One of advanced video coding standard is scalable video coding (SVC) extension of H.264/AVC, SVC provides multimedia service within variable transport environments. SVC is a large computation complexity in encoding processing, through using the exhaustive search technique. The encoding processing included the select macroblock mode and motion vector layer. This paper introduces a new proposed algorithm to reduce this complexity with saving quality. Scalable quality inter-layer performance enhancement (SQILPE) proposed algorithm depends on analysis amount of change in intensity value of pixels in the MB and video statistics. Experimental results show that the proposed fast mode decision algorithm can achieve computational savings up to 77.6% with almost no loss in quality.