Case Study on BusinessEnvironment Reforms INVESTORS CAN’T WAIT:Fast-trackingconstruction permitsand operating licenseapprovals in Malaysia Case Study on BusinessEnvironment Reforms JANUARY 2026 © 2026 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank with external contributions. Thefindings, interpretations, and conclusions expressed in this work do not necessarily reflectthe views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the dataincluded in this work and does not assume responsibility for any errors, omissions, ordiscrepancies in the information, or liability with respect to the use of or failure to usethe information, methods, processes, or conclusions set forth. The boundaries, colors,denominations, links/footnotes and other information shown in this work do not implyany judgment on the part of The World Bank concerning the legal status of any territoryor the endorsement or acceptance of such boundaries. The citation of works authored byothers does not mean The World Bank endorses the views expressed by those authors orthe content of their works. Nothing herein shall constitute or be construed or considered to be a limitation upon orwaiver of the privileges and immunities of The World Bank, all of which are specificallyreserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encouragesdissemination of its knowledge, this work may be reproduced, in whole or in part, fornoncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: World Bank and Malaysia ProductivityCorporation (2026) “Investors Can’t Wait: Fast-tracking construction permits and operatinglicense approvals in Malaysia”, World Bank, Washington, DC. Any queries on rights and licenses, including subsidiary rights, should be addressed toWorld Bank Publications, The World Bank, 1818 H Street NW, Washington, DC 20433,USA; fax: 202-522-2625; e mail: pubrights@worldbank.org. Cover photos: © laddawanpunna/FreepikCover design and layout: Good News Resources Sdn Bhd/www.gnrsb.com Acknowledgements This case study was jointly prepared by the World Bank Group (WBG) and the Malaysia ProductivityCorporation (MPC). The core team included Zenaida Hernandez Uriz, Moonyati Binti Mohd Yatid, andMariana Vijil from the WBG, and Wan Fazlin Nadia Wan Osman, Zaffrulla Hussein, Rabiatul Hana Ishak,and Sarah Afiqah Kamaruzaman from MPC. The report was developed under the supervision of Ilias Skamnelos and Asya Akhlaque (WBG).The team also acknowledges the leadership and strategic guidance of Tan Sri Shamsul Azri binAbu Bakar, Chief Secretary to the Government of Malaysia, in advancing public sector reform andproductivity-driven initiatives that underpin this work. The team extends its appreciation to ArisMolfetas-Lygkiaris and Alejandro Espinosa-Wang (WBG) for their valuable comments. Gratitudeis also expressed to the Kulim Municipal Council (MPKK), the Kulai Municipal Council (MPKU), andinvestors in Kulim and Kulai for providing invaluable insights. The team further acknowledges theguidance of Zafer Mustafaoglu and Judith Green (WBG) and Datuk Zahid Bin Ismail (MPC). Additional contributions were provided by Good News Resources Sdn Bhd for design services, HoChin Soon Research Sdn. Bhd. for cartography services, and Marie Stella Ambrose for administrativesupport. The views and opinions expressed in this report are those of the authors and do not necessarily reflectthe views of their respective organizations or any affiliated entity. Executive Summary Malaysia has made significant progress in improving itsbusinessenvironment to attract investment and boostproductivity and competitiveness. This case study examinestwo pioneering initiatives—the E10 in Kulim, Kedah, and theKulai Fast Lane (KFL) in Johor—that have streamlined theprocessing of construction permits and operating licenseapprovals for industrial projects. Launched in response tolongstanding regulatory bottlenecks and accelerated by theCOVID-19 pandemic, these reforms were spearheaded bythe Malaysia Productivity Corporation (MPC) in collaborationwithstate and local authorities and the private sector.Both initiatives introduced innovative practices, includinginitial project briefings, special permissions for early sitework, concurrent reviews by technical agencies, and digitalinnovations. These reforms have enhanced predictabilityand transparency in regulatory processes. •Investment growth: While direct attribution cannot beestablished, both locations have experienced a surge ininvestment. Cumulative investment in Kulim’s IndustrialCorridor increased fourfold, from RM 50 billion in 2020to RM 200 billion by June 2025. In Kulai, the KFL hasbro