Factors in the developmental context, which may be increasing or decreasing in importance:

a) transnationalization of management change

b) imperative to increase gender/women sensitivity

c) groups in society with needs and demands

d) private sector needs and demands

e) local government needs and demands

f) mass migration and its consequences

g) environmental concerns

h) economic decline or need for economic growth

i) development of political pluralism

j) other

In Malaysia the role of public service and administration has significantly changed over the years, in line with the country's economic growth and development. Its mission, objectives and functions have, in fact, undergone various degrees of reform, especially under the explicit and implicit influences of changes in public policies, development strategies and initiatives. These reforms took place in two distinctive phases, namely the period of rapid economic growth in 1960s and 1970s which required development administration and institution building, and the period from 1980 to the present which necessitated the consolidation and qualitative upgrading of the government machinery.

The success of Malaysia's development programmes to a significant extent can be attributed not only to the efficient and effective functioning of the economic system, but also to the stabilizing and integrative functioning of the country's public administration system.


Critical policy areas, which may be increasing or decreasing in importance:

a) education

b) social security

c) health

d) environment

e) immigration

f) criminal justice

g) agriculture

h) industrial

i) public works

j) urban decay/infrastructure

k) micro economic reform

l) macro economic management

m) other

The period from 1957 through 1980 was characterized by institution building, proliferation of public enterprises and dominant role of government agencies. Policies related to programmes for better accessibility to education, better social welfare benefits, equitable distribution of economic cake and social services, improved contribution of agricultural sector to the economy and planned diversification of the nation's industrial base remained important features of the government's long term plan.



National context

a) population size and age dynamics

b) economics dynamics

The civil service was entrusted with the mammoth task of implementing the five-year economic plans. The government effort contributed to the remarkable performance of the economy. However the inequitable distribution of the wealth among the major ethnic groups resulted in a racial turmoil in 1969 that almost became catastrophic. Consequently the New Economic Policy (NEP) was formulated and implemented in 1970, which necessitated an even bigger role for the government in terms of its size, involvement and expenditure. This was done to ensure the successful implementation of programmes for poverty eradication and restructuring of society; the two primary objectives of the policy. Measures were taken to upgrade the planning and implementation capabilities of the government so that the plans would be executed without any serious shortfall.

c) social dynamics, including migration/refugee movement

d) poverty alleviation, massive unemployment

e) labour relations issues

f) increasing role of judiciary

g) increasing impact of media and media relations

h) decreasing resources available to government

i) relations of public service with politicians/ministers

j) growing differentiation and interaction of various spheres in society

k) other

After independence in 1957, Malaysia saw a tremendous growth in the size of its civil service. The administrative machinery left by the British was primarily oriented towards the maintenance of the law and order and the collection of revenue. It was not strong enough to implement the government's plans for a rapid socio-economic growth and to respond to the many challenges posed by the domestic and global economic and political changes. Therefore, the administrative reform was planned by the government to respond to these changes in the national status from that of a colony to self-government.


International context

a) size, availability, etc. of foreign investment

b) amount and types of technology transfer-in

c) nature of markets for national products

d) structural adjustment policies and programmes

e) role of external cooperation in state redesign

f) availability of external assistance/aid/grants

g) ethnicity

h) religious fundamentalism

i) anti-corruption programmes

j) role of transnation corporations

k) role of international consulting firms

l) role of international political change

m) role of multi-laterals and bi-laterals

n) global communications networks

o) global, regional dichotomies and grouping

p) international data banks

q) international expert systems

r) international evaluation studies

s) other




Domains of activity

a) disaster management/crisis management

b) environmental/natural resource management

Malaysia has also been concerned with the need to protect the environment in its development programmes. Malaysia's interest in the integrated approach to environment planning and management began with the United Nations Conference on the Environment, in Stockholm 1972. In 1974, the Department of the Environment was established. After 10 years or so of a 'curative' form of environmental action, the government shifted its strategy to that of a preventive form of action. The bureaucrats have to become increasingly conscious of the threat of pollution in the policy formulation and decision making. They must also guard against indiscriminate exploitation of natural resources so that sustained development can be assured for the benefit of future generations.

c) electoral administration

d) legislative administration

The global economic recession in the mid 1980s and the consequent financial constraints experienced by government the world over brought about a more significant administrative reform in Malaysia. Like many other governments worldwide, the Malaysian government took a closer look at the functions of government with the view to reduce the burden of massive public expenditure. Programmes and projects were reviewed and evaluated to ensure that only those that were productive received continued funding. Subsidy programmes were cut back significantly. A general austerity drive that included a freeze in the annual wage increase of the civil service was introduced. Amazingly the entire civil service went through these events without any major furor.

e) judicial administration

f) sectoral management, which sectors?

g) management of large scale social programmes

With the end of the New Economic Policy in 1990, the National Development Policy was created under the Second Outline Perspective Plan (1991-2000) with national unity remaining the ultimate goal. Since the main objectives of the New Economic Policy, namely poverty eradication and social restructuring, were not fully realized, they continue to form the major thrust of the socio-economic programmes of the National Development Policy. The policy also emphasizes other aspects of development, namely: i) the creation of a balance between growth and equity; ii) the reduction and eradication of social and economic inequalities that exist in the country; iii) the assurance of a balanced growth in all the main economic sectors; iv) the strengthening of national integration and reduction of regional disparities; v) the creation of a community with positive social and spiritual values; vi) the creation of a workforce that is disciplined and productive and also the creation of a pool of skilled manpower for the industrial sector; vii) the application of science and technology as an important tool in the socio-economic planning and development of the country; and viii) the protection of the environment and ecology, which are taken into account in the planning process.

These aspects also characterize the main features of the Vision 2020 which outlines Malaysia's desire to be a developed country by the year 2020. The 30 year plan (1991-2020) enunciated by the Prime Minister strategizes the way Malaysia will become a fully developed country; developed in terms of national unity and social cohesion, in terms of its economy, social justice, political stability, system of government, quality of life, social and spiritual values, national pride and confidence, i.e. developed along all dimensions that is socially, spiritually, culturally, politically, psychologically and economically.

h) management of strategic macro-policies

i) economic reform, including privatization

Beside the recession, the background to reforms had been the widely shared pessimism about the capacity of governments and bureaucratic type institutions to clearly define and undertake economic and industrial development programmes. The prevalent belief was that government bureaucracies were inherently incompetent to perform this task through traditional public enterprises and state corporations. The government rationalized its role and functions and privatization was subscribed as the major strategy in downsizing the government and reducing its active involvement in the economy.

j) population increases and consequences

k) resource mobilization

l) international competitiveness

From heavy reliance on agriculture and primary commodities, Malaysia today is one of the leading exporters of semiconductors and airconditioners in the world. Due to its small domestic market, Malaysia needs to continue its dependence on export for its economic survival. This has however subjected the economy to the vagaries of international market conditions and other problems. Fluctuating commodity prices, growing protectionism, deteriorating deficits in the balance of payments, deteriorating domestic savings are but some of the problems that Malaysian bureaucrats have to grapple with. To cope with the above difficulties and challenges, the management capability of the civil service needs to be upgraded and reinforced.

m) commercialization

n) privatization

Given the resource constraints, the government has decided that it will facilitate the private sector to play the aggressive role in the future economic development of the country. It is therefore apparent to the civil servants that to achieve this objective, a new management culture is needed. Quick reactions and decisions are imperative and in fact critical to enable the private enterprises to be competitive on a global scale. Introduced in 1983, privatization was seen to be the means of stimulating and improving the overall efficiency of the economy. Privatization will not only relieve the government of the financial and administrative burden but also improve the efficiency and increase the productivity of the services. It will also stimulate private entrepreneurship and investment thus accelerating the rate of growth of the economy, reduce the size and presence of the public sector with the monopolistic tendencies in the economy, and help meet the objectives of the National Development Policy.

o) contracting out

p) corporatization

q) other


Government functions

a) regulating

b) facilitating

c) policy making:

i) definition and formulation of policy

ii) steering capacity/mechanisms

iii) central guidance/cluster or innovative mechanisms

d) implementation

i) through private sector, NGOs, QUANGOs, etc.

ii) coordination

The political leadership was instrumental in this reform process. Against the backdrop of economic dampening due to the prolonged recession, a new direction was charted not only for economic survival of the nation but also for the administrative "reason-d'etre" for change. Also the political leaders took great efforts to minimize negative effects from those who resisted these changes. Their commitment and vigorous campaigns, together with other structural changes and the favourable movement in the economy, higher productivity and efficiency for the country helped in the process. This has enabled the country to strengthen its resilience and withstand the effects of persistent global recession. By any standard, Malaysia continued to remain politically and economically a very stable nation. Overall, the Gross Domestic Product grew at an average rate of 5.8 percent (in real terms) during the period 1981-1985. During the following five year period of 1986-1990, the economy experienced a spectacular performance in which the GDP registered a growth rate of 6.7 percent annually.

e) evaluation

f) planning

g) reliance on contractors and sub-contractors

h) reliance on consultants

i) coordination (in what arenas, for what sectoral issues)

j) government relations with the private sector

As exemplified by the success of Japan and South Korea, there must be the unity of purpose of government and business. Business leaders, politicians and government officials ought to realize that their roles are not mutually exclusive. Unilateral action that affects the well-being of the other would only breed distrust and contempt. Recognizing this need the government continues to promote the spirit of Malaysia Incorporated which was introduced in 1983. This policy represents a new way of approaching the task of national development. The fundamental basis of this approach is that successful national development requires the public and private sectors to adhere to the perception of the nation as a corporate business entity, jointly owned by both sectors and working in tandem in pursuit of a common mission. The resulting benefit of this cooperation is higher growth and expansion of the private sector leading to spin-offs in economic investment, expansion and growth, as well as the generation of employment opportunities. The increase in government revenues could then enable the government to finance not only socio-economic development but also the public administrative machinery. This policy presupposes a changing role for the public sector, from the traditional role of a regulator to the new role of a service agency, planner and facilitator.

k) staff and line functions

l) other


Implementation of roles and role shifts

Methods or vehicles for implementing role shifts

a) boundary management/sovereignty management

b) inter-sovereignty capabilities

c) linkages with NGOs, cooperatives, business etc.

d) green management

e) alternative channels for service delivery

f) promotion and facilitation of private sector development

g) other


Major issues raised in the implementation of role shifts

a) governmental, public sector society-wise sector

b) administrative reform vs. state reform

c) isolated government vs. "partnership" government

Malaysia saw its public service orientating its role and functions from that of maintenance administration in the 1960s to development administration in the 1970s and 1980s which witnessed almost the entire planning and administrative machinery of the government being geared towards efforts in socio-economic development based on the objectives and strategies of the New Economic Policy and now the National Development Policy. The role of the public service was essentially that of facilitator, supporter, advisor, regulator and evaluator. Certainly these new tasks require adjustment in human capacity, organizational structure, work process and procedures and in some cases even reorientation in approaches and attitudes among public service employees.

d) management of change methods

e) other


Describe your future projections of activities in the area of changing role/scope of government. For each projection/prediction, indicate the following, indicate what you imagine or estimate would be the:

a) rate of change

b) direction of change

c) content of change

d) agent(s) of change

e) amount of change

f) level(s) of Government involved

g) amount of continuity involved

h) assumptions implied in the prediction

i) other elements of the change




Shifts in the overall composition of the Governance structures

a) shifts in unitary/federal/composite formats

b) balance between rural development and urban management

c) number and portfolios of ministries etc.

d) number semi-independent boards/commissions or agencies

e) decentralization


Note: within the concept of decentralization, there are various types of tendencies:

a) devolution

b) dispersion

c) deconcentration

d) de-bureaucratization

The concept of the Malaysia Incorporated which was announced by the Prime Minister of Malaysia in 1983 is one of the major strategies for national economic growth based on the underlying philosophy that cooperation and collaboration between Government and business is essential for an accelerated industrial development. The rationale of this policy lies in the benefits both sectors will reap through such cooperation in the form of higher profit and growth for the private sector and higher revenue collected for the Government. In the final analysis, the whole country will prosper.

Since its inception, much has been accomplished in translating the policy into a working reality. While the early years saw the promotion of the policy through the understanding of its concept and philosophy, the latter years beginning in 1990 emphasized the actuation of the policy in both form and substance through concrete policy directions. Existing mechanisms for the collaboration were revitalized and new ones were explored.

As the result of all the measures taken, numerous administrative improvements in the delivery of services from the public to the private sector have been introduced including one-stop centres for licensing, reduction of procession procedures, provision of guidebooks on procedures for licenses and permits, setting up of better service counters for queries and problems, computerization to expedite work processes, installation of modern telecommunication systems and delegation of powers to enable licensing to be done at state and district levels to expedite work processes and reduce waiting time.

e) strengthening municipal/local autonomy

f) other


Also, there are various functions which can be decentralized:

a) co-production of service delivery; receiving system

b) resource sharing

c) responsibility sharing; co-responsibility

d) authority sharing

e) decision-making sharing (governance sharing?)

f) information technology

g) personnel management

h) financial management

i) planning and goal-setting

j) other


There are also various specific areas of decentralization changes:

a) mode of implementation

b) goals/reasons

c) impetus

d) context in which takes place

e) level of government involved

f) consequences/results/outcomes/evaluation

g) professional modes of access

h) cooperative schemes

i) self-governing/self-regulating mechanisms

j) strengthening nodes: NGOs, etc.

k) other


In the public finance area, transformational changes or changes with transformational impact

a) budget; expenditure control

b) receipts/taxation

c) public administration markets

d) other


Criteria used to determine the content of shifts

a) productivity improvement

Efforts to improve and develop the civil service were initiated since independence. All these efforts were directed at increasing output as well as providing more efficient, speedy and effective delivery of service. Various policies, programmes and activities were introduced in the public administration of Malaysia especially after the present Prime Minister took office in 1981. Amongst the earlier efforts were the introduction of: i) Civil Service Core Principles introduced in 1979; ii) Civil Service Codes of Ethics in 1980; iii) The Name Tags in 1981; iv) The Look East Policy in 1982; v) Clean Efficient and Trustworthy Concept in 1982; vi) The Punch Clock System in 1982; and vii) Leadership by Example and Inculculation Of Islamic Values in 1983.

After the recession, especially after the establishment of the Panel on Administrative Improvements To The Civil Service (the PANEL) the efforts took greater momentum. The objectives of the PANEL is to find ways and means of improving the administrative system of the public service and implementing suitable programmes for that purpose. By 1992 the productivity management and improvement programmes have been reviewed and consolidated into ten programmes as follows: i) Quality and Productivity Management; ii) Innovation in the Public Service; iii) Counter Services in the Government Departments; iv) Efforts Towards Streamlining Regulations and Procedures; Implementation Action Pursuant to The Study on The System of Licensing and Permits Pertaining to Business and Investment; v) Improvement of Systems and Work Procedures and the Use of Modern Equipment in the Public Sector; vi) Increasing the Use of Information Technology; vii) The Assimilation of Good Values and the Practice of Positive Work Ethics in the Public Service; viii) Enhancing Accountability and Integrity in the Public Service; ix) An Effective System of Planning and Implementation of Development Projects; and x) Implementation of The Malaysian Incorporated Policy.

b) service accountability

Mechanisms to control discipline and enhance accountability and integrity amongst public officials have to be developed and improved in addition to the efforts to inculcate good values in the public service. Among the existing institutions involved in this are the Public Complaint Bureau, Public Account Committee, Special Cabinet Committee on Government Management, Anti-Corruption Agency and Chapter D (Conduct and Discipline) of the General Orders.

Criticisms against the civil service are taken seriously especially where the criticisms are not general in nature but rather specific in pointing out any particular fault. With a public increasingly enlightened by education and information, criticisms of red tape and inefficiency in the civil service and demand for better performance have been openly expressed in the media. The establishment of a Public Complaints Bureau to receive complaints from the public about the civil service and the publication of columns in the local newspapers for complaints have encouraged the people to voice their grouses. The rapid speed of change both globally and nationally also requires the civil service to be adept at innovation and change. The civil service responded by launching in 1979 the Excellence in the Civil Service Programme that established a code of ethics for the civil service. This was the beginning of a moral reawakening movement to create a civil service with the right attitudes and good work ethics. The Public Complaints Bureau was also reorganized in 1992 to develop a more efficient system of managing public complaints.

In order to maintain and enhance the accountability and integrity of Public Service, efforts to prevent corruption continue. Measures were taken by the Anti-Corruption Agency (ACA) to upgrade graft prevention. Forums were organized for heads of departments. Directives were issued to heads of departments regarding disciplinary reports prepared by ACA and submitted to them and to strengthen the internal control mechanism. Combating corruption with the cooperation of the public through dissemination of information and education via talks, videotapes to schools, etc. was also pursued. Corruption has also been prevented through administrative actions like surprise checks on government departments and on enforcement officers to ensure they perform their assigned duties honestly.

c) ethics

d) budget reduction

e) government-wide v. targeted to a few agencies

f) degree of comprehensiveness/depth

g) other


Processes used to determine the content of shifts

a) high level blue-ribbon committee

Current efforts at administrative improvement is coordinated at the highest level by the Panel on Administrative Improvements to the Civil Service (PANEL) established in March 1986. This Civil Service PANEL is chaired by the Chief Secretary to the government. It acts as a working group and think-tank centre to improve the civil service. The establishment of the PANEL allows for a more systematic, coordinated and effective approach in identifying, implementing, monitoring and evaluating administrative improvements.

The Malaysian Administrative Modernization and Manpower Planning Unit (MAMPU) under the Prime Minister's Department has been charged with the task of initiating and instituting changes in administration. It has undertaken numerous organizational studies to improve the management and organization of ministries, departments and local governments especially land and district administration. MAMPU has dedicated itself to the creation of model district offices to improve the delivery of services to the people at the grassroots level. MAMPU also serves as the secretariat to the Panel on Administrative Improvements to the Civil Service.

b) staff analysis

c) multi-level dialogue within Government

Apart from the PANEL, other bodies such as the Meeting of Secretaries-General and Heads of Services, Meeting of Heads of Federal Departments and the Federal-State Government Liaison Meeting also introduce improvements to the public administration. These meetings serve as platforms for the conception of new ideas and for the exchange of views and experiences in the introduction and management of change. Concurrently, government agencies are also actively involved in bringing about administrative improvement and changes on their own.

d) policy dialogue with NGOs, business sector etc.

Another process for instituting change relates to the direct consultation between government ministries and departments and the private sector provided for under two service circulars issued in 1984 and 1991 dealing with the implementation of the Malaysia Incorporated Policy. Among various directives for improving relations between the public and private sectors are the establishment of Consultative Panels, the holding of Annual Dialogue, formal interaction through participation in seminars, informal interaction through sports and social events and permission for government departments to receive tokens of appreciation (non-monetary) from the private sector.

e) society-wide dialogue with individual participation

f) strategic planning/management/corporate planning

g) think tank-mechanisms to predict futures

h) mechanisms for initiation and co-ordination of reforms

i) other


Processes and methods used to implement shifts

a) administrative learning

b) goals, objectives, scope, coverage

c) organizational analysis, strategy,

d) evaluation, assessment

e) training institutions/ training policy

The most obvious method used to reduce resistance to change is training. In this regard, the National Institute of Public Administration (INTAN) was established as the training arm of the Public Service Department to provide training for the public service. INTAN has provided substantial in-service training for public sector personnel, averaging 22,400 persons per annum. INTAN's training programmes emphasized the demands of planning and implementing successful development programmes, training of administrators and staff as agents of change, financial and economic management skills, computer literacy as well as public policy and international relations (until the establishment of the Foreign Service Institute in 1992).

f) managing decline and cutback

g) total quality management (TQM); continuous improvement

h) accountability management (anti-corruption policies, macro-measures to improve monitoring control)

i) internal/external communications

Information dissemination is another method used to reduce resistance to change. This is done through publications of books, journals and magazines, pamphlets, and departmental annual reports. Through information dissemination greater awareness and understanding of the reform efforts will be achieved. Information dissemination is also carried out through briefings, lectures, seminars, interviews, and speeches by key people.

j) increased flexibility

k) increased standardization

l) monitoring of initiatives introduced throughout the government

m) team management

n) legislative compulsion

o) other


Specific methods have been used to reduce resistance to change

a) training

b) meetings

c) relationship to on-going activities

d) redundancies

e) early retirements

d) other


Consequences for the civil service during these shifts

a) recruitment/promotion/transfer/mobility

b) accountability and discipline

c) pay/remuneration policy, pension/retirement

d) decentralization

e) boundaries with other agencies

f) personnel involved: political policy types vs. directors of operations

g) coordination issues

h) loss of sectoral skills

i) reliance on external consultants

j) policy fragmentation

k) other


Methods used to measure impact of reform and development programmes

a) demonstrable behavioral outcomes

b) more directed management assessment, development and training

c) results-oriented management

d) performance-based appraisal

e) retro-fitting skills capacity

f) other

Impact evaluation for public sector socio-economic projects were done by the Socio-Economic Research Unit (SERU) of the Prime Minister's Department. In 1992, SERU was disbanded and its activities were taken over by the Economic Planning Unit (EPU) of the Prime Minister's Department. Furthermore, under the Modified Budgeting System (MBS), every ministry and department will be required to do an impact evaluation of each activity once in every five years.

In the area of administrative reforms, MAMPU is specially changed with the task of overseeing the departmental initiatives to introduce reforms and reporting on them. A comprehensive evaluation of the impact of administrative reform has yet to be done. However there has undoubtedly been a lot of improvement and changes occurring in the public service. The increase in the productivity and efficiency of government services has been felt nationwide.


Describe your future projections of activities in the area of administrative reform/development/change. For each projection/prediction, indicate the following, indicate what you imagine or estimate would be the:

a) rate of change

b) direction of change

In a world of ever growing international competition, Malaysia will have to pay particular emphasis to: better human resource development; continued enhancement of public sector-private sector understanding and cooperation; greater efforts at improving the technical expertise of the labour force; maintaining an "open economy" to benefit from the cross-fertilization of ideas, increase competitive ability and taking up of opportunities; and maintaining and enhancing national unity.

c) content of change

d) agent(s) of change

e) amount of change

f) level(s) of Government involved

g) amount of continuity involved

h) assumptions implied in the prediction

i) other elements of the change





Programmes undertaken in reform of human resources management systems/practices

a) career, incentives, performance, probation, promotion, management

In furtherance of the efforts to encourage the practice of good work ethics, the new system to appraise performance of the government servants implemented in January 1993 includes a more comprehensive Performance Appraisal Report covering six aspects of performance mainly relating to good values and work ethics. The purpose of the new system is to inculcate in the public servants the universally acceptable values in the daily work.

Strategies formulated to achieve the objectives of this programme include publication of various writing and speeches which cover aspects of values and ethics in official magazines such as "Khidmat" and "Cekap," and training courses and seminars incorporating elements of attitudinal development and inculcation of positive values and work ethics. Keynote speeches are also distributed to the civil servants from time to time including the collection of keynote speeches by the Chief Secretary to the government. Recruitment and deployment of personnel in the public service also emphasize the right mental attitude towards work.

b) recruitment/selection/development

The capability of the Public Service to undertake the responsibilities of implementing the development plan depends on the quality of its personnel. Efforts in upgrading the capability and improving the motivation of the employees in the Public Service has focused on six aspects, namely: Quality of Personnel, Training, Size/Structure and Service, Welfare, Industrial Relations and Discipline.

Recent developments in these aspects are being addressed by the New Remuneration System introduced and implemented in early 1992. Apart from the major changes in the salary and allowance structure NRS also deals with reduction in the size, restructuring of the public service, formulation of a new system and format for Performance Appraisal, streamlining of disciplinary regulations, decentralization of the Pensions Administration System, amendments to the Public Service tribunal 1977, and Human Resource Management Award.

c) training policy

d) training curriculum changes and needs analysis

e) retrenchment/redeployment measures

f) transfer/mobility

g) discipline/ethics/codes of conduct

h) merit/seniority/representational criteria

i) civil service pay and benefits; conditions of work

The New Remuneration System brought about a significant change in the management system and personnel administration within the public service. It involves major changes in the organizational structure, the remuneration and reward system and in terms of service. With NRS it is expected that the capacity of the public service will be enhanced in meeting the challenges in developing the nation.

j) employee/union relations

k) retirement, pensions

l) statistics and planning; number of posts; structural policy

m) job descriptions/classification systems

Prior to 1992, there were 574 schemes of service in the Malaysian civil service. This was reduced to only 19 service classifications based on similarities of roles and functions. The purpose of reclassification was to facilitate planning and management of the various services according to their importance to the nation.

The New Remuneration Scheme also seeks to flatten the organizational structures that were too hierarchical to reduce red tape, inflexible organization and ineffective communication. With the new classification system, it is hoped that the organization will assume characteristics of teamwork, innovation, effective communication and greater delegation of power and responsibilities.

n) other

The government realized that internalizing good values and work ethics will contribute towards a change in attitude and consequently, new work practices which reflect those values. The assimilation of these values is to instill interest, motivation and inculcate an excellent work culture among the civil servants. The main purpose of these efforts is to improve performance and the quality of output of the Public Service. Efforts towards the assimilation of universally acceptable values and positive attitudes in the Public Service have been continuing since 1970s.

Two books relating to values were also published in 1991 entitled "Values and Ethics in The Public Service" and "The Twelve Pillars: Values, Norms and Ethics in The Public Service" as a systematic guide on values and ethics that need to be internalized and practiced by the public servants.


Shifts attempted in reform of financial administration

a) budgetary planning

Financial management in the civil service underwent a major change with the budgetary reform in 1969 when the Programme Performance Budgeting System (PPBS) was introduced to replace the traditional line item budgeting system. With the PPBS the focus of budgeting decisions have turned away from the objects of expenditure to the programmes and projects of government which have been identified for all departments and ministries. The system forced agencies to identify clearly their missions and the objectives of their programmes and projects.

b) accrual accounting

c) programme budgeting

d) revenue mobilization and management

e) budgetary and financial management control

The Modified Budgeting System (MBS), which has covered almost all of the federal ministries, is a major initiative at financial reform by the Treasury. It represents a set of modifications to the existing Program and Performance Budgeting System (PPBS) that currently typifies the government's budgetary processes. The modifications are designed to bring about the implementation of the last two phases of the PPBS, namely, performance measurement and program evaluation. The MBS is premised on two basic management principles, i.e. letting managers manage and the devolution of authority to as low a level as is practically possible. Departmental heads can therefore have control over some aspects of resource mix so that it can respond expeditiously to changes in the dynamic external environment and at the same time develop a more accountable management not only in terms of fiduciary compliance but also in terms of the efficiency and effectiveness of program performance.

f) zero-based/performance budgeting etc.

g) compensation adjustments

h) accountability

There is increasing pressure for public servants to be more responsible for the proper management and utilization of government assets and resources. Measures taken to improve accountability in the management of government assets were the introduction of a new categorization and definition of government assets, the introduction of new forms for record keeping to replace the unsuitable old forms, the establishment of an Expenditure Control Unit in the Treasury to service the Public Accounts Committee, improvements to the Financial Management Infrastructure (e.g. computerized vote book system), and the introduction of the Modified Budgeting System (MBS) in 1989.

Efforts and programmes undertaken in reforming the financial administration were to ensure and enhance accountability of the public service. An accountable public service is well placed to provide quality service. The efforts in improving financial management and accountability in the public service can be broadly divided into four types:

Strengthening internal control systems: To strengthen internal control in the government, a lot has been done from a study to improve the financial management particularly in assets acquisition and management to the introduction of various types of records and new forms for government assets, inventories and office supplies. Various seminars, briefings and courses were conducted at INTAN on this circular. In addition a microcomputer system called the "Stores Management Information System" has been developed for use by government agencies.

In 1990 the Expenditure Control Unit was set up in the Federal Treasury to check and prevent misuse and wastage of funds in the Federal Government. This unit acts as secretariat to the Public Account Committee of Parliament. Amongst the important responsibilities of this unit is ensuring that due attention is given to the Auditor General's annual report by all agencies and ensuring that all government agencies undertake stringent measures to collect revenue, taxes and other forms of payment due to the government.

Improvement to financial management infrastructure: Several efforts were made in the last few years in this area, namely: (1) the modernization of the Federal Government's accounting system, (2) the introduction of the Bulk Payment System (in which bills from supply agencies/companies are paid in bulk by the Accountant General's department instead of by departments individually), (3) payment of financial aid by the Social Welfare Department through GIRO system of the National Saving Bank, (4) the introduction of the Computerized Vote Book System (which is a computer software package for the maintenance and reconciliation of the vote book), and (5) the study of management of tender documents and the proposed introduction of the "Guidelines on the Processing and Management of Tender Documents."

Improving the effectiveness of financial management: Amongst the important programmes in this effort are the implementation of Modified Budgeting System, the delegation of some of the powers of the Central Agencies with regard to financial management, personnel management and general administration to Secretary Generals of the Ministries, the introduction of Micro Accounting System to enable computation of the cost of government output, and planning and utilization of resources optimally, the setting up of more Internal Audit Units to conduct Management Audit, and study on the improvement of financial management of state governments.

Recognition of efforts through the financial management awards: In March 1992, the government introduced five special awards to appreciate and recognize the government departments that have achieved excellence in specific areas of management. One of the awards is the Financial Management Award for departments that excel in financial management.

i) value for money

j) systems of accounts

k) other

The implementation of development projects in the Malaysia Five-Year Plan has become more challenging with the increase in the amount of allocation for the new five-year plan. About RM104 billion has been allocated for development in the Sixth Malaysia Plan, an increase of about 68% compared to the expenditure in the Fifth Plan.

To enable budget allocations to be spent as planned and the limited resources used optimally, various strategies have been outlined to ensure the projects are completed as scheduled and within the estimated cost. These strategies include the restructuring of the machinery for the coordination and implementation of development projects; improvement to the monitoring system of development projects through the Guidelines On the Integrated Scheduling System (SIAP); and improvement to the procedures for land acquisition.


Improvements attempted in information management

a) increasing access (secrecy)

b) adopting new technology

In Malaysia, government computerization started in the mid 1960s. The use of information technology continued to expand ever since. Apart from the mainframes and minis, the use of microcomputers also increased rapidly over the years. The number of microcomputers and supermicros in use in the public sector has increased significantly (158%) from 7,425 units in 1989 to 19,189 units at the end of 1992.

The objectives of using IT in government include improving efficiency in administration, enhancing managerial effectiveness, improving delivery of government services, human resource development, creating a greater awareness of IT and promoting both the availability and better access to government information. Increasing numbers of public employees have been trained in the computer applications through courses, seminars, workshops and projects organized and conducted at the National Institute of Public Administration or elsewhere by trained lecturers and experts from both within and outside the country. For the purpose of giving recognition and appreciation to agencies which have shown excellence in IT management, the government introduced the IT Management Quality Award in 1992. Also an IT programme has been included in the Sixth Malaysia Plan with the objective of creating an information rich society.

c) policies on information technology

d) coordination of development and adoption of new information technology

e) training for information technology

f) office automation

g) decision-support-systems

h) freedom of information/transparency

i) new administrative laws

j) expert systems/artificial intelligence/neural systems

k) data banks

l) other



Productivity management and improvement

Overall productivity programmes/projects undertaken

a) what specific measures or methodologies

b) by what specific organizations or sectors

c) development of standards

d) other

The Quality Control Circles were introduced in the public sector in 1983 and have been successfully established in many ministries and departments. In 1989, the "Excellent Work Culture Movement" was launched with the theme "Quality, The Foundation of Success." The aim of this movement is to inculcate quality values among workers through the practice of the Excellent Work Culture.


Methods used to identify and install productivity improvement projects

a) research studies for productivity improvement

b) planning, monitoring, evaluation, supervision

c) implementation studies

d) systematic managerial assessment

e) training programmes in productivity

f) managerial autonomy of agencies/enterprises

g) inspection systems

h) performance management

Malaysian government constantly encourages its departments and agencies to search for ways and means to innovate. A reward system was introduced in April 1991 by the Government to recognize departments which have successfully implemented innovations to better serve the public. The recognition was given to an agency, a division or unit within the agency, or an individual in an agency who is directly involved in the planning and implementation of innovation. The recipient is given a cash prize and a plaque.

Up to 1992, a total of 570 innovations have been carried out by Government Departments in seven areas, namely Manpower, Systems and Procedures, Organizational Structure, Management Style, Work Environment, Technology and Capital Equipment.

i) leadership training; vision; values

Other projects implemented since the "Excellent Work Culture Movement" have intensified and strengthened the importance of the quality and productivity management in the public service. Some of the important projects implemented were the publication of Manuals and Books on Quality Management and Improvement; the launching of the Excellent Work Culture Movement at State Level; Talks, Training, Workshops and Seminars on Quality Management; Public Service Quality Day (31st October); and the introduction of the Prime Minister's Quality Award and Public Service Quality Awards. Circulars on Quality Improvement Strategies, Productivity Improvement and Quality Control Circles for the Public Service were published and distributed. Visits to the States were made by the Chief Secretary to the Government to monitor the implementation of quality programmes. An Inspection division was established in the Malaysian Administrative Modernization and Manpower Planning Unit (MAMPU) to follow up on the Quality and Productivity programmes. Magazines incorporating articles on quality and productivity programmes in the public sector were published and Total Quality Management concepts were also given wide exposure.

j) cost-benefit methodologies

k) other


Outputs aimed at or perceived in the productivity improvement programmes/projects, along with demonstrable improvements achieved so far or projected

a) service delivery

Based on a study on the "Systems of Licensing and Permits Pertaining To Business and Investment" undertaken by MAMPU in 1990 covering five important sectors of the economy, directives were issued to all agencies to take appropriate action to ease regulation and procedures pertaining to permits for the benefit of the clients through six strategies, namely: the use of composite application forms, issuing of composite licenses, extension of the validity period of licenses from one to five years, establishment of licensing centres especially at the Local Authorities, abolition of licenses or license fees which are found to be obsolete under the present condition, and improvement of the systems and procedures for licensing.

b) relationship between government/public

The government realized that inefficient counter services would result in the public having to queue or wait for a long time to be served. This wastes customers' time that could otherwise be used to do other productive work. Therefore in 1986, the government launched the Excellent Office Awards Programme to spur innovations in counter services. A lot of changes and improvements to the counter service were made which can be categorized into three aspects, namely: quality service, improved system and procedures, and improved physical facilities.

In recognition of the effort to upgrade the counter services, the Public Service Special Award Programme for counter service was launched in 1991. The criteria used are: facilities for customers, preparation to receive customers, good practices adhered to by counter staff, management support, staff involvement and efforts to identify the requirements and expectations of customers.

c) governance effectiveness

The Government Departments need to introduce appropriate innovations to systems and work procedures from time to time to meet the requirement of the changing environment and the customers. These procedures may also be improved through a more extensive use of sophisticated office equipments that have positive impacts on the productivity and capability of an organization. A manual entitled "Explanation on Manual of Work Procedures and Desk Files" was issued in 1983 for this purpose. Other guidelines were also issued in 1991, namely Guidelines on the Management of Meetings and the Management of Government Committees; Guidelines on the Manuel of Work Procedures and Desk Files (improved version of 1983 manual); and Guidelines on The Use of The Work Action Forms.

Other efforts have also been taken by departments to improve their systems and work procedures such as Feedback System (mainly through dialogue or inquiry forms), Records Management System, Better Form Design, Improvement in Work Environment, Work Simplification, and Work Measurement and Control Systems (aiming at setting standards and norms for the work process).

d) rule-making

e) public management transfer

f) crisis management

g) management of technology transfer

h) rationalizing administrative procedures

i) cross subsidization

j) steering capabilities

k) other


Units in government conduct research and analysis and how they interact with administrative units, especially the services they offer administrative units

a) planning units

b) finance units

c) management consultancy units

d) personnel units

e) policy analysis units

f) cabinet level/ministerial level units

g) Prime minister's/President's office

h) Commissions or Boards

i) R&D centres

j) administrative reform unit

k) academies/institutes

l) economic units

m) accounting units

n) coordination units

o) representative bodies

p) think tanks

q) other


Describe your future projections of activities in the area of administrative reform/development/change. For each projection/prediction, indicate the following, indicate what you imagine or estimate would be the:

a) rate of change

b) direction of change

c) content of change

d) agent(s) of change

e) amount of change

f) level(s) of Government involved

g) amount of continuity involved

h) assumptions implied in the prediction

i) other elements of the change