Support To The Public Service Transformation Programme

What is this project about?

 The project will focus on supporting the Government’s efforts to assess and identify the necessary reforms and structural adjustments required to attract, develop and retain top talent in the public service. | Photo: UNDP Malaysia

The project will directly support the Public Service Department’s 5 Strategic Thrusts outlined in its Public Service Transformation Framework (Kerangka Transformasi Perkhidmatan Awam) and in line with the aspirations and strategies outlined in the 10th Malaysia Plan: 2011-2015 Chapter on ‘Transforming Government to Transform Malaysia’. It specifically supports the government’s agenda to restructure the public sector to ensure that it is more effective in its service delivery while at the same time ensuring that the transformation programmes contributes to better fiscal expenditure and management of the public sector.

What's the situation?

 Stakeholders and representatives from the various schemes of service in the public sector were consulted to obtain feedback, input and build ownership in the design of this strategic outlook and policy directions.| Photo: UNDP Malaysia

In the 10th Malaysia Plan: 2011-2015 (10MP), one of the main priorities outlined by the Government is the critical need to transform the government’s systems, processes and human capacity in order to ensure that the government’s various transformation programmes are implementable.

It also notes the government’s need to restructure the public sector to ensure that it is more effective in its service delivery while at the same time ensuring that the transformation programmes contributes to better fiscal expenditure and management of the public sector.

The 10th MP also outlines that efforts will need to be directed towards reducing bureaucracy and improving the interface between government and people, and government and businesses, where a higher level of inter-agency collaboration and cooperation will be adopted. The efforts in the 10MP in this dimension are focused on four areas:
• Rationalising existing government organisations and structures;
• Building capacity in organisations focused on national priorities;
• Establishing high performance monitoring units; and
• Attracting, developing and retaining top talent in the public service.

During the Plan period, the Government will be undertaking a comprehensive audit of all government organisations and structures and reviewing roles, functions, gaps and overlaps. The objective of this will be to develop a plan for rationalising agencies with overlapping or redundant functions and to align the structure of government agencies contributing to the national priorities.

As challenges and opportunities will increasingly transcend traditional public sector boundaries, a whole-of-government approach will be deployed during the 10MP period. This whole-of government approach will require agencies to work across portfolio boundaries and across federal, state and local levels as an integrated government to address cross cutting issues.

This approach will be applied to policy formulation, programme development and delivery of outcomes. The new structure of government will require a number of existing government organisations, particularly those with overlapping or redundant functions, to be rationalised. Organisations focused on national priorities will be strengthened and talent in the public service will continue to be developed.

The project related reviews and assessments by UNDP across a number of sectors, also confirms this perspective and underlines the need for strategies which will enable higher level of inter-agency collaboration and co-operation to improve and efficiently utilize financial and human resources.

However, at the same time, it is acknowledged that planning and managing 1.4 million public servants who provide services at every level of government from the local authorities right up to policy makers at the central agencies is a significantly a complex task and will require the commitment and input from the public sector Human Resources (HR) Managers (physically and operationally based in the various ministries, agencies and states) in order for any significant or effective transformation to be implemented in reforming the public service.

What is our mission?



The project’s emphasis will be placed on supporting the Government’s efforts to assess and identify the necessary reforms and structural adjustments required to attract, develop and retain top talent in the public service and also specifically support the preparation of relevant inputs for the 11th Malaysia Plan: 2016-2020. The project will also review the financing requirements of the Malaysian public sector for the medium to long term. The final expected outputs are a series of key documents outlining the strategic outlook and directions of the public sector, financing and organisational reform of the Malaysian public service and also the Human Resource Masterplans for the entire Malaysian public service encompassing 22 Ministries for the period of 2015-2020.

How are we doing this?

The project aims to assist the transformation process of the Malaysian public service in line with the aspirations and strategies outlined in the 10MP Chapter on ‘Transforming Government to Transform Malaysia’. The project will also specifically structure its outputs to review, analyse and develop the appropriate policies and strategies that will substantively contribute as key inputs to the Public Service Transformation Framework and as input to the Economic Planning Unit (EPU) for the consideration in the design of the 11th Malaysian Plan: 2016-2020 (11MP).

The project’s emphasis will be placed on supporting the Government’s efforts to assess and identify the necessary reforms and structural adjustments required to attract, develop and retain top talent in the public service and also specifically support the preparation of relevant inputs for the 11MP. The project will also review the financing requirements of the Malaysian public sector for the medium to long term. The final expected outputs are a series of key documents outlining the strategic outlook and directions of the public sector, financing and organisational reforms of the Malaysian public service and also the Human Resources Masterplans for the entire Malaysian public service encompassing 22 Ministries for the period of 2015-2020.

The various key documents developed will provide a comprehensive picture of the requirements of the entire national public service and enable better utilisation of not only the capacities of human capital but also management of financial resources through better planning of required and future projections of the number of establishments in public sector organisations. The various outputs will also enable better planning in terms of recruitment, identification of strategic competencies required as well as controlling the size of the public service in Malaysia in the medium to long term.

Gender dimensions and considerations will be mainstreamed throughout the project. A specific emphasis will also be placed to ensure that specific policy recommendations in relation to the Government’s commitments to increase representation of women in key decision-making positions to at least 30% women as outlined in the 10MP will be developed, operationalised4 and sustained by taking into account dimensions related to recruitment, career development and succession planning.

To ensure the buy-in and commitment of the various stakeholders, project outputs will be shared with the Chief Secretary of the Government and EPU, and if appropriate or relevant, PSD may consider submitting a report to the National Development Planning Committee highlighting key developments, issues and recommendations

What do we hope to accomplish?

The project is at its initial stages. It has 5 project outputs and a number of components which are as follows:

Output 1: Strategic Outlook and Policy Directions of the Malaysian Public Service towards 2020
This output emphasises the need to develop a medium to long term strategic outlook and policy directions for the Malaysian public sector based on a clear human resources management framework that will enable the government to look to the future, think strategically about the right mix of people and skills that will be required to respond to changing national development needs and strategies, and put into place the necessary policy directives and enabling frameworks to ensure the effective implementation of the national transformation programmes.

Stakeholders and representatives from the various schemes of service in the public sector will be consulted to obtain feedback, input and build ownership in the design of this strategic outlook and policy directions.

Output 2: Human Resources Planning Frameworks of the Malaysian Public Service: 2015-2020
In order to design the implementation phase of the strategic outlook and policy directions of the Malaysian public sector, specific future projections of human resources needs and the necessary reforms required both from a central planning and from a ministry/ agency perspective needs to be undertaken.

Output 3: Assessment of the Malaysian Public Service
The overall strategic reform will require the government to have an overview of the current and future projections of the public service structure. To provide the necessary guidance to the various ministries and agencies to better plan the utilisation of people in order to get the best returns and with the appropriate competencies required, a detailed assessment will be undertaken on the profile of the current public sector.

In addition, efforts will be undertaken to solicit feedback from the civil servants in 22 Ministries on their views of the challenges and future of the public sector reform.

Output 4: Financing and Organisational Development Reforms
The development of a comprehensive national public sector human resources strategy which encompasses the full spectrum of activities from recruitment, development right up to succession planning will also be contextualized within the larger framework of financing and organizational development that the PSD is currently undertaking. The Federal Government of Malaysia is set to adopt full accrual-based accounting for financial reporting by 1 January 2015, so as to converge with the requirements of the International Public Sector Accounting Standards (IPSAS).

The readiness of accrual accounting implementation for pension plan and liabilities is one of the transformation initiatives in line with objectives identified by the National Economic Advisory Council in the New Economic Model through the Public Finance Reform Strategic Reform Initiative and approved by the Prime Minister on 11 May 2011 and endorsed by the Government Accounting Standards Advisory Committee.

Through this initiative, the Government has targeted to achieve a Federal Government budget deficit of around 3% by 2015 and near budget neutral by 2020. This shift from cash-based accounting to accrual accounting will enable the public sector to report its financial performance, financial position and cash flow more accurately towards enhancing accountability and transparency in its financial management.

Output 5: Best Practice and Innovations in Public Service

It has been noted that a large number of innovations and best practices across Ministries and agencies have been designed and deployed, especially in undertaking transformative programmes and public service reform. However, there has been insufficient analysis, codification and dissemination of the experiences and the lessons learned especially in the areas of human resources management.

Who finances it?

Year Donor Amount
2014 UNDP TRAC $111,321
  Government CS $188,679
  GMS 6% of Government CS $11,321

Delivery in previous fiscal years

Year Donor Amount (USD)
2014 UNDP TRAC $4,000
2015 GCS $$110,372

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