFIs under BNM supervision. Because Malaysia has an advanced risk-based supervision
framework, the feedback from the participants indicated
Case Study on the Employees Provident Fund (EPF) of that the tool is indeed appropriate for countries in the early
Malaysia. The case study aimed to document the critical stages of risk-based AML supervision development. In the
factors that transformed EPF from a relatively small public meantime, the World Bank experts on AML also contributed
retirement fund for both private sector and non-pensionable to training workshops organized by SEACEN, AFI, and BNM
public-sector employees to become one of the largest in for banking supervisors in ASEAN countries in October
the world. It was jointly developed with EPF, as part of the 2018.
40 ANNUAL REPORT | FINANCIAL YEAR 2019
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 2: Enhancing Finance, Competitiveness, and Innovation
Technical Assistance on Preparation of Crisis Simulation collaboration with the Development Economics Research
Exercises (CSEs): Upon request of PIDM and BNM, the World Group (DECRG) of the Bank. It examines the issuance
Bank team has shared the World Bank technical assistance activities among East Asian firms via the domestic capital
program and methodology on crisis simulation exercises in markets, both before and after the Asian financial crisis and
March and April 2019 respectively with the technical teams global financial crisis. The paper is expected to be officially
in both agencies. Detailed technical assistance to PIDM and published in June 2019. The key findings of the paper have
BNM are under development and will be delivered in FY20. been shared with SC and the Institute for Capital Market
Research as part of the knowledge-sharing program with
A research paper entitled “The Rise of Domestic Capital Malaysian agencies.
Markets for Corporate Financing Study on Corporate
Finance in East Asia and Pacific” has been developed in
ASEAN/Regional Financial Integration and Capacity Building
The key focus areas under this pillar are to facilitate insights on best practices, different approaches, key
regional financial integration and capacity building lessons learned, and current trends in NPL resolution, and
through knowledge-sharing and capacity-building sessions contributed to the rich discussions on current issues and
among financial sector regulators and supervisors. range of options in resolving NPLs. Technical briefs on EAP
NPL issues and key lessons learned, public AMCs in EAP
Organized a regional launch of the new Global Findex and key lessons learned, as well as Malaysia’s experience in
Report 2017 with BNM on July 16, 2018: Shared the latest NPL resolution, are to be developed after the conference.
findings of the 2017 survey, especially on ASEAN countries.
Delivered the final report on ASEAN Digital Financial
Services in April 2019. The report was commissioned
by the ASEAN Working Group on Financial Inclusion.
The report is based on a survey among financial sector
regulatory authorities on the current practices in regulation
and supervision of digital financial services adopted by the
ASEAN member countries. Dissemination of key findings
Assistant Governor
was carried out with member countries, and the final report Donald Jaganathan
has been made public as of April 2019. delivered the keynote
speech at the
conference.
Delivered Joint Regional Conference on NPL Resolution http://www.bnm.gov.
with BNM on April 24-25, 2019. Rising NPLs present my/index.php?ch=en_
a considerable challenge, and therefore remain a high speech&pg=en_
speech&ac=825
priority for national and supervisory authorities, financial
institutions, investors, and international bodies. There were
many valuable insights delivered during the three-day
“It is imperative for regulators and
conference, possibly the most important of which is that
effective NPL management needs a systematic, holistic, and
supervisors to ensure that these
proactive approach. The conference laid out the building NPLs are managed and resolved in a
blocks necessary for an effective NPL resolution strategy. timely fashion. Decisive leadership on
the part of authorities in addressing
The event was technically and financially supported by the rising NPL level in the financial
Hub, the World Bank Financial Stability Advisory Center in
system can slow-down the adverse
Vienna, and the World Bank Seoul Centers. More than 90
participants from 14 countries from Asian national regulatory
economic impact, dampen banks’
and supervisory authorities, standard setting bodies, knee-jerk reaction and jumpstart the
public and private sector agencies, and other key market economic machinery.”
participants joined the conference. During the conference,
35 high-caliber and experienced speakers shared their
ANNUAL REPORT | FINANCIAL YEAR 2019 41
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 2: Enhancing Finance, Competitiveness, and Innovation
Global Survey and Report on Alternative Finance and financial sector regulatory authorities a useful tool to
Regulations and Database on Alternative Finance learn about the global trends of regulatory approaches by
Market, in partnership with SC and Cambridge University peer regulators, and to monitor the latest developments in
Alternative Finance Center, June 2019. The Global Survey the industry. The initial findings of the global survey were
is first of its kind to develop a data portal that contains shared, and the database was launched, at a workshop on
information of FinTech regulations from over 70 countries, June 21, 2019 in Kuala Lumpur, that was jointly organized
and FinTech market data from over 120 countries and 3000+ with SC.
FinTech firms globally. The database provides policymakers
Private Sector Competitiveness and Innovation
As the country looks towards achieving high-income country Significant diagnostic work was also carried out on
status, sustaining growth and ensuring the creation of high- entrepreneurship in the digital economy. This formed one
productivity jobs will require a new focus on building a of the four chapters in the Digital Economy study that was
competitive economy. During FY 2019, there was substantive formally launched in September 2018.
progress made on the Private Sector Competitiveness and
Innovation agenda. The team successfully launched the Global High Growth
Entrepreneurship Report in December 2018. The report
This included the development of a paper charting the Key was launched jointly with the newly formed Ministry of
Lessons from Malaysia’s SME Masterplan, describing how Entrepreneur Development with a view to undertake similar
SMEs fit into the development story for Malaysia. The paper work for Malaysian firms.
has been prepared in close collaboration with SME Corp.
The formal launch of this paper is expected to be completed The team is working very closely with BNM and MDEC to
by mid-2019. organize sessions during FinTech Week and MyTech Week
planned for June 17-21, 2019.
Digital Entrepreneurship in Malaysia Analysis
Promoting digital entrepreneurship is an important avenue through which Malaysia is attempting to spur
economic growth and job creation. Malaysia has made great strides in expanding educational attainment,
connecting people to high-speed Internet, and promoting financial inclusion. Over the last two decades,
the Government has also implemented far-sighted initiatives to promote digital entrepreneurship, including
world-class infrastructure and generous financial incentives. In many respects, the country is primed for a
new Malaysian-led, private sector engine of growth. But obstacles remain. Malaysian workers still lack the
necessary skills to thrive in the digital economy. Startups report a shortage of capital and local expertise to
commercialize digital innovations. And the development of digital innovations is hindered by the sector’s
immaturity. Digital entrepreneurs, policymakers, and society at large need to adapt before the digital
economy can reach its full potential.
The analysis undertaken provides an overview of entrepreneurs and the entrepreneurship ecosystem
in Malaysia, highlighting the importance of Government programs. It then discusses access to finance,
particularly the lack of venture capital during a company’s growth stage. The analysis looks at human capital
constraints, which are driven by low skills acquisition in the overall workforce and emigration by the most
skilled. The fourth aspect looks at issues that specifically affect digital entrepreneurs: slow uptake of digital
transaction technologies, difficulty accessing Government data, weak professional networks among digital
entrepreneurs, and the absence of a national plan to develop cutting-edge technologies. Finally, the chapter
concludes with recommendations to overcome these obstacles, promote digital entrepreneurship, and grow
Malaysia’s digital economy.
42 ANNUAL REPORT | FINANCIAL YEAR 2019
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 2: Enhancing Finance, Competitiveness, and Innovation
FY20 Moving Forward
Building on the successful delivery of work program in FY19 and the strong collaboration
established with Malaysia’s key counterparts, the Hub team will continue the work on
achieving the specific objectives described previously under the six pillars.
Green and Sustainable Finance
Moving forward, the program will focus on 1) developing Provide technical advisory on New Green Finance
new financing solutions for small-scale renewable energy instruments development for Malaysia: Diversify financing
projects in Malaysia, affordable housing financing, sources for sustainable development projects (for example,
forestry preservation, and social impacts projects; 2) small scale renewable energy projects, energy efficiency
conduct capacity-building sessions for implementation projects, forest rehabilitation, affordable housing), explore
of VBI ESG framework for financial institutions, 3) provide feasibility for sovereign green bond/sukuk, municipal
technical assistance on developing the ESG framework for green sukuk, investment funds, syndication of green loans,
institutional investors, and technical assistance for sub- insurance/takaful products and guarantees etc. through
sovereign issuance on green/sustainable sukuk; 4) provide partnerships with BNM, SC, Bursa Malaysia, financial
technical support to BNM on assessing climate risks in the institutions, and sector experts, as well as international
financial system. development agencies.
Key activities which are identified for FY20 are as below. Support awareness raising and capacity building on
green finance with regulatory authorities, industry,
Support the development of Malaysia’s Green Finance and government agencies. Build up local second opinion
Roadmap (Oct 2019). Support MESTECC, SC, and BNM in providers/rating agencies’ capacity to provide services
formulating a Green Finance Roadmap for Malaysia. Identify to issuers; streamline procedures for investment bankers
green projects pipelines and financing gaps in Malaysia, structuring green sukuk for local and regional clients
and develop viable public and private sector partnership (CIMB, Maybank, Affin Hwang, MIDF, AmBank, and more
for financing green projects through consultation with MEA, to join). Support the institutional investors in implementing
MOF, KATS, GLCs, subnational governments, financial their ESG strategies (esp. UN PRI signatories: KWAP, EPF,
institutions, asset managers, and environmental and social Khazanah); and share experience and know-how with other
scientists (second opinion providers). countries.
Provide technical advisory to BNM on developing a Support BNM, Cagamas, and relevant government
taxonomy of green assets for Malaysia (May – September agencies on analytical of affordable housing finance
2019). Will provide technical support to the BNM Technical solutions for Malaysia. Detailed scope of technical support
Task Force on Greening the Financial System by comparing to be finalized with BNM by end of May 2019.
different approaches used by other countries in defining
green assets, and adapting them for the Malaysia context. Co-sponsor ASEAN Green Bond Conference (ACMF),
South-South Exchange on Green Finance, annual
Provide technical advisory on assessing climate risks in meeting on sustainable finance, and the Sustainable
the overall financial system (July 2019 – May 2020): Will Finance events during APEC 2020: Expand the green
provide technical support to BNM Task Force on Greening finance markets in ASEAN; share Malaysian expertise
the Financial System on developing an analytical framework in green finance; attract investors to Malaysia on green
for assessing the climate risks in financial systems in Malaysia projects and develop regional investment facilities for
and the potential impacts on financial stability. green projects; contribute to Sustainable Finance events
organization and delivery during APEC 2020 hosted by the
Malaysian Government.
ANNUAL REPORT | FINANCIAL YEAR 2019 43
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 2: Enhancing Finance, Competitiveness, and Innovation
Islamic Finance
Moving forward, the focus on Islamic Finance will be will be global: regulators, policymakers, investors,
expanded to Islamic finance for disaster risk, catastrophic financial institutions, asset managers, rating agencies,
sukuk, affordable housing, infrastructure development, international development partners, NGOs, and
risk management in infrastructure finance, and the Islamic charities/foundations. A conference proceeding will be
digital economy, in partnership with BNM, Cagamas, and produced.
local financial institutions, IFSB, Islamic Development,
• Partnership with Islamic Financial Service Board
INCEIF, and ISRA.
(IFSB) on Islamic FinTech and Risk Management in
Infrastructure Finance. A technical note summarizing
Key activities which are identified for FY20 are as below:
best practices in risk management for infrastructure
• Support the development of technical guidelines finance and Islamic FinTech for supervisors will be
on assessing ESG risks of select sectors (with developed and disseminated among IFSB members.
high impacts) for VBI Implementation with BNM. Technical workshops will also be arranged for reviewing
Enhancing the capacity of banks to manage ESG and finalizing the technical note.
risks; expanding funding sources for green projects
• Workshops on Takaful for Agriculture and Trade
in Malaysia; creating business opportunities for
Finance (BNM). The workshop will explore the designs
professional services.
of risks coverage instruments for farmers and SMEs
• Support the dissemination of major publications using Islamic insurance (Takaful ) for the Malaysian
on Sustainable Finance and Islamic Finance with market and other developing countries, especially for
partners at global and regional fora (eg. WB-IMF facilitating trade of halal products, and covering the
Spring and Annual Meetings, global events by key climate risks for farmers.
partners - IDB, IFSB, INCEIF, ISRA, RFI)
• Online learning course on Islamic Finance for SDGs
• Develop Guidelines for Islamic Disaster Finance (RFI, BNM, SC, INCEIF, IFSB, IDB). The objective of
and Catastrophic Sukuk (IFSB, INCEIF, ISRA, BNM). the online course is to reach out to a wider audience in
Promoting new Islamic finance solutions for climate developing countries on the potential of Islamic Finance
risks; exploring business opportunities for financial solutions for SDGs. Modules on Islamic Finance solutions
institutions. Technical notes on best practices in for select SDGs will be developed based (many based
developing Islamic finance solutions for climate risks on the previous technical notes/workshops/conferences
will be developed and disseminated. on Islamic Finance for sustainable development) and
will be delivered through online platforms such as Open
• Develop Affordable Housing finance solutions using
Learning Platform of the World Bank. International best
Islamic instruments (BNM and Cagamas). Supporting
practices and case studies will be shared, including the
SDGs through innovative Islamic finance solutions.
relevant Malaysian cases such as green sukuk market
Technical workshops and analytical papers on the
development. The course will be provided for free to
demand and supply of affordable housing finance will
international audiences: financial sector regulators,
be developed to identify feasible public and private
policymakers, financial professionals, international and
sector financing solutions for targeted beneficiaries of
national development finance institutions, researchers,
affordable housing.
and students.
• SC-IOSCO-WB Annual Islamic Finance Conference
- Islamic Finance for ASEAN Infrastructure
Development. The conference will disseminate
innovative long-term financing solutions for
infrastructure projects. This will be the 4th joint
annual conference on Islamic Finance with SC to
explore the role of Islamic finance for SDGs. Previous
annual conferences covered Islamic Finance for PPPs,
Islamic Finance for SDGs, Islamic Finance for Poverty
Reduction and Financial Inclusion. The target audience
44 ANNUAL REPORT | FINANCIAL YEAR 2019
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 2: Enhancing Finance, Competitiveness, and Innovation
Financial Inclusion and Financial Stability and
Payment Systems Maximizing Finance for
Development
Moving forward in FY20, the work program will focus on 1)
analyses on cost of payment in Malaysia, good practices
and lessons learned from Greenback projects and eKYC and Moving forward in FY20, the work program will focus
cross-border payments for SMEs; 2) Regional RegTech Forum on 1) continued support to BNM on DFI performance
for regulators; 3) Regional Payment System Integration review; 2) technical support to BNM and PIDM for crisis
report; 4) support the research and capacity-building simulation exercises; 3) technical note on Malaysian
activities commissioned by ASEAN regional working groups capital market development: best practices and key
in financial inclusion. lessons learned.
Key activities which are identified for FY20 are as below. Key activities which are identified for FY20 include the
following:
• Develop a Study on measuring the cost of payments
in Malaysia. BNM and the World Bank are conducting • Continued technical advisory to BNM on
a study on measuring the cost of payments based on DFI performance review, proportionality
the World Bank’s methodology. This study is to support regulations for DFIs.
the implementation of BNM’s financial sector blueprint
• Provide technical support to BNM regarding the
to promote electronic payments.
design and implementation of Crisis Simulation
• Report on Greenback 2.0 Malaysia: The report is to Exercises.
document good practices and lessons from Greenback
• Provide capacity-building for PIDM and MOF in
projects in Johor Bahru and Kota Kinabalu for other
preparation for crisis simulations.
countries where a similar approach through Greenback
could improve remittance markets, cross-border SMEs, • Develop a Technical Note on Reviewing DFIs’
and migrants and their families. Roles in Malaysia SDG Agenda: subject to
confirmation by the Prime Minister’s Office and
• Technical Notes on eKYC and SME Cross border
BNM.
payments: The notes will analyze Malaysia’s eKYC
approach and SME Cross-border payments, as well as • Develop a joint study or case study to highlight
lessons to be shared. the lessons learned from Malaysia’s capital
market development with SC, the Institute for
• Organize Regional RegTech Forum for Regulators. This
Capital Market Research and/or IOSCO Asia
forum will convene regulators to share knowledge on
Pacific Hub.
new developments and approaches to smart regulation
and supervision with technology (RegTech). • Deliver policy briefs on FCI-related topics,
monitoring of Malaysia’s financial system, and
• BNM’s knowledge sharing: Payment System and MSB
ASEAN Financial Sector Monitoring.
oversight. BNM’s supervision and oversight of payment
systems and MSB will be shared with other financial
regulators. Each request will be subject to BNM’s
agreement.
• Regional Payment System Integration Analytical Work;
ASEAN countries are currently discussing the integration
of retail payment systems among ASEAN countries to
support economic integration. The analytical work is to
support the ASEAN working committee on payment and
settlement systems.
• Support ASEAN Working Group on Financial Inclusion
on regional policy dialogues and capacity building.
• South-South Exchange on Financial Inclusion (BNM,
CGC, local banks) for World Bank clients in developing
countries: SME finance, credit guarantee, consumer
protection, digital financial services, agent banking, and
insurance and takaful.
ANNUAL REPORT | FINANCIAL YEAR 2019 45
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 2: Enhancing Finance, Competitiveness, and Innovation
ASEAN/Regional Financial Private Sector
Integration and Capacity Competitiveness and
Building Innovation
Moving forward in FY20, the work program will focus on Moving forward in FY20, the work program will focus
1) completing and disseminating the technical briefs on on analytical studies regarding the entrepreneurship
lessons learned in EAP on NPL resolutions; 2) delivering ecosystem in Malaysia, Doing Business reforms in
regional conferences on governance and internal Malaysia, and the FinTech regulatory framework.
control for central banks and banking regulators, and
public pension funds management; 3) supporting and Key activities which are identified for FY20 are as below.
contributing to ASEAN working groups forums; 4) the
• Launch the paper on Lessons Learnt on SME
dissemination of global reports on financial inclusion,
Masterplan - Malaysia’s experience
FinTech, and other topics; and 5) supporting the
preparation and delivery of APEC 2020 workshops. • SME program PER for Malaysia to inform future
policy making
Key activities which are identified for FY20 are as below.
• Develop a paper on the importance of public private
• Co-organize a Regional Conference on Governance dialogue in Doing Business Reforms
and Internal Control in the Age of Digitalization for
• Analytical piece on the entrepreneurship
Central Banks and Financial Sector Regulators with
ecosystem in Malaysia and the policy support
BNM, November 2019;
programs for various stages of firm growth; and
• Co-host a Regional Public Pension Funds Management
• Analytical paper on regulatory framework to the
Forum with EPF, April 2020 (to be confirmed);
FinTech industry in Malaysia
• Contribute to ASEAN Working Groups meetings
– Financial Inclusion, Insurance Regulators, Green
Finance, Infrastructure Finance (BNM, MESTECC,
MOF);
• Dissemination of Global Reports on Financial
Inclusion/Insurance (BNM, MOF, MEA);
• Support relevant APEC 2020 Secretariat on
preparation and delivery of Sustainable Finance,
FinTech/Digital Financial Services Fora during APEC
2020 hosted by Malaysia
46 ANNUAL REPORT | FINANCIAL YEAR 2019
THEME 3
Enhancing Public Sector
Management
OVERVIEW
• Public Sector Malaysia’s experiences and challenges in improving public sector
Performance management and public service delivery continue to be of interest to
countries from around the world, but it is also gaining renewed interest
• Planning, among stakeholders within the country. Within the umbrella of public
Monitoring, and sector management, the Hub’s governance team has been engaging with
Malaysian officials on the themes of national planning and budgeting
Evaluation
systems, public sector performance, and accountability and transparency.
• Accountability and All are essential for improving the living standards of citizens to provide
better public service delivery through more efficient use of resources.
Transparency
Through its Governance Global Practice (GGP), the World Bank has been
working closely with stakeholders to achieve two key things:
• Facilitate and supplement Malaysia’s efforts to serve as a knowledge
broker between developing countries and advanced OECD countries;
and
• Value add by providing insights on both the strengths and challenges
of the Malaysian public sector management experience. The Bank’s
assessments, set against a broader global experience, aim to help
Malaysian authorities to consider potential opportunities to extend and
deepen their reform efforts.
The GGP has been partnering with local institutions as well as individuals
to convene government officials, as well as local and international experts
to discuss regional and global experiences in improving public sector
management and public service effectiveness.
ANNUAL REPORT | FINANCIAL YEAR 2019 47
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 3: Enhancing Public Sector Management
FY19 Year in Review
(JULY 2018 – JUNE 2019)
The four main highlights of FY19 were: (1) Peer Review of inter-agency coordination and why it matters for national
the 11th Malaysia Plan Mid-Term Review, (2) Technical prosperity. Three reform champions attended the launch
Workshops of the Planning Community of Practice, (3) in Washington, and more than 1000 copies of the report
launch of the Global Report on Public Sector Performance have been distributed worldwide. Cases are already been
(first edition), and (4) preparation/launch of the Malaysia referenced as examples by practitioners in other countries
Economic Monitor (MEM) with a special focus on for improving public sector management.
governance and public sector capacity. In addition to these,
numerous strategic- and operational-level exchanges were The thematic chapter of the June 2019 edition of the
held to support the Government’s current priorities on Malaysia Economic Monitor focuses on Governance and
transparency, accountability, and capacity in the public Public Sector Capacity; enhancing the implementation
sector in the year ahead. capability of the civil service through administrative
and human resource management reforms. The chapter
The Bank supported MEA in its Mid-Term Review (MTR) of examines implementation capacity constraints in the civil
the 11th Malaysia Plan 2016-2020, by providing detailed service, the impact these constraints have on providing
peer review comments, including extensive input and high quality services to its citizens, and its ability to fully
feedback on the Governance Pillar. Comments focused on operationalize national visions and priorities outlined in the
MEA’s assessment of past progress against the Plan, as well five-year plans. It compares Malaysia’s performance against
as recommendations to enhance the clarity and targeting other countries; identifying the lessons learnt from their
of future measures. The timing of the Bank’s involvement experience, and the gaps that need to be addressed for
is significant, considering that this is the last leg of the the future.
medium-term national plan before the year 2020, which
has been Malaysia’s long-term target year for becoming a In addition to the major engagements above, three outbound
developed country. knowledge reports were completed and/or disseminated
in FY19. In August 2018, the Bank assessment of Malaysia’s
The PCoP ramped up its activities in FY19, after the OBB was presented and discussed at a roundtable with
initial launch in FY18, hosting two technical workshops the National Budget Office (NBO), line ministries, and
for national development planning practitioners from universities, with the aim of identifying challenges and
across Southeast Asia to exchange knowledge and discuss opportunities to enhance the effectiveness of public
common emerging trends and operational issues. During spending. In May 2019, the Bank completed its assessment
the FY, the governance structure of the PCoP was solidified, of Malaysia’s Good Regulatory Practices and launched the
and responsibilities for the organization of PCoP activities report in collaboration with the Malaysian Productivity
were rotated to other member countries. The Philippines Corporation (MPC). In June 2019, the Bank will complete its
will be hosting PCoP events and workshops in 2019, and assessment of Malaysia’s National Development Planning
other countries have expressed their interest to host future system, with the results expected to be disseminated at a
PCoP activities. Over 50 practitioners attended the meeting future PCoP event.
in Kuala Lumpur in November 2018, and about the same
number are expected to participate in Manila in May 2019. Preparation began in FY19 for a second global report on
While still in its initial stages, PCoP has managed to mark its public sector performance, focusing on anti-corruption,
presence among national development planning officials in after consultations with Malaysian agencies on their
the region, and surveys indicate they value the topics for governance priorities for the coming year.
their work.
The inaugural issue of the Global Report on Public
Sector Performance was launched in Washington, D.C.,
in October 2018, and has been featured throughout
media channels worldwide. The report features 15 case
studies on how reformers have overcome persistent public
sector management challenges, and includes analysis and
global examples of what works in improving policy and
48 ANNUAL REPORT | FINANCIAL YEAR 2019
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 3: Enhancing Public Sector Management
FY20 Moving Forward
Overview Strengthening technical knowledge and
The Governance Global Practice (GGP) will intensify its exchanges around National Development
analytical and advisory work as well as engagements around Planning Systems
public sector performance, transparency, and accountability As the PCoP enters its second year, efforts are already
in its effort to continue supporting the country’s governance underway to ensure that the momentum created by
and public sector management reform agenda. At the same previous activities are sustained, by ensuring that topics and
time, the GGP will continue facilitating related knowledge technical exchanges remain relevant to member countries.
exchanges to benefit Malaysia and as well as other countries For Malaysia, this includes having more frequent and close
globally. engagements with MEA and MOF; being among the key
institutions involved in the national development planning
system. It will also be important to deepen ownership
Global Report on Anti-Corruption among the other member countries, and lay the foundation
Transparency and accountability are cornerstones to for the long-term sustainability of this knowledge exchange
improving public sector performance, and the global network. National development planning in the region
experiences in tackling corruption will be the central theme remains an important policy mechanism feature, and can
in the FY20 edition of the Bank’s public sector performance benefit from platforms such as this.
report. Like the first edition, the second report will be
led by governance staff from the Hub but drawing on
governance experts from across the globe. The report will Knowledge Exchanges and Sharing
identify some of the successful case study experiences and Sessions
policy instruments that countries are employing to reduce Finally, the Hub will continue to facilitate knowledge
corruption in selected sectors. It also aims to explain the exchanges with countries that are interested to learn from
circumstances that have contributed to making specific the Malaysian experience. Many of these may be in the
policy responses effective in some contexts but not in form of bilateral exchanges on a specific topic, with foreign
others. The report will draw on the Bank’s 2017 World officials coming to Malaysia or Malaysian officials going to
Development Report on Governance and the Law, as well their country. But the Hub will also leverage partnerships
as the efforts underway in other international fora such as with external bodies such as the Public Expenditure
the G20 and OECD to provide practical guidance to reform- Management Network in Asia (PEMNA) to encourage
minded agencies and leaders. Malaysia public finance experience to be shared.
A knowledge-sharing session with senior officials and heads
Supporting the MTR of the 11th of agencies on topics related to public sector management
Malaysia Plan and institutional reforms is also planned.
As the MTR of the 11th Malaysia Plan has made Governance
a central pillar, the Hub will work with key institutions
to support their implementations of the MTR policies.
This is likely to take diverse forms, including: supporting
the Ministry of Finance to conduct a diagnostic of the
performance of the overall procurement system at the
federal level; supporting MAMPU to improve the regulatory
and legal environment to support open data; supporting
MAMPU to enhance its assessments of public service
delivery by incorporating citizen feedback; supporting MOF
to strengthen the national budget process with respect to
transparency and accountability; and facilitating knowledge
exchanges with the GIACC and MACC on international
good practice on corporate governance. In parallel, the Hub
will provide technical inputs that may feed into preparation
of the 12th Malaysian Plan.
ANNUAL REPORT | FINANCIAL YEAR 2019 49
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 3: Enhancing Public Sector Management
IN FOCUS
Regional Planning Community of Practice
A Knowledge Network For Development Planning
Officials In The Region
PCoP Workshop held last November 2018 focused on getting national development plans operationalized, with a special focus on public investment management.
The workshop was jointly hosted by World Bank and Ministry of Economic Affairs Malaysia with participants from other Southeast Asian countries
The Challenge Results to-date
National development planning remains an important While still in its initial stages, PCoP has managed to mark
policy instrument in many countries, including those in its presence among the national development planning
this region. However, there is no dedicated forum for officials in the region, as well as those from outside the
planning officials to share information and experience, region. Topics and issues discussed at the PCoP launch
exchange ideas, and learn ways to address issues at in 2017, its Steering Committee Meeting in early 2018,
the operational and technical level – crucial to getting and the workshop in November 2018 were well-received
national plans implemented. National planning officials by member countries and participants, including those
are constantly challenged to address emerging from Malaysia. These topics touched on the technical
development issues and trends through their respective aspects of national planning such as the linkage
national development planning and budget apparatus. between planning and budgeting, public investment
management, and monitoring and evaluation; they also
The Solution featured in-depth discussions involving international
The PCoP was established in 2017 to provide a platform experts and global experience (e.g. Republic of Korea).
for planning officials to build a common knowledge
base for operationalizing planning. Its ultimate goal Feedback and short surveys indicated that participants
is to improve both individual performance as well as found PCoP a useful knowledge-exchange platform
that of national systems. PCoP was officially launched and found selected topics such as Public Investment
in Malaysia, jointly organized by the World Bank and Management (PIM) useful, with suggestions that the
MEA Malaysia, with 70 participants, primarily senior next workshop feature themes on Monitoring and
development planning officials from Southeast Asian Evaluation, Sustainable Development Goals (SDGs), and
countries. The PCoP Steering Committee was also subnational coordination. There is also interest from
established to allow member countries to also take lead, countries outside the region on PCoP, as platforms for
discuss, collaborate, and prioritize PCoP’s focus areas national development planning are very limited. The
and activities, making it a member-driven network. most recent PCoP workshop was held in May 2019 in the
Philippines, and focused on national and subnational
alignment and coordination.
50 ANNUAL REPORT | FINANCIAL YEAR 2019
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 3: Enhancing Public Sector Management
IN FOCUS
Strengthening the Performance Orientation of
the Budget
The Challenge has been implemented to date and the constraints
How can the government enhance the effectiveness faced. The 75 participants were invited to reflect on
of public spending, and assure that budget allocations their experience and to consider what next steps could
reflect national priorities? Often, budget programs help MOF enhance the performance orientation of the
continue from one year to the next without sufficient budget process.
scrutiny of the results. Can the national budget process
be strengthened to enable more effective review of Results
the quality of spending? What are the institutional The candid interchange focused on three themes:
and administrative challenges to developing a more enhancing demand for performance information,
performance-oriented budgeting process? building capacity to assess performance, and developing
reliable reporting on performance. Finance officials
The Solution acknowledged that substantial data may be collected
Performance budgeting has been used by many about performance, but that it is not utilized effectively.
countries to strengthen the link between the Selecting the right performance measures and utilizing
national strategic outcomes and budget allocations, the information well requires political leadership, as well
encouraging ministries to move beyond control of as capacity strengthening at all levels. Universities and
inputs only. Malaysia has had an extensive experience research bodies can play a role. Participants agreed that
with performance-oriented budgeting, and built improving the effectiveness of public spending is critical
upon it through the introduction of “outcome-based to Malaysia’s continued growth, and more dialogue is
budgeting.” However, not all stakeholders believe that needed on the role of the budget process.
the benefits of OBB have been realized.
The Hub hosted a roundtable discussion on August 6,
2018, with current and past officials from the National
Budget Office, line ministries, research institutions, and
international experts to exchange ideas on how OBB
ANNUAL REPORT | FINANCIAL YEAR 2019 51
THEME 4
Boosting Social Protection
and Jobs Outcomes
OVERVIEW
The objective of this knowledge agenda is to enhance effective knowledge
sharing of Malaysia’s development experience in boosting social protection and
jobs outcomes. The work is led by the World Bank’s Social Protection and Jobs
Global Practice, in close coordination and collaboration with other internal and
external partners.
Since the formation of today’s Malaysia in 1963, the country has experienced
massive economic change, a significant rise in living standards, and the practical
eradication of extreme poverty. Throughout this time, one of the Malaysia’s
main areas of emphasis has been the development of human capital and jobs.
This area of emphasis has taken shape through investments in understanding,
reforming, and strengthening the skills and talent pipeline, labor market and
training institutions, and the immigration system, among other areas. At the
same time, while Malaysia’s transformation from low-income to middle-income
status was successful, the transformation to high-income status has proven
more challenging. Progress in leveraging productive social protection for
resilience, equity, and opportunity has in general also been somewhat mixed.
52 ANNUAL REPORT | FINANCIAL YEAR 2019
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 4: Boosting Social Protection and Jobs Outcomes
FY19 Year in Review
(JULY 2018 – JUNE 2019)
Given the importance of these development successes The Critical Occupations List is an
and challenges, Theme 4 of Boosting Social Protection and innovative tool that combines qualitative
Jobs Outcomes was added to the Hub’s work program in
and quantitative information on labor
October 2017.
market shortages, and has attracted
The main activities for FY19 included an analytical work on widespread attention in countries across
women’s access to economic opportunities, and female EAP and beyond that are grappling with
labor force participation in particular. Female labor force skills imbalances on the labor market.
participation in Malaysia has increased significantly in
recent years, but remains low relative to other countries
in the region. The analyses conducted in this area aims to
provide insight on the challenges faced by women with these occupations. As a result, the List seeks to identify
respect to entering and staying in the labor market, both shortages in occupations that are sought-after by employers.
from a practical perspective and from a legal perspective. Finally, the List is designed to be a tool to help policymakers
The potential increase in the female labor force will be key make decisions. Thus, even after identifying shortages in
for Malaysia in the transition from middle-income to high- skilled occupations, an occupation is only considered to be
income developed nation status. critical if filling that occupational shortage is consistent with
Malaysia’s strategic economic development objectives. The
List is currently used in Malaysia as a source of labor market
The analytical work on women’s intelligence by many stakeholders and in very concrete
access to economic opportunities terms to inform migration policy.
combines innovative knowledge
generation from a quantitative, It has been presented by the team and representatives
from TalentCorp as one of the main counterpart agencies
qualitative, and legal perspective with
in regional and global forums, and efforts are underway in
the development of practical policy Indonesia and Vietnam, among other countries, to introduce
options, and has started to contribute shortage lists largely modeled on Malaysia’s example.
to an evidence-based policy discussion
on how to increase the female labor At the end of 2018, the Hub hosted a high-level delegation
force participation. from Tunisia as part of a knowledge exchange initiative.
The knowledge exchange focused on the lessons learned
in the TVET sector. Key takeaways from the knowledge
Work was also completed on two case studies intended exchange that will inform the improvement of the TVET
to identify and understand select key social protection sector in Tunisia include the establishment of an agency
and jobs policies that have impacted Malaysia’s structural that is responsible for quality assurance of training in TVET
transformation. The completed case studies have drawn institutions mirroring the Malaysian Qualifications Agency
on both existing research and new analysis, and leveraged (MQA), and the development of private vocational training
on strategic relationships with Malaysian policymakers, directly linked to employment.
researchers, and other stakeholders. The first case study is
on support for the development of skilled workers, while the Other engagements included a project to understand the
second case study is on monitoring occupational shortages role of labor and jobs in Malaysia’s structural transformation
using Malaysia’s Critical Occupations List implemented by that have occurred after the country’s formation and have
TalentCorp and the Institute of Labor Market Information continued to be developed, as well as presentations at events
and Analysis, both under the Ministry of Human Resources, hosted by the Ministry of Human Resources, Universiti Sains
with technical support from the World Bank. Malaysia, the Institute for Diplomacy and Foreign Relations,
and various other agencies and institutions.
The List is also interested in determining whether there
are mismatches between employers’ demand for certain
occupations and the supply of the skills associated with
ANNUAL REPORT | FINANCIAL YEAR 2019 53
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 4: Boosting Social Protection and Jobs Outcomes
FY20 Moving Forward
Moving forward, the work program will deepen in-depth showed that the Program increases the return probability by
analytical research, deliver the final piece in the series of 40% for applicants with a preexisting job offer in Malaysia.
case studies, and put more and more emphasis on the
dissemination of analytical output and the facilitation of In addition, FY20 will focus on a key analytical engagement
knowledge sharing. to understand the role of labor and jobs in Malaysia’s
structural transformation as well as in the structural
There will be a conference on public pension funds in Asia transformation of other ASEAN countries. The analytical
jointly organized with the Finance, Competitiveness and project will engage the policy and research community to
Innovation team, as well as high-visibility events for the improve the understanding of structural transformation in
launch of the study on women’s economic opportunities Southeast Asia, with an emphasis on the patterns, causes,
and the case study on the Critical Occupations List, in and consequences of reallocation of labor.
partnership with relevant counterpart agencies. The Critical
Occupations List will also be prominently featured at the An improved understanding of structural transformation is
World Bank’s upcoming Human Development Week in expected to contribute to informing enhanced policymaking
Washington, D.C. that will allow countries in Southeast Asia and beyond to
maximize the gains from structural transformation and
As attraction of skilled workers has become one of the minimize any negative impacts. For this purpose, the
principal strategies through which countries are trying to project will be closely connected to related analytical
enhance productivity and spur economic growth, but few exercises implemented or planned by the Hub in Kuala
relevant policies have been evaluated, the case study will Lumpur, including work by the Development Economics
discuss the Returning Expert Program, a program for the Research Group on a long-run growth model and structural
facilitation of labor mobility implemented by TalentCorp that transformation in the Republic of Korea, and by a multi-
targets high-skilled Malaysians abroad and provides them sectorial team on Malaysia’s transition to high-income and
with tax incentives to return. A rigorous impact evaluation developed country status.
South-South Knowledge Exchange between Tunisia and Malaysia
54 ANNUAL REPORT | FINANCIAL YEAR 2019
PILLAR 1: SHARING POLICY INNOVATIONS AND DEVELOPMENT EXPERIENCES
Theme 4: Boosting Social Protection and Jobs Outcomes
IN FOCUS
Boosting female labor force participation to become
a high-income and developed nation
The Challenge 2. qualitative analysis that seeks to obtain perceptions
The female labor force is an importance source of productive on the barriers for women to enter the labor force
potential for Malaysia in its transition toward becoming a through focus group discussions with women, men, and
high-income and developed nation. The country has made employers, and
great strides towards closing the gender gap in labor force
3. legal analysis that reviews both civil law and Syariah
participation, particularly in the last decade. However, at
law related to entrance to the labor market, non-
55.2%, female labor force participation in Malaysia remains
discrimination at work, and more broadly, life events and
to be one of the lowest in the region. At the same time, the
social protection.
growth of the female labor force at least partially stems from
growth in informal employment. While women can benefit
from the flexibility of informal work arrangements, there Results
is also a need to ensure that they are provided with the Findings from the research project will be used to support
opportunity to access productive and secure employment policy dialogue and debate, with the main counterparts
with better career prospects and financial protection. being the Ministry of Women, Family and Community
Development and the Ministry of Human Resources.
The Solution Recommendations will be focused on creating an enabling
A World Bank team is conducting a research project on the environment for women to participate in the labor force
underlying factors affecting a woman’s decision to enter the throughout the lifecycle.
labor market, with the goal of providing actionable policy
solutions towards boosting female labor force participation. Instruments
This research project consists of three types of analyses: Empirical analysis, focus group discussions, legal research
and analysis, and consultations with relevant Government
1. quantitative analysis, which looks at the patterns in
agencies.
female labor force participation in recent years using
the Labor Force Survey conducted by Department of
Statistics Malaysia,
Knowledge Team: Achim Schmillen, Tan Mei Ling, Natasha Halid, Nina Weimann-Sandig, and Amanina Rahman with
overall guidance from Philip O’Keefe.
ANNUAL REPORT | FINANCIAL YEAR 2019 55
PILLAR 2
Learning
Together for
Global Solutions
Introduction
Together with local and international
researchers, the Hub carries out cutting-edge
development policy research and analytical
work, including the assessment of business
and investment climates across countries.
• Through the DECRG unit, the office conducts original studies, spanning
economic growth and risk management, to program evaluation and the
implementation of key public services.
• Through the DECIG, the office carries out primary data collection and research
for projects such as the Doing Business, Enterprise Surveys, and Enabling the
Agriculture projects.
ANNUAL REPORT | FINANCIAL YEAR 2019 57
Development Research Group
OVERVIEW
Development Research Group envisions the Hub in Malaysia as a
regional center of excellence for research on key economic development
areas.
Towards this aim, Development Research Group conducts and disseminates research, and
undertakes activities to promote a community of researchers in the region. Development
Research Group conducts original research, spanning economic growth, risk management,
program evaluation, and the implementation of key public services. Becoming a regional
research center requires deep and fluid interactions with at least three communities:
• Local experts in government, academia, and the World Bank Global Practices teams at the Hub
• Researchers at the World Bank in Washington, D.C.
• The global research community, with emphasis on institutions in neighboring countries
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Development Research Group
FY19 Year in Review
(JULY 2018 – JUNE 2019)
The Development Research Group based at the Kuala for development and economic policy. The second one
Lumpur hub (DECRG-KL) has two main mandates. The first is to promote a community of researchers in Malaysia, its
is to produce original research of worldwide significance neighboring countries, and Asia in general.
Original Research
In the year spanning July 2018 to June 2019 (FY19), DECRG- With about 38,000 downloads to date, the RPBs have
KL issued one book, published nine articles in academic become a popular and influential means to disseminate the
journals and edited volumes, and produced four working applied lessons and policy conclusions obtained from both
papers. The topics covered in these publications deal DECRG-KL’s own research and the overall economics and
with economic growth and productivity, poverty and public policy literature.
inequality alleviation, and public services and community
interventions. The effect that these articles and books In FY19, DECRG-KL produced eight RPBs, dealing with
will have on academic discussions and policy debates macroeconomic topics such as fiscal space and current
is promising: the working papers produced since the account deficits; financial market issues such as automated
inception of the Hub in 2016 have been downloaded about investment platforms and corporate borrowing in emerging
17,000 times, and those produced in FY19 almost 3,000 markets; labor market themes such as labor informality
times. Some of these articles will guide economic reforms to and the future of work; and public sector issues such as
increase productivity and growth in many countries around controlling corruption and the demand side of governance.
the world, while others will shed light on public programs With six RPBs already published and two in the pipeline,
to improve services, community participation, and social they have been downloaded over 6,000 times as of mid-
outcomes. All research articles and books produced by May 2019. All RPBs are also available on the website. Some
DECRG-KL are listed in the team’s website. For a selection of them are condensed and featured in the Hub’s annual
of them, a summary of objectives, methods, and findings is report.
presented in the Hub’s annual report.
With the purpose of bridging the gap between basic
research and policy concerns, DECRG-KL created a new
product in 2016, the Research & Policy Brief (RPB) series.
Research Community Building
FY19 was a remarkably active year with regards to activities In FY19, DECRG-KL organized and hosted 23 seminars,
directed to research community building in Malaysia eight of which were conducted jointly with the
and the region. During the year, DECRG-KL organized University of Malaya. The average attendance to the
an international conference, one course on applied seminars has been 674 people in person and many
microeconomic methods, and over 40 formal and more through teleconferencing and webcasting. The
informal seminars. Through these activities, DECRG- seminar series has covered an impressive array of topics,
KL interacted with representatives from more than 180 from stunting in Malaysia, poverty alleviation in Africa,
organizations in Malaysia and beyond (33% from academia, and unemployment and extremism in the Middle East
25% from government, and the rest from the private sector). to structural transformation in Korea and the political
Furthermore, DECRG-KL team members presented their economy of China’s export slowdown. The objective of the
work in over 20 forums, seminars, and conferences both in formal seminars is threefold. First, to discuss topics that
Malaysia and other countries in the region and the world. are pertinent and timely for development policy debate;
ANNUAL REPORT | FINANCIAL YEAR 2019 59
PILLAR 2: LEARNING TOGETHER FOR GLOBAL SOLUTIONS
Development Research Group
second, to showcase best examples of research approaches force for economic growth, sustainable development, and
methods; and third, to invite comments and discussion that equality of opportunities. The goal of the conference was to
can lead to new ideas and improved research by speakers understand the processes underlying globalization and how
and members of the audience. they may be oriented towards welfare enhancing results.
It featured keynote speeches by Shanta Devarajan (World
Recognizing that comments, criticisms, and suggestions are Bank), Bill Easterly (New York University), and J.P. Singh
most useful at early stages of research, DECRG-KL organizes (George Mason University), as well a strong set of research
“half-baked” seminars, where speakers present their papers and discussions by economists and social scientists
preliminary work for discussion. In FY 19, DECRG-KL hosted from renowned universities and international organizations
20 “half-baked” seminars, typically with smaller audiences around the world. The conference was attended by 280
averaging 240 participants. Most speakers in the “half- people and a survey of audience experience indicated that
baked” series are university professors, graduate students, they were very satisfied. All conference materials, including
and think tank researchers. Their objective is to get feedback video recordings, have been made available for a worldwide
and guidance on clarifying their research hypotheses, audience.
identifying the best methodological techniques to address
them, and interpreting their initial results correctly. To promote high quality and relevant research, DECRG-
KL awards a prize for the best academic paper on
In mid-November 2018, DECRG-KL conducted a week- economics and related social sciences by an early-career
long course on Impact Evaluation Methods. Taught by Malaysian national, the Sundaran Memorial Prize for
Karthik Muralidharan (University of California, San Diego) Young Malaysian Researchers. The winning paper should
and Vijayendra Rao (World Bank), the class presented an demonstrate excellence in research while addressing in
overview of the most important techniques for impact clear and compelling ways a key development policy issue.
evaluation and an introduction to the mixed methods The prize is open to all Malaysian nationals younger than
approach. A dominant feature of empirical research in 40 years of age, no matter where they currently reside, who
microeconomics in the past two decades has been the are working on their doctoral studies or have received their
“credibility revolution” in empirical research that has doctorate degree within the last five years. The Sundaran
prioritized the generation of credible causal estimates of Memorial Prize for Young Malaysian Researchers 2018-19
the impact of policies and programs. This course presented was awarded to Woan Foong Wong (assistant professor
an overview of the major methods for impact evaluation, at the University of Oregon) for her paper “The Round
both non-experimental (difference-in-difference, matching, Trip Effect: Endogenous Transport Costs and International
and regression-discontinuity estimators) and experimental Trade.” Using cutting-edge economic theory and applying
techniques based on randomized control trials. The course econometrics on a novel data set, Dr. Wong studied the
provided a practical guide to using these techniques, implications of transport costs for international trade
the assumptions under which they are valid, and the outcomes and policies. She found that once transport costs
design, execution, and interpretation of randomized field are recognized to change according to market conditions,
experiments. Of 232 applicants, 59 students (66% from exports and imports become closely linked through cost-
Malaysia) were selected for the course, all of them holding a related spillovers. An important policy implication is that
graduate degree in economics. All participants completed protectionist policies can backfire, increasing, rather than
the course successfully, and at least 75% declared balancing, a trade deficit. The prize to Dr. Wong was
themselves to be satisfied with it. presented at the conference Globalization: Contents and
Discontents. This was the second edition of the Prize; the
On January 15-16, 2019, DECRG-KL held its third first was conferred in 2016 to Boon Hwa Tng (Bank Negara
international conference called Globalization: Contents Malaysia).
and Discontents. The conference was the first in a series
of events scheduled to commemorate the 75th anniversary Finally, to assess some of the impact of its research
of the Bretton Woods conference. For at least 20 years, building community activities, DECRG-KL conduced a
scholars have debated the pros and cons of globalization, recent survey in February 2019, sampling participants of
a multidimensional process that is not just about trade seminars, short courses and conferences. Most respondents
and financial flows but also the spread of culture and were based in Malaysia (52%), study or work in universities
ideas. Some have argued in favor of reducing trade and (38%), and have post-graduate qualifications (PhD: 46%,
migration barriers to improve economic growth and to Masters: 38%). The majority of respondents indicated
have it more equitably distributed. Others have raised that the Group’s activities helped in their existing work on
doubts about the benefits of “hyper” mobile capital specific conceptual or technical problems (91%), inspired
and the liberalization recommendations of international them to embark on a new research project/paper (67%),
financial institutions. The challenge is creating “smart” and/or helped them to improve and possibly finish an
globalization, where international integration becomes a existing research project/paper (64%). Most respondents
60 ANNUAL REPORT | FINANCIAL YEAR 2019
PILLAR 2: LEARNING TOGETHER FOR GLOBAL SOLUTIONS
Development Research Group
also indicated that these activities enriched their network For the course program and materials, visit http://www.
and allowed them to collaborate with researchers outside worldbank.org/en/events/2018/07/13/short-course-impact-
their current institution (71%), with collaborators mostly evaluation-methods.
based in and out of Malaysia (50%) and in Malaysia (36%).
Respondents who had presented at the Group’s seminars For further details on the winning author and her paper,
(26%) found comments received at their presentations to be visit http://www.worldbank.org/en/country/malaysia/brief/
very useful (69%); of those that presented a “half-baked” decrg-in-kuala-lumpur-young-malaysian-researcher-prize.
seminar, 80% went on to finish a paper, present a complete
product at a formal seminar/conference, and/or publish in a
formal working paper series or journal.
FY20 Moving Forward
For FY20, the Development Research Group based in Kuala Research Group will continue collaborating with them in
Lumpur will continue its research program on economic joint research activities and providing a forum to discuss
growth, poverty alleviation, and the management of risk and exchange ideas about economic growth, sustainable
and vulnerability. These are broad topics, and they will be development, and risk management through the DECRG-
addressed through a variety of outputs, such as research KL discussion seminars.
papers, policy briefs, discussion seminars, and modeling
tools. In brief, all activities of the Development Research Group
over FY20 are aimed at becoming a regional center for
Projects of particular importance involve the analysis of excellence in applied research. This will be achieved
economic growth and productivity, from macroeconomic, through solid research and dynamic and robust interactions
firm-level, sectoral, and household perspectives. The with experts and peers from the rest of the World Bank, the
projects highlight the importance of governance and Malaysian Government and research institutions, and the
the provision of public goods and services for sustained international community of development researchers and
economic growth. practitioners.
To strengthen local and regional capacity in universities
and other research-oriented institutions, the Development
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PILLAR 2: LEARNING TOGETHER FOR GLOBAL SOLUTIONS
Development Research Group
IN FOCUS
Assessing the Effect of Public Capital on Growth
To analyze the effect of an increase in the quantity or quality of public investment
on growth, this paper extends the World Bank’s Long-Term Growth Model (LTGM),
by separating the total capital stock into public and private portions, with the
former adjusted for its quality. The paper presents the Long-Term Growth Model
Public Capital Extension (LTGM-PC) and accompanying freely downloadable
Excel-based tool. It also constructs a new Infrastructure Efficiency Index (IEI), by
combining quality indicators for power, roads, and water as a cardinal measure
of the quality of public capital in each country. In the model, public investment
generates a larger boost to growth if existing stocks of public capital are low,
or if public capital is particularly important in the production function. Through
the lens of the model and utilizing newly collated cross-country data, the paper
presents three stylized facts and some related policy implications.
Background More technically, our model builds on the Solow-Swan
This paper makes contributions in two areas. First, we growth model and another World Bank Excel-based tool
develop a model of the effect of public investment on known as the Long-Term Growth Model (LTGM) (Loayza
long-term growth – called the LTGM-PC – that is simple and Pennings, 2018; and Hevia and Loayza, 2012), which
enough to be solved in an Excel spreadsheet without we refer to as the Standard LTGM. However, in the Solow-
macros (which is provided as a companion to this paper Swan model (and Standard LTGM), capital is simply an
on the website www.worldbank.org/LTGM). Unlike aggregate, and so those models cannot simulate the
coefficients estimated in most empirical studies, the specific effect of an increase in public investment. In
LTGM-PC allows for the effect of extra public investment contrast, in the LTGM-PC, total capital is split into public
to vary across countries and over time within the same and private portions.
country. In the model, the effect of an increase in public
investment (or the quality of that investment) and the The second contribution is to document how the quantity
full dynamic growth path depend on country-specific and quality of public capital vary across countries with
factors, such as the scarcity of public capital (relative different levels of development, and how this affects
to GDP) and some crowding in of private investment. the impact of new public and private investment on
The model also allows for the fact that the public capital growth. This analysis is conducted through the lens of
stock might be of low-quality construction, which is a the LTGM-PC, and utilizes the cross-country data on a
practical concern in many developing countries. newly constructed Infrastructure Efficiency Index (IEI)
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Development Research Group
and public capital stocks collected for the Excel-based of public or private capital - but on average are similar
tool. to the effect of aggregate investment in the Standard
LTGM. We show analytically and numerically that the
Stylized Facts Documented in the Paper effect of public investment on growth is higher when
The measured public capital stock is roughly constant the public capital-to-output ratio is lower - that is when
as a share of GDP across income groups. Returns to new public capital is scarce. Conversely, in countries where
public investment, and its effect on growth, are roughly public capital is abundant relative to other factors – even
constant across development levels. Quantitatively, if it is scarce in absolute terms – public investment will
a permanent one percentage point (ppt) increase in have a smaller effect on growth. The growth impact is
public investment-to-GDP boosts growth by around 0.1- also larger when public investment is more useful, such
0.2ppts over the following few years (depending on the as when it is in the form of essential infrastructure (public
parameters), with the effect declining over time. investment in other areas will have a lower return).
Developing countries are relatively short of private In contrast with several popular narratives, we find the
capital, which means that private investment provides growth impact of an increase in public investment is
the largest boost to growth in low-income countries. very similar across different levels of development.
Private capital as a share of GDP in low-income countries For a typical low- or middle-income country with our
is only two thirds of that in middle-income countries, default parameters, a permanent 1ppt of GDP increase
and almost half that in high-income countries. By our in public investment in essential infrastructure tends to
calculations, this means the return to private capital is boost growth by around 0.18 ppts in the short term,
highest in low-income countries. This stems from the but the boost to growth falls slowly over time as public
relatively low levels of private investment in low-income capital accumulates. Other, less useful types of public
countries (whereas public investment in low-income investment (like public buildings) have a boost to growth
countries is actually larger as a share of GDP). of around 0.1ppts. In contrast, a permanent 1ppt of GDP
increase in private investment leads to a slightly higher
However, low-income countries also have the most short-term boost to growth of about 0.22 ppts, although
inefficient public investment – with an IEI one-fifth lower the effect tapers off faster over time.
than middle-income countries and one-third lower
than high-income countries. Even though low-income Model simulations also show that there can be substantial
countries might not be short of measured public capital growth dividends from improvements in the quality of
– as public investment is likely overstated in many low- new public investment. Our new IEI suggests a public
income countries with poor institutions (Keefer and capital efficiency loss of about 30 ppts for low-income
Knack, 2007) – low-income countries are likely short countries, and 10-15 ppts for middle-income countries
of efficient public capital that is actually useful in (relative to the efficiency of high-income countries). For
production. This means that in low-income countries countries with poor-quality public capital and a large
(i) the marginal product of efficient public capital – if public investment share of GDP – such as many low-
it could be installed – is extremely high and (ii) there income countries – an increase in the quality of public
is substantial room for low-income countries to boost investment can be just as effective as a modest increase
growth through increases in efficiency. As high efficiency in quantity of public investment. For example, for the
only affects output through new investment, countries typical low-income country a 1ppt increase in efficiency
with high existing rates of public investment (and low boosts growth by the same amount as a 0.13 ppt of GDP
existing efficiency) have the most to gain. However, increase in public investment. Despite this, the level
efficiency is extremely difficult to increase quickly, and of efficiency has no effect on the marginal product of
so in practical terms, the return to public investment will public capital because the low quality of new public
still be similar across different levels of development. investment is exactly offset by greater need for public
capital due to the poor quality of past public investment
Summary and Conclusion (as in Berg et al. 2015).
The effects of public and private investment on
growth in our model vary substantially across countries
depending on whether the country is relatively short
Authors: Sharmila Devadas: Development Research Group, the World Bank; Steven Pennings: Development Research
Group, the World Bank.
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Development Research Group
IN FOCUS
Productivity Growth: Patterns and Determinants
Across the World
Summary
Based on an extensive literature review, the paper
identifies the main determinants of economic
productivity as innovation, education, market efficiency,
infrastructure, and institutions. Based on underlying
proxies, the paper constructs indexes representing each
of the main categories of productivity determinants and
obtains an overall determinant index. This is done for
every year in the three decades spanning 1985–2015
and for more than 100 countries. In parallel, the paper
presents a measure of total factor productivity (TFP),
largely obtained from the Penn World Table, and assesses
the pattern of productivity growth across regions and
income groups over the same sample. The paper then
examines the relationship between the measures of
TFP and its determinants. The variance of productivity
growth is decomposed into the share explained by each
of its main determinants, and the relationship between
productivity growth and the overall determinant index
is identified. Long Term Growth Model–Total Factor
Productivity Extension
The variance decomposition results show that the highest The LTGM–TFP is an Excel-based companion to the
contributor among the determinants to the variance in standard LTGM that helps users assess a country’s
TFP growth is market efficiency for Organisation for potential for improving its TFP growth rate over the
Economic Co-operation and Development countries next few decades. The LTGM–TFP toolkit combines
and education for developing countries in the most a country’s scores for innovation, education, market
recent decade. The regression results indicate that, efficiency, infrastructure, and institutions—which have
controlling for country- and time-specific effects, TFP been shown in the literature to affect TFP growth—
growth has a positive and significant relationship with into a new “TFP determinant index”. Based on a fixed-
the proposed TFP determinant index and a negative effects regression model, the “TFP determinant index”
relationship with initial TFP. This relationship is then then quantifies the future path for TFP growth in the
used to build the LTGM–TFP extension. LTGM–TFP toolkit for each country. That TFP growth
path can be fed into the standard LTGM or LTGM–
Long Term Growth Model Public Capital spreadsheets to determine paths for
The LTGM is an Excel-based tool to analyze long- GDP growth or poverty reduction. The methodology is
term growth scenarios building on the Solow-Swan described in the companion working paper:
Growth Model. The tool can also be used to assess
the implications of growth (and changes in inequality) Kim, Young Eun; Loayza, Norman V. 2019. “Productivity
for poverty rates. The focus of the tool is on simplicity, Growth : Patterns and Determinants across the World.”
transparency, and ease-of-use: there are no macros, Policy Research Working Paper, No. WPS 8852.
and the very low data requirements mean the tool can Washington, D.C.: World Bank Group. http://documents.
be applied in almost any country. The tool is useful worldbank.org/curated/en/130281557504440729/
for planning/vision documents and country reports, Produc tivit y-Grow th-Pat terns-and-Determinants-
but is not designed for short-term forecasting. The across-the-World
building blocks of growth are savings, investment, and
productivity, but the model also analyzes human capital, The LTGM and LTGM–TFP extension are available at
demographics, the external sector (external debt, https://www.worldbank.org/LTGM.
foreign direct investment, current account balance), and
labor force participation by gender.
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Development Research Group
IN FOCUS
Informality: Why is it So Widespread and How Can
it be Reduced?
In a typical developing country, about 70% of workers and 30% of production
are informal. Informality is a cause and a consequence of the lack of economic
and institutional development. It implies productive inefficiency and a culture
of evasion and noncompliance. Informality, however, exists because it offers the
advantages of flexibility and employment in economies with low labor productivity
and an excessive regulatory burden.
Under these conditions, if there were no informality, there people. It is a problem because it implies that a large
would be greater unemployment, poverty, conflict, and number of people and a considerable share of economic
crime. A well-conceived formalization strategy should activity do not fully benefit from appropriate technologies
seek to make formality more attractive. As the causes of and efficient production methods, access to essential
informality are complex and interrelated, the reforms to public services such as police and judicial protection,
reduce it must include all relevant areas. A formalization and the possibility of sharing and mitigating risks such as
strategy should consist of making labor markets flexible, old age, illness, and unemployment. Informality is also a
reforming social protection, increasing labor productivity, problem because informal firms, workers, and activities
making the regulatory framework and the justice system contribute insufficiently to the State and the generation
efficient, and rationalizing the tax system. of public goods.
“Informality” is a term used to describe the set of firms, Informality, however, exists because it offers several
workers, and activities that operate outside the legal and economic advantages in economies constrained by low
regulatory framework or outside the modern economy. It labor and business productivity, as well as by a State that
is more prevalent in smaller firms, more marginal locations, does not offer efficient services but imposes an excessive
more rudimentary activities, and among less-educated regulatory and tax burden.
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Development Research Group
The Prevalence of Informality
The informal economy is commonly defined and measured and production markets. Informal labor is highest in Sub-
in relation to two areas: employment and production. Saharan Africa and South Asia; considerably high in East
In the first area, a key measure is the percentage of Asia and Pacific, Latin America and the Caribbean, and
employment that is not subject to or does not comply with Middle-East and North Africa; lower in Eastern Europe
labor legislation, does not pay income taxes, or performs and Central Asia; and lowest in the rich countries of the
subsistence activities. In the second area, a key measure OECD. Informal production as a share of GDP is also
of the size of the informal economy is the percentage substantial in developing countries, though lower than in
of the country’s production that is generated informally. terms of employment, a reflection of the informal sector´s
Informality is widespread in developing countries. It is lower productivity. However, while persistent over time,
one of the most important characteristics of their labor in many countries, informality is declining (see Figure 5).
Figure 5. Decrease in Informality in Relation to Economic Growth and Formalization Reforms,
circa 2005-2015
2.0 5.0
Decrease in informality (percentage points, annualized)
4.5
Growth rate of GDP per worker (percent)
4.0
1.5
3.5
3.0
1.0 2.5
2.0
1.5
0.5
1.0
0.5
0.0 0.0
-0.5
-1.0
-0.5
-1.5
-2.0
-1.0 -2.5
Dominican Republic
Egypt, Arab Rep.
Georgia
Nepal
Pakistan
Poland
Benin
Malaysia
Oman
Central African Republic
Bangladesh
Zimbabwe
Morocco
Mexico
Sri Lanka
Kenya
Thailand
Vietnam
Zambia
Tanzania
Cambodia
Angola
Philippines
India
Belarus
Indonesia
Rwanda
Uganda
Botswana
Tunisia
Ukraine
Uruguay
Brazil
Venezuela, RB
Turkey
Algeria
Peru
Guatemala
South Africa
Chile
Madagascar
Colombia
Côte d’Ivoire
Ghana
Yemen, Rep.
Ecuador
Hai
Informal labor as a share of employment Growth of GDP per worker
Strong reforms Moderate reforms Weak reforms Lacking reforms
Source: Author’s calculation based on ILOSTAT (2018), TURKSTAT (2018), and Medina and Schneider (2018) for informal labor and production; World Bank
World Development (2018) for growth of GDP per worker; Kim and Loayza (2018) for market flexibility and governance; World Bank ASPIRE Indicators (2018)
for social protection; and World Bank Doing Business (2018) for taxes.
Note: Reforms are measured using indicators in the areas of market flexibility, social protection, governance, and taxation. Considering the period
2005−15, progress of at least 10 percent in three or four areas is labeled “Strong”; in two areas, “Moderate”; in one area, “Weak”; and in no area, “Lacking.”
Growth rates are truncated at −2.5 percent and 5 percent.
The Causes of Informality both relevant, in proportions that vary from country
There are two main schools of thought about the to country. One way to appreciate that both lack of
causes of informality, both of which are correct. economic development and poor governance can be
The first considers that informality is a symptom of responsible for the high level of informality in a country
underdevelopment; i.e. low productivity ofworkers and is to consider the international relationship between
firms, mostly due to structural factors. Accordingly, informality and per capita income.
policies to reduce informality should be aimed at
increasing labor and business productivity. The second The comparison shows that less economically developed
school of thought considers that informality is the result countries tend to exhibit larger informality. However,
of bad governance. Thus, informality is the response some countries have a significantly higher level of
of the private sector to an overly-regulated economy informality than their level of GDP per capita would
and an inefficient State. As such, policies should focus predict. This suggests that informality is not only driven
on improving the regulatory environment and public by economic development, but also by other factors
services. Lack of economic development, and low arguably connected to the quality of government and
productivity in particular, and poor governance are regulatory environment.
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Development Research Group
Figure 6. Informal Labor and Informal Production versus GDP per capita
b. Informal labor as a share of total employment, 2016 a. Informal production as a percent of GDP, 2015
UGA TCD
100 MOZ MLI RWA
BEN KHM LAO NGA AGO 70
CAF NER
BDI SLE NPL CIV
HTI GIN SEN GHA IND IDN ZWE
90 COD MDG BFA BGD LSO CMR PNG
TGO AFG MMRZMB COG 60
LBR TZAZWE BOL
MWI PAK KEN HND MAR
80 MRT NIC GTMLKA
YEM HTI
VNM SDN JAM PER
70
TJK PHL LBN 50 NGA GEO
PRYIRQ
SLV NAM CAF MMR
PSE THA BWA AZE
BEN
COD
60 EGY GEO LBY COL MDG NIC BOL GTM THA
ALB IRN MEX LBR GIN SLV PER
TUN
MNG ECU AZE DOM 40 TZA CIV UKR
ARM
Percent
Percent
PAN TJK GHA MDACOG BRA
CHN ARG SEN HND
50 ARMDZA NER SLE LKA LBY
BRA KHM KENLSO PNG AGOPRY BLR
RUS
KGZ MYS CHL OMN BDI MWI MOZ NPL UGA PAK ZMB EGY
KAZ
40
JOR 30 TGO MLI KGZ PHL TUN BIH LBN MEX
YEM CMR ECU TUR GRC
CRI POL GRC BFA TCD
MAR ALB DOM ARG MYS
ZAF RUS TUR RWA BGD HRV ESP
MRT LAO JAM COL OMN ARE
30 UKR BIH ROU KOR KWT
ETH DZA
IDN NAM ZAF BWA ROU URY HUN KOR
MDA MKD SAU
ESP QAT 20 BGR LTU
ITA
SVN KWT
BEL
SRB ITA JPN IND CRI DNK QAT
URY SGP IRN ISR
20 BLR KAZ ISR USA JOR POL PRT HKG FRA
LTU GBR MNG CHL SWE
BGR CAN VNM SAU NLD NOR
HUN SVK HKG NLD IRL 10 CAN FIN
PRT FRA BEL AUT DNK CHN SVK NZL SGP
10 HRV CZE GBR JPN AUT IRL
CZE DEU AUS CHE NOR DEU AUS CHE
SWE USA
SVN FIN
0 0
5 6 7 8 9 10 11 5 6 7 8 9 10 11
($150) ($400) ($1,000) ($3,000) ($8,000) ($22,000) ($60,000) ($150) ($400) ($1,000) ($3,000) ($8,000) ($22,000) ($60,000)
GDP 2015, constant 2010 US$ (Logs: upper numeral. Absolute value: lower numeral) GDP 2015, constant 2010 US$ (Logs:upper numeral. Absolute value: lower numeral)
EAP ECA LAC MENA OECD SA SSA
Source: For panel a, ILO (2018); Loayza and Meza-Cuadra (2018); for panel b, Medina and Schneider (2018).
Note: Data labels use the International Organization for Standardization (ISO) country codes. OECD includes high-income countries that have been
members of OECD for more than 40 years. Other regions include East Asia and Pacific (EAP), Europe and Central Asia (ECA), Middle East and North Africa
(MENA), Latin America and Caribbean (LAC), South Asia (SA), and Sub-Saharan Africa (SSA).
Objectives of a Formalization Strategy consequences of informality, the prevalence and size of
In principle, formalization should achieve the following the informal economy, and the objectives to be achieved
goals: through formalization:
1. Increase the productivity of workers, businesses, 1. Reduce informality, but not at all costs or in any
and the economy in general. The transition from possible way. An indiscriminate reduction of
informality to formality can represent a substantial informality can lead to unemployment, poverty,
efficiency gain as firms grow in scale and diversity. and the social evils they bring, from criminality
Moreover, an expansion of the tax base can imply to social conflict. Informality can and should be
larger and more stable resources for funding public improved, without losing the benefits it has brought
infrastructure and services. to economic activity and people’s welfare.
2. Reduce the vulnerability to systemic and idiosyncratic 2. Make formality attractive, rather than only penalize
risks. The reforms that bring about formalization can informality. The strategy should seek to increase the
increase the ability of the national economy, firms, benefits of formality and reduce its costs, as well
and workers to adjust to the changing conditions of as discourage informality; i.e. a series of “carrots”
the world economy, to recover from adverse shocks, alongside “sticks” can be adopted, depending on
and to avoid unnecessary risks to health and safety. the characteristics of a country’s informal sector.
The combination of market flexibility with broad and Enforcement of rules and regulations is important
effective social protection encourages formalization only to the extent that they are economically and
and decreases vulnerability. socially sensible.
3. Promote a culture of respect for law and order. 3. Formalize labor and economic activity, not
Improving the legal and regulatory systems can necessarily all firms. Most microenterprises in heavily
help economic agents change their perspective informal economies are inefficient, gradually exiting
and behavior with respect to laws and regulations, the market as development proceeds. Formalization
as well as the institutions responsible for enforcing should be sought through the generation of
them. If economic agents see these institutions employment and production mainly in emerging,
as reasonable and fair, they will perceive a clear medium, and large firms, as these enterprises can
personal and social benefit in respecting them. generate greater growth in productivity and greater
diversification of risks.
Guiding Principles of a Formalization Strategy 4. Implement a comprehensive, not a piecemeal,
The principles underlying formalization reforms formalization strategy. To succeed, a formalization
consider the fundamental causes and most relevant strategy must include well-integrated reforms
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Development Research Group
that address the complexity and particularity system more efficient. The regulatory framework
of informality in each country. The benefit of should promote business development, market
implementing a comprehensive formalization competition, and the protection of workers and
strategy can be greater than the sum of the isolated consumers. Likewise, a proper justice system can
effects of its components. Integration of reforms may make formality not only attractive but also feasible.
be necessary not only for these technical reasons What is needed is a consistent and agile justice
but also for political economy considerations. system that lays the rules for property and use of the
territory, resolves commercial and labor disputes
effectively, enforces contractual agreements fairly,
Reform Components of a Formalization
and protects citizens from crime and predatory
Strategy
behavior.
The main reform components of a formalization strategy
seek to confront the two main causes of informality – lack 5. Rationalize the tax system. A poorly designed tax
of development and poor governance – and to make system can represent a barrier to investment and
formality attractive in a comprehensive yet realistic way. growth and can induce evasion and informality. To
promote formalization, the tax system should tend
1. Make the labor market more flexible. In an economy
toward simplicity, gradual increases in the tax cost
with a large and growing workforce, it is essential
with the size of the firm, and reduction of marginal
that the labor market has the capacity to generate
tax rates. The tax enforcement agency must be
enough formal employment opportunities.
made more efficient through the use of information
Companies must be able to determine their
technologies and address not only formally
workforce without major restrictions on hiring and
registered firms but also informal activity.
firing. Likewise, the wage and non-salary costs that
firms face must correspond to the productivity of
workers and market conditions. Concluding Remarks
The specific measures that are needed for a concrete plan
2. Reform social protection. Labor flexibility can be
must be country-specific. For each reform component,
politically and socially viable only if it is accompanied
a diagnosis of the country´s current situation is required,
by labor reinsertion systems and encompassing
possibly contrasting it with other countries; and specific
social protection aimed at the worker, regardless
reforms to address the main weaknesses should be
of employment status. Social protection reform can
formulated.
not only help in achieving its primary objectives
but also contribute to formalization of workers
These reforms would consist of a combination of
and enterprises. It must be based on the following
measures that vary in terms of their economic cost,
principles: it should benefit people regardless of
technical complexity, and political difficulty. In
employment status; target the most vulnerable; be
addition to specific and well-grounded measures, for
fiscally viable; and not discourage selfsufficiency.
implementation to succeed, a formalization plan should
3. Increase labor productivity. At the individual explicitly state the costs and difficulty (procedural,
level, labor productivity depends on the technical budgetary, and political) of each reform; a timeline for
and social skills acquired at home and school. their realization and potential effects; and the entities
Educational reform is badly needed to transform responsible for their execution, monitoring, and
schooling into learning. For workers already in evaluation.
the labor force, retraining is necessary to sustain
and improve their productivity. At the firm level, Formalizing the economy without losing the advantages
labor productivity depends on the quality of of flexibility and employment is a task of epic proportions.
management, the usefulness of capital investment, It is, nonetheless, feasible provided policymakers
and the capacity to adopt and develop new possess sufficient expertise and, above all, political will.
technologies, processes, and products. Finally, at The long-term benefits of formalization for growth and
the economy wide level, labor productivity is also prosperity can be vast and enduring.
determined by the quality of public infrastructure
and government institutions, as well as competition For the full report of Informality: Why Is It So Widespread
in and access to global markets. and How Can It Be Reduced?, visit http://bit.ly/
RPBinformalitymy
4. Make the regulatory framework and the justice
Norman Loayza is Lead Economist for the World Bank’s Development Research Group in Malaysia.
68 ANNUAL REPORT | FINANCIAL YEAR 2019
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Development Research Group
IN FOCUS
The Future of Work: Race with-not against-the
Machine
Will the revolution in digital and information technologies protest the advent of technology-enabled ride-sharing
make us obsolete? Will jobs be lost and never replaced? services like Uber. Losing our jobs because we have
Will wages drop to intolerable levels? History and become obsolete as workers may be one of our greatest
economic theory and evidence suggest that in the long fears—and for good reasons: job loss has significant and
term, such fears are misplaced. However, in the short long-lasting negative effects on future employment,
and medium term, dislocation can be severe for certain earnings, consumption, health, and even life expectancy.
types of work, places, and populations. In the transition For some individuals, mortality rates in the year after a
period, policies are needed to facilitate labor market job loss are up to 100% higher than would otherwise
flexibility and mobility, introduce and strengthen safety have been (Sullivan and von Wachter 2009).
nets and social protection, and improve education and
training. The Past of Work: Have We Been Here Before?
One way to structure the economic history of developed
Introduction countries over the last 250 years is to refer to three past
There is growing fear that recent and emerging Industrial Revolutions that occurred in the 1760s, the
breakthroughs in technologies such as artificial 1890s, and the 1970s. In turn, these revolutions can
intelligence (AI) and robotics will lead to the wholesale be characterized by the technological innovation that
replacement of human workers by machines and an era propelled them. Thus, the First Industrial Revolution
of mass joblessness and even wider income inequality. used steam engines and factories to mechanize
The U.S. magazine Mother Jones reports, “Smart production; the Second used electricity, oil, and
machines probably won’t kill us all—but they’ll definitely assembly lines to generate industrial production; and
take our jobs, and sooner than you think,” while the the Third used electronics and information technology
British newspaper The Guardian argues, “Technology is to automate production.
hollowing out the middle class and creating a bifurcated
economy.” China’s Global Times notes, “It is not entirely All three past Industrial Revolutions led to large
fantastical to suppose that under the rule of the robots, improvements in productivity. This in turn raised
humans would be forced to beg for food since they welfare in developed countries to levels previously
don’t have any jobs to do any more.” unimaginable, in terms of both material living standards
and leisure (since the 1950s, average hours per worker
At least since the First Industrial Revolution in the 1750s, have been falling among OECD countries). Today,
workers’ jobs and livelihoods have been threatened material living standards and leisure in developing
by machines that can replace them. Facing this threat, countries lag far behind those in developed counties.
the Luddites organized themselves to destroy weaving Therefore, the effects of future productivity growth
machinery in England in the early 1800s. More recently, on welfare can be even more beneficial in developing
taxi drivers from Paris to Mexico City to Bogota have countries than in developed ones.
blocked streets and at times resorted to violence to
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The Future of Work: Is This Time Different? What Policies Are Needed? What Can
No Industrial Revolution has exactly the same labor Countries Do?
market effects as the preceding ones. Breakthroughs in Today, more people are employed than ever before. In
artificial intelligence, robotics, and other technologies the long run, new tasks and new jobs will be created
have led to claims that we are on the cusp of a that are difficult to envision now (in the same way that
new machine age that will dwarf previous waves of even the most knowledgeable and imaginative observer
automation in terms of the scale, speed, and scope of at the beginning of the 1900s would not have guessed
the disruption it causes. A defining characteristic of how workers leaving agriculture would be employed in
the Fourth Industrial Revolution seems to be that while the following decades). At the same time, many of the
previously, technology was increasingly able to perform current technological advances widen inequality. The
routine manual and cognitive tasks, in the current digital returns to tasks complementing new technologies have
and computing revolution, machines can also perform grown dramatically, but many low- and mid-skilled
some non-routine tasks that had been hitherto reserved jobs are at risk of being replaced by automation. The
to humans: the application of logic and automated prospect of an “Engels’ pause” is, moreover, looming in
manufacturing and transportation to bookkeeping and the horizon. This raises the question how to mitigate, if
judicial decisions (Brynjolfsson and McAfee 2011, 2014). not avoid, the negative effects of technological change.
The disruption caused by the Fourth Industrial Technological change promises tremendous gains in
Revolution appears particularly palpable in developed productivity and welfare. Therefore, “neo-Luddite”
countries, but there are also growing signs of it in the policies that aim to stop or delay the Fourth Industrial
developing world. In the Philippines in recent years, for Revolution appear misguided. Instead, the main policy
example, the business process outsourcing industry has question is how to maximize the potential social gains
become a major sector of economic activity and source from technological change. This calls for policies that
of well-paying jobs, employing more than 1 million facilitate labor market flexibility and mobility, introduce
people. However, some companies in the industry have and strengthen safety nets and social protection, and
recently invested heavily in technology and, for instance, improve education and training.
begun replacing call center agents by chatbots powered
by artificial intelligence systems. While the impact of Conclusion: Race with—not against—the
technological change is for the moment mostly evident Machine
on relatively low-skilled “process-driven” business Keynes’s essay on the “Economic Possibilities for Our
outsourcing, there are widespread fears of more general Grandchildren” was ultimately optimistic, a voice of
impacts in the medium term. hope, as the world economy was about to plunge into
the Great Depression. He predicted that technological
A Framework to Assess the Impact of unemployment would be a temporary phenomenon.
Technological Innovation on Jobs and Wages In the long run, technological innovation would bring
Acemoglu and Autor (2011) and Acemoglu and Restrepo about higher incomes and quality of life, including more
(2018) provide a helpful framework for assessing leisure. Even in light of the challenges brought about
the employment and wage effects of technological by the Fourth Industrial Revolution, this prediction is
innovation. According to this framework, there are attainable for the entire population and not only for a
broadly speaking two types of innovations: enabling privileged few—but only if public institutions promote
technologies and replacing technologies. Enabling equality of opportunities, generate an educational
technologies expand the productivity of labor and lead system that favors flexible skills and creativity, and
to higher employment and wages. Modern examples are use redistribution policies to share the proceeds of
computer-aided design (CAT) and statistical software for technological gains. With proper public institutions,
economic and social analysis. Replacing technologies, instead of raging or racing against the machine, we can
in contrast, substitute for labor, making workers less race with the machines toward a better future.
useful and lowering their wages. Modern examples are
industrial robots for car manufacturing and software for
accounting and tax reporting.
Authors: Lay Lian Chuah: Development Research Group, the World Bank; Norman Loayza: Development Research
Group, the World Bank; Achim D. Schmillen: Social Protection and Jobs Global Practice, the World Bank.
70 ANNUAL REPORT | FINANCIAL YEAR 2019
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Development Research Group
IN FOCUS
Good or Bad? Making Sense of the Current Account
Balance
On the surface, a current account surplus seems to demographics, trade, and financial characteristics. Some
have many more positive implications than a current of these may signal strength, indicating the potential
account deficit, with the latter raising greater fears of for future increases in output. For example, at an early
illiquidity and insolvency than the former. However, stage of an economy’s development, higher average
depending on what drives the balance, a deficit may not output growth or productivity, faster population growth
necessarily be a bad thing. Similarly, a surplus does not (resulting in a higher youth dependency ratio), low
necessarily imply that all is well in an economy, despite terms-of-trade volatility, and financial deepening are
its suggestion of a stronger net foreign assets (NFA) associated with higher deficits. A deficit may also be
position. In addition, whether in deficit or surplus, the an optimal response to cyclical conditions, particularly
current account balance may not in itself be sufficient to conditions characterized by a positive output gap and
indicate near-term financial vulnerabilities. What matters a negative terms-of-trade shock. On the other hand,
for macroeconomic stability is that the external position in terms of policy settings, a deficit that coincides
(including the current account and gross foreign flows with relatively large budget deficits, exchange rate
and stocks) is sustainable, without the risk of drastic overvaluation (which may be due to interventions that
disruptions or the need for sharp policy adjustments in prevent the exchange rate from serving as an effective
response to domestic or external shocks. shock absorber), and excessive credit growth imply the
risk of over-consumption and over-investment.
Drivers of current account balances
The underlying drivers of current account balances Identifying excess balances
include economic and demographic characteristics that The results of the IMF’s External Balance Assessment
imply a benchmark for normal balances. Other drivers (EBA) provide a basis to determine the level of excesses
include the institutional environment and government in current account balances and their source.1 However,
policies that may mitigate or exacerbate a departure the explanatory power of the regression model works
from the benchmark. A current account deficit may be an better for some countries than others. For some deficit
optimal response, given a country’s fundamentals that countries (e.g. Brazil, India, and Mexico), estimated
cut across its level of income and stage of development, norms established a deficit that was in excess of their
1. The model-based estimation of excessive current account balances is provided by the sum of policy gaps, which is a normative assessment of actual policies against
desirable policies, and an unexplained gap (regression residuals) after accounting for current account ‘norms’ (reflecting fundamentals, the institutional environment, and
policies set at desirable levels) and cyclical factors.
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Development Research Group
actual deficit, given their lower income, higher growth shock and reduces the probability of contagion from
potential, and faster population growth, thus resulting in an external shock. For instance, while Argentina and
no overall excesses. Though Malaysia’s current account Turkey were identified as having large excess current
surplus has narrowed since 2010 to 3% of GDP in 2017, account deficits with some policy gaps, both have
much of the surplus cannot be adequately explained by been especially vulnerable in recent times given the
the EBA model, potentially reflecting country-specific high share of short-term foreign liabilities in their net
factors that contribute to relatively high savings and low international investment positions (NIIPs). The balance
levels of investment. In terms of identified policy gaps, sheets of different sectors also matter. Aggregate
the low level of public healthcare spending explained a NFA may hide imbalances across different sectors. For
small portion of the excess saving and current account example, despite previously having current account
surplus. Product market regulations, which could hinder surpluses, the Republic of Korea was badly affected
investment, also accounted for some of the unexplained during the global financial crisis. Banks and corporates
gap. The model also did not explain much of Thailand’s with high levels of external debt and negative net
current account surplus, which stood at 10.6% of GDP. positions were hit by large financial outflows and sharp
An excessively tight fiscal stance and high level of exchange rate depreciation. More than half of Malaysia’s
foreign exchange intervention contributed to identified external debt is of medium-to-long-term maturities,
policy gaps, with the IMF assessment finding that limiting rollover risk. Foreign-currency denominated
the unexplained gap was partially related to political debt, which accounts for two-thirds of external debt, is
uncertainty and a temporary tourism boom. Both mainly held by banks and corporations and is subject to
factors would have led to higher savings. Consistent the Central BNMs prudential requirements and external
with assessed current account excess surpluses, both debt approval framework respectively. Banks also have
Malaysia and Thailand showed some signs that their substantial external assets that can be drawn upon to
real effective exchange rates were undervalued, even meet their short-term external debt obligations.
though these exchange rates had appreciated in 2017.
Conclusion
What current account balances miss Perceived vulnerabilities are undoubtedly greater for
regarding near-term financial vulnerabilities deficit countries. Deficits are used to proxy reliance on
Even if drivers of current account balances can be foreign borrowing and exposure to shifts in sentiment,
identified, they remain insufficiently informative about the especially when foreign exchange reserves are relatively
immediate risks to financial stability. Financial liabilities low. Sound policies and institutional features can go a
that are more stable (such as foreign direct investment long way to attracting and sustaining a healthy demand
(FDI)), that foster greater automatic risk sharing (such as for domestic assets.
equity), or that correspond to investors with a longer
time horizon limits the fallout from a negative domestic
This article was published in the Malaysia Economic Monitor, December 2018 and is based on the Research & Policy
Brief: When is a Current Account Deficit Bad? available at http://bit.ly/RPBcadmy1
Sharmila Devadas is Research Fellow for the World Bank’s Development Research Group in Malaysia.
Norman Loayza is Lead Economist for the World Bank’s Development Research Group in Malaysia.
72 ANNUAL REPORT | FINANCIAL YEAR 2019
Global Indicators Group
OVERVIEW
• Doing Business
The Global Indicators Group in Kuala Lumpur comprises teams
• Enterprise Surveys from the Doing Business, Enterprise Surveys, and Agriculture
projects. These teams collect primary data, create indicators,
• Agriculture conduct research and analysis, and organize dissemination
activities for their indicators and research notes.
The Global Indicators Group focuses on investigating the
characteristics of the business environment that are most
conducive to private-sector-led growth, both in an economy as
a whole, and in the agricultural sector. The work completed in
Malaysia is an integral part of the Global Indicators Group’s
global comparative studies, with a focus on data collection,
benchmarking, and analysis relevant to the EAP region.
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Global Indicators Group
FY19 Year in Review
(JULY 2018 – JUNE 2019)
Doing Business
The Doing Business (DB) engagement with PEMUDAH and which had recently been implemented. The improvement in
MPC is ongoing and evolving. In the early days of the Hub, it Malaysia’s overall Ease of Doing Business score is a positive
consisted of numerous workshops where the methodology outcome of the DB engagement and technical workshops
of each of the 11 DB topics was the primary focus. After with PEMUDAH and MPC.
a couple of years, these discussions on methodology
progressed to discussions on global best practices and the The engagement has also led to the commencement of
reform agenda. a technical advisory services project, the Subnational
Doing Business project in Malaysia - which is the first ever
The most recent report, Doing Business 2019: Training for such study in Malaysia. Three DB topics, dealing with
Reform, was launched regionally on November 1, 2018, out construction permits, registering property, and trading
of the Hub, with Australia, Indonesia, Mongolia, and Thailand across borders, will be measured across six cities and four
WBG country offices participating by videoconference. ports; this benchmarking exercise should encourage a
Over 80 representatives from both the public and private race-to-the-top approach across states to foster regulatory
sector participated in the event. In the most recent report, reform at the state level. Similar subnational studies have
Malaysia jumped nine positions in the global ranking (from been implemented in other upper-middle-income and high-
24th to 15th) due to the recognition of six regulatory reforms income countries.
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Global Indicators Group
Water Law
A new case study on Malaysia’s water resources law reform Taking stock of the current baseline as the starting point
process has been delivered to the Ministry of Water, Land, for reform, quantitative legal analysis shows how the state
and Natural Resources (KATS). As Malaysia is drafting a new of Kedah in particular has recently led the pack with more
national water resources bill, this paper, which was prepared comprehensive laws and regulations for water resources
in collaboration with a UKM professor, provides insights management. Selangor, Sabah, and Malacca also display
for other countries where water resources management is some areas of relative strength for possible consideration in
treated as a subnational state issue. the drafting of a new national bill for all of Malaysia.
The historical development of Malaysia’s legal framework Quantitative legal analysis also reveals that Malaysia’s current
has resulted in a complex patchwork of modern and legal framework provides significantly fewer tools to water
colonial-era state-level enactments overlain by limited resource managers than other laws typically found in other
federal provisions. For years, Malaysian commentators have middle-income and high-income countries. As Malaysia
been discussing the need to harmonize and update the seeks to attain high-income country status, comparative
legal framework governing water resources management. examples from other countries may provide helpful insights
for the development of a more comprehensive bill on water
On November 9th, 2018, the Minister of Water, Land, and resources.
Natural Resources, Dr. Xavier Jayakumar, signaled that the
new Government of Malaysia hopes to push forward on an
effort to pass a new national-level bill on water resources
management.
FY20 Moving Forward
The data collection process for the Doing Business 2020 workshops on the DB methodology. The team will write
report has begun and during the FY, the team will continue policy notes and papers on topics such as trade, business
to host visiting delegations and participate in deep-dive regulatory environment, informality, and productivity.
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IN FOCUS
The Labor Productivity Gap Between Middle and
High-income Countries
Introduction private firms; human capital or availability of skilled
Economic history suggests that despite several decades workers; and open and competitive markets that
of planning and policy implementations, several allocate resources across firms and industries based
countries find it difficult to transition to a higher income on comparative advantage and productivity. Firm-
status. Many poor or low-income countries continue to level factors may include the firms’ size, age, gender
remain so, while many middle-income countries such of the top manager, experience of top managers in the
as Malaysia have failed to transition to the high-income industry, and outward orientation.
status. According to one study, out of 101 middle-
income countries in 1960, only 13 became high-income Some factors inhibiting growth are especially relevant for
countries by 2008 based on GDP per capita level relative the middle-income countries. It is argued that sustaining
to the US.1 growth requires continued structural transformation
of the economy from labor-intensive sectors to low-
The broader literature on long-run growth and technology sectors and ultimately to frontier technology
development has identified several determinants of sectors.
growth that may help explain the difficulty in moving to
a higher income bracket. Some of these factors include Strategies based on factor accumulation and the benefits
macroeconomic stability; the business environment, of cheap labor that helped a country transition from
which is broadly defined to include the quality of low-income to middle-income status may no longer be
governance, institutions, and regulatory burden on effective. Declining marginal productivity of capital and
1. Larson, Greg, Norman Loayza, Michael Woolcock (2016), “The Middle-Income Trap: Myth or Reality?” Research & Policy Briefs, No. 1 (March), World Bank.
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rising wages reduce the international competitiveness analysis allowed for the contributions of various factors
of many labor-intensive industries. Thus, the new to the productivity gap to be illuminated. However,
constraints on the economy become more complex as the decomposition cannot establish whether the
domestic industries rely less on investment and more relationships are causal. To this end, the productivity
on innovations. As this process develops, experience gap was decomposed into an endowment effect and
has shown that middle-income countries can become a structural effect. The endowment effect refers to the
trapped – no longer able to effectively compete with attributes or incidence of certain factors experienced
low-wage competitors in poor countries, and still by the firm, whereas the structural effect refers to the
lacking the innovative capabilities to rival high-income returns to these attributes or factors.
economies.
Conclusions
Identifying such factors is important for the design of Regarding the upper-middle-income vs. high-income
appropriate policies for achieving higher income and comparison, results show that labor productivity in the
growth. upper-middle-income countries is about 40% of that for
high-income countries. This productivity gap is roughly
equally attributed to the endowment effect and the
Data description–profile of firms structural effect. This implies that to achieve the level of
The main data source for these studies is firm-level labor productivity of the high-income countries, upper
survey data collected by the World Bank’s Enterprise middle-income countries need to not only increase
Surveys (ES) for a large cross-section of low- and the quantum of productivity enhancing factors but
middle-income countries including Malaysia, as well as also improve their quality so that they contribute more
some high-income countries. These data were collected effectively to labor productivity.
in different years across countries between 2005 and
2017. The data are representative of the country’s non- Results for the endowment effect suggest that the upper-
agricultural and non-extractive private sector with five middle-income countries can reduce the gap in labor
or more employees. productivity with the high-income countries by shifting
activity from the manufacturing sector to services
A common sampling methodology - stratified random sectors, encouraging firms to obtain an internationally-
sampling - and a common questionnaire was used in all recognized quality certification, promoting greater
the surveys. The empirical methodology used was to first investments by the firms in fixed assets, increasing the
estimate the gap in labor productivity between firms in level of tertiary education in the country, and providing
low-income vs. middle-income countries, and between a better rule of law. Results for the structural effect show
upper-middle-income and high-income countries. that the upper-middle-income countries can narrow the
labor productivity gap by improving how effectively
Next, to understand factors that contribute to the exports, secondary education, rule of law, and market
productivity gap, a statistical tool known as the Oaxaca- size contribute to labor productivity.
Blinder decomposition was used. A decomposition
This article has been submitted to the World Bank Working Paper Series and to an academic journal.
Mohammad Amin, Global Indicators Group, the World Bank Group.
Usman Khalid, Assistant Professor, University of Nottingham, Malaysian Campus (UNMC).
ANNUAL REPORT | FINANCIAL YEAR 2019 77
Appendices
Appendix 1: FY19 Progress Made & FY20 Plans 80
Appendix 2: List of Products and Work Delivered 95
ANNUAL REPORT | FINANCIAL YEAR 2019 79
APPENDICES
Appendix 1: FY19 Progress Made & FY20 Plans
Appendix 1: FY19 Progress Made
& FY20 Plans
THEME 1: Supporting Equitable Economic Growth
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
Strengthening • Malaysia Macro-econometric Model rebuilt, • Continued Model technical support as
Economic handed over to MOF and training provided. required by MOF.
Management
• Regional training on debt management • Technical advise as required on APEC 2020,
performance assessment. trade, debt, and fiscal management.
• Trade policy and regional integration
modeling analysis.
Unleashing the • Completion of flagship report “Malaysia’s • Follow up technical advice as required.
Potential of Digital Economy – A New Driver of
Malaysia’s Digital Development”.
Economy
• Major conference held “Public Policy in a
Digital World”.
Malaysia’s • Development of a new work program and • Delivery of flagship report, conference,
Ambition of analytical framework for identifying the and knowledge-sharing events across
Achieving challenges associated with sustaining inclusive different aspects of the program (boosting
High-Income growth beyond Malaysia’s transition to high- competitiveness, creating jobs, modernizing
and Developed income, developed country status. institutions, and promoting inclusion).
Country Status
• Completion of country scan benchmarking • Support to 12MP preparation process.
exercise.
Business • Development of a new work program covering • Analyses, training and knowledge sharing
Environment for investment promotion and incentives, events across all work streams (investment
Prosperity competition policy, SME support programs, promotion and incentives, competition policy,
and subnational investment climate. SME support programs, and subnational
investment climate).
• Preparation of a policy paper on reform of
investment incentives to inform the 2020
budget process.
Agricultural • Preliminary research and consultations • Two-way knowledge exchanges between
Transformation assessing Malaysia’s experience in Malaysia and regional comparator economies.
and Inclusive comparative perspective.
Growth • Technical workshops and consultations.
• A synthesis report on Key Issues in
Agricultural Transformation is completed • Malaysia’s agriculture sector future profile
including the comparative analyses. initiated.
• A two-way knowledge exchange visit between • Agriculture sector marketing structure started.
Vietnam and Malaysia conducted. • Final draft report on agricultural
• Completion of the four thematic area studies. transformation and inclusive growth
completed.
80 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 1: FY19 Progress Made & FY20 Plans
THEME 1: Supporting Equitable Economic Growth
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
Improving • Consultations and training sessions with BNM. • Follow-up technical advice as required.
Labor Market
Information for • Completion of a report estimating the number
Monetary Policy of irregular foreign workers in Malaysia.
• Completion of a paper providing an improved
framework for developing labor market
assessments for managing monetary policy.
• Improved systems for collecting, analyzing,
and using remittance data in estimating the
number of foreign workers.
Shared Prosperity • Regional training on the small-area estimation • Comprehensive study of trends in the cost
and Inclusive of poverty and well-being. of living and appropriate areas for policy
Development intervention.
• Study of intragenerational income mobility,
including both absolute and relative changes.
• International conference on information
systems to track flows of foreign workers and
remittances.
• Refine the method for estimating the number
of foreign workers.
• Work with BNM to integrate new methods in
their regular analysis of remittance data.
THEME 2: Enhancing Finance, Competitiveness and Innovation
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
PILLAR 1: GREEN AND SUSTAINABLE FINANCE
The WB-WWF • October 2, 2018: Participated by more than • Technical Note on Impact Reporting
Sustainable 120 market players from financial regulators, Templates for practitioners to be developed.
Finance Forum and banks, institutional investors, policymakers,
the launch of the and practitioners to share their experiences
report on Green in incorporating ESG criteria into their
Bond Proceeds investment and business processes, and their
Management and approaches to responsible and sustainable
Reporting investments.
Workshop on • October 18, 2018: The 1st Technical
Implementing Workshop with bankers, insurance
Value-Based practitioners, as well as other financial services
Impact providers in Malaysia, was organized to share
Assessment the experience of SBN member countries on
Framework - incorporating ESG into the credit process.
Learning from Examples from European, EAP, and African
Practitioners with countries were shared with the participants.
BNM and SBN
ANNUAL REPORT | FINANCIAL YEAR 2019 81
APPENDICES
Appendix 1: FY19 Progress Made & FY20 Plans
THEME 2: Enhancing Finance, Competitiveness and Innovation
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
Workshop on • May 2, 2019: This is the 3rd technical • Provide technical advisory on New Green
Impact Reporting workshop with CM2 since 2017 geared Finance instruments development for
for Green sukuk / towards key stakeholders in green finance Malaysia: explore feasibility for sovereign
bond with Capital markets development, with the objectives to green bond/sukuk, municipal green sukuk,
Market Malaysia update industry players on best practices and investment funds, syndication of green loans,
(CM2) international trends in green finance. insurance/takaful products and guarantees.
2nd technical • Jointly organized with BNM on June • A series of technical workshops for local
workshop on 24, 2019 with the objective to educate bankers to be developed with BNM, banking
Environmental participants on the importance, techniques, industry training institutions and international
and Social Risk and consequential benefits of incorporating partners.
Management environmental and social considerations
(ESRM) into their investment and risk management
decision-making.
• About 60 risk managers, credit officers,
and analysts, as well as sustainability and
environmental managers from local banks and
relevant institutions attended this workshop.
Awareness raising, • On April 30, 2019, a forum on ‘Aligning • Support awareness raising and capacity
capacity building, Sustainable Finance with SDGs’ was held building on green finance with regulatory
and knowledge in MOF, Putrajaya. The forum discussed authorities, industry, and government
sharing sessions how Malaysians stakeholders can leverage agencies.
on Green and sustainable finance in the implementation of
Sustainable the SDGs. • Support the development of Malaysia’s
Finance Green Finance Roadmap (Oct 2019). Support
• More than 60 Government officials from MESTECC, SC, and BNM in formulating a
MOF, MESTECC, KATS, MEA, and other Green Finance Roadmap for Malaysia.
Government agencies attended the session.
Internal briefings • Conducted for the senior management of • Co-sponsor ASEAN Green Bond Conference
on Green and MESTECC, MOF, MOE, KATS and several (ACMF), South-South Exchange on Green
Sustainable municipal governments throughout the fiscal Finance, annual meeting on sustainable
Financing year. One key milestone of these sessions finance, and the Sustainable Finance events
solutions for was the commissioning of the Malaysia during APEC 2020.
public investment Green Finance Roadmap by the Minister of
projects MESTECC in early 2019 from a task team led
by Securities Commission, of which the World
Bank team is a technical partner.
Sustainable • Co-organized by WB Malaysia Hub and • Co-host sustainable finance fora at global and
Finance Forum Indonesian team in Bali in October 2018 to regional events.
at the WB-IMF share the work done on green and sustainable
Annual Meetings financing in the EAP region.
• The Hub also delivered workshops on green/
sustainable finance for clients in Indonesia and
Vietnam between October 2018 and February
2019.
Regional • Organized on April 2-3, 2019, in partnership • Support BNM, Cagamas, and relevant
Conference on with Cagamas focused on the SDG goal of government agencies on analytical of
“Constructing safe, adequate, and affordable housing for all. affordable housing finance solutions for
and Financing Malaysia.
Affordable • More than 400 participants from some 30
Housing Across countries participated in the event with the
Asia” presence of Deputy Governor Rasheed of
BNM and Minister of Housing and Local
Government Zuraida Kamaruddin.
82 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 1: FY19 Progress Made & FY20 Plans
THEME 2: Enhancing Finance, Competitiveness and Innovation
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
PILLAR 2: ISLAMIC FINANCE
Conference • A conference was held on October 2, 2018. • Online learning course on Islamic Finance for
on Corporate A CIBAFI-WB commitment to help foster the SDGs (RFI, BNM, SC, INCEIF, IFSB, IDB): The
Governance of development of Islamic finance globally in objective of the online course is to reach out
Islamic Financial corporate governance. to a wider audience in developing countries
Institutions on the potential of Islamic Finance solutions
• The conference brought together various for SDGs.
stakeholders from the Islamic finance industry,
multilateral institutions, international and
national regulatory bodies, policymakers, and
academia to discuss emerging issues and best
practices in corporate governance.
A Roundtable on • Organized by WB-INCEIF-ISRA on September • Develop Guidelines for Islamic Disaster
Maximizing Social 13, 2018. Finance and Catastrophic Sukuk (IFSB, INCEIF,
Impact Through ISRA, BNM). Promoting new Islamic finance
Waqf Solutions • Islamic social finance tools have been solutions for climate risks; exploring business
instrumental in the alleviation of poverty and opportunities for financial institutions.
socioeconomic development throughout
history.
World Bank- • Organised on December 11, 2018. The • SC-IOSCO-WB Annual Islamic Finance
INCEIF-IRTI Annual event brought together more than 200 Conference - Islamic Finance for ASEAN
Conference on academics, policymakers, market players, and Infrastructure Development. The conference
Islamic Finance, development practitioners to discuss recent will disseminate innovative long-term
Inclusion and developments and exchange ideas on policies financing solutions for infrastructure projects.
Poverty Alleviation to eradicate poverty, improve living standards
and well-being, and promote inclusive
societies.
A conference • Jointly organized by Securities Commission- • Partnership with Islamic Financial Service
on ‘Enhancing WB-IOSCO Asia Pacific Hub Conference on Board (IFSB) on Islamic FinTech and Risk
Financial Inclusion April 29-30, 2019. The conference discussed Management in Infrastructure Finance.
through Islamic the use of Islamic finance to support financial
Finance and inclusion, including the use of Islamic social
FinTech’ finance instruments and FinTech to eradicate
poverty and promote shared prosperity.
More than 300 participants from 15 countries
participated in the conference.
PILLAR 3: FINANCIAL INCLUSION AND PAYMENT SYSTEMS
Outreach Fair • The outreach was done in Kota Kinabalu in • Report on Greenback 2.0 Malaysia: The report
for Greenback November 2018 on eWallet and remittances is to document good practices and lessons
2.0 & Launch of & the launch was done in March 2019 at from Greenback projects in Johor Bahru and
JomKirim Kota Kinabalu, which is one year private Kota Kinabalu for other countries where a
sector-led campaign to promote the use of similar approach through Greenback could
e-remittances until the end of Greenback 2.0 improve remittance markets, cross-border
Kota Kinabalu 2020. SMEs, and migrants and their families.
A report on • Was developed to analyze the transformation • Technical support to BNM on improving
Malaysia’s of the money services business industry financial inclusion among youth groups and
transformation of through legal and regulatory reforms over enhancing advisory service capacity of SME
the money services the past decade. The objective is to share Corp on access to financial services.
business Malaysia’s experiences, good practices and
lessons with other countries that face similar
challenges.
ANNUAL REPORT | FINANCIAL YEAR 2019 83
APPENDICES
Appendix 1: FY19 Progress Made & FY20 Plans
THEME 2: Enhancing Finance, Competitiveness and Innovation
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
World Bank Global • In December 2018, WB co-organized the • Develop a study on measuring the cost of
Payment Week biennial event. Over 160 participants from payments in Malaysia. This study is to support
with BNM 60 central banks from all regions joined this the implementation of BNM’s financial sector
event. The forum provided a peer-to-peer blueprint to promote electronic payments.
exchange platform among national and
regional authorities. • BNM’s knowledge sharing: Payment System
and MSB oversight. BNM’s supervision and
oversight of payment systems and MSB will be
shared with other financial regulators.
• Regional Payment System Integration
Analytical Work; ASEAN countries are
currently discussing the integration of retail
payment systems among ASEAN countries to
support economic integration.
South-South • Upon requests from clients in developing • Technical Notes on eKYC and SME Cross
exchanges countries, the Hub partnered with BNM, border payments: The notes will analyze
on Malaysia’s SME Corp, and CGC to support South-South Malaysia’s eKYC approach and SME Cross-
experience with exchanges for financial sector regulators and border payments, as well as lessons to be
SME Finance, supervisors from India, Indonesia, Bangladesh, shared.
Financial Inclusion, Saudi Arabia, Nepal, and the Philippines.
Insurance • Support ASEAN Working Group on Financial
Supervision, and Inclusion on regional policy dialogues and
Remittance capacity building.
• South-South Exchange on Financial Inclusion
(BNM, CGC, local banks) for WB clients in
developing countries: SME finance, credit
guarantee, consumer protection, digital
financial services, agent banking, and
insurance and takaful.
PILLAR 4: FINANCIAL STABILITY AND MAXIMIZING FINANCE FOR DEVELOPMENT
DFIs Performance • Pursuant to the success of the previous Global • Continued technical advisory to BNM on
Measurement Symposium on DFIs, the WB together with DFI performance review, proportionality
Framework Forum BNM organized a forum on Performance regulations for DFIs.
Measurement Framework for DFIs in August
2018. The forum brought more than 300
participants consisting of directors, senior
management and middle managers of the six
DFIs under the supervision of BNM.
Forum on • In early May 2019, the WB had also
Performance conducted a half-day forum specifically for key
Measurement for ministries and their related agencies that are
DFIs in Putrajaya involved with DFIs in the country. The forum
was supported by the Ministry of Finance and
was attended by more than 30 government
officials. It formed an integral part of the
WBG’s efforts to foster policy dialogue among
policymakers, practitioners, and all relevant
parties in the DFI space in the country.
84 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 1: FY19 Progress Made & FY20 Plans
THEME 2: Enhancing Finance, Competitiveness and Innovation
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
Training for DFI • In support of BNM’s effort to enhance the • Continued technical advisory to BNM on
Directors DFI landscape, the WBG had contributed DFI performance review, proportionality
to a training for DFI directors - under the regulations for DFIs.
Financial Institutions Directors’ Education
(FIDE) program by the ICLIF Leadership and • Develop a Technical Note on Reviewing DFIs’
Governance Centre. The WBG gave several Roles in Malaysia SDG Agenda: subject to
presentations that cover topics on DFIs from confirmation by Prime Minister’s Office and
the global perspective. This training took BNM.
place in March 2019, and was attended by 15
newly-appointed directors from the six DFIs
under BNM supervision.
Case Study on • It was officially launched in October 2018, • South-South Knowledge Exchange with
the Employees and was attended by more than 120 people developing countries on pension funds
Provident Fund comprising past and present Directors of investment management and share EPF
(EPF) of Malaysia EPF, its senior management, and interested experience.
members of the public. The case study
provided lessons and policy measures, while
providing insights for an efficient provident
system for developing countries, drawing from
Malaysia’s experiences.
Risk-based • Using a risk-based approach (RBA) tool
Supervision for developed by World Bank FCI’s Stability
AML Workshop and Integrity team in January 2019. 30
with BNM participants representing BNM, SC, and
Labuan Financial Services Commission joined
this workshop. In the meantime, the World
Bank experts on AML also contributed to
training workshops organized by SEACEN,
AFI, and BNM for banking supervisors in
ASEAN countries in October 2018.
Technical • Upon request of PIDM and BNM, the • Provide technical support to BNM regarding
Assistance on WB team has shared the bank’s technical the design and implementation of Crisis
Preparation of assistance program and methodology on Simulation Exercises.
Crisis Simulation crisis simulation exercises in March and April
Exercises (CSEs) 2019 respectively with the technical teams in • Provide capacity-building for PIDM and MOF
both agencies. in preparation for crisis simulations.
A research paper • Developed in collaboration with the • Dissemination at regional forum to be
entitled “The Development Economics Research Group arranged in FY20.
Rise of Domestic (DECRG) of the Bank. It examines the issuance
Capital Markets activities among East Asian firms via the • Develop a technical note on Malaysia’s capital
for Corporate domestic capital markets, both before and market development.
Financing Study on after the Asian financial crisis and global
Corporate Finance financial crisis. The paper is expected to
in East Asia and be officially published in June 2019. The
Pacific” key findings of the paper have been shared
with SC and the Institute for Capital Market
Research as part of the knowledge-sharing
program with Malaysian agencies.
ANNUAL REPORT | FINANCIAL YEAR 2019 85
APPENDICES
Appendix 1: FY19 Progress Made & FY20 Plans
THEME 2: Enhancing Finance, Competitiveness and Innovation
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
PILLAR 5: ASEAN/REGIONAL FINANCIAL INTEGRATION AND CAPACITY BUILDING
Regional launch • Organized the regional launch with BNM on
of the new Global July 16, 2018 and shared the latest finding
Findex Report of the 2017 survey, especially on ASEAN
2017 countries.
Delivered the final • The report was commissioned by the ASEAN • Contribute to ASEAN Working Groups
report on ASEAN Working Group on Financial Inclusion. The meetings – Financial Inclusion, Insurance
Digital Financial report is based on a survey among financial Regulators, Green Finance, Infrastructure
Services sector regulatory authorities on the current Finance (BNM, MESTECC, MOF).
practices in regulation and supervision of
digital financial services adopted by the
ASEAN member countries. Dissemination • Dissemination of Global Reports on Financial
of key findings was carried out with member Inclusion/Insurance (BNM, MOF, MEA).
countries, and the final report has been made
public in April 2019.
Joint Regional • Delivered a joint conference on April 24-25, • Regional Conference on Public Pension Funds
Conference on 2019. The event was technically and financially Management with EPF.
NPL Resolution supported by the Hub, the World Bank
with BNM Financial Stability Advisory Center in Vienna,
and the World Bank Seoul Centers. More
than 90 participants from 14 countries from
Asian national regulatory and supervisory
authorities, standard-setting bodies, public
and private sector agencies, and other key
market participants joined the conference.
Global Survey • This was in partnership with SC and • Co-organize a Regional Conference on
and Report Cambridge University Alternative Finance Governance and Internal Control in the Age of
on Alternative Center. The database provides policymakers Digitalization for Central Banks and Financial
Finance and financial sector regulatory authorities a Sector Regulators with BNM, November 2019;
Regulations useful tool to learn about the global trends
and Database of regulatory approaches by peer regulators, • Support relevant APEC 2020 Secretariat
on Alternative and to monitor the latest developments in on preparation and delivery of Sustainable
Finance Market the industry. The initial findings of the global Finance, FinTech/Digital Financial Services
survey were shared, and the database was Fora during APEC 2020 hosted by Malaysia.
launched, at a workshop on June 21, 2019 in
Kuala Lumpur, jointly with SC.
PILLAR 6: PRIVATE SECTOR COMPETITIVENESS AND INNOVATION
Key Lessons from • Included the development of a paper • Launch the paper on Lessons Learnt on SME
Malaysia’s SME charting the Key Lessons from Malaysia’s SME Masterplan - Malaysia’s experience.
Masterplan Masterplan, describing how SMEs fit into the
development story for Malaysia. The paper • SME program PER for Malaysia to inform
has been prepared in close collaboration with future policy making.
SME Corp. The formal launch of this paper is • Develop a paper on the importance of public
expected to be completed by mid-2019. private dialogue in Doing Business Reforms.
• Analytical paper on regulatory framework to
the FinTech industry in Malaysia.
Global High • The team successfully launched the Global • Analytical piece on the entrepreneurship
Growth High Growth Entrepreneurship Report in ecosystem in Malaysia and the policy support
Entrepreneurship December 2018. The report was launched programs for various stages of firm growth.
Report jointly with the newly formed Ministry of
Entrepreneur Development with a view to
undertake similar work for Malaysian firms.
86 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 1: FY19 Progress Made & FY20 Plans
THEME 3: Enhancing Public Sector Management
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
PILLAR 1: PUBLIC SECTOR PERFORMANCE
Global Report • Global launch of the report in Washington,
on Public Sector D.C., October 2018, with over 80 participants
Performance and reformers. More than 2000 copies of the
report were downloaded.
Malaysia Economic • Preparation of the Malaysia Economic Monitor
Monitor: on Governance and Public Sector Capacity.
Governance and
Public Sector
Capacity
Good Regulatory • Completion of the Outbound knowledge • Launch and dissemination activities.
Practices report on Malaysia’s experience with adopting
Good Regulatory Practices.
Open Data: follow- • Agreement with MAMPU (signed) to provide • Subject to a final RAS decision by MAMPU
up advisory services to refine regulations on and MEA; work would begin immediately
open data and provide enabling environment to assist MAMPU to build capacity and
systematic release of datasets. accelerate open data. Work to be conducted
in two phases, subject to framework
agreement.
PILLAR 2: PLANNING, MONITORING, AND EVALUATION
Outbound • Launch of the report and roundtable
knowledge report discussion in August 2018 with Malaysian
on Performance- stakeholders, including the National Budget
based budgeting Office, line ministries, and research institutes,
(OBB) as well as international experts. Disseminated
meeting proceedings to approximately 75
participants.
Planning • Convened the PCoP workshop, 12- • Discussions with PCoP Member countries on
Community of 14 November, 2018, Kuala Lumpur, in the thematic areas within operationalizing
Practice (PCoP) collaboration with MEA. Attended by 50 national development plans and identifying
senior planning officials from around the host countries for another two PCoP
region. Theme of the workshop was on workshops.
Operationalizing the Development Plans.
• Convened the PCoP workshop, 22-24,
Manila, The Philippines. Focus is on National-
Subnational Alignment.
Assessment of • Completion of the Outbound Knowledge • Launch and dissemination activities in
the National report on Malaysia’s National Development partnership with Ministry of Economic Affairs
Development Planning System. (MEA), Q1 FY20.
Planning System
ANNUAL REPORT | FINANCIAL YEAR 2019 87
APPENDICES
Appendix 1: FY19 Progress Made & FY20 Plans
THEME 3: Enhancing Public Sector Management
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
Peer Review of the • The Bank supported MEA’s MTR of the 11th • Engagement with MEA on inputs to support
11th Malaysia Plan Malaysia Plan by providing written Peer the 12th Malaysia Plan.
MTR Review comments in August 2018 on the Plan,
including each of the six strategic thrusts
and chapters on macroeconomics and public
sector productivity. The objective was to
highlight gaps and/or the impact of global
developments on those strategies.
• Participated in the MEA Focus Group Session
on MTR Implementation, 5 March 2019.
Focus was on Governance Pillar with special
presentation on Public Procurement from
World Bank experts.
PILLAR 3: ACCOUNTABLITY AND TRANSPARENCY
Global Report on • Concept note prepared and peer-reviewed for • Research and drafting of the report.
Anti-Corruption a Global Report on Anti-Corruption, including
consultations with KSN’s office, MEA, MOF, • Consultations with Malaysian stakeholders on
GIACC, PSD, INTAN, MAMPU and line possible launch event.
ministries. • Preparation of video interviews for launch.
88 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 1: FY19 Progress Made & FY20 Plans
THEME 4: Boosting Social Protection and Jobs Outcomes
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
In-depth analytical • Completion of a flagship report on promoting • High-level launch and dissemination events
work women’s economic opportunities in Malaysia of the flagship report on promoting women’s
that combined quantitative, qualitative, and economic opportunities in Malaysia.
legal research.
• Completion of an edited volume on structural
transformation in the labor market of Malaysia
and other countries in Southeast Asia.
• Delivery of a research workshop on structural
transformation in the labor market.
Applied case • Completion of a case study on the provision • High-level launch and dissemination events
studies and cross- of granular labor market information using of the report on the case study on the Critical
flow Malaysia’s Critical Occupations List. Occupations List.
• Presentation of the case study at a webinar • Completion of a case study on the facilitation
with 60 participants from across East Asia of labor mobility using Malaysia’s Returning
and the Pacific and the World Bank’s Human Expert Program.
Development Week in Washington, D.C.
• Completion of a case study on support for
the development of skilled workers using
Malaysia’s Human Resource Development
Fund.
Knowledge • South-South Knowledge Exchange between • Organization of international conference on
exchange Tunisia and Malaysia on building a skilled public pension funds in Asia.
workforce in Tunisia.
• Presentations at conferences, workshops
and events hosted by the Ministry of Human
Resources, Universiti Sains Malaysia, the
Institute for Diplomacy and Foreign Relations,
and various other agencies and institution
inside and outside of Malaysia.
ANNUAL REPORT | FINANCIAL YEAR 2019 89
APPENDICES
Appendix 1: FY19 Progress Made & FY20 Plans
Development Research Group
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
DECRG Seminar Twenty-three research seminars, eight of The forthcoming events of the DECRG seminars
Series which were jointly organized with the Faculty of series involve local and foreign speakers,
Economics, University Malaya (UM). including World Bank researchers.
Highlight of some of the seminars include:
• Martin Ravallion and Dominique van de Walle.
Informational Constraints on Antipoverty
Policies: Evidence from Africa.
• Jong-Wha Lee. Korean Unification: Economic
Adjustments Under German Assumptions.
• Klaus F. Zimmermann. Economic Preferences
Across Generations: Identifying Family Clusters
from a Large-scale Experiment.
• Quy-Toan Do. Unemployment and Violent
Extremism: Evidence from Daesh Recruits.
• Davin Chor. The Political Economy
Consequences of China’s Export Slowdown.
DECRG ‘Half- Twenty ‘half-baked’ research seminars. Please Forthcoming ‘half-baked’ seminars series will
Baked’ Research see Appendix 4 for detailed list of participants include joint efforts with speakers from Bank
Seminar Series from several Malaysian research institutions. Negara Malaysia, Asian School of Business, WB,
and other institutions located at Sasana Kijang.
DECRG Research Eight research policy briefs: Forthcoming briefs involve topics such as:
Policy Briefs
1. August 2018, The Future of Work: Race 1. Democratizing data.
with—not against—the Machine
2. Gender inequality and economic growth.
2. October 2018. When Is a Current Account
Deficit Bad? 3. Community-driven health intervention.
3. October 2018. Corporate Borrowing in 4. The fight against corruption: Taming tigers
Emerging Markets: Fairly Long Term, But and swatting flies.
Only for a Few
4. November 2018. Fiscal Space: Concept,
Measurement, and Policy Implications
5. December 2018. Informality: Why Is It So
Widespread and How Can It Be Reduced?
6. February 2019. Robo-Advisors: Investing
through Machines
7. June 2019. Improving Governance through
Enhanced Citizen Engagement: The Case of
Malaysia
8. June 2019. Financial Innovation and
Additionality: The Power of Economic
Analysis and Data Analytics
DECRG 5. January 15–16, 2019. Globalization:
Conferences, Contents and Discontents.
Report Launches,
and Lectures 6. July 16, 2018. Global Findex and the Fintech
Revolution Public Lecture.
7. July 3, 2018. Resource Misallocation and
Productivity Gaps in Malaysia.
DECRG Public Twenty public engagements were delivered
Engagements at various seminars and symposiums. For full
details, please refer to Appendix 2.
90 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 1: FY19 Progress Made & FY20 Plans
Development Research Group
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
DECRG Short 1. November 12–16, 2018. Impact Evaluation
Courses and Methods. Sasana, Kijang, Kuala Lumpur,
Workshops Malaysia.
2. November 28–30, 2018. Long-term growth
model workshop and training. World Bank
Cambodia and Ministry of Finance of
Cambodia. Phnom Penh, Cambodia.
DECRG Research 1. July 2018. Jati inequality in rural Bihar The forthcoming DECRG research working
Working Papers (English). Policy Research working paper; no. papers might discuss topics like:
WPS 8512.
• Progress and challenges towards universal
2. October 2018. Assessing the Effect of health coverage in developing world.
Public Capital on Growth: An Extension of
the World Bank Long-Term Growth Model • Long-Term Growth in Natural Resource Rich
(English). Policy Research working paper; no. Economies.
WPS 8604.
3. May 2019. Uncertainty in Ex-Ante Poverty
and Income Distribution: Insights from
Output Growth and Natural Resource
Country Typologies. Policy Research working
paper; no. WPS 8841.
4. May 2019. Productivity Growth: Patterns
and Determinants across the World. Policy
Research working paper; no. WPS 8852.
Washington, D.C.: World Bank Group.
DECRG Journal 1. March 2019. How Women Talk in Democracy.
Articles/ Qualitative Sociology, 42(1): 49-70.
Publications
2. March 2019. El futuro del trabajo: Una
carrera con la máquina y no contra esta.
Revista Moneda, Banco Central de Reserva
del Perú, Vol 177: 32-38.
3. March 2019. Unheard voices: the challenge
of inducing women’s civic speech. World
Development , Volume 115: 64-77.
4. March 2019. Safety nets and natural disaster
mitigation: evidence from cyclone Phailin in
Odisha. Climatic Change, Volume 153 Issue
1-2: 141-164.
5. April 2019. Assessing the Effect of Public
Capital on Growth: An Extension of the
World Bank Long-Term Growth Model.
Journal of Infrastructure, Policy and
Development, 3(1): 22-55.
6. April 2019. Introduction: ASEAN—Towards
Economic Convergence. Journal of Southeast
Asian Economies Vol 36 (1). Special Issue on
“ASEAN: Towards Economic Convergence”
by Rajah Rasiah, Latifah Merican Cheong,
Cheong Kee Cheok, Norman V Loayza,
editors.
7. May 2019. Deliberative Democracy in an
Unequal World: A Text-As-Data Analysis of
South India’s Village Assemblies. American
Political Science Review, Published online.
ANNUAL REPORT | FINANCIAL YEAR 2019 91
APPENDICES
Appendix 1: FY19 Progress Made & FY20 Plans
Development Research Group
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
DECRG Books and 1. October 2018. Are Caste Categories
Book Chapters Misleading? The Relationship Between
Gender and Jati in Three Indian State, in
Siwan Anderson, Lori Beaman, and Jean-
Philippe Platteau (eds.) Towards Gender
Equity in Development. Oxford University
Press.
2. December 2018. Oral Democracy:
Deliberation in Indian Village Assemblies.
Cambridge University Press.
Global Indicators Group
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
DOING BUSINESS (DB)
Doing Business • Data collection (40+ economies in the EAP • Data collection and coding for DB 2020 with
2019 and 2020 and other regions) and coding for DB 2019 questionnaires being sent to data contributors
Reports report. in 50+ economies in the EAP and other
regions.
• EAP regional launch of the DB 2019 report
on November 1, 2018. Australia, Indonesia, • EAP regional launch of DB 2020 report
Mongolia, and Thailand participated by scheduled for November 1, 2019.
videoconferencing.
• Chapter on Registering Property for the
upcoming Malaysia Subnational Doing
Business study which benchmarks six cities
across two DB indicators and four ports on the
trading across borders indicator.
Policy Notes • A policy note on the relationship between • A policy note exploring international trade
the business regulatory environment and commitments and trade flows in South East
income inequality. This note focuses on Asia.
regulations of the labor market and labor
taxes, and it presents case studies on reforms • A policy note on the relationship between
implemented by countries in East Asia. educational attainment and the business
regulatory environment across countries.
• A case study on the role of training in Education attainment is evaluated using
facilitating entrepreneurship and property various measures of quality (PISA, TIMMS and
rights. Targeted training and effective PIRLS, literacy rates) and quantity (years of
communication to both civil servants and the compulsory education).
public can improve the overall quality of the
public goods and services provided.
• A case study on understanding the benefits
of wiring regulation. Aligning national norms
with international standards can ensure
regulatory coherence and facilitate the safe
use of electricity.
• A case study on training and efficiency in the
judicial system. Continual and comprehensive
judicial and court staff training is not the norm
in many economies. However, the private
sector must rely on well-trained professionals
that enjoy the confidence of the business
community and society.
92 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 1: FY19 Progress Made & FY20 Plans
Global Indicators Group
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
Contributions to • A pilot report will be finalized by July 2019 • Contribute to an outbound case study on
Other Reports on a set of new indicators for measuring PEMUDAH Associates and its task forces
the enabling environment and regulatory dedicated to improving the business
challenges faced by companies and service regulatory environment. The unique public-
providers pursuing business in the digital private partnership provides a role model for
market place. The project covers the following other countries.
four areas: Internet connectivity, online
payment systems, regulatory framework for • Contribute to an outbound knowledge report
digital markets, and logistics for e-commerce. on optimizing Malaysia’s tax incentives for
The project includes 21 selected countries development. The initial policy note consists
across all regions, including Malaysia. of a review and suggested policy options
to reform investment incentives. The four
key objectives are i) increase economic
complexity, ii) create high value jobs, iii)
extend domestic linkages, iv) develop new
industrial clusters.
• Contribute to an outbound knowledge report
on MDEC and its initiatives for creating an
enabling business environment for the digital
economy.
Workshops and • November 2018: Sunway College held its • Provide presentations and participate in
Presentations first International Conference on Business workshops in an ongoing basis.
Dynamics. Presentation on legal frameworks
that enable equal economic opportunities for
men and women.
• November 2018: Belt and Road conference in
Guangzhou, China. Presentation on high-level
findings of the Doing Business 2019 Report,
and specifically on dealing with construction
permits methodology and best practices in
construction quality control.
• November 2018: APEC 2018 International
Conference on Ease of Doing Business in
Seoul, Republic of Korea. Presentation on
the Doing Business legal indicators which
allowed participants an opportunity to
identify effective and customized methods
of improving their legal systems for a better
business environment.
• March 2019: Workshops with a visiting
delegation from Hong Kong SAR, China on
Doing Business topics: Starting a Business,
Paying Taxes, Construction Permits, Getting
Electricity, and Protecting Minority Investors.
• March 2019: Workshops with MPC/PEMUDAH
on Doing Business topics including Enforcing
Contracts, Paying Taxes, Construction
Permits, Resolving Insolvency, and Registering
Property.
• April 2019: Workshop with MPC on the
upcoming public procurement indicator which
will be featured in the Doing Business 2020
report. The methodology and data points
from the questionnaire were presented and
discussed.
ANNUAL REPORT | FINANCIAL YEAR 2019 93
APPENDICES
Appendix 1: FY19 Progress Made & FY20 Plans
Global Indicators Group
WORK PROGRESS ACHIEVED PLANS FOR FY20
DELIVERABLES July 2018 - June 2019 July 2019 - June 2020
Workshops and • April 2019: International Legal Form
Presentations <<Tashkent Law Spring>> in Tashkent,
Uzbekistan. Presentation on the Doing
Business Enforcing Contracts indicator and
best practices that promote quality and
efficiency in the court system.
ENTERPRISE SURVEYS (ES)
Policy Notes • January 2019: An Enterprise Note, “Firm • A policy note which explores the informal
Performance and the Business Environment business sector in Lao PDR. The motivations
in Malaysia: A Comparison with High-Income for not becoming formalized as well as labor
and Upper-Middle-Income Countries”. productivity in the informal sector will be
explored.
• January 2019: Linkages between formal
and informal sectors. Box 3.1 in the Global • A policy note on whether corruption
Economic Prospects flagship report. This note negatively impacts firms when they are
looks at both a) the gap in labor productivity financially constrained. Enterprise Surveys
between formal and informal firms in 18 data on 125 countries will be analyzed.
developing countries and b) the impact of
competition with informal firms on the labor
productivity of formal firms.
ES data collection • A second follow-up survey on business flows • Support the data collection for the Malaysia
was administered to respondents of the Productivity and Investment Climate Survey
Myanmar 2016 Enterprise Survey. The data (fieldwork estimated to be completed
fed into the Myanmar Economic Monitor. in November 2019). A total of 3,000
manufacturing and services sector firms will
• Lao PDR Enterprise Survey 2018 and the be interviewed across all 13 states and two
Lao PDR Informal Business Survey. 332 Federal Territories.
formal firms and 367 informal firms were
interviewed on various aspects of the business
environment and firm performance.
Research Papers • A research paper looking at the size of a • A research paper analyzing productivity in
country (both population and area) and select services sectors in Malaysia. Labor and
corruption. The incidence of corruption is multi-factor productivity will be compared
obtained from firm-level survey data in 135 across services sectors and their drivers
countries. Bribes from common regulatory identified.
and utility provision transactions were
captured. Results show that larger countries • A research paper on whether ethnic
suffer from more corruption compared to fractionalization impacts the performance of
smaller countries. small and large firms differently (joint work
with Usman Khalid).
• A research paper on the relationship between
corruption and labor productivity and how • A research paper exploring whether
this varies with the size of the firm. The competition from informal firms affects the
paper uses firm-level survey data from 94 productivity and growth of formal sector
developing countries. Results suggest the firms. Enterprise Surveys data on 125
relationship is highly heterogeneous with countries will be analyzed.
larger firms experiencing a bigger decrease in • A research paper using Doing Business
productivity compared to smaller firms when and Enterprise Surveys data, to analyze the
corruption is prevalent. relationship between firms’ performance and
• A research paper using Enterprise Surveys the business environment.
data on 132 countries which looks at the
relationship between regulatory burden
and corruption. The results show that an
increase in the percentage of firms’ senior
management time spent on regulatory
requirements is associated with an increase in
bribery solicitations by public officials.
94 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
Appendix 2: List of Products and Work
Delivered from January 2016–June 2019
Outbound Knowledge
THEME 1: Supporting Equitable Economic Growth
PRODUCT WHEN TITLE / NAME OF EVENT TASK MANAGER NOTES
Course February MfMOD Macroeconomic Modelling Course Julio E. Revilla • 18 participants from nine countries
29 - March 4,
2016
Knowledge April 19-21, Visit by Ethiopian Government delegation to Julio E. Revilla • Nine participants from the Ethiopian
exchange 2016 Penang and Kuala Lumpur to learn from the government
activity Malaysian experience on Special Economic
Zones for industrial development
Course June 13-17, Debt and Fiscal Risk Management Workshop Julio E. Revilla • 34 participants from 15 countries
2016
Knowledge June 29, SME Development in the context of Free Trade Smita Kuriakose • 80 participants from public
Exchange 2016 Agreements
Activity
Knowledge August 29, Consultations for the analysis of productivity • High-level meeting with EPU and DOSM
Exchange 2016 in Malaysia
Report October 12, The Strategic Role of Trade Agreements in Sjamsu Rahardja/
2016 Promoting Economic Reforms in Malaysia Julio E. Revilla
Course October 18, Workshop on the use of the Enterprise Survey Valeria Perotti/ • 40 participants from the Malaysian public
2016 to assess productivity in Malaysia Julio E. Revilla sector
Report October 20, Learning from Malaysia: Promoting Asya Akhlaque/
2016 Industrialization through Special Economic Julio E. Revilla
Zones
Course November Joint World Bank/IMF training course on Julio E. Revilla • 22 participants from 12 countries
7-11, 2016 Debt Sustainability Analysis for Low Income
Countries
Knowledge Feb 14, 2017 Lessons Learnt from Malaysia’s experience in Smita Kuriakose • 30 participants
Exchange implementing the SME Masterplan
Course March 20-22, Measuring Firm-Level Productivity Training • 23 participants from DOS, EPU, Human
2017 Resource Development Fund, and
Malaysia Productivity Corporation
Knowledge April 28, Presentation of Background Papers on • Attended by 37 stakeholders from the
Exchange 2017 Productivity public sector, private sector, and academia
Knowledge August 2, Digital Economy presentation to the Fiscal Richard Record/ • Presentation to the Prime Minister and
Exchange 2017 Council – Taxing the Digital Economy Shabih Mohib members of the cabinet
Report September Taxing the Digital Economy Richard Record/ • Policy Note prepared for MOF
2017 Shabih Mohib
Report December Productivity Unplugged – The Challenges of Julio Revilla • Omnibus report
2017 Malaysia’s Transition to High-Income Country
Status
Report December 5, Launch of World Bank regional report Riding Kenneth Simler • Approximately 100 participants attended
2017 the Wave: An East Asian Miracle for the 21st the launch event at UKM
Century
Conference December Federation of ASEAN Economic Associations Richard Record/ • Approximately 200 participants from 15
5-8, 2017 42nd Annual Conference Kenneth Simler countries
ANNUAL REPORT | FINANCIAL YEAR 2019 95
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
THEME 1: Supporting Equitable Economic Growth
PRODUCT WHEN TITLE / NAME OF EVENT TASK MANAGER NOTES
Report December Malaysia Economic Monitor – Turmoil to Richard Record • Approximately 150 participants during the
14, 2017 Transformation: 20 years after the Asian launch event
Financial Crisis
Report January 9, TPP without the US: Is it still worthwhile for Richard Record • Policy note prepared for MITI
2018 Malaysia? – Macro-micro simulations on the
impact of CP-TPP vs. TPP vs. RCEP
Knowledge February 5, Digital Economy presentation to the Economic Richard Record/ • Presentation to the Prime Minister and
Exchange 2018 Council – Digital Connectivity Siddhartha Raja members of the cabinet
Knowledge February 7, Launch of the Global Economic Prospects Richard Record • Approximately 100 participants
Exchange 2018 Report – Broad-based upturn, but for how
long?
Knowledge February 28, How can Artificial Intelligence and the Internet Richard Record • Approximately 300 participants
Exchange 2018 of Things supercharge growth, innovation and
job creation? – Joint event with MDEC
Course March 19-23, Debt Management Performance Assessment Richard Record • 30 participants from 11 countries
2018 (DeMPA) training course
Report July 2, 2018 Malaysia Economic Monitor – Navigating Richard Record • Approximately 200 participants during the
Change launch event
Course July 16-20, Macro-Econometric Modelling “reverse Charl Jooste • Three core modelling staff from MOF
2018 training mission” to Washington, DC
Course July 24-25, Taxing the digital economy Richard Record • Approximately 25 training participants.
2018
Knowledge August 18, Digital economy youth impact challenge Joshua Foong • Approximately 150 student and young
Exchange 2018 leaders
Report September Malaysia’s Digital Economy – A New Driver of Richard Record • Major flagship report launched at digital
12, 2018 Development economy conference
Conference September Public Policy in a Digital World Shakira Teh • Approximately 500 participants during the
12-13, 2018 Sharifuddin conference sessions
Knowledge September Malaysia Economic Monitor – Roadshow to Richard Record/ • Various events with state authorities,
Exchange 25-28, 2018 Kedah and Penang Kenneth Simler universities and the private sector
Report October 4, East Asia and Pacific Economic Update – Richard Record • Approximately 20 journalists attended the
2018 Navigating Uncertainty launch event
Knowledge October 11, Malaysia Economic Monitor – Roadshow to Richard Record • Various events with state authorities,
Exchange 2018 Johor universities and the private sector
Conference October 19, End Poverty Day –2019 Malaysia Event Kenneth Simler • Approximately 200 participants during
2018 the event
Knowledge November Study Visit by the Malaysian Delegation to Samuel Taffesse • 10 Government officials from MEA &
Exchange 18-24, 2018 Philippines Ministry of Agriculture
Report December A Resurgent East Asia – Navigating a Andrew Mason • Approximately 100 participants during the
10, 2018 Changing World launch event
Report December Malaysia Economic Monitor – Realizing Richard Record • Approximately 200 participants during the
18, 2018 Human Potential launch event
Knowledge Jan 13-19, Study Visit by the Philippine Delegation to Samuel Taffesse • 11 Government Officials from The
Exchange 2019 Malaysia Philippine Department of Agriculture and
National Economic Development
Knowledge January 18, Trade policy modelling Maryla • Approximately 20 staff at MITI
Exchange 2019 Maliszewska
Course January 28- Productivity and Investment Climate Survey Arvind Jain • Approximately 40 participants from MEA,
31, 2019 training MITI, and DOSM
Knowledge April 12, Spring Meetings Malaysia Event – Unleashing Richard Record • Event in Washington, D.C. with MOF
Event 2019 the Potential of the Digital Economy
Report April 24, East Asia and Pacific Economic Update – Richard Record • Approximately 20 journalists attended the
2019 Managing Headwinds launch event
96 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
THEME 1: Supporting Equitable Economic Growth
PRODUCT WHEN TITLE / NAME OF EVENT TASK MANAGER NOTES
Report March, 2019 Estimating the Number of Foreign Workers Kenneth Simler
Course April 22-26, Debt Management Performance Assessment Signe Zeikete • 26 participants from 10 countries
2019 (DeMPA) training course
Knowledge April 24-25, Malaysia Economic Monitor – Roadshow to Richard Record • Various events with state authorities,
Exchange 2019 Sarawak universities, and the private sector
Knowledge May 27-30, Small-Area Estimation of Poverty Training at Kenneth Simler • Eighteen participants from statistical
Exchange 2019 Putrajaya offices from Malaysia, Indonesia, the
Philippines, and Thailand
Report June, 2019 Helping Central Banks Make the Most of Kenneth Simler
Developing Statistical Systems
Report June 2019 - Malaysia Economic Monitor – Reforming the Richard Record
TBC Public Sector
Knowledge Throughout Numerous economic presentations to visiting Richard Record/ • Over 1,000 participants all together
Exchange 2017-2019 delegations and delivery of on-site seminars Yew Keat Chong/
at universities across Malaysia including with Shakira Teh
UM, UKM, UiTM, UMS, IIUM, UniMAP, UUM, Sharifuddin
UNIMAS
THEME 2: Enhancing Finance, Competitiveness and Innovation
PRODUCT WHEN TITLE / NAME OF EVENT TASK MANAGER NOTES
Report January 2016 Financial Inclusion in ASEAN Jose De Luna • Presented at the ASEAN Working Group on
Martinez Financial Inclusion
Conference March 2016 Global Conference on Credit Anthony Lythgoe • 160 participants from 42 countries
Infrastructure
Knowledge June 2016 – Learning from the Malaysia Wei Zhang • Participants from PRC agencies including the
exchange May 2017 Experience on transforming State Council Research Center of China and the
activity government-linked corporations People’s Bank of China
(GLC), government-linked investment
company (GLIC) development for
China
Course June 24 – Insurance Capacity Building Mission Serap Gonulal • 90 participants from Myanmar
July 2, 2016 for Myanmar – Financial Regulatory
Department (FRD) Yangon, Myanmar
Conference August 18, Governance Symposium 2016: Jose De Luna
2016 Driving Public-Private Governance Martinez
Forward
Report Quarterly East Asia Pacific Region Financial Ana Maria Aviles
Stability (Quarterly)
Knowledge September Pakistan Senators’ visit to learn about Djauhari Sitorus • Participants comprised of a high level delegation
exchange 5-8, 2016 Malaysia’s financial sector reform: of Senators from Pakistan
activity World Bank Kuala Lumpur Office
Knowledge September Financial Market Deepening: The Way Djauhari Sitorus • Participants include experts from Securities
exchange 19, 2016 Forward for Indonesia Commission Malaysia, speakers from the IMF,
activity Korean Financial Services Commission and
Institute of International Finance (IIF)
Knowledge September Global Symposium on Innovative Wei Zhang • 500 participants from 20 countries in Asia Pacific,
exchange 21-22, 2016 Financial Inclusion: Harnessing South Asia, Africa, Middle East, Eastern Europe,
activity Innovation for Inclusive Finance, and Central Asian countries.
organized jointly with BNM
Knowledge October 17- Study visit by the Egyptian Credit Wei Zhang • Participants from Egyptian Credit Guarantee
exchange 21, 2016 Guarantee Company Company
activity
Knowledge October 17- Study visit on Financial Inclusion by Djauhari Sitorus • Participants from SBV
exchange 21, 2016 State Bank of Vietnam (SBV)
activity
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APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
THEME 2: Enhancing Finance, Competitiveness and Innovation
PRODUCT WHEN TITLE / NAME OF EVENT TASK MANAGER NOTES
Knowledge October 18- Study visit by Ministry of Education Djauhari Sitorus • Participants from Ministry of Education
exchange 21, 2016 and Training (MOET) and State Bank
activity of Vietnam
Knowledge November 2, Contributed to regional sector fora Jose De Luna • Participants from ASEAN financial sector
exchange 2016 Martinez regulators and Malaysian financial sector
activity professionals
November
16, 2016
Knowledge November 7, Study visit by the Egyptian Ashraf Arshad • Participants from EFSA
exchange 2016 Supervisory Authority (EFSA)
activity
Knowledge November Contributed to MIDA Business Forum Wei Zhang • Participants from PRC financial regulatory
exchange 10, 2016 – Malaysia Promotion Program (MPP) authorities, financial institutions, and corporates
activity – Shanghai
Knowledge November Contributed to the ASEAN Working Jose De Luna • Participants included financial sector
exchange 10-11, Group on financial inclusion (WC- Martinez regulators and other PRC Government officials,
activity 2016 FINC), 2nd official meeting in Hanoi representatives from major PRC enterprises/
SOEs active in regional and global markets and
PRC institutional investors, fund managers and
financial advisors.
Knowledge November The 10th IFSB-INCEIF Executive Jose De Luna
exchange 16-17, Forum on Financial Inclusion Martinez
activity 2016
Conference November Regional conference on migrant Isaku Endo • 100 participants from ASEAN countries
2016 remittances
Knowledge November Bank Negara Malaysia and the World Isaku Endo
exchange 2016 Bank launched Greenback 2.0 Johor
activity Bahru in partnership with the Johor
Bahru City Council and the Malaysian
Association of Money Services
Business.
Knowledge December 8, Sharing Malaysia Experience on SME Wei Zhang • More than 50 participants from government
exchange 2016 Finance with Papua New Guinea officials, SME sector and financial sector
activity (PNG) – Port Moresby policymakers, executives from financial
institutions, the agriculture sector, and
representatives from NGOs and donor
communities in PNG.
Knowledge February 8-9, Contributed to the ASEAN Working Jose De Luna • Participants comprised of representatives of
exchange 2017 Group on financial inclusion (WC- Martinez central banks and ministries of finance of all 10
activity FINC), official meeting in Davao, ASEAN countries
Philippines
Knowledge February Study visit by Lao PDR on SME Djauhari Sitorus • The delegation comprised of 17 senior officials
exchange 20-23, Finance – Kuala Lumpur from Ministry of Industry and Commerce, Ministry
activity 2017 of Planning and Investment, Ministry of Finance,
Bank of Lao, Prime Minister’ Office. National
Assembly Chamber of Commerce and Commercial
Banks.
Knowledge February Collaborative workshop ASEAN Audit Chris Fabling • Participants from ASEAN financial sector
exchange 21-22, Regulatory Group (AARG) regulatory authorities
activity 2017
Workshop May 3, 2017 Workshop on Payment Systems Isaku Endo • Participants included officials of BNM Payment
Oversight System Policy Department
- April 12, 2017
Global May 8-9, The World Bank-Securities Ahmad Hafiz • 250 participants from some 20 countries joined
Conference 2017 Commission Malaysia: International this conference
Conference on Islamic Finance and
Public Private Partnership (PPP) for
Infrastructure
Knowledge May 19, 2017 Sharing Malaysia’s Experience on Simon Bell • Participants include senior executives from
exchange Start-up SME Financing with India banks, venture capital companies, entrepreneurs,
activity FinTech, and seed funders in India
98 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
THEME 2: Enhancing Finance, Competitiveness and Innovation
PRODUCT WHEN TITLE / NAME OF EVENT TASK MANAGER NOTES
Global May 22-23, World Bank-BNM: Global Djauhari Sitorus • More than 400 participants from countries in Asia
Conference 2017 Microfinance Symposium Pacific, South Asia, Africa, Middle East, and Eastern
Europe attended this conference
Report May 2017 Report on Malaysia Financial Inclusion Jose De Luna
Martinez
Training May 24-25, World Bank – BNM – Asian Banking Djauhari Sitorus • About 100 participants joined this training
2017 School: Microfinance Training for
Practitioners (MTP)
June 2017 Contribution to Rating Agency Ahmad Hafiz Aziz • Three papers delivered to RAM for final review
Malaysia’s (RAM) annual publication and editing by September 2016
on Islamic Finance • The publication is expected for June 2017
Knowledge July 2017 IFRS implementation support for Lao Chris Fabling • The draft IFRS Gap Analysis will be delivered in
exchange PDR July 2017
activity • The IFRS Transition Plan will be delivered in
September 2017
Knowledge July 31 - Audit Oversight and Quality Chris Fabling • WB/Centre for Financial Reporting Reform (CFRR)
exchange August 1, Assurance Support team and the AARG co-led the workshop for non-
activity 2017 AARG member countries in Bangkok
• Attended by over 20 participants from Cambodia,
the Philippines, Vietnam, and Lao PDR
Knowledge July - Roadmap for Green Finance Farah Hussain and • Consultations with the relevant government
exchange October marketplace Mohamed Rozani agencies were carried out.
activity 2017
July & Green Bonds and Green Sukuk • The first and the second green sukuk were issued
October Issuance respectively in Malaysia.
2017 • A third and 4th green sukuk were issued
November • 5 green sukuk and 1 green bond have been
& December issued with total nominal of issuance was around
2017 MYR4.132 billion.
• Worked with the World Bank team in Indonesia
End of June in supporting the issuance of green bonds
2018 in Indonesia, leveraging on the Malaysian
experiences.
August 2017 Giving Support to the ASEAN Capital Ashraf Arshad • The World Bank conducted a survey of ASEAN
Markets Forum (ACMF) in the ASEAN member countries via ACMF to identify key issues
November 7, Green Bond initiative affecting green market development.
2017 • The survey findings were presented at the ACMF
Chairs Meeting. Capacity building and technical
assistance were proposed to the ASEAN member
countries.
Knowledge August 20- Collaborations WB-ASEAN on Global Djauhari Sitorus • At the 4th meeting of the ASEAN Working
exchange 21, 2017 Findex Survey Committee on Financial inclusion (WC-FINC)
activity in Brunei, WB delivered a presentation on the
Findex survey and potential collaboration in
conducting country-specific and ASEAN-focused
study.
Report August 20- Report on ASEAN Digital Financial Djauhari Sitorus • August 20-21, 2017: Preliminary results of
21, 2017 Services’ regulations and other the report on stock-taking of the regulatory
technical notes for ASEAN WG framework for Digital Financial Services (DFS)
in ASEAN countries were presented at the 4th
meeting of ASEAN Working Committee on
Financial Inclusion (WC-FINC) in Brunei
• The full draft containing findings and
recommendations was presented at the 5th WC-
FINC meeing in Singapore on February 6-7, 2018.
• The final report was submitted in May 2018.
Knowledge September IFRS Implementation Support Chris Fabling • In collaboration with MIA and AFA, WB
exchange 2017 completed the IFRS Gap Analysis and
activity dissemination workshop.
• Hosted by Lao PDR, MOF – Accounting
Department and was attended by 140
participants.
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APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
THEME 2: Enhancing Finance, Competitiveness and Innovation
PRODUCT WHEN TITLE / NAME OF EVENT TASK MANAGER NOTES
Global September A joint BNM-WBG Symposium on Ashraf Arshad • September 19-20, 2017: The symposium was
Conference 19-20, 2017 Development Finance Institutions successfully held and recorded more than 500
(DFIs) participants. It was jointly officiated by Tan Sri
Muhammad Ibrahim, Governor of BNM, and Ms.
Caroline Heider, World Bank Group Director
General and Senior Vice President, Independent
Evaluation Group.
• As a follow-up, BNM requested support of the
World Bank on (i) implementing its initiative
to strengthen the M&E and performance
measurement frameworks for the six DFIs under
BNM’s purview and (ii) jointly organizing the 2nd
Global DFI Symposium in 2019.
Knowledge October Workshops on Green Finance Mohamed Rozani/ • Organized the 2nd workshop on Green Finance,
exchange 2017 Hafiz Aziz which was attended by the various banking
activity associations in Malaysia
January 2018 • The World Bank participated in a Technical
Workshop on green bonds in Jakarta to share
April 2018 Malaysia experience in issuing a green sukuk,
as well as to socialize the ASEAN Green Bond
standard.
• Organized a joint technical workshop on green
finance in Sarawak with Securities Commission
Malaysia and Capital Markets Malaysia
May 2017 Verification of the first green sukuk • The certification was completed. The first green
sukuk was given a rating of Dark Green by the
CICERO, which provides the Second Opinion for
the issuance of green bonds.
• A workshop on green certification for potential
green certifiers was held with an objective
to build up the capability of domestic green
certifiers to cater to the growing domestic and
regional green sukuk /bond markets
November Technical Assistance (TA) to Countries Isaku Endo • Greenback 2.0 Project, a joint closing event with
30, 2017 on Greenback and Remittance BNM, was held in Johor Bahru to celebrate the
successful conclusion of the two-year journey.
A report was produced, and the impact of the
project included a 40% decrease in remittance
fees and numerous regulated remittance
awareness campaigns for migrants and SMEs
Global December International Symposium on Islamic Abayomi A. • December 12-13 2017: The 3rd International WB-
Conference 12-13, 2017 Finance and the Sustainable Alawode IDB-Guidance Symposium on Islamic Finance was
Development Goals (in partnership held, jointly organized between WBG, IDB, and
with INCEIF and IDB) INCEIF.
• The theme was “Islamic Finance and the
Sustainable Development Goals (SDGs)”. Datuk
Seri Johari Abdul Ghani, former Finance Minister
II, Governor Tan Sri Muhammad Ibrahim, and
Dr. Mahmoud Mohieldin, World Bank’s SVP for
2030 Development Agenda and United Nations
Relations, delivered key remarks.
December Technical Assistance Mission to Nepal Isaku Endo • BNM and the World Bank undertook a joint
13-15, 2017 mission to Nepal with the objective of addressing
the issue of the use of unregulated remittance
channels, in particular Hundi, through policy
dialogue and strategic collaboration between the
Malaysian and Nepalese authorities.
January 3, Certification of Pilot Project • The certification was completed. The first green
2018 sukuk was given a rating of Dark Green by the
CICERO, which provides the Second Opinion for
the issuance of green bonds.
• A workshop on green certification for potential
green certifiers was held with an objective
to build up the capability of domestic green
certifiers to cater to the growing domestic and
regional green sukuk /bond markets
100 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
THEME 2: Enhancing Finance, Competitiveness and Innovation
PRODUCT WHEN TITLE / NAME OF EVENT TASK MANAGER NOTES
March 4, Isaku Endo • The official opening event for Greenback 2.0 Kota
2018 Kinabalu took place. The World Bank provided
guidance to BNM to implement Greenback 2.0 in
Kota Kinabalu
March 12-16, The World Bank mission team • The World Bank mission team visited Malaysia to
2018 learn about the current progress of this initiative
and to discuss the scope of future assistance on
this topic.
Knowledge April 2018 Partnership with INCEIF and BNM in • Jointly organised a workshop with INCEIF
exchange the development of Environmental and BNM on Environment & Social Impacts
activity and Social Impact Assessment Assessment Framework for Value-Based
Framework (ESIAF) for Value Based Intermediation.
Intermediation
Knowledge April 2-5, South-to-South Knowledge Wei Zhang • The World Bank received requests from eight
exchange 2018 Exchange: workshop on Sustainable countries (Bangladesh, Cambodia, Indonesia, Lao
activity Credit Guarantee Schemes for SMEs PDR, Myanmar, Papua New Guinea, Saudi Arabia,
and Thailand) to faclity a knowledge exchange
event on Credit Guarantee Schemes for SMEs.
• The World Bank, with supports from BNM,
organized a 4-day workshop for the participants
from the eight countries on developing the
SME sector and implementing effective and
sustainable credit guarantee operations.
Knowledge April 5-6, Collaborations WB-ASEAN on Djauhari Sitorus • World Bank presented the summary of the 2017
exchange 2018 Global Findex Survey Global Findex survey at the Finance and Central
activity Bank Deputies’ meeting in Singapore.
May 2018 A case study on the Malaysia’s Ashraf Arshad • After the concept note had been developed,
Employees Provident Fund (EPF) the data collection process and interviews were
carried out and completed in December 2017.
• The study report was completed in April 2018 and
published in May 2018.
Global May 8-10, Global Forum on Remittances, Isaku Endo • Jointly organized by BNM, IFAD and the WBG
Conference 2018 Investment and Development and it was attended by over 400 participants
(GFRID) 2018 – Asia-Pacific from 50 countries. The event highlighted the
contribution of migrant remittances and diaspora
investment in Asia-Pacific to achieve the SDGs
and their targets.
• The GFRID shared good practices to leverage
remittances for development in the Asia-Pacific
marketplace, including through public-private
partnerships; identified measures to reduce the
cost of remittances, through market competition,
innovative business models and the use of
modern technologies; and reflected on regulatory
barriers and other constraints to lower remittance
costs, promote diaspora investment and facilitate
financial inclusion.
Global May 14-15, International Conference on Abayomi A. • The SC, World Bank and IOSCO Asia Pacific Hub
Conference 2018 “Harnessing Islamic Finance for Alawode Conference on Harnessing Islamic Finance for a
Green Future” Green Future was held at Securities Commission
Malaysia
June 2018 Isaku Endo • A study regarding the use of Hundi for
remittances between Malaysia and Nepal to be
delivered in June 2018.
Report Report on Malaysia’s Transformation Isaku Endo • At BNM’s request, the World Bank prepared
of the Money Services Business a report on the Transformation of the Money
Sector Services Business sector in Malaysia.
Global SME Finance Technical Notes • A series of policy briefs have been prepared
and delivered on the topics of FinTech, credit
guarantee, development banks, and SME finance
ANNUAL REPORT | FINANCIAL YEAR 2019 101
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
THEME 2: Enhancing Finance, Competitiveness and Innovation
PRODUCT WHEN TITLE / NAME OF EVENT TASK MANAGER NOTES
A WBG-Cambridge Survey on Margaret Miller • The questionnaire for the 2018 Cambridge-
FinTech World Bank Global Alternative Finance Securities
Regulator Survey was prepared. The portal
for hosting a database of global data on the
alternative finance industry has been created
Workshop on Measuring the Cost of Isaku Endo • Conducted a series of workshops for BNM and
Payments in Malaysia payment service providers on the methodology of
the study of measuring the cost of payments.
Report A Global Survey Report on Jose De Luna • The draft report was prepared in December 2017
Development Financial Institutions Martinez and final report was completed in April 2018.
Knowledge July 16, 2018 Regional launch of the new Global Mohamed Rozani • Shared the latest finding of the 2017 survey,
exchange Findex Report 2017 especially on ASEAN countries.
activity
Knowledge August 9-10, DFIs Performance Measurement Ashraf Arshad • It highlighted the new economic landscape
exchange 2018 Framework Forum & the role of DFIs, data analytics, as well as
activity performance measurement indicators, among
other things.
Knowledge September A Roundtable on Maximizing Social Ahmad Hafiz • Organized by WB-INCEIF-ISRA on Islamic social
exchange 13, 2018 Impact Through Waqf Solutions finance tools in the alleviation of poverty and
activity socio-economic development throughout history
Knowledge October 2, The WB-WWF Sustainable Finance Mohamed Rozani • The forum gathered more than 120 market players
exchange 2018 Forum and the launch of the from financial regulators, banks, institutional
activity report on Green Bond Proceeds investors, policymakers, and practitioners to share
Management and Reporting their experiences in incorporating ESG criteria
into their investment and business processes, and
their approaches to responsible and sustainable
investments
Knowledge October 2, Conference on Corporate Abayomi A. • The conference is a CIBAFI-WB commitment to
exchange 2018 Governance of Islamic Financial Alawode help foster the development of Islamic finance
activity Institutions globally in corporate governance
Knowledge October 9, Sustainable Finance Forum at the WB Malaysia Hub • Share the work done on green and sustainable
exchange 2018 WB-IMF Annual Meetings in Bali and Indonesian financing in the EAP region
activity team
Knowledge October 18, Workshop on Implementing Wei Zhang • The 1st technical Workshop was organized to
exchange 2018 Value-Based Impact Assessment share the experience of SBN member countries
activity Framework - Learning from on incorporating ESG into the credit process
Practitioners with BNM and SBN
Knowledge October 30, Case Study on the Employees Wei Zhang • The case study provided lessons and policy
exchange 2018 Provident Fund (EPF) of Malaysia measures, while providing insights for an efficient
activity provident system for developing countries,
drawing from Malaysia’s experiences
Knowledge November 4, Outreach Fair in Kota Kinabalu for Isaku Endo • On eWallet and remittances
exchange 2018 Greenback 2.0
activity
Knowledge December WB-BNM Global Payment Week Isaku Endo • The forum provided a peer-to-peer exchange
exchange 3-7, 2018 platform among national and regional authorities.
activity
Knowledge December WB-INCEIF-IRTI Annual Conference Ahmad Hafiz • The event discussed recent developments and
exchange 11, 2018 on Islamic Finance, Inclusion and exchange ideas on policies to eradicate poverty,
activity Poverty Alleviation improve living standards and well-being, and
promote inclusive societies.
Knowledge December Global High Growth Smita Kuriakose • The report was launched jointly with the newly
exchange 14, 2018 Entrepreneurship Report formed Ministry of Entrepreneur Development
activity with a view to undertake similar work for
Malaysian firms
Knowledge March 21, Launch of JomKirim Isaku Endo • JomKirim is a one year private sector-led
exchange 2019 campaign to promote the use of e-remittances
activity until the end of Greenback 2.0 Kota Kinabalu
2020
102 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
THEME 2: Enhancing Finance, Competitiveness and Innovation
PRODUCT WHEN TITLE / NAME OF EVENT TASK MANAGER NOTES
Knowledge April 2-3, Regional Conference on Wei Zhang • The two-day event focused on the SDG goal of
exchange 2019 “Constructing and Financing safe, adequate, and affordable housing for all
activity Affordable Housing Across Asia”
Knowledge April 24-25, Joint Regional Conference on NPL Wei Zhang • The conference laid out the building blocks
exchange 2019 Resolution with BNM necessary for an effective NPL resolution strategy
activity
Knowledge April 29-30, Conference on ‘Enhancing Financial Ahmad Hafiz • The conference discussed the use of Islamic
exchange 2019 Inclusion through Islamic Finance finance to support financial inclusion, including
activity and FinTech the use of Islamic social finance instruments and
FinTech to eradicate poverty and promote shared
prosperity
Knowledge April 30, Forum on ‘Aligning Sustainable Ahmad Hafiz • Forum in Putrajaya specifically for key ministries
exchange 2019 Finance with SDGs’ and their related agencies discussed on how
activity Malaysians stakeholders can leverage sustainable
finance in the implementation of the SDGs.
Knowledge May 2, 2019 Workshop on Impact Reporting Ahmad Hafiz • This is the 3rd technical workshop with CM2 with
exchange for Green sukuk /bond with Capital the objectives to update industry players on best
activity Market Malaysia practices and international trends in green finance
Knowledge May 3, 2019 Forum on Performance Ashraf Arshad • Forum in Putrajaya specifically for key ministries
exchange Measurement for DFIs and their related agencies that are involved with
activity DFIs in the country
THEME 3: Enhancing Public Sector Management
PRODUCT WHEN TITLE / NAME OF EVENT TASK MANAGER NOTES
REPORT
Report (PSP/ December Budgeting for Performance in Rob Boothe/ • Draft assessment discussed with MoF/NBO
PFM) 21, 2016 and Malaysia: Public Sector Reform Bernard Myers • Review meeting held on December 21, 2016
May 2017 Assessment Note • Revised version made available in May 2017
Report (PSP) March 30, New Approaches to Better Service Jana Kunicova/ • Draft assessment discussed with PADU (Ministry
2017 and Delivery: Lessons from Malaysia’s Lars Sondergaard/ of Education) and PEMANDU
June 2017 efforts to improve early grade Jeeva • Review meeting held on March 30, 2017
literacy and numeracy – Literacy and Govindasamy • Revised version to be available by June 2017
Numeracy Screening (LINUS) • Report dissemination mission with global experts
by Q4 2017
Report (PSP) February and Open Data Readiness Assessment Rob Boothe/ • Review meeting held February 2017
June 2017 (ODRA) Carolina Vaira • Launch planned for June 2017 with key
counterpart MAMPU
Report (PSP) April and Driving Performance from the Center: Jana Kunicova • Report published in April 2017; launched in
May 2017 Malaysia’s Experience with PEMANDU Washington, D.C. in April, and in Kuala Lumpur
and Singapore in May 2017
Report (PSP) May 2017 Land Management Notes Jana Kunicova/ • Review meeting planned for May 2017
Katherine Kelm
Report (PSP) May and Enhancing Public Sector Performance: Jana Kunicova/ • Review meeting held May 2017
November Malaysia’s Experience with Katherine Kelm • Report published and launched in November
2017 Transforming Land Administration 2017, officiated by Tan Sri Ali Hamsa, KSN
Report (PSP) December Improving Education Sector Jana Kunicova/ • Report was published in December 2017 and
2017 and Performance in Malaysia: Lessons Lars Sondergaard/ launched jointly by the World Bank and Ministry
February from Delivery Unit Approach Jeeva Govindasamy of Education and its delivery unit, PADU in
2018 February 2018
ANNUAL REPORT | FINANCIAL YEAR 2019 103
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
THEME 3: Enhancing Public Sector Management
PRODUCT WHEN TITLE / NAME OF EVENT TASK MANAGER NOTES
Report (PSP/ March 2018 Budgeting for Performance in Bernard Myers • Summary findings presented to PEMNA Budget
PFM) and June Malaysia: Public Sector Reform Community of Practice in Kuala Lumpur in March
2018 Assessment Note 2018
• Report to be published and launched in May/
June 2018
Report (PSP) October Improving Public Sector Jana Kunicova/ • Published in October 2018 and launched at
2018 Performance through Innovation and Bernard Myers conference in Washington, D.C.
Inter-agency Coordination • Full report and executive summary distributed
globally
Report (PME) August 2018 Budgeting for Performance in Bernard Myers • Published report presented at August 2018
Malaysia roundtable in Kuala Lumpur, with representatives
of NBO, line ministries, research institutions, and
international experts
• Summary of discussion disseminated among 75
Malaysian participants
Report (PME) June 2019 Malaysia’s National Development Deryck Brown/ • Decision meeting completed in June 2019, with
Planning System Jeevakumar final version of the report shared with MEA before
Govindasamy publication
KNOWLEDGE EXCHANGE ACTIVITIES
Knowledge February 19, Sharing Malaysia’s experience with • Number of attendees: 20+
exchange 2016 Outcome-Based Budgeting through • Number of countries benefiting: 1+ (United
activity (PSP) a graduate course at Georgetown States, although Georgetown has an international
University student body)
• Number of sectors: 1
Knowledge April 10-13, Sharing Malaysia’s experience Jana Kunicova • Number of attendees: 27
exchange 2016 in “Managing Performance in • Number of countries benefiting: 11 (Middle East
activity (PSP) Education Sector from the Center and North Africa)
of Government” presented at • Number of sectors: 3+
the IMF-Middle East Center for • Participants were exposed to four days of lectures
Economics and Finance (CEF) Course by the World Bank staff sharing international
on Regional MENA Governance and experience. The presentation of Malaysia’s
Service Delivery. experience received the highest participant
satisfaction ratio of the entire course (4.7/5.00)
Knowledge August 29- Malaysia’s experience with Public Jana Kunicova/ • 20+ officials at various meetings/presentations
exchange 31, 2016 Investment Management (PIM) Jeeva Govindasamy • Joint visit to Phnom Penh, Cambodia by EPU and
activity (EDP/ guidelines: lessons for Cambodia WB staff to respond to the request from the Royal
PFM) Government of Cambodia
• Joint with the existing WB engagement in
Cambodia (Public Expenditure Review/PIM
assessment)
Knowledge September Malaysia’s GLC transformation: Jana Kunicova/ • Number of attendees: 20+ Zimbabwean
exchange 15, 2016 lessons for Zimbabwe (via Jeeva Govindasamy government officials and WB staff
activity (PSP) videoconferencing) • Presentation via videoconferencing by Khazanah
Nasional, facilitated by WB
Knowledge October 19, National Development Planning Rob Boothe / • Number of attendees: 20+ South African
exchange 2016 System: presentation of Malaysia’s Jeeva Govindasamy government officials and WB staff in Pretoria,
activity (EDP) experience for the South African South Africa
Presidency (via videoconferencing) • Presentation by WB Malaysia staff, with possible
follow up through EPU for further direct exchange
Knowledge November Malaysia’s experience public service Jana Kunicova • 20+ officials at various meetings/ presentations
exchange 21-25, 2016 management – performance and • WB staff visit to Vientiane to respond to the
activity (PSP) wage bill: lessons for Lao PDR request of the Government of Lao PDR
February 2, • Joint with the existing World Bank engagement in
2017 Lao PDR (Public Expenditure Review/civil service
reform discussions)
• Follow-on workshop with Malaysian PSD officials
delivered in February 2017
Knowledge December Malaysia’s experience with improving Jana Kunicova • Visit by World Bank Albania staff to explore a
exchange 13-15, 2016 administrative service delivery, Urban study visit by an Albanian government delegation
activity (PSP) Transformation Centers, and delivery in Spring 2017
March 20-24, units: Lessons for Albania • Knowledge sharing meetings by MOF-NSU,
2017 MAMPU, and PEMANDU
• Albanian delegation study visit materialized in
March 2017
104 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
THEME 3: Enhancing Public Sector Management
PRODUCT WHEN TITLE / NAME OF EVENT TASK MANAGER NOTES
Knowledge January 26- Innovations in Service Delivery: Jana Kunicova • Number of attendees: 300+ Cambodian public
exchange 27, 2017 Malaysian lessons for Cambodia sector officials
activity (PSP) • Presentations delivered by Malaysian
representatives (MAMPU, NSU/MOF) on ICT in
service delivery and NBOS (Urban Transformation
Centre) initiatives
Report launch April 21, PEMANDU Assessment Launch Jana Kunicova • Presentations with Very Important Persons (VIPs)
(PSP) 2017 (DC) in Washington, D.C. in April and in Kuala Lumpur
and in May 2017.
May 9, 2017
(KL)
International May 3-5, Innovations in Service Delivery: Jana Kunicova • Collaboration with UNDP Global Centre of Public
workshop (PSP) 2017 Lessons from One-Stop Shops Service Excellence in Singapore
(Singapore - Johor Bahru) • Will include a site visit to the Urban
Transformation Centre, Johor Bahru
Knowledge May 8-10, PEMNA Bernard Myers/ • Public Expenditure on Education – Upgrading
exchange 2017 Miki Matsuura Human Capital in Addressing Poverty and
activity (PSP/ Inequality Issues
PFM) • PEMANDU and MOF will be participating
Report launch May 25, ODRA Report Launch Carolina Vaira/ • Dissemination of the ODRA finding with gov’t
(PSP) 2017 Bernard Myers VIPs
Knowledge June 2017 Malaysia’s GLC transformation: Jana Kunicova/ • Study visit of government officials from the
exchange lessons for the Caribbean Fanny Weiner Caribbean
activity (PSP)
Knowledge June 13, Vietnam 2035 conference: lessons Jana Kunicova • Sharing Malaysia’s experience on GRP and CoG
exchange 2017 from Malaysia on GRP and CoG issues issues
activity (PSP)
Knowledge August 28- Indonesian Delegation visit on Talent Erwin Ariadharma/ • Delegation from BAPPENAS, Indonesia.
Exchange 30, 2017 Management in Malaysia Civil Service Jeevakumar • Number of participants: 33
Activity (PSP) Govindasamy
Knowledge October 3-4, Inaugural Planning Community of Deryck Brown, • Attended by planning officials from seven
Exchange 2017 Practice Jeevakumar different countries in Southeast Asia.
Activity (EDP) Govindasamy • Number of participants: 60
Report launch November Enhancing Public Sector Performance: Jana Kunicova/ • Officiated by TS KSN
(PSP) 15, 2017 Malaysia’s Experience with Katherine Kelm • Attended by 120+ Malaysian public officials and
Transforming Land Administration the press
Report launch February 7, Improving Education Sector Jana Kunicova/ • Attended by 150+ Malaysian public officials and
(PSP) 2018 performance in Malaysia: Lessons Lars Sondergard/ the press
from a Delivery Unit Approach Jeeva Govindasamy
Knowledge February 26, Azerbaijan-Malaysia knowledge Jana Kunicova • Requested by the Azeri counterparts looking
exchange 2018 exchange on delivery unit methods to improve M&E of priority programs from the
activity (PSP) (via videoconference) center of government
• Main Malaysian counterpart: PEMANDU
• Number of participants: 3
Knowledge March 1-2, Steering Committee Meeting of the Jeeva • Attended by senior planning officials from six
exchange 2018 Planning Community of Practice Govindasamy/ different countries in Southeast Asia.
activity (EDP) Deryck Brown • Number of participants: 8
Knowledge March 6, Gabon-Malaysia knowledge Jana Kunicova/ • Requested by World Bank colleagues working
exchange 2018 exchange on e-governance (via Jeeva Govindasamy with the Government of Gabon on e-governance
activity (PSP) videoconference) to learn from Malaysia’s experience
• Main Malaysian counterpart: MAMPU
• Number of participants: 60
Knowledge March 6-8, PEMNA Budget Community of Bernard Myers • Attended by budget officials from 12 countries
Exchange 2018 Practice (B-CoP) Meeting in Kuala across East Asia, plus experts from the OECD and
Activity (PFM) Lumpur Russian Federation
• Number of participants: 60
Knowledge March 19-23, Vietnam Office of the Government Jana Kunicova • Delegation of 30+ high-level Vietnamese officials
exchange 2018 (OOG) study visit to Malaysia led by the Deputy Minister for OOG
activity (PSP) • Topics included center of government M&E
approaches (CSDU, PEMANDU); UTCs; education
service delivery (PADU); regulatory reform
(PEMUDAH).
ANNUAL REPORT | FINANCIAL YEAR 2019 105
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
THEME 3: Enhancing Public Sector Management
PRODUCT WHEN TITLE / NAME OF EVENT TASK MANAGER NOTES
Knowledge March 20, Cambodia-Malaysia knowledge Jeeva Govindasamy • Requested by the Ministry of Interior, Royal
exchange 2018 exchange on ICT strategy formulation Government of Cambodia, to build capacity to
activity (PSP) (via videoconference) develop their ICT strategy
• Main Malaysian counterpart: MAMPU
• Number of participants: 15
Knowledge April 3, Egypt-Malaysia knowledge exchange Jana Kunicova • Requested by Egyptian counterparts looking
exchange 2018 on delivery unit methods (via to establish a delivery unit at the center of
activity (PSP) videoconference) government
• Main Malaysian counterpart: PEMANDU
• Number of participants: 5
Knowledge April 16-18, Ukraine-Malaysia knowledge Jana Kunicova/ • A 3-member delegation of the senior officials
exchange 2018 exchange on delivery unit methods in Lars Sondergard/ from PADU, MOE, and the Bank team traveled to
activity (PSP) education Jeeva Govindasamy Kyiv, Ukraine, at the invitation of Lidia Hrynevych,
the Minister of Education, Government of Ukraine
• Aside from the meeting with the Minister,
the team delivered a full day workshop to the
audience of 50+ Ukrainian officials
Knowledge May 2-4, PEMNA Plenary meeting of Budget Bernard Myers • Attended by officials from 14 countries across
Exchange 2018 and Treasury Communities of Practice East Asia
Activity (PFM) in Siem Reap, Cambodia • Malaysia officials share their experience related to
“Strengthening revenue and budget management
to support national policy priorities.”
• Number of participants: 200+
Planning November Technical workshop consisting Deryck Brown/ • About 50 senior-middle level officials from eight
Community 2018 senior planning officials from the Jeevakumar countries. Joint collaboration between WB and
of Practice South East Asia region. Govindasamy Ministry of Economic Affairs
(PCoP) • Countries benefiting: 8
Workshop focused on • Sectors: 1
implementation of national
development plans.
Knowledge December Sharing Malaysia’s experience Abdullah Maamor • Delegation: Two officials from INTAN were
exchange 2018 on E- learning of public finance speakers at the workshop attended by 75 Laos
activity (PFM) management with Laos officials
• Number of countries benefiting: 1
• Number of sectors: 1
Knowledge March 2019 Sharing Malaysia’s experience Jeevakumar • Delegation: Nine senior officials, minister, deputy
exchange national development planning, Govindasamy/ minister from Crotia
activity (PME) delivery units, and performance Abdullah Maamor • Number of countries benefiting: 1
budgeting • Meetings include Deputy Minister of MOF
• Number of sectors: 1
BROWN BAG LUNCHES (X-FLOW)
Knowledge September 1, Brown Bag Lunch (BBL) #1 (joint with Jeeva Govindasamy • Number of attendees: 20
exchange 2016 the Razak School of Government): Tan • Discussants: Jana Kunicova and Julio Revilla
activity (EDP) Sri Arshad Ayub (Former DG of EPU
and Central Bank) at Razak School of
Government, speaking on Malaysia’s
Economic Transition: Resource-Based
to Industrialized Economy
Knowledge September Brown Bag Lunch (BBL) #2 (joint with Jeeva Govindasamy • Number of attendees: 50+
exchange 27, 2016 UKM): Prof. Datuk John Xavier at • Discussants: Julio Revilla and Rafael Munoz
activity (PSP) UKM, speaking on Industrial Policy
and Economic Clusters
Knowledge October 12, Brown Bag Lunch (BBL) #3: Prof. Jeeva Govindasamy • Number of attendees: 40+
exchange 2016 Tham Siew Yean (ISEAS-Singapore) at • Discussants: Jana Kunicova and Norman Loayza
activity (PSP) Sasana Kijang, speaking on Malaysia’s
Transition out of the Middle Income
Trap
Knowledge November Brown Bag Lunch (BBL) #4 (joint with Jeeva Govindasamy • Number of attendees: 40+
exchange 23, 2016 the Razak School of Government): • Discussant: Faris Hadad-Zervos
activity (EDP) Tan Sri Sulaiman Mahbob, former DG
of EPU, speaking on the Evolution of
Economic Development Planning in
Malaysia
106 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
THEME 3: Enhancing Public Sector Management
PRODUCT WHEN TITLE / NAME OF EVENT TASK MANAGER NOTES
Knowledge June 2, 2017 Brown Bag Lunch (BBL) # 5: Tan Sri Jeeva Govindasamy • Expected number of attendees: 30+
exchange Ramon Navaratnam, to speak on
activity (EDP) Lessons Learn from New Economic
Policy
GGP STAFF PRESENTATIONS IN MALAYSIA (X-FLOW)
Knowledge February MEA Forum: Improving Service Jana Kunicova • Presentation at a flagship forum of the MEA and a
exchange 9-10, 2017 Delivery and Governance Systems small-group closed-door brainstorming on the way
activity (PSP) forward
• 100+ participants (high-level civil servants/alumni;
academics; CSOs)
Knowledge March 21, PSD workshop: Presentation on Jana Kunicova • Presentation for about 100 civil servants organized
exchange 2017 international experience with by the PSD leadership to brainstorm way forward
activity (PSP) performance appraisal for performance appraisal
Knowledge April 11, MoF: 2018 Budget Discourse: Bernard Myers
exchange 2017 Presentation on international
activity (PSP/ experiences with strengthening
PFM) budgetary processes
THEME 4: Boosting Social Protection and Jobs Outcomes
PRODUCT WHEN TITLE / NAME OF EVENT TASK MANAGER NOTES
Knowledge November South-South Knowledge Exchange Michael Drabble • Six delegates from the Government of Tunisia and
exchange 11-16, 2018 between Tunisia and Malaysia on the World Bank
activity building a skilled workforce in Tunisia
Report March 29, Case study on the provision of Harry Moroz
2019 granular labor market information
using Malaysia’s Critical Occupations
List
Report March 29, Case study on support for the Harry Moroz
2019 development of skilled workers
using Malaysia’s Human Resource
Development Fund
Knowledge May 15, 2019 Webinar on Bridging Skills Gaps Achim Schmillen • 60 participants from across the East Asia and Pacific
exchange by Promoting School and Industry region
activity Linkage featuring Malaysia’s Critical
Occupations List
Report June 14, Flagship report on promoting Achim Schmillen
2019 women’s economic opportunities in
Malaysia
Knowledge June 28, Facilitation of a session on new Harry Moroz/
exchange 2019 sources of labor market information Achim Schmillen
activity at the World Bank’s Human
Development Week in Washington,
D.C.
Knowledge Throughout Numerous Presentations at events Achim Schmillen
exchange 2017-2019 hosted by the Ministry of Human
activity Resources, Universiti Sains Malaysia,
the Institute for Diplomacy and
Foreign Relations, and various other
agencies and institutions
ANNUAL REPORT | FINANCIAL YEAR 2019 107
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
Global Research Teams
Development Research Group
DECRG Development Research Seminars
DATE SPEAKER AFFILIATION PAPER LINK
Feb 4, 2016 Martin Kanz DECRG Moral Incentives: Experimental Evidence http://www.worldbank.org/en/events/2016/01/20/
from Repayments of an Islamic Credit moral-incentives-experimental-evidence-from-
Card repayments-of-an-islamic-credit-card#1
Feb 18, 2016 Hai-Ahn Dang DECRG Welfare Dynamics Based on Synthetic http://www.worldbank.org/en/events/2016/02/05/
Panels Using Objective and Subjective welfare-dynamics-based-on-synthetic-panels-using-
Data: The Case of the Arab World objective-and-subjective-data
Mar 3, 2016 John Giles DECRG Migrant Labor Markets and the Welfare of http://www.worldbank.org/en/events/2016/02/24/
Rural Households in the Developing World migrant-labor-markets-and-the-welfare-of-rural-
households-in-the-developing-world-evidence-from-
china
Mar 17, 2016 Saumik Paul University of Structural Transformation, Growth http://www.worldbank.org/en/events/2016/03/11/
Nottingham Incidence and Inequality structural-transformation-growth-incidence-and-
inequality
Mar 31, 2016 Govinda DECRG The Benefits of Regional Electricity http://www.worldbank.org/en/events/2016/03/17/
Timilsina Cooperation and Trade: Lessons from the-benefits-of-regional-electricity-cooperation-and-
South Asia trade-lessons-from-south-asia
Apr 7, 2016 Norman DECRG The Local Impact of Mining on Poverty http://www.worldbank.org/en/events/2016/03/23/
Loayza and Inequality the-local-impact-of-mining-on-poverty-and-inequality
Apr 14, 2016 Dean Jolliffe DECRG A Global Headcount of Extreme Poverty http://www.worldbank.org/en/events/2016/04/04/a-
global-headcount-of-extreme-poverty
Jun 2, 2016 Michael DECRG Using Cases and Case Studies in http://www.worldbank.org/en/events/2016/05/24/
Woolcock Development: Causal Inference, decrg-kuala-lumpur-seminar-series-using-cases-
Extrapolation, Diagnostics and-case-studies-in-development-causal-inference-
extrapolation-diagnostics
Jun 23, 2016 Emily Beam National Ethnic Competition for Resources and http://www.worldbank.org/en/events/2016/06/14/
University of Fertility Choices in Malaysia fertility-choices-and-inter-ethnic-resource-
Singapore competition-in-malaysia
Jun 30, 2016 Hiau Looi Kee DECRG Trade Discrepancies, Trade Frauds and http://www.worldbank.org/en/events/2016/06/16/
Non-Tariff Measures trade-frauds-trade-elasticities-and-non-tariff-
measures
Jul 28, 2016 Steven Michael DECRG The Seasonality of Conflict http://www.worldbank.org/en/events/2016/06/30/
Pennings the-seasonality-of-conflict
Sep 1, 2016 Boon Hwa Tng BNM The Transmission of Financial Stress and http://www.worldbank.org/en/events/2016/08/11/
Its Interactions with Monetary Policy the-transmission-of-financial-stress
Responses in the ASEAN-5 Economies
Sep 13, 2016 Philip O'Keefe World Live Long and Prosper: Aging in East Asia http://www.worldbank.org/en/events/2016/08/11/
Bank, Social and Pacific live-long-and-prosper-aging-in-east-asia-and-pacific
Protection and
Labor
Sep 20, 2016 Susmita DECRG Minimizing Ecological Damage from Road http://www.worldbank.org/en/events/2016/09/05/
Dasgupta Improvement in Tropical Forests minimizing-ecological-damage-from-road-
improvement-in-tropical-forests
Sep 28, 2016 Caglar Ozden DECRG The Global Migration of Talent and Tax http://www.worldbank.org/en/events/2016/09/21/
Incentives: Evidence from Malaysia's the-global-migration-of-talent-and-tax-incentives-
Returning Expert Program evidence-from-malaysias-returning-expert-program
Oct 13, 2016 Hwok-Aun Lee, University of Is Inequality in Malaysia Really Going http://www.worldbank.org/en/events/2016/10/04/is-
Muhammed Malaya, Down? A Puzzle Explored inequality-in-malaysia-really-going-down
Abdul Khalid Khazanah
Research
Institute
108 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Development Research Seminars
DATE SPEAKER AFFILIATION PAPER LINK
Oct 27, 2016 Norman DECRG Informality in the Process of Development http://www.worldbank.org/en/events/2016/10/12/
Loayza and Growth informality-in-the-process-of-development-and-
growth
Nov 3, 2016 Luis Servén DECRG Openness, Specialization, and the External http://www.worldbank.org/en/events/2016/10/12/
Vulnerability of Developing Countries openness-specialization-and-the-external-
vulnerability-of-developing-countries
Nov 17, 2016 Shirly Wong UNIMAS Measuring Business Cycle Fluctuations: An http://www.worldbank.org/en/events/2016/11/17/
Siew Ling Alternative Precursor to Economic Crises measuring-business-cycle-fluctuations
Nov 24, 2016 Mohd Yusof Universiti Putra Sources of Income Growth and Inequality http://www.worldbank.org/en/events/2016/11/24/
Saari Malaysia, across Ethnic Groups in Malaysia, 1970- sources-of-income-growth-and-inequality-across-
Department of 2000 ethnic-groups-in-malaysia
Economics
Dec 1, 2016 Julien Labonne University of Incumbent Advantage, Voter Information http://www.worldbank.org/en/events/2016/10/28/
Oxford and Vote Buying incumbent-advantage-voter-information-and-vote-
buying
Dec 8, 2016 Yong Wang Peking International Trade and Non-Convergence http://www.worldbank.org/en/events/2016/12/08/
University Trap for Middle-Income Countries international-trade-and-non-convergence-trap
Jan 26, 2017 Lin Ma National Pirates of Somalia: Crime and Deterrence http://www.worldbank.org/en/events/2017/01/26/
University of on the High Seas pirates-of-somalia-crime-and-deterrence-on-the-high-
Singapore seas
Feb 23, 2017 Filippo di European Firms Level Data Analysis Reconsidered: A http://www.worldbank.org/en/events/2017/02/23/
Mauro Central Bank Novel Data Basis and a Few Applications firms-level-data-analysis-reconsidered
for Policy and Research
Mar 14, 2017 Roberto Chang Rutgers Incomplete Risk Sharing with Complete http://www.worldbank.org/en/events/2017/03/14/
University Markets incomplete-risk-sharing-with-complete-markets
Mar 23, 2017 Jean N. Arlet World Bank Electricity Tariffs, Power Outages and Firm http://www.worldbank.org/en/events/2017/03/23/
Performance: A Comparative Analysis electricity-tariffs-power-outages-and-firm-
performance-a-comparative-analysis
Mar 30, 2017 Edgar Chavez World Bank Credit Information and Firms’ Access to http://www.worldbank.org/en/events/2017/03/30/
Finance: Evidence from a New Credit- credit-information-and-firms-access-to-finance
Constrained Status Measure
Apr 13, 2017 Tian Huey Teh BNM Measuring Bank Risk-taking Behaviour: http://wåww.worldbank.org/en/events/2017/04/13/
The Risk-taking Channel of Monetary measuring-bank-risk-taking-behaviour
Policy in Malaysia
Apr 20, 2017 Witsanu Kasetsart Impact of the First-Time Car Buyer http://www.worldbank.org/en/events/2017/04/20/
Attavanich University Program on the Environmental Cost of Air impact-of-the-first-time-car-buyer-program-on-the-
Pollution in Bangkok environmental-cost-of-air-pollution-in-bangkok
May 11, 2017 Joel D. Moore Monash Going Green in Thailand: Upgrading in http://www.worldbank.org/en/events/2017/05/11/
University Global Organic Value Chains going-green-in-thailand-upgrading-in-global-organic-
value-chains
May 18, 2017 Sergio World Bank International Financial Integration of East http://www.worldbank.org/en/events/2017/05/18/
Schmukler Asia and Pacific international-financial-integration-of-east-asia-and-
pacific
Jun 1, 2017 Steven Michael World Bank Shrinking Dictators: How Much Economic http://www.worldbank.org/en/events/2017/06/01/
Pennings Growth Can We Attribute to National shrinking-dictators-how-much-economic-growth-can-
Leaders? we-attribute-to-national-leaders
Jun 15, 2017 Woan Foong University of The Round Trip Effect: Endogenous http://www.worldbank.org/en/events/2017/06/15/
Wong Oregon Transport Costs and International Trade the-round-trip-effect-endogenous-transport-costs-
and-international-trade
ANNUAL REPORT | FINANCIAL YEAR 2019 109
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Development Research Seminars
DATE SPEAKER AFFILIATION PAPER
Sep 7, 2017 Thanyaporn Chankrajang Chulalongkorn The Unequal Effects of the Great Depression on Rural
University Households in Siam, 1930-1934: Crisis Transmission through
International Rice Trade
Sep 14, 2017 Markus Brueckner Australian National Inequality and GDP Per Capita: The Role of Initial Income
University
Sep 21, 2017 Sergio Schmukler World Bank Market Access, Corporate Borrowing, and Debt Maturity
Sep 28, 2017 Trung Hoang Vietnam Academy of The Long-run and Gender-equalizing Impacts of Schooling
Social Sciences Policies: Evidence from the First Indochina War
Oct 3, 2017 Mary Hallward-Driemeier, William World Bank Technological Innovation: Challenges and Opportunities for
F. Maloney Developing Countries
Oct 26, 2017 Liang Choon Wang Monash University Non-Financial Incentives, Selectivity and Performance of
Volunteers: Evidence from a Large Scale Natural Field
Experiment
Nov 23, 2017 Donghyun Park and Shu Tian Asian Development Do Local Currency Bond Markets Enhance Financial Stability?
Bank Some Empirical Evidence
Nov 28, 2017 Young Eun Kim World Bank Total Factor Productivity and its Determinants: Innovation,
Education, Efficiency, Infrastructure and Institutions
Nov 30, 2017 Phornchanok Cumperayot Chulalongkorn Linking Large Currency Swings to Fundamentals' Shocks
University
Jan 22, 2018 Ravi Kanbur Cornell University Addressing the Anxieties of Our Time: The Work of the
International Panel on Social Progress
Jan 25, 2018 Thorsten Beck Cass Business School Credit Growth and Macro Prudential Policies: Preliminary
Evidence on the Firm-level
Feb 8, 2018 Shanta Devarajan World Bank Market Failures, Government Failures and the Welfare of Poor
People
Mar 1, 2018 Namrata Chindarkar and Yvonne National University of Impact of Farm Electricity Supply Management on Farm
Jie Chen. Co-Author: Shilpa Singapore Households-Evidence from a Natural Experiment in India
Sathe
Mar 8, 2018 Maisy Wong The University of Unity in Diversity? How Intergroup Contact Can Foster Nation
Pennsylvania Building
Mar 29, 2018 David Bishai Johns Hopkins School Disparities in Child Mortality Among Religious Minorities in the
of Public Health District of India
Apr 5, 2018 Gaurav Datt Monash Business School Is Emigration of Nepalese Workers Contributing to Better
Schooling Outcomes for Children in Nepal?
Apr 19, 2018 Sui-Jade Ho Bank Negara Malaysia Returns to Scale, Productivity Measurement and Trends in U.S.
Manufacturing
Misallocation
Apr 26, 2018 Ghazala Mansuri World Bank Decentralization and Redistribution: Irrigation Reform in
Pakistan’s Indus Basin
Jun 7, 2018 Vijayendra Rao World Bank Safety Nets and Natural Disaster Mitigation: Evidence from
Cyclone Phailin in Odisha
Sep 13, 2018 Pablo Egaña del Sol Asia School of Business The Role of Emotional Regulation on Entrepreneurship
Education: Evidence from Neurophysiological Lab-in-the-Field
Experiments
Sep 20, 2018 Chaoran Chen National University of Capital-Skill Complementarity, Sectoral Labor Productivity, and
Singapore Structural Transformation
Sep 27, 2018 Donghyun Park and Shu Tian Asian Development The Price of Greenness: Some Evidence from Green Bond
Bank Markets
Oct 11, 2018 Laurence Todd and Wing Leong Institute for Democracy Payment Card Reform Framework (PCRF): A Policy Evaluation
Teo and Economic Study
Affairs; University of
Nottingham Malaysia
110 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Development Research Seminars
DATE SPEAKER AFFILIATION PAPER
Oct 16, 2018 Sergio Schmukler World Bank Corporate Financing in East Asia: The Long Road Since the 1997-
98 Financial Crisis
Oct 18, 2018 Otaviano Canuto World Bank Globalization and Technological Transformation
Nov 7, 2018 Michael Toman World Bank The Conceptual Basis and Operational Implications of “Green
Growth”
Nov 8, 2018 Zaki Wahhaj Keynes College, Marriage, Work and Migration: The Role of Infrastructure
University of Kent Development and Gender Norms
Nov 14,2018 Ayhan Kose and Jongrim Ha World Bank Low Inflation in Emerging Economies: Miracle or Mirage?
Nov 22,2018 Xiaobo Zhang Peking University Community Networks and the Growth of Private Enterprise in
China
Dec 6, 2018 Sharmila Devadas World Bank Assessing the Effect of Public Capital on Growth: An Extension of
the World Bank Long-Term Growth Model
Dec 13, 2018 John Giles World Bank Can Information Influence the Social Insurance Participation
Decision of China’s Rural Migrants?
Dec 20, 2018 Fabian Mendez Ramos World Bank Uncertainty in Future Poverty and Inequality: Some Implications
of Growth and Natural Resources
Jan 8, 2019 Dimitrije Ruzic INSEAD Firms and Collective Reputation: the Volkswagen Emissions
Scandal as a Case Study
Jan 24, 2019 Martin Ravallion and Dominique Georgetown University Informational Constraints on Antipoverty Policies: Evidence from
van de Walle and University of Africa
Malaya; Center for
Global Development
and University of
Malaya
Feb 14, 2019 Jong-Wha Lee. Korea University Korean Unification: Economic Adjustments Under German
Co-Author: Warwick J. Assumptions
McKibbin
Feb 21, 2019 Woong Yong Park Seoul National Global Spillover Effects of US Uncertainty
Co-Authors: Saroj Battharai and University
Arpita Chatterjee
Mar 7, 2019 Hyeok Jeong Seoul National Productivity Growth and Efficiency Dynamics of Korea’s Structural
University Transformation
Mar 14, 2019 Klaus F. Zimmermann Maastricht University Economic Preferences Across Generations: Identifying Family
Clusters from a Large-scale Experiment
Mar 21, 2019 Yoonsoo Lee Sogang University Long-term Shifts in Korean Manufacturing and Plant-level
Dynamics
Apr 18, 2019 Adonis Antoniades National University of The Credit Concentration Channel of Monetary Policy
Singapore Transmission
May 2, 2019 Quy-Toan Do World Bank Unemployment and Violent Extremism: Evidence from Daesh
Co-authors: Mohamed Abdel Recruits
Jelil, Kartika Bhatia, Anne
Brockmeyer, and Clement
Joubert
May 23, 2019 Davin Chor Dartmouth College and The Political Economy Consequences of China’s Export
Co-authors: Filipe R. Campante, National University of Slowdown
Bingjing Li Singapore
May 30, 2019 Derek Kok Sunway University Stunting in Malaysia: Costs, Causes and Courses for Action
ANNUAL REPORT | FINANCIAL YEAR 2019 111
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Half-Baked Seminars
DATE SPEAKER AFFILIATION TOPIC
Feb 2, 2016 Raian Divanbeigi DECIG Business Regulations and Growth
Feb 16, 2016 Mohammad Amin DECIG Does Manager Education Play a Role in the Productivity of
Informal Firms in Developing Economies? Evidence from Firm
Surveys
Feb 23, 2016 Su Ling Cheah BNM Malaysia's House Price Dynamics: The Role of Fundamentals
Mar 15, 2016 Boon Hwa Tng BNM The Real Effects of Capital Flows: Evidence from Malaysia
Mar 22, 2016 Juita Mohamad ISIS The Impact of Trade Liberalization on the Informal Sector in
Malaysia
Mar 29, 2016 Abigail Tay ASB Managing Financial Crises
Apr 12, 2016 Fabian Mendez-Ramos DECRG Uncertainty and Evaluation of GDP Growth Projections
Apr 26, 2016 Kue-Peng Chuah BNM Terms of trade shocks in 2014-2015 for selected Emerging
Market Economies: What, Who, How much?
May 3, 2016 Nur Ain Shahrier ADB TBD
May 10, 2016 Jean Arlet DECIG Testing the Impact of Power Outages and Electricity Tariffs on
Productivity
May 17, 2016 Steven Wong ISIS Crisis-Proofing the Malaysian Economy: Policies and Perspectives
in the 21st Century
Sep 6, 2016 Young Eun Kim DECRG Total Factor Productivity Growth and its Decomposition
Sep 15, 2016 Jiaming Soh BNM Household Credit, Growth, and Inequality in Malaysia: Does the
Type of Credit Matter?
Oct 18, 2016 Hamidi A. Razak BNM Credit Risk Modelling for Ethical Financing
Nov 15, 2016 Usman Khalid University of Catch Up in Institutional Quality: An Empirical Assessment
Nottingham
Nov 22, 2016 Michael Woolcock DECRG Back to the Future of Development: Mapping and Navigating a
Fragmenting Field
Dec 6, 2016 Kevin Crow Asia School of Business Should States Bring Claims Too? Asymmetry in the Investment
Chapter of the Trans-Pacific Partnership and Other Free Trade
Agreements
Jan 24, 2017 Fabian Mendez-Ramos World Bank Growth and Poverty Uncertainty: The Natural Resource Curse
Feb 7, 2017 Justin Lim BNM Do FTAs Promote Trade? Evidences from ASEAN Countries'
Bilateral and Regional FTAs
Feb 14, 2017 Ha Nguyen World Bank Are Demand or Supply Shocks Behind the Great Trade Collapse?
Feb 21, 2017 M Niaz Asadullah University of Malaya Schooling without Learning: Evidence from Rural Pakistan
Feb 28, 2017 Laura Sagnori Diniz World Bank Access to Finance and the Institutional Framework of Land
Administration: Evidence from Cross-Country Micro-Level Data
Mar 21, 2017 Raian Divanbeigi World Bank Regulatory Constraints to Agricultural Productivity
Apr 11, 2017 Sergio Campillo Diaz World Bank Global Financial Inclusion Performance Index
May 30, 2017 Justin Lim BNM Global Value Chains and the Exchange Rate Elasticity of Exports
in Malaysia ∞
Jun 14, 2017 Ha Nguyen World Bank The US Kick: Impact of US Market Access on Local Labor Markets
in a Developing Country
112 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Half-Baked Seminars
DATE SPEAKER AFFILIATION TOPIC
Aug 25, 2017 Prof. Nicholas J. White Liverpool John Moores Permodalan Nasional Berhad (PNB) and Malaysia’s Economic
University/PNB Development since 1978: Conception, Implementation and
Research Institute Impact
Oct 4, 2017 Donghyun Park and Shu Tian Asian Development Empirical Analysis of Determinants of Foreign vs. Domestic
Bank Investment in Bond Markets
Oct 10, 2017 Fabian Mendez-Ramos World Bank Long-Term Growth in Natural Resource Economies
Oct 24, 2017 Melati Nungsari ASB Measuring the Impact of Language Interventions on the
Economic Outcomes of Refugees in Malaysia
Nov 7, 2017 Pablo Egana del Sol ASB Emotional Regulation and After School Programs in Highly
Violent Communities: Neuro-Physiological Evidence from El
Salvador
Nov 14, 2017 Ole Rummel SEACEN How Distinct are Financial Cycles from Business Cycles in Asia?
Nov 21, 2017 Jiaming Soh BNM Debt Financing and Survival of Firms in Malaysia
Jan 30, 2018 Mohammad Amin World Bank Measuring Productivity in Services Sectors: A Literature Review
Feb 6, 2018 Sean Kidney Climate Bonds Global Green Bond Market Development and Prospects
Initiative
Feb 13, 2018 M. Niaz Asadullah University of Malaya Poverty Reduction, Economic Growth, and Human Development
in Malaysia
Mar 6, 2018 Jose De Luna Martinez World Bank Global Survey on Development Banks
Mar 13, 2018 Mustafa Aydemir International Bank Governance (ESG) and Technical Efficiency in Dual-Banking
Islamic University Systems
Malaysia
Mar 20, 2018 Bill Garthwaite World Bank Hammers and High Jumps: Exploring the Role of Law in the
Pursuit of Water Security
Apr 3, 2018 Kai Liu (co-authors: Pedro University The Supply of Skills and Endogenous Technical Change:
Carneiro, Kjell Salvanes) of Cambridge Evidence from a College Expansion Reform
(University College
London, Norwegian
School of Economics)
Apr 11, 2018 Ata Can Bertay (co-authors: World Bank (Goethe Gender Inequality and Economic Growth: Evidence from
Ljubica Djordjevic, Can Sever) University, University of Industry-Level Data
Maryland)
Apr 24, 2018 Lay Lian Chuah (co-authors: World Bank (World Decomposing the Productivity of Firms in the Manufacturing
Norman Loayza and Ha Nguyen) Bank) Sector: The Dynamic Olley-Pakes Approach
May 8, 2018 Bernadette Victorio AFI Special Report on Gender Diversity within AFI Member
Institutions
May 15, 2018 Melati Nungsari ASB Pricing and Incentives in Defined Contribution Retirement
Systems
July 3, 2018 Jiaming Soh BNM Disentangling the Demand and Supply Factors of Household
Credit: Evidence from the Credit Registry Data in Malaysia
Sep 18, 2018 Kenneth Simler and Wei San Loh World Bank Trends in Income Growth and Distribution in Malaysia, 2007-
2017
Sep 25, 2018 Chin-Yoong Wong Universiti of Tunku Goodbye GST, Hello SST for Malaysia: In Search of Welfare
Abdul Rahman (UTAR) Equivalence
Oct 2, 2018 Hock-Ann Lee Universiti Malaysia U.S. Balance Sheet Policy and International Capital Flows:
Sabah Preliminary Empirical Evidence from Emerging Economies
ANNUAL REPORT | FINANCIAL YEAR 2019 113
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Half-Baked Seminars
DATE SPEAKER AFFILIATION TOPIC
Oct 9, 2018 Melati Nungsari and Sam ASB Labor Market Integration of Rohingya Construction Workers in
Flanders Peninsular Malaysia
Nov 20, 2018 Pablo Egaña del Sol ASB The Future of Skills: Automation in Low and Middle-Income
Economies
Nov 21, 2018 Wee Yeap Lau University of Malaya The Nexus between FDI and the Malaysian Currency: Pre and
Post New Foreign Exchange Rule
Dec 11, 2018 Fabian Mendez Ramos World Bank Recent Patterns of Structural Change and Uncertainty
Jan 22, 2019 Achim Daniel Schmillen World Bank Distribution and Determinants of China’s Minimum Wage Rates
Mar 5, 2019 Nadia Novik World Bank The ABC of Smart Regulations: Is There a Relationship between
Education and Business Regulatory Environment
Mar 19, 2019 Geoffrey Williams HELP University Responsible Privatization
Mar 26, 2019 Vijayendra Rao World Bank The Demand-side of Public Service Delivery and the
Strengthening of a New Malaysia
Apr 2, 2019 Melati Nungsari ASB The Effect of Short-Term Volunteering on Attitudes Towards
(co-author: Sam Flanders) Refugees: A Textual Analysis
Apr 9, 2019 Young Eun Kim World Bank Impact of Result-Based Health Financing on the Utilization of
Maternal and Child Health Services in Nagaland, India
Apr 30, 2019 Nizam Shah Allabasc Universiti Tun Abdul A Robust Comparison between Islamic and Conventional
Razak Banks on Operational Risks
May 14, 2019 Guanie Lim Nanyang Technological (How) Does Chinese Financial Statecraft Work in Southeast
University (NTU) Asia? An Analysis of the Automobile and Construction
Industries
May 16, 2019 Mala Raghavan University of Tasmania The Effects of Changes in Global Oil Market on ASEAN-4
May 21, 2019 Willem Smith ASB New & Improved: Come and See This Totally Revamped Global
Branding Measurement based on Social Media Engagement
May 28, 2019 Alyssa Farha Jasmin Khazanah Research The Effects of China’s Trade Policies on Malaysia’s Exports
Institute (KRI)
Jun 4, 2019 Geoffrey Williams HELP University Private Higher Education Financing in Malaysia
114 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Research Policy Briefs
DATE AUTHORS AFFILIATION TITLE
Mar 2016 Greg Larson, Norman Loayza, World Bank The Middle-Income Trap: Myth or Reality?
Michael Woolcock
Mar 2016 Raian Divanbeigi, Nina Paustian, World Bank Structural Transformation of the Agricultural Sector: A Primer
Norman Loayza
Aug 2016 Young Eun Kim, Norman Loayza, World Bank Productivity as a Key to Economic Growth and Development
Claudia Meza-Cuadra
Oct 2016 Norman Loayza, World Bank Should We Fear Foreign Exchange Depreciation?
Fabian Mendez-Ramos
Jan 2017 Fabian Mendez-Ramos, World Bank Measurement and Patterns of World Agribusiness Trade
Nina Paustian
Mar 2017 Sharmila Devadas World Bank Threat or Help? The Effects of Unskilled Immigrant Workers on
National Productivity Growth
May 2017 Lay Lian Chuah, World Bank Open Data: Differences and Implications across Countries
Norman Loayza
Jul 2017 Michael Woolcock World Bank Enhancing the Quality of Public Service Delivery: Insights from
Recent Research
Oct 2017 Facundo Abraham, Sergio L. World Bank Addressing the SME Finance Problem
Schmukler
Oct 2017 Facundo Abraham, Sergio L. World Bank A New Role for Development Banks?
Schmukler
Nov 2017 Facundo Abraham, Sergio L. World Bank Are Public Credit Guarantees Worth the Hype?
Schmukler
Feb 2018 Dorina Georgieva, Norman World Bank Global Trade: Slowdown, Factors, and Policies
Loayza, and Fabian Mendez-
Ramos
Mar 2018 Young Eun Kim, Norman Loayza World Bank The Drive toward Universal Health Coverage
Apr 2018 Juan J. Cortina, World Bank The Fintech Revolution: A Threat to Global Banking?
Sergio L. Schmukler
May 2018 Ruth Llovet Montanes, World Bank Financial Integration in East Asia and Pacific: Regional and
Sergio L. Schmukler Interregional Linkages
Aug 2018 Lay Lian Chuah, Norman V. World Bank The Future of Work: Race with—not against—the Machine
Loayza, and Achim D. Schmillen
Oct 2018 Sharmila Devadas, Norman World Bank When Is a Current Account Deficit Bad?
Loayza
Oct 2018 Juan J. Cortina, Tatiana Didier, World Bank Corporate Borrowing in Emerging Markets: Fairly Long Term, But
and Sergio L. Schmukler Only for a Few
Nov 2018 Ayhan Kose, Lieselotte Franziska World Bank Fiscal Space: Concept, Measurement, and Policy Implications
Ohnsorge, Naotaka Sugawara
Dec 2018 Norman Loayza World Bank Informality: Why Is It So Widespread and How Can It Be
Reduced?
Feb 2019 Facundo Abraham, Sergio L. World Bank, Pontificia Robo-Advisors: Investing through Machines
Schmukler, José Tessada Universidad Catolica
de Chile
Jun 2019 Shahridan Faiez, Vijayendra Rao Think City, World Bank Improving Governance through Enhanced Citizen
Engagement: The Case of Malaysia
Jun 2019 Facundo Abraham, Sergio L. World Bank, Pontificia Financial Innovation and Additionality: The Power of Economic
Schmukler, José Tessada Universidad Catolica Analysis and Data Analytics
de Chile
ANNUAL REPORT | FINANCIAL YEAR 2019 115
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Kuala Lumpur Conference Series
DATE THEME
May 16, 2016 Rise of the South at a Crossroads: A View from East Asia and Latin America
Jan 16-17, 2017 Enhancing the Quality of Service Delivery
Jan 15-16, 2019 Globalization: Contents and Discontents
DECRG Local and Regional Conferences
DATE THEME
Nov 8, 2016 End Poverty Campaign Panel Discussion
Dec 5-8, 2017 Drivers of ASEAN Integration
42nd Federation of ASEAN Economic Associations (FAEA) Conference, jointly hosted with the
Malaysian Economic Association (MEA)
DECRG Report Launches and Lectures
DATE SPEAKER AFFILIATION EVENT INFORMATION
Mar 9, 2016 Uwe Deichmann World Bank World Development Report 2016: Digital Dividends
Launch
Mar 28, 2016 Kaushik Basu World Bank Master Lecture on Shared Prosperity – On the occasion
of the World Bank Malaysia Office Launch
Jul 21, 2016 Robert C. Merton MIT Sloan School of Asia School of Business – World Bank Talk on
Management “Understanding the Sources of Alpha and Global
Diversification Pays”
Dec 5, 2016 Susmita Dasgupta World Bank Presentation at Universiti Malaysia Sarawak (UNIMAS)
on “Minimizing Ecological Damage from Road
Improvement in Tropical Forests: The Case of Myanmar”
Feb 7, 2018 Ayhan Kose World Bank Launch of the January 2018 Global Economic Prospects
(GEP) Report in Malaysia
Ayhan Kose, Allen Ng, World Bank,
Richard Record (Moderator) Khazanah Research Presentation of the Report: Broad-Based Upturn, but for
Institute, World Bank How Long?
Panel Discussion: What Does the Strengthening Global
Economy Mean for Malaysia?
Apr 12, 2018 Ata Can Bertay World Bank East Asia and Pacific Region Launch of the Global
Financial Development Report 2017/2018: Bankers
Boedi Armanto, Aznan Abdul Otoritas Jasa without Borders (jointly organized with Bank Negara
Aziz, Kenichiro Kashiwase, Keuangan Indonesia, Malaysia)
Donald Hanna, Sadiq Bank Negara
Currimbhoy, Jose de Luna- Malaysia, IMF, CIMB, Presentation of Key Findings from the GFDR 2017/2018
Martinez (Moderator) Maybank Kim Eng, Panel Discussion: The Future of International Banking –
World Bank Benefits and Costs
July 3, 2018 Lay Lian Chuah World Bank Khazanah Research Institute Brown Beg Seminar No.
6: Resource Misallocation and Productivity Gaps in
Malaysia
July 16, 2018 Vijayendra Rao World Bank Global Findex and the Fintech Revolution Public Lecture
Leora Klapper World Bank Opening Remarks
Leora Klapper, Ghiyazuddin World Bank, Alliance Presentation: Key Findings of the 2017 Global Findex
Ali Mohammad (Moderator) for Financial Inclusion Discussion: The Role of Fintech in Advancing Financial
(AFI) Inclusion
116 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
The Sundaran Memorial Prize for Young Malaysian Researchers
YEAR WINNER PAPER TITLE
2016 Boon Hwa Tng The Transmission of Financial Stress and its Interactions with Monetary Policy
(Bank Negara Malaysia) Responses in the ASEAN-5 Economies
2018–2019 Woan Foong Wong (University of The Round Trip Effect: Endogenous Transport Costs and International Trade
Oregon)
Award Citation and Winner’s Profile
DECRG Journal Articles and Publications
DATE AUTHORS AFFILIATION DETAILS
Nov 2015 Deval Desai, Harvard Law School; World Bank Desai, Deval and Michael Woolcock. 2015.Experimental
Michael Woolcock Justice Reform: Lessons from the World Bank and
Beyond. Annual Review of Law and Social Science 11:
155-174
Apr 2016 Ximena Del Carpio, World Bank; World Bank; Del Carpio, Ximena, Norman Loayza, and Tomoko Wada.
Norman Loayza, University of Minnesota 2016. The Impact of Conditional Cash Transfers on the
Tomoko Wada Amount and Type of Child Labor. World Development 80
(Issue C): 33-47.
Aug 2016 Norman Loayza, World Bank; Institute for the Loayza, Norman, and Jamele Rigolini. 2016. The Local
Jamele Rigolini Study of Labor (IZA), Germany Impact of Mining on Poverty and Inequality: Evidence
from the Commodity Boom in Peru. World Development
84 (Issue C): 219-234.
2016 Raphael Bergoeing, Chile’s Center for Public Studies Bergoeing, Raphael, Norman V. Loayza, and Facundo
Norman Loayza, and University of Chile; World Piguillem. 2016. The Whole is Greater than the Sum
Facundo Piguillem Bank; Einaudi Institute for of Its Parts: Complementary Reforms to Address
Economics and Finance Microeconomic Distortions. World Bank Economic
Review 30 (2): 268-305.
Sep 2016 Michael Woolcock World Bank Woolcock, Michael. 2016. Critical Elements for Ensuring
the Success of More Inclusive Social Policies, in World
Social Science Report 2016, Challenging Inequalities:
Pathways to a Just World. UNESCO Publishing, Paris.
Pages 241-244.
Dec 2016 Norman Loayza World Bank Loayza, Norman V. 2016.Informality in the Process of
Development and Growth.World Econ. 39: 1856–1916.
Mar 2017 Young Eun Kim, World Bank; Erasmus University Kim, Young Eun, Wilma A. Stolk, Marcel Tanner, and
Wilma A. Stolk, Medical Center, Rotterdam, Fabrizio Tediosi. 2017. Modelling the Health and
Marcel Tanner, The Netherlands; Swiss Tropical Economic Impacts of the Elimination of River Blindness
Fabrizio Tediosi and Public Health Institute, (Onchocerciasis) in Africa. BMJ Global Health, 2(2).
University of Basel, Switzerland;
Swiss Tropical and Public Health
Institute, University of Basel,
Switzerland
June 2017 Roberto Chang, Rutgers University; Chang, Roberto, Constantino Hevia, and Norman
(published Constantino Hevia, Universidad Torcuato di Tella, Loayza. 2017. Privatization and Nationalization Cycles.
online) Norman Loayza Argentina; World Bank Macroeconomic Dynamics
Nov 2017 Vijayendra Rao, World Bank; Rao, Vijayendra, Kripa Ananthpur, and Kabir Malik.
Kripa Ananthpur, Madras Institute of Development 2017. The Anatomy of Failure: An Ethnography of a
Kabir Malik Studies, India; Randomized Trial to Deepen Democracy in Rural India.
World Bank World Development 99: 481 – 497.
Oct 2017 Norman Loayza, World Bank; Universidad de Loayza, Norman, Edgar Villa, and Martha Misas.
(published Edgar Villa, Martha La Sabana, Campus Puente 2019. Illicit Activity and Money Laundering from
online) Misas del Común. Chía, Colombia; an Economic Growth Perspective: A Model and an
Pontificia Universidad Javeriana, Application to Colombia. Journal of Economic Behavior
Colombia and Organization Volume 159: 442-487.
ANNUAL REPORT | FINANCIAL YEAR 2019 117
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Journal Articles and Publications
DATE AUTHORS AFFILIATION DETAILS
Nov 2017 Nur Ain Shahrier, Lay Sunway University Business Shahrier, Nur Ain and Lay Lian Chuah. 2017. Estimating
(published Lian Chuah School; World Bank Malaysia’s Output Gap: Have We Closed the Gap? The
online) Singapore Economic Review
June 2018 Suzanne Verver, University Medical Center Verver, Suzanne, Martin Walker, Young Eun Kim, Grace
Martin Walker, Young Rotterdam; Imperial College Fobi, Afework H. Tekle, Honorat G.M. Zouré, Samuel
Eun Kim, Grace Fobi, London; World Bank; Wanji, Daniel A. Boakye, Annette C. Kuesel, Sake J. de
Afework H Tekle, Independent Consultant, Vlas, Michel Boussinesq, Maria-Gloria Basáñez, Wilma
Honorat G.M. Zouré, Cameroon; World Health A. Stolk. 2018. How Can Onchocerciasis Elimination in
Samuel Wanji, Daniel Organization (WHO); WHO; Africa Be Accelerated? Modeling the Impact of Increased
A. Boakye, Annette University of Buea; University Ivermectin Treatment Frequency and Complementary
C. Kuesel, Sake of Ghana; WHO; University Vector Control. Clinical Infectious Diseases 66(4): S267–
J. de Vlas, Michel Medical Center Rotterdam; S274. June.
Boussinesq, Maria- Institut de Recherche pour le
Gloria Basáñez, Développement, Montpellier,
Wilma A. Stolk France;Imperial College London;
University Medical Center
Rotterdam
Mar 2019 Paromita Sanyal, Florida State University, World Sanyal, Paramita, Vijayendra Rao, and Umang Prabhakar.
Vijayendra Rao, Bank, Florida State University 2019. How Women Talk in Democracy. Qualitative
Umang Prabhakar Sociology, 42(1): 49-70.
Mar 2019 Lay Lian Chuah, World Bank Loayza, Norman V., Lay Lian Chuah, and Achim D.
Norman V. Loayza, Scmillen. 2019. El futuro del trabajo: Una carrera con
and Achim D. la máquina y no contra esta. Revista Moneda, Banco
Schmillen Central de Reserva del Perú, Vol 177: 32-38.
Mar 2019 Paul Christian, World Bank Christian, Paul, Eeshani Kandpal, and Nethra
Eeshani Kandpal, Palaniswamy and Vijayendra Rao. 2019. Safety nets and
and Nethra natural disaster mitigation: evidence from cyclone Phailin
Palaniswamy and in Odisha. Climatic Change, Volume 153 Issue 1-2: 141-
Vijayendra Rao 164.
Mar 2019 Ramya Parthasarathy, McKinsey & Co, World Bank, Parthasarathy, R, Vijayendra Rao and Nethra
Vijayendra Rao and World Bank Palaniswamy. 2019. Unheard voices: the challenge of
Nethra Palaniswamy inducing women’s civic speech. World Development ,
Volume 115: 64-77.
Apr 2019 Sharmila Devadas, World Bank Devadas, Sharmila and Steven Pennings. 2019. Assessing
Steven Pennings the Effect of Public Capital on Growth: An Extension of
the World Bank Long-Term Growth Model. Journal of
Infrastructure, Policy and Development, 3(1): 22-55.
Apr 2019 Rajah Rasiah, Latifah University of Malaya; Malaysian Rasiah, Rajah, Latifah Merican Cheong, Cheong Kee
Merican Cheong, Economic Association (formerly); Cheok, and Norman V. Loayza. 2019. Introduction:
Cheong Kee Cheok, University of Malaya; World ASEAN — Towards Economic Convergence. Journal of
Norman V. Loayza Bank Southeast Asian Economies Vol 36 (1). Special Issue on
“ASEAN: Towards Economic Convergence” by Rajah
Rasiah, Latifah Merican Cheong, Cheong Kee Cheok,
Norman V Loayza, editors.
May 2019 Ramya McKinsey & Co, World Bank, Parthasarathy, Ramya, Vijayendra Rao and Nethra
Parthasarathy, World Bank Palaniswamy. 2019. Deliberative Democracy in an
Vijayendra Rao and Unequal World: A Text-As-Data Analysis of South India’s
Nethra Palaniswamy Village Assemblies. American Political Science Review,
Published online.
118 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Books and Book Chapters
DATE AUTHORS AFFILIATION DETAILS
2015 Matt Andrews, Lant Harvard Kennedy Andrews, Matt, Lant Pritchett, Salimah Samji and
Pritchett, Salimah Samji, School; Harvard Michael Woolcock. 2015. Building Capability By
Michael Woolcock Kennedy School; Delivering Results: Putting Problem Driven Iterative
Harvard Kennedy Adaption (PDIA) Principles into Practice, in Alan Whaites,
School; World Bank Eduardo Gonzales, Sara Fyson and Graham Teskey
(eds.) A Governance Practitioner’s Notebook: Alternative
Ideas and Approaches. OECD. Paris. pp. 123-133.
Nov 2015 Michael Woolcock World Bank Woolcock, Michael. 2015. Culture, Politics and
Development, in Carol Lancaster and Nicholas van
de Walle (eds.) Oxford Handbook of the Politics of
Development. New York: Oxford University Press.
Jan 2017 Matt Andrews, Lant Harvard Kennedy Andrews, Matt, Lant Pritchett and Michael Woolcock.
Pritchett, Michael Woolcock School; Harvard 2017. Building State Capability: Evidence, Analysis,
Kennedy School; Action. Oxford University Press.
World Bank
July 2018 Norman Loayza, Amine World Bank; HEC Loayza, Norman, Amine Ouazad, and Romain Ranciere.
Ouazad, Romain Ranciere Montreal; University 2018. Financial Development, Growth, and Crisis:
of Southern Is There a Trade-Off? In Handbook of Finance and
California Development. Thorsten Beck and Ross Levine, editors.
Oct 2018 Shareen Joshi, Nishtha Georgetown Joshi, Shareen, Nishtha Kochhar, and Vijayendra
Kochhar, Vijayendra Rao University; Rao. 2018. Are Caste Categories Misleading? The
Georgetown Relationship Between Gender and Jati in Three Indian
University; State, in Siwan Anderson, Lori Beaman, and Jean-
World Bank Philippe Platteau (eds.) Towards Gender Equity in
Development. Oxford University Press.
Dec 2018 Vijayendra Rao, Paromita World Bank, Florida Rao, Vijayendra and Paromita Sanyal. 2018. Oral
Sanyal State University Democracy: Deliberation in Indian Village Assemblies.
Cambridge University Press.
DECRG Working Papers
DATE AUTHORS AFFILIATION DETAILS
Oct 2015 Maria Gonzalez De Asis, World Bank Gonzalez De Asis, Maria, and Michael Woolcock. 2015.
Michael Woolcock Operationalizing the Science of Delivery Agenda to
Enhance Development Results. Washington, D.C.: World
Bank Group.
Jan 2016 Matt Andrews, Lant Harvard Kennedy School; Andrews, Matt, Lant Pritchett and Michael Woolcock.
Pritchett, Michael Harvard Kennedy School; 2016. The Big Stuck in State Capability for Policy
Woolcock World Bank Implementation. Center for International Development,
Harvard University: Working Paper No. 318.
Feb 2016 Edgar Villa Universidad de La Villa, Edgar, Martha A. Misas and Norman V. Loayza.
Martha A. Misas Sabana, Campus Puente del 2016.Illicit activity and money laundering from an
Norman Loayza Común. Chía, Colombia; economic growth perspective: a model and an
Pontificia Universidad application to Colombia. Policy Research working paper;
Javeriana, Colombia; no. WPS 7578. Washington, D.C.: World Bank Group.
World Bank
May 2016 Norman Loayza World Bank Loayza, Norman. 2016.La productividad como
clave del crecimiento y el desarrollo: en el Perú y el
mundo. Peruvian Economic Association, Working Paper
no. 69.
ANNUAL REPORT | FINANCIAL YEAR 2019 119
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Working Papers
DATE AUTHORS AFFILIATION DETAILS
June 2016 Kirk Hamilton, London School of Hamilton, Kirk E., John F. Helliwell, and Michael
John Helliwell, Economics; University of Woolcock. 2016. Social capital, trust, and well-being in
Michael Woolcock British Columbia; World the evaluation of wealth. Policy Research working paper;
Bank no. WPS 7707. Washington, D.C.: World Bank Group.
Oct 2016 Norman Loayza World Bank Loayza, Norman V. 2016. Informality in the process
of development and growth. Policy Research working
paper; no. WPS 7858. Washington, D.C.: World Bank
Group.
A Toolkit for Informality Scenario Analysis:
Excel File. User Guide
Jan 2017 Ha Nguyen, Huong World Bank; Nguyen, Ha Minh, Huong Nguyen and Anh Pham.
Nguyen, and Anh Pham Tufts University; 2017. Impact of oil price fluctuations on financial markets
George Mason University since 2014. Policy Research working paper; no. WPS
7957. Washington, D.C.: World Bank Group.
Jan 2017 Tatiana Didier Ruth World Bank Didier Brandao, Tatiana, Ruth Llovet Montanes, and
Llovet Montanes Sergio L. Schmukler. 2016. International financial
Sergio L. Schmukler integration of East Asia and Pacific. Policy Research
working paper; no. WPS 7772. Washington, D.C. : World
Bank Group.
January 2017 version
May 2017 Constantino Hevia, Universidad Torcuato di Hevia, Constantino, Norman V. Loayza, and Claudia
Norman Loayza, and Tella; World Bank; World Maria Meza Cuadra Balcazar. 2017. Industrial Policies
Claudia Meza-Cuadra Bank vs Public Goods Under Asymmetric Information. Policy
Research working paper; no. WPS 8052. Washington,
D.C. : World Bank Group.
May 2017 Samuel Pursch, Andrea World Bank Pursch, Samuel James, Andrea Fitri Woodhouse,
Woodhouse, Michael Michael Woolcock, and Matthew Pierre Zurstrassen.
Woolcock, and Matthew 2017. Documenting Myanmar’s Social Transformation:
Zurstrassen Insights from Six Rounds of Research on Livelihoods and
Social Change in Rural Communities. Policy Research
working paper; no. WPS 8055. Washington, D.C. : World
Bank Group
June 2017 Ha Nguyen and Jiaming World Bank; Nguyen, Ha Minh, and Jiaming Soh. 2017. Employment
Soh Bank Negara Malaysia Multipliers over the Business Cycle. Policy Research
working paper; no. WPS 8105. Washington, D.C. : World
Bank Group.
Aug 2017 Fabian Mendez Ramos World Bank Mendez Ramos, Fabian. 2017. Assessing Forecast
Uncertainty: An Information Bayesian Approach. Policy
Research working paper; no. WPS 8165. Washington,
D.C. : World Bank Group.
Sep 2017 Monica Das Gupta, Rajib University of Maryland; Das Gupta, Monica, Rajib Dasgupta, P. Kugananthan,
Dasgupta, Jawarhalal Nehru University; Vijayendra Rao, Trikkur V. Somanathan, and K.N. Tewari.
P. Kugananthan, Chennai Municipal 2017. Flies Without Borders : Lessons from Chennai on
Vijayendra Rao, Corporation (retired); Improving India’s Municipal Public Health Services. Policy
T.V. Somanathan, World Bank; Research working paper; no. WPS 8197. Washington,
K.N. Tewari Government of India; D.C. : World Bank Group.
Municipal Corporation of
Delhi (retired)
Mar 2018 Lay Lian Chuah, Norman World Bank Chuah, Lay Lian, Norman V. Loayza, and Ha Minh
Loayza, and Ha Nguyen Nguyen. 2018. Resource Misallocation and Productivity
Gaps in Malaysia. Policy Research working paper; no.
WPS 8368. Washington, D.C. : World Bank Group.
Mar 2018 Paul Christian, Eeshani World Bank Christian, Paul, Eeshani Kandpal, Nethra Palaniswamy,
Kandpal, Nethra and Vijayendra Rao. 2018. Safety Nets and Natural
Palaniswamy, Vijayendra Disaster Mitigation: Evidence from Cyclone Phailin in
Rao Odisha. Policy Research working paper; no. WPS 8375.
Washington, D.C. : World Bank Group.
120 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Working Papers
DATE AUTHORS AFFILIATION DETAILS
Apr 2018 Norman Loayza, World Bank, HEC Montreal, Loayza, Norman V., Amine Ouazad, and Romain
Amine Ouazad, University of Southern Ranciere. 2018. Financial Development, Growth, and
Romain Ranciere California Crisis: Is There a Trade-Off?. NBER Working Paper No.
24474.
Also previously published as World Bank Policy Research
Working Paper No.WPS 8237. November 2017.
July 2018 Shareen Joshi, Nishtha Georgetown University; Joshi, Shareen, Nishtha Kochhar, and Vijayendra Rao.
Kochhar, and Vijayendra Georgetown University/ 2018. Jati Inequality in Rural Bihar. Policy Research
Rao World Bank; World Bank working paper; no. WPS 8512. Washington, D.C. : World
Bank Group.
Oct 2018 Sharmila Devadas, World Bank Devadas, Sharmila, and Steven Michael Pennings.
Steven Pennings 2018. Assessing the Effect of Public Capital on Growth:
An Extension of the World Bank Long-Term Growth
Model. Policy Research working paper; no. WPS 8604.
Washington, D.C. : World Bank Group.
May 2019 Fabian Mendez Ramos World Bank Mendez Ramos, Fabian. 2019. Uncertainty in Ex-Ante
Poverty and Income Distribution : Insights from Output
Growth and Natural Resource Country Typologies. Policy
Research working paper; no. WPS 8841. Washington,
D.C. : World Bank Group.
May 2019 Young Eun Kim and World Bank Kim, Young Eun, and Norman V. Loayza.
Norman V. Loayza 2019. Productivity Growth: Patterns and Determinants
across the World. Policy Research working paper; no.
WPS 8852. Washington, D.C. : World Bank Group.
DECRG Speaking Engagements
DATE PRESENTER EVENT HOST INSTITUTION LOCATION PRESENTATION TITLE
Oct 20, 2015 Michael Pangkor International State Government of Ipoh, Perak The 21st century
Woolcock Development Dialogue Perak Malaysia development challenge:
building state capability for
implementation.
Oct 29-30, Norman V. IBFC's 25th Anniversary Labuan Financial Labuan Uneven global growth
2015 Loayza Celebration Services Authority Sabah, recovery: Asia's key
Malaysia developments that will shape
the global economy and the
prospects.
Feb 18, 2016 Norman V. 8th Globalization University of Kuala The World Economy Annual
Loayza and Economic Policy Nottingham Malaysia Lumpur, Asia Lecture - “Informality
International Conference Campus Malaysia and the Process of Economic
on: Asian Economic Growth.
Integration and
Development
Apr 12, 2016 Michael Conference UNDP Global Centre Singapore Political Settlements and
Woolcock for Public Service Public Service Performance.
Excellence
Apr 14, 2016 Michael 20th Malaysia Education Asian Strategy and Using adaptive strategies to
Woolcock Summit Leadership Institute reform education systems.
(ASLI)
May 20, 2016 Michael Ministerial Forum UNDP, Global Centre Singapore Innovative approaches to
Woolcock for Public Service governance challenges: a
Excellence global perspective
ANNUAL REPORT | FINANCIAL YEAR 2019 121
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Speaking Engagements
DATE PRESENTER EVENT HOST INSTITUTION LOCATION PRESENTATION TITLE
Jun 8, 2016 Norman Loayza Development Research World Bank Washington, Informality in the Process of
Group Policy Research D.C. Development and Growth
Talk
Aug 5, 2016 Norman Loayza Presidential address The 2016 Annual Lima Informality in the Process of
and plenary session Congress of the Economic Growth
presentation Peruvian Economic
Association,
Pontificia Universidad
Católica del Perú
Aug 11, 2016 Michael Keynote address Malaysia Economic Kuala The role of economic
Woolcock Association Lumpur governance in sustainable
and inclusive growth
Sept 28, 2016 Michael Training seminar Harvard School of Change management
Woolcock Public Health & in public organizations:
GoM Department of familiar problems, unfamiliar
Health explanations, alternative
responses
Nov 3, 2016 Michael Conference Global Delivery Chongqing, Case studies as a basis for
Woolcock Initiative and Asian China internal learning and external
Development Bank sharing
Nov 15, 2016 Michael Keynote address for International Delhi Assessing the internal and
Woolcock ‘Evaluation Week’ Initiative for Impact external validity of 'complex'
Evaluation interventions: integrating
evidence and theory
Jan 16-17, Michael Conference on Enhancing the Quality of
2017 Woolcock Enhancing the Quality of Service Delivery
Service Delivery
Jan 17, 2017 Young Eun Kim Conference on The Role of Education in
Enhancing the Quality of Enhancing Productivity:
Service Delivery Some International
Comparisons
Jan 25, 2017 Norman Loayza Workshop on Malaysia’s DOSM as a Professional
statistical system: Statistical Authority
Strengthening for the
Future
Feb 15, 2017 Norman Loayza Informality and Growth UNKL
Mar 7, 2017 Ha Nguyen Short course Tutorial Quantitative methods in
Matlab
Mar 20-22, Norman Loayza Workshop on Measuring Alternative methodology to
2017 & Chuah Lay Firm-level Productivity measure TFP using panel
Lian data
May 25, 2017 Fabian Mendez- The 21st Malaysian EAP regional economic
Ramos Banking Summit: trends
Banking in a New Era –
Disruptive Technology
Shaping the Future of
Banking
Jun 4, 2017 Ha Nguyen Asian Econometrics Impact of oil price declines
Society Meeting on financial markets
Jun 8, 2017 Ha Nguyen National University of Resource misallocation in
Singapore, Business Malaysia
School
122 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Speaking Engagements
DATE PRESENTER EVENT HOST INSTITUTION LOCATION PRESENTATION TITLE
Jun 24, 2017 Ha Nguyen Society of Economics Demand-driven propagation:
Dynamics, The University evidence from the Great
of Edinburgh Recession
Jul 14, 2017 Chuah Lay Lian Workshop World Bank, Malaysia Kuala Estimating Productivity:
& Ha Nguyen Hub Lumpur Theory and Practice
Aug 1-2, 2017 Norman Loayza VEAM 2017 Conference, University of Banking Vietnam Economic Growth; Economic
Vietnam Economists Reforms, Productivity, Trade,
Annual Meeting Poverty Alleviation
Aug 2, 2017 Chuah Lay Lian Singapore Economic Nanyang Technology Singapore Resource misallocation in
Review Conference University Malaysia
Aug 13, 2017 Vijayendra Rao American Sociological Presidential Panel Montreal, Recasting Culture to Undo
Association Annual Canada Gender
Conference
Aug 25, 2017 Norman Loayza Conference: Peru Peru Government Lima, Peru Informalidad: ¿Por qué y
Propuestas para cómo reducirla?
Recuperar la Confianza
en el Futuro
Sep 19, 2017 Vijayendra Rao Seminar World Bank, Jakarta Participatory Tracking
Indonesia
Oct 6-7, 2017 Vijayendra Rao First Hirschman Boston University Boston, USA Deliberative Inequality
Conference
Oct 10, 2017 Vijayendra Rao Lecture Series Harvard Kennedy Cambridge, New Thinking in
School USA Development
Oct 10, 2017 Fabian Mendez- Seminar World Bank, Malaysia Kuala Long-Term Growth in Natural
Ramos Hub Lumpur Resource Rich Economies
Oct 17, 2017 Fabian Mendez- Seminar Central Bank of Mexico City Long-Term Growth in Natural
Ramos Mexico Resource Rich Economies
Oct 26, 2017 Fabian Mendez- Seminar United Nations Mexico City Long-Term Growth in Natural
Ramos Economic Resource Rich Economies
Commission for Latin
America and the
Caribbean
Nov 8, 2017 Fabian Mendez- Conference: 55th Annual Philippine Economic Quezon City, Assessing Forecast
Ramos Meeting and Conference Society Philippines Uncertainty: An Information
of the Philippine Bayesian Approach
Economic Society
Dec 4, 2017 Vijayendra Rao Seminar Monash University Australia The Economics of Discourse
Dec 5-6, 2017 Lay Lian Chuah Workshop Malaysia Bureau of Putrajaya Survey Guidelines on
Statistics Employment Statistics from
Establishment Approach
Dec 7-8, 2017 Vijayendra Rao Conference University of Australia Deliberative Inequality
Canberra
Dec 12, 2017 Vijayendra Rao Seminar Australian National Australia The Social Observatory
University
Jan 12, 2018 Lay Lian Chuah Workshop Productivity Research via Skype Understanding the
Netwark (PRN) Asia (Tokyo) Advantages & Pitfalls of
Development Bank Working with the Malaysian
Census Data
ANNUAL REPORT | FINANCIAL YEAR 2019 123
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Speaking Engagements
DATE PRESENTER EVENT HOST INSTITUTION LOCATION PRESENTATION TITLE
Jan 25, 2018 Norman Loayza Seminar World Bank World Bank LTGM – Natural Resource
Office Extension: Brief presentation
of the model and preliminary
simulations
Feb 17, 2018 Vijayendra Rao Podcast Syntalk Mumbai, Causes and Consequences
India of Poverty
Apr 6, 2018 Norman Loayza Conference Cambodia Economic Cambodia Keynote Presentation:
Association “Labour Informality in the
Process of Development
and Growth: Concepts,
Explanations and Policies”
& Roundtable Discussion on
Future Labour Movement,
Skills, Competitiveness and
Growth: Case of Cambodia
Apr 12, 2018 Norman Loayza Report Launch World Bank and Bank Sasana Opening Remarks
Negara Malaysia Kijang
Apr 24, 2018 Lay Lian Chuah Joint Half-Baked with World Bank and Bank Sasana Productivity Decomposition:
BNM Negara Malaysia Kijang Melitz-Polonec Approach
May 10, 2018 Vijayendra Rao Seminar DECRG/U of Malaya Kuala Impact of climate change
Lumpur and role of Women's groups
May 19, 2018 Vijayendra Rao Seminar Vrije University, Amsterdam Deliberative Inequality
Amsterdam
Jun 25, 2018 Vijayendra Rao Conference IDEA-GREthA Bordeaux, Oral Democracy
Conference, France
Bordeaux
Sept 3-4, Norman Loayza PRN Workshop Productivity Singapore Productivity, Corporate
2018 Research Network, Governance and Risk
NUS Management in the “Digital
Age”
Sept 3-4, Lay Lian Chuah PRN Workshop Productivity Singapore PRN Firm Level Productivity
2018 Research Network, Project: Malaysia’s
NUS Experience
Oct 25, 2018 Vijayendra Rao Conference World Bank World Bank Social Observatory
HQ
Oct 30, 2018 Norman Loayza Conference Lima, Central Bank Peru Informality in the Process of
of Peru Growth and Development
Nov 2, 2018 Vijayendra Rao Seminar Harvard University Cambridge, Deliberative Inequality
MA, USA
Nov 5, 2018 Norman Loayza Conference Jakarta, Economix Indonesia The Future of Work
Conference,
University of
Indonesia
Nov 6, 2018 Vijayendra Rao Seminar Stanford University Palo Alto, Countering Clientelism
CA, USA
Nov 7, 2018 Vijayendra Rao Seminar University of Berkeley, Deliberative Inequality
California, Berkeley CA, USA
Nov 28-30, Norman Loayza Workshop/Training WB Cambodia/ Phnom Penh, LTGM Training
2018 Ministry of Finance Cambodia
Cambodia
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APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Speaking Engagements
DATE PRESENTER EVENT HOST INSTITUTION LOCATION PRESENTATION TITLE
Nov 28-30, Sharmila Workshop/Training WB Cambodia/ Phnom Penh, LTGM Training
2018 Devadas Ministry of Finance Cambodia
Cambodia
Nov 28-30, Young Eun Kim Workshop/Training WB Cambodia/ Phnom Penh, LTGM Training
2018 Ministry of Finance Cambodia
Cambodia
Dec 6, 2018 Sharmila Development Research DECRG Malaysia Kuala Assessing the Effect of
Devadas Seminar Series Lumpur, Public Capital on Growth:
Malaysia An Extension of the World
Bank Long-Term Growth
Model
Dec 11, 2018 Fabian Mendez Half Baked Seminar WB DECRG Kuala Recent Patterns of
Ramos Lumpur, Development and
Malaysia Uncertainty
Dec 20, 2018 Fabian Mendez Seminar WB DECRG Kuala Uncertainty in Future
Ramos Lumpur, Poverty and Inequality:
Malaysia Some Implications of
Growth and Natural
Resources
Mar 8, 2019 Vijayendra Rao Seminar Stanford University Palo Alto, Oral Democracy
CA, USA
Mar 28, 2019 Vijayendra Rao Class University of Malaya Kuala Reflective Development
Lumpur,
Malaysia
Apr 4, 2019 Fabian Mendez Video conference Universidad de Monterrey, Uncertainty in Future
Ramos Monterrey (UDEM) Mexico Poverty, Inequality and
Shared Prosperity
Apr 4, 2019 Fabian Mendez Conference Spring Meeting of Brussels, Uncertainty in Future
Ramos Young Economists Belgium Poverty, Inequality, and
2019. Université Shared Prosperity: Some
Libre de Bruxelles Insights From Typologies
Based on Output Growth
and Natural Resources
Apr 23, 2019 Young Eun Kim Half Baked Seminar WB DECRG Kuala Impact of result-based
Lumpur, health financing on the
Malaysia utilization of maternal and
child health services in
Nagaland, India
Apr 30, 2019 Vijayendra Rao Public Lecture Madras Institute Chennai, Oral Democracy
of Development India
Studies
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APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
DECRG Blogs
DATE AUTHOR TITLE
Dec 22, 2015 Michael Woolcock Beyond the quest for "policy implications": Alternative options for applied
development researchers
May 28, 2016 Michael Woolcock Policy-practice mismatches: insights from Indigenous affairs
Jun 2, 2016 Norman Loayza Do local communities benefit from mining?
Jul 20, 2016 Michael Woolcock Using case studies to explore and explain complex interventions
Jul 20, 2016 World Bank News (Feature New Study Reveals the Complexity of the Informal Sector
Story)
Feb 23, 2017 Fabian Mendez Ramos, with Agribusiness Trade as a Pillar of Development: Measurement and Patterns
Nina Paustian
May 2, 2017 Ruth Llovet Montanes, with Asia’s Financial Connections with the Rest of the World: Changing Patterns
Tatiana Didier and Sergio L.
Schmukler
May 24, 2017 Sharmila Devadas Should a Country Limit Unskilled Immigrant Workers to Safeguard National
Productivity Growth?
Jun 29, 2017 Norman Loayza Industrial Policies Versus Public Goods to Spur Growth
Oct 25, 2018 Norman Loayza The Winter is Coming: Crisis Management Should Be Prepared Before a
Crisis Strikes, Not in the Midst of It
Nov 23, 2018 Norman Loayza ¿Cómo manejar una crisis?
Nov 28, 2018 Stéphane Hallegatte, with From Risk to Opportunity: Expanding the Risk Management Toolbox to Build
Brian Walsh and Jun Erik More Resilient Societies
Rentschler
2018 Norman Loayza Managing Risk for Development
Dec 10, 2018 Lay Lian Chuah, Norman The Future of Work: Race with – not against – the Machine
V. Loayza, and Achim D.
Schmillen
Jan 10, 2019 Vijayendra Rao, with Oral Democracy
Paromita Sanyal
Jan 16, 2019 Carlos Végh, with Guillermo On Risk and Black Swans in Developing Countries
Vuletin and Daniel Riera-
Crichton
Feb 12, 2019 Inci Otker Building A More Resilient Caribbean to Natural Disasters and Climate
Change
DECRG Visiting Scholars and Short Courses
DATE VISITING SCHOLAR AFFILIATION TITLE OF COURSE
Nov 7-11, 2016 Luis Servén DECRG Globalization and Crises
Mar 6-17, 2017 Roberto Chang Rutgers University Quantitative Methods for Macroeconomics
University of California, San
Karthik Muralidaran, Diego
Nov 12-16, 2018 Impact Evaluation Methods
Vijayendra Rao
World Bank
126 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
Global Indicators Group
Team 1: Doing Business
DELIVERABLE
DATE NAME AUTHOR STAKEHOLDERS NOTES
TYPE
Workshop Jan 2016 Regional Doing Business Workshop in Joanna Nasr, Laura Policymakers, Delivered
Malaysia. Diniz, Jean Arlet, academia,
Edgar Chavez, international
Melissa Johns institutions
Data Mar - Sept Taiwan, China; Hong Kong SAR, China; Joanna Nasr, Laura Policymakers, Completed
Collection 2016 Malaysia; Mongolia; Thailand; China; Diniz, Jean Arlet, academia,
Brunei Darussalam; Vietnam; Bhutan; Edgar Chavez, international
Fiji; Philippines; Vanuatu; Sri Lanka; Dorina Georgieva institutions
Indonesia; India; Cambodia; Maldives;
Tonga; Lao PDR; Samoa; Nepal; Pakistan;
Solomon Islands; Palau; Papua New
Guinea; Afghanistan; Myanmar; Kiribati;
Timor-Leste and Bangladesh.
Workshop May 23-27, Organized a five-day Doing Business Team in Kuala Policymakers, Delivered
2016 workshop in Brunei. Doing Business Lumpur academia,
international
institutions
Workshop Aug 17-18, Organized an International Trade and Valentina Saltane, Policymakers, Delivered
2016 Logistics Workshop (August 17 – 18, Dorina Georgieva, academia,
2016) in collaboration with the National Hulya Ulku international
Logistics Taskforce of the Malaysian institutions
Ministry of Transport
Launch Oct 26, 2016 Launched the Doing Business 2017 Hulya Ulku, Joanna Policymakers, Delivered
Report with a half-day event in the World Nasr, Laura Diniz, academia,
Bank Office in Kuala Lumpur. The event Dorina Georgieva, international
was attended by government, private Jean Arlet, Edgar institutions
sector and civil society representatives Chavez
from Malaysia, as well as representatives
from Cambodia, Lao PDR, and Thailand.
Workshop Nov 14-18, Organized a five-day Doing Business Hulya Ulku, Joanna Policymakers, Delivered
2016 workshop, “The Way Forward for Nasr, Laura Diniz, academia,
Malaysia” (November 14-18, 2016), Dorina Georgieva, international
jointly with PEMUDAH to explain the Jean Arlet, Edgar institutions
Doing Business methodology and results Chavez
for Malaysia
Policy Paper Mar 9, 2017 Relationship between the efficiency Laura Diniz Policymakers, Delivered
and quality of land administration and academia,
financial access international
institutions
Policy Paper Mar 23, 2017 Electricity Tariffs, Power Outages and Jean Arlet Policymakers, Delivered
Firm Performance: A Comparative academia,
Analysis international
institutions
Policy Paper Mar 23, 2017 Relationship between the extent of credit Edgar Chavez Policymakers, Delivered
information and financial access academia,
international
institutions
Meeting Mar 23, 2017 Between PEMUDAH Task Forces and Rita PEMUDAH, Delivered
Ramalho, Senior Manager of DECIG on MPC, BN
DB indicators.
ANNUAL REPORT | FINANCIAL YEAR 2019 127
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
Team 1: Doing Business
DELIVERABLE
DATE NAME AUTHOR STAKEHOLDERS NOTES
TYPE
Meeting Apr 7, 2017 With PEMUDAH on the quality of judicial PEMUDAH Delivered
index in Malaysia (EC)
Meeting Apr 19, 2017 With PEMUDAH on Resolving Insolvency PEMUDAH Delivered
Indicator’s methodology
Meeting Apr 20, 2017 With the Deputy Secretary General Malaysia MOF Delivered
of Treasury in DC on Ease of Doing
Business in Malaysia
Workshop Apr 21, 2017 With Hong Kong SAR, China Delegation Hong Kong Delivered
on Construction Permit and Trading SAR, China
Across Borders indicator in Sasana Kijang Government
Seminar May 3, 2017 Seminar by Augusto Lopez Claros, Senior NGOs, Delivered
Advisor, DEC, organized jointly with Academia,
DECIG and ASB Government
Event May 4, 2017 Half day event on Doing Business 2017 PEMUDAH, Delivered
& Promoting Prosperity by Improving MPC, BNM,
Women’s Rights. Speaker: Augusto NGOs
Lopez Claros. Panel Discussion with
Anne Abraham, co-founder of 30%
Club Malaysia Chapter and Siobhan
Das, Director of American Chamber of
Commerce Malaysia, and Augusto Lopez
Claros, World Bank
Meeting May 18, 2017 With PEMUDAH on Starting a Business PEMUDAH Delivered
Indicator’s methodology
Data Jun 2017 Doing Business team in Kuala Lumpur Governments, Completed
Collection collected data from 40 economics in private sector,
the EAP, ECA, and Africa regions for DB academia, NGOs
2018.
Workshop Jul 2017 Presentation to the High- Level Task Magdalini Konidari Policymakers Delivered
Force on the Bankruptcy Ecosystem of
SMEs and recommendations to enhance
and provide for a more equitable
enabling environment for entrepreneurs
Workshop Aug 2017 Workshop on trade facilitation attended Dorina Georgieva Policymakers Delivered
by 30+ participants from the public and (MPC, MITI)
private sector
Workshop Aug 2017 International best practices for business Nadia Novik Policymakers, Delivered
registration and incorporation (APEC academia,
Meeting in Ho Chi Minh City, Vietnam) international
institutions
Workshop Sep 2017 Presentation on improving business Dorina Georgieva Policymakers, Delivered
regulations at the Market Supervision academia,
and Management Forum (Haikou, China) international
institutions
Launch Nov 1, 2017 Launched the Doing Business 2018 Team in Kuala Policymakers, Delivered
report with a half day deep-dive Lumpur academia,
event in Sasana Kijang. The event was international
attended by government, private-sector institutions
and civil-society representatives as well
as videoconferencing connections to
Mongolia and Indonesia
128 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
Team 1: Doing Business
DELIVERABLE
DATE NAME AUTHOR STAKEHOLDERS NOTES
TYPE
Workshop Feb 2018 3-day workshop on 5 DB indicators with Team in Kuala Policymakers Delivered
a delegation from Hong Kong SAR, Lumpur
China
Policy note Feb 2018 Describes the slowdown on global trade Dorina Georgieva, Policymakers, Published
and explores the factors and policies Norman Loayza, academia,
shaping future trade patterns. Fabian Mendez international
Ramos institutions
Workshop May 2018 Presentation on the DB2018 report Arvind Jain Policymakers, Delivered
and its lessons for Chinese cities at the academia,
Guangzhou Forum on Global Cities. international
A parallel workshop was held with institutions
Guangzhou municipal government
officials on strategies for improving their
business environment
Chapter May 2018 Chapter entitled “Facilitating SME Magdalini Konidari Policymakers, Published
Financing through Lending” in the academia,
report “Improving Access to Finance international
for SMEs: New Opportunities through institutions
Credit Reporting, Secured Lending and
Insolvency”
Report Jun 2018 Overview of public consultation Dorina Georgieva, Policymakers Delivered
practices in rulemaking in Malaysia (part Nadia Novik, Alfredo
of Good Regulatory Practice Program) Gonzalez Briseno,
Peter Ladegaard
Data Jun 2018 Data collection and coding for DB2019 Team in Kuala Governments, Completed
Collection with questionnaires being sent to data Lumpur private sector,
contributors in 40+ economies in the academia, NGOs
EAP and other regions
Team 2: Enterprise Surveys
DELIVERABLE
DATE NAME AUTHOR STAKEHOLDERS NOTES
TYPE
Research Dec 2015 Competition and Labor Productivity in Mohammad Amin Policymakers, Published in
paper India’s Retail Stores academia, Journal of Asian
international Economics in
institutions 2016
Data Mar - May Enterprise Survey data collection Valeria Perotti Policymakers, Completed
collection 2016 Indonesia, Vietnam academia,
international
institutions
Policy note Jun 2016 Informal Firms in Myanmar Mohammad Amin Policymakers, Published as ES
academia, Notes Series,
international 2016
institutions
Policy note Jul 2016 Legal Institutions and Women’s Mohammad Amin, Policymakers, Published as ES
Employment. Asif Islam academia, Notes Series,
international 2016
institutions
ANNUAL REPORT | FINANCIAL YEAR 2019 129
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
Team 2: Enterprise Surveys
DELIVERABLE
DATE NAME AUTHOR STAKEHOLDERS NOTES
TYPE
Workshop Mar 20, 2017 Three-day workshop of DECEA in Policymakers, Delivered
Sasana Kijang on Malaysia’s ES data researchers,
and productivity
Policy note Mar 20, 2017 Trade in Malaysia Mohammad Amin, Policymakers, Delivered
Jean Arlet, Hulya academia,
Ulku international
institutions
Chapter May 2017 Microenterprises in Myanmar in Jobs Mohammad Amin Myanmar Delivered
Report in Myanmar Government,
policymakers,
academia,
international
institutions
Policy Paper Jun 30, 2017 Regulation, Corruption and Mohammad Amin, Policymakers, Will be
Productivity using ES Data from East Hulya Ulku academia, delivered by
Asia international December 2018
institutions
Policy note Jun 2017 Services Productivity Mohammad Amin Policymakers, Mimeograph
academia,
international
institutions
Policy Paper Jun 2017 Women, Business and the Law Mohammad Amin, Researchers, Delivered
indicators and women’s participation in Asif Islam, Silvia policymakers,
economic activities as workers, Muzi NGOs, academia
top managers and owners
Policy note Jul 2017 What Do Exporters in Malaysia Look Mohammad Amin, Policymakers, Published as ES
Like? Jean Arlet, Hulya academia, Notes Series
Ulku international
institutions
Policy note Oct 2017 Women Workers in Malaysia’s Private Mohammad Amin, Policymakers, Published as ES
Sector Amanda Zarka academia, Notes Series
international
institutions
Data Jan 2018 FDI survey on the barriers foreign Arvind Jain Policymakers, Completed
collection firms face while operating in academia,
Myanmar. international
institutions
Policy note Apr 2018 Women on Boards in Malaysia Mohammad Amin, Policymakers, Published in
Mei Ling Tan academia, Development
international Digest
institutions
Data Apr 2018 Myanmar follow-up survey on Arvind Jain Policymakers, Completed
collection business flows administered to academia,
respondents of the Myanmar 2016 international
Enterprise Survey. institutions
Research May 2018 The Labor Productivity Gap Between Asif Islam, Isis Policymakers, Completed
paper Female and Male-Managed Firms in Gaddis, Amparo academia,
the Formal Private Sector Palacios Lopez, international
Mohammad Amin institutions
Policy note Jun 2018 Female Top Managers in Malaysia Mohammad Amin, Policymakers, Published as ES
Amanda Zarka acadmia, Notes Series
international
institutions
130 ANNUAL REPORT | FINANCIAL YEAR 2019
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
Team 2: Enterprise Surveys
DELIVERABLE
DATE NAME AUTHOR STAKEHOLDERS NOTES
TYPE
Research Jun 2018 Paid Maternity Leave and Female Mohammad Amin, Policymakers, Completed
paper Employment Asif Islam academia,
international
institutions
Research Jun 2018 Decomposing the Productivity Gap Mohammad Amin, Policymakers, Under Review
paper Between Malaysia and High-Income Asif Islam academia,
Countries international
institutions
Team 3: Agriculture
DELIVERABLE
DATE NAME AUTHOR STAKEHOLDERS NOTES
TYPE
Data Jan - May Sri Lanka, Malaysia, Thailand, the Raian Divanbeigi, Policymakers, Completed
Collection 2016 Philippines, Vietnam, Myanmar, Nina Paustian, academia,
Cambodia, and Lao PDR. Marina Kayumova international
institutions
Policy note Mar 2016 Structural Transformation of the Raian Divanbeigi, Policymakers, Published
Agricultural Sector: A Primer. Nina Paustian, academia, as Research
Norman Loayza international Policy Brief
institutions
Workshop Mar 2016 Organized a workshop in Vietnam: Policymakers, Delivered
Enabling the Business of Agriculture academia,
Team. international
institutions
Participation Mar 30, 2016 Center for Sustainable Agricultural Raian Divanbeigi, Policymakers, Delivered
Mechanization Regional Mechanization Nina Paustian academia,
Conference. international
institutions
Workshop Apr 2016 Enabling the Business of Agriculture in Raian Divanbeigi, Policymakers, Delivered
Cambodia. Nina Paustian, academia,
Farbod Youssefi international
institutions
Policy note Jan 01, 2017 Measurement and Patterns of Fabian Ramos, BNM, Delivered
World Agribusiness Trade Nina Paustian policymakers,
academia,
international
institutions
Seminar Mar 21, 2017 Regulatory Constraints to Agricultural Raian Divanbeigi Policymakers, Delivered
Productivity academia, WBG
Policy Paper May 31, 2017 Regulatory Constraints to Agricultural Raian Divanbeigi, Policymakers, Delivered
Productivity Federica Saliola academia,
international
institutions
Policy note Jun 2017 Agricultural Development and Regulation Raian Divanbeigi, Researchers, Delivered
in Developing East Asia Marina Kayumova policymakers,
NGOs, academia
ANNUAL REPORT | FINANCIAL YEAR 2019 131
APPENDICES
Appendix 2: List of Products and Work Delivered Under OSA (2016-2019)
Team 3: Agriculture
DELIVERABLE
DATE NAME AUTHOR STAKEHOLDERS NOTES
TYPE
Workshop Sep 2017 Presentation on the Water topic and Bill Garthwaite Policymakers, Delivered
associated research at the International academia,
Water Association Asia Pacific international
Conference (Kuala Lumpur) institutions
Workshop Sep 2017 Four webinars on Water topic data to Bill Garthwaite Policymakers, Delivered
water stakeholders (27 countries across academia,
regions) international
institutions
Policy note Sep 2017 Law and water security in Asia and the Bill Garthwaite Policymakers, Delivered
Pacific academia,
international
institutions
Policy note Oct 2017 Water law’s untapped potential for Bill Garthwaite Policymakers, Delivered
supporting water security in developing academia,
countries international
institutions
Data Nov 2017 Pilot data collection for Water topic (4 Bill Garthwaite Governments, Completed
Collection countries) private sector,
academia, NGOs
Workshop Nov 2017 Presentation on the Finance and Bill Garthwaite Policymakers, Delivered
Markets topics at the International academia,
Cooperative Alliance Global Congress international
(Kuala Lumpur) institutions
Policy note Jun 2018 Anchoring water demand management Bill Garthwaite Policymakers, Delivered
academia,
international
institutions
Data Dec 2018 Data collection for Water topic (81 Bill Garthwaite Governments, Completed
Collection countries) private sector,
academia, NGOs
Policy note Dec 2018 Case study on Malaysia’s water Bill Garthwaite, KATS, Delivered
resources law reform process with Rasyikah Khalid policymakers,
a quantitative legal analysis at the academia,
subnational level.
Chapter Jan 2019 Legislative assessment on the legal Bill Garthwaite Policymakers, Delivered
framework for water resources academia,
management in Pakistan international
institutions
132 ANNUAL REPORT | FINANCIAL YEAR 2019