Pertanika J. Soc. Sci. & Hum. 3(1): 65-86 (1995) ISSN: 0128-7702© Universiti Pertanian Malaysia Press

Administrative Reform in Malaysia: Strategies for Promoting Efficiencyand Productivity in the Public Service, 1981-1991

AHMAD ATORY BIN HUSSAINFakulti Ekonomi Dan Pentadbiran

Universiti Malaya, 55100 Kuala Lumpur, Malaysia

Keywords: public administration, public management, administration, administrative reform,management science, development administration, reorganisation, administrativestrategy, management strategy, public policy, administrative politics, politics andadministration.

ABSTRAK

Anikel ini merupakan analisis-makro ten tang pembaharuan perkhidmatan awam di lvlalaysia, ll1eliputilell1poh sepuluh lahun antara ]981 hingga 1991. Pembaharuan ini lelah disuarakan atas keperluanmeningkatkan kecekapan, keberkesanan dan. produktiviti untuk mempercepatkan perlaksanaan dasarpembangunan dan menyampaikannya kepada orang ramai. Ia memfokus pendapat pegawai-pegawai linggiperkhidmatan awam ten tang pembaharuan yang diperkenalkan dalall1 tempoh tersebul. Artikel ini merumuskanbahawa walaupun lebih usaha masih diperlukan, khususnya dalam menentukan sejauh mana program­program dan dasar-dasar beljaya mencapai matlamat, pembaharuan birokrasi yang dilaksanakan di Malaysiaantara ]981 hingga 199] secara umumnya berhasil dalam mengubah sikap kakilangan awam ke arahkecekapan, keberkesanan dan produktiviti.

ABSTRACT

This article is a macro-analysis of reform in the Malaysian civil service, covering the ten-year period bctween1981 and 1991. These reforms were dictated by the need to increase efficiency, effeclivcness and productivityin order to speed up the implementation of development policies and deliver the economic goods to lhepeople. This article brings into focus the opinions of high-ranking civil servants about reforms initialed duringthis period. The article concludes that though more effort is still needed, especially in determining how closeprogrammes and policies have come to achieving their target, bureaucratic reforms carried out in Malaysiabetween 198] and] 99] have generally been successful in changing attitudes of civil servanl.S towards lhe goalsof efficiency, effectiveness and productivity.

INTRODUCTION

Definition

The concept of administrative reform meansdifferent things to different people. Caiden(1969) uses it to refer "... to all improvements inadministration;... to general administrativeoverhauls in difficult circumstances; to specificremedies for maladministration; to anysuggestion for better government; and to

intentions of self-styled administrativereformers ..."

Tn this article, administrative reform isdefined as "a systematic and integrated effort to

bring about fundamental changes in publicadministration to enhance public administrativecapability to achieve national development goals"

(Hanh 1970). This definition is designed toaccommodate: (I) organizational improvements(both structural and procedural), and (2)improvements in the behaviour of civil servants.

In Malaysia, administrative reform was firstinitiated during the colonial period. At that timeit was carried out in response to political changesin Malaya as a result of the British forwardmovement. When Malaya was formed in 1957,the country (Malaya and later Malaysia) inheritedthe British colonial administration. However, theorga n iza ti onal structu re of the co Ion ialgovernment machinery was considered unsuitablefor the aspirations of the newly independentstate. Therefore, immediate action was taken bythe Malayan government to reorganize itsgovernment machinery. Various measures were

Ahmad Atoli' Hussain

inu'oduced, including the Malayanization process,reorganization of the administrative machinery,restructuring of work in central agencies andministries, and the establishment of the PublicService Commission. The reforms carried Ollt inthe early 1960s were mainly structural andprocedural in nature. Furthermore, they alsomet with limited success as the pace ofdevelopment was slow due to the limitedresources available to the government then.

The period of restructuring extended from1966 to 1981. The administrative reform basedon the proposals of Iontgomery-Esman of theUnited States then held the central role in therestructuring exercise. The creation of theDevelopment Administration Unit (DAU) in 1966represented a very important structural reformin administrative development in Malaysia. Themain thrust of reform during the 1966-1981period was towards increasing efficiency,productivity and development orientation,especially in land and district administrations.Rural development planning is another areawhich was heavily emphasized. In this way, reformbecame politicized. During the six-year periodof Hussein Onn's administration (1976-1981),there were important administrative reformefforts, particularly in institution building suchas the formation of MAtvIP and the inu'oductionof a code of ethics for civil servants. At the endof h is administration, there was an expansion ofthe civil service (Operasi Isipenuh), but this wassubsequently aborted at tile beginning of theMahathir era to reduce the public sector.

The period of extensive modernizationbegan in the early 1980s with the primeministership of Dr Mahathir Mohamad. This wasalso a period when the "technological revolution"was causing drastic changes in the world (Mattoo1985; de Guzman et al. 1985). These changeswere especially significant in the industriallyadvanced countries like the United States andJapan. This technological revolution had animportant bearing on the far-reaching reformsintroduced by Mahathir when he became PrimeMinister. Various new tools, methods,management styles and technologies from theindustrially advanced countries were graduallyin troduced into l'vlalaysia.

Holistic Approach

Various programmes have been introducedduring the Mahathir administration in order toupgrade leadership quality, efficiency and

productivity among civil servants. Among theseprogrammes are those designed to: (i) improvework system and procedures; (2) improve serviceto the public; (3) change attitudes of civilservants; (4) inculcate work ethics; (5) privatizegovernment bodies; (6) utilize automation andtechnology; (7) reform the budget and improvethe financial management system. In addition,the government has provided trainingopportunities for all levels of civil servan ts, betterterrns of service, promotion prospects, and otherfringe benefits such as opportunities forpostgraduate studies and sabbatical leave; jobrotation, in order to give civil servan ts widerexposure to the operations of variousdepartments. Another major reform initiated in1983 was trimming the size of the public sectorto keep the number of employees at anappropriate and optimum level. Thisunprecedented move was also aimed at bothimproving the capability of the public serviceand as a cost-saving measure to reduce theoperating expenditure of the government.

Evidence from empirical data dealing withreform efforts carried out since 1981 confirmsthat structural and behavioural strategies wereheavily emphasized in an effort to reform thebureaucracy and increase efficiency andeffectiveness of civil servants. However, not allthe reforms introduced have met success. Thiscan be deduced from the analysis of survey data,wh ich polled opinions of civil servants directlyinvolved in the reform exercises carried outfrom 1981.

OBJECTIVE OF SURVEY

The purpose of the opinion survey was to bringinto focus the opinions and perspectives of thosemost closely associated with and affected byMahathir's reforms, namely administrativeofficials in government departments. The surveyresearch concerned the following questions:"'Vhat is the extent to which there has been anincrease in efficiency, effectiveness andproductivity in the public bureaucracy since theintroduction of various reform programmes in1981? How are the types or strategies of reformrelated to the success or failure of administrativereform?

Descriptive Data

Questionnaires were mailed to 980 senior civilservants. Only 433 (44.2%) completed

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Administrative Reform in Malaysia: Strategies for Promoting Efficiency and Productivity

TABLE IDistribution of respondents

Central Agency Response PercentageNumber

PY['s Department 114 26.32

Finance i'vlinistry 45 10.39

Sta te' Secretariats 44 10.16

Ministry

Education 23 5.31

Agriculture 22 5.08

Health 20 4.61

Transport 18 4.15

Rural Development 16 3.69

International Trade 12 2.77

Human Resources 12 2.77

Land & Co-operatives 11 2.54

Primary Industry 10 2.30

Housing & Local Govt 10 2.30

Home Affairs 10 2.30

Domestic Trade 9 2.07

Information 8 1.84

Welfare and Unity 8 1.84

Telecom, Post & Energy 7 1.61

Defence 6 1.38

Science and Envil'On. 5 1.15

Public Works 5 1.15

Public Enterprise 5 1.15

Youth & Sport 4 0.92

Culture, Arts & Tourism 4 0.92

Foreign Aff'ai,-s 3 0.69

Justice 2 0.46

Total 433 100.00

Source: Survey data

questionnaires were returned. Table I showsthe background of the respondents. It presentsa ministry-by-ministry response rate - rangingfrom a high of 26.32% from the Prime Minister'sDepartment to a low of 0.46% from the Ministryof Justice. Cen tral agencies, such as the PM'sDepartment and the Finance Ministry, wereover-represented, and the operating agenciessuch as the Education, Agriculture, Health andTransport ministries were slightly under­represented.

The response sample is slightly over­represen ted by middle level civil servants. Agreater mixture of responses from top, middleand low level civil servants has been gathered.

The grouping of the officers into top, middleand lower level is based on the position of anofficer in the agency concerned. The majori ty ofsenior adminisu-ative positions are held by officersof the Administrative and Diplomatic Service,still popularly known as Malaysian Civil Service.In 1991, the total number of civil servants inMalaysia was 700,000. Of these, 80,138 weregroup A officers, of which 2,715 (3.38%) wereMCS officers (Ahmad Sarji 1991). Of the 80,138group A officers, only 422 (0.5%) returnedcompleted questionnaires.

ANALYTICAL DATA

Generally, there is evidence to suggest that thereis an overall im provement in the efficiency,effectiveness and productivity among civil servantsas a result of various administrative reforms.There is abundant evidence about how the publicare generally satisfied about the reduced time itnow takes to apply for or renew passports, roadtax discs and driving licences. In governmenthospitals, waiting time for patients seekingtreatment has also been generally reduced.

The findings from the survey conductedamong civil servants seem to confirm this generaltrend, that there is overall improvement amongcivil servant~. However, there are differences in thedegree of improvement in efficiency, effectivenessand productivity in various governmentdepartments and between individual civil servants.

Because the administrative officers are closelyassociated with both the implementation ofprogrammes and the application ofadministrative reforms, they were asked toevaluate the effectiveness of four categories ofprocedures and techniques, namely improvingwork systems and procedures, improving serviceto the public, improving attitudes of civil servantsand inculcating work ethics, privatization etc.Individual comments are also analysed, sincethey better represent the true nature of thegrievances of respondents.

hnjJraving Wad? Systems and PmceduTes

Table 2 summarizes the percentage distributionof positive and negative responses relating tothe effectiveness of the work systems andprocedures as tools of increasing efficiency inthe public service.

The punch card and clock-in systems wereintroduced shortly after Dr Mahathir Mohamadtook office as Prime Minister in 1981. Following

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TABLE 2Effectivcness of work systems and procedures

Work Systems& Procedures

Percent Positi\'cEvaluation

Percent NegativeEvaluation

Extremely Quite Neutral Quiteeffective effective ineffective

Punch Card 33.0 58.1 2.6 6.3

:\ame Tag 39.4 51.2 3.2 5.8

Quality Control Circle (QCC) 5.6 35.0 31.9 22.8

Open-Space & Office Layout 8.7 44.0 18.2 25.5

Work Procedure 16.4 54.7 13.6 13.3

Deskfile System 14.1 54.1 13.6 15.0

Postal Correspondence 9.3 54.4 27.8 7.1

Ylanagement Thru Meeting 22.8 57.0 10.0 9.3

Productivity MeasurementProgramme 7.3 38.5 30.3 18.5

Source: Survey data

Extremelyineffective

.5

4.7

3.5

2.6

3.3

1.4

.9

5.4

a directive from the Prime Minister's Department,new guidelines were designed by MAMPU,requiring all civil servants to clock-in by 8.00a.m. and to clock-out at 4.15 p.m. The newsystem appeared to go against the establishedpractice of recording time of entry and exit inan attendance register.

This system was imposed to improve workattendance, efficiency and effectiveness within thepublic service. Certain government and statutorybodies such as universities (academic staff only),schools and small agencies are exempted from thispractice. It is believed that the punch card systemhas given rise to efficiency among civil servants, asmost civil servants are in their office by 8.00 o'clockand leave after 4.15 p.m.

It was expected that the positive opinionabollt the technique would be greater than thenegative responses. Table 2 confirms thisexpectation. The effectiveness of the techniqueas a mean of increasing efficiency in the publicservice is acknowledged by an overwhelmingmajority of the respondents (about 91 %). Only6% of the respondents perceived it as a somewhatineffective technique for increasing efficiency inthe public service.

The use of name tags by civil servants wasintroduced by Dr Mahathir Mohamad so thatthe public know the name of the attendingofficer, thereby facilitating not only closersupervision, but close communication andinteraction among and between employees andthe public (MAJ\1P 1988: 31). The name tagidentification is a practical idea and is clearly apart of the Mahathir's objective in changing thebehaviour of the civil servants to become moreresponsive towards their role as change agents.It was also a device to identifY corrupt officers.The name tag identification was also aimed atgaining civil servants' rapport.

The introduction of the name tag is alsopositively seen as a way of promoting efficiency.About 90.6% of the respondents agreed thatname tags should be displayed by the civilservants. Only 8.0% of the respondents feltotherwise.

Quality control circles (QCC), anothermanagement technique introduced under theadministration of Dr Mahathir Mohamad, wereintroduced on 14th March 1983 (MAMPU 1988:34). INTA.t\J was assigned to be the Secretariatfor conducting the programme.

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QCC encourages lower-level employees toanalyse problems and recommend solutions tomanagement. This could contribute to higherproductivity as employees know best howoperations can be improved (Mohd Rais 1988).All agencies are encouraged to adopt theprogramme. To obtain full benefit from thisscheme a steering committee needs to beestablished. However, QCC techniques haveobtained fairly limited success (41 %). Accordingto one respondent, the reasons for this negativeevaluation are the lack of interest amongemployees, the lack of time suitability, the lack,or ineffective role, of facilitators, and the lack ofsensitivity on the part of management about theusefulness of QCC. Other factors include rigidityin QCC requirements, the lack of commitmenton the part of top management and also thelack of incentives and motivation provided forthe participants and facilitators. One seniorofficer stated that QCC is dependent on certainsupportive officers. Once they are transferredout of the department, QCC groups die almostinstantaneously. Efforts to improve the efficiencyand effectiveness of the employees in the publicservice through the QCC programme arenevertheless still under way.

The open space concept was introduced in1977 by IvIAMPU, first on a small scale in theMAMPU organization. 1 The flow of informationand processes are the prime elements in theplanning of an open space office. Its arrangementhas to be such that it facilitates smooth flow ofwork. The number of formal memos are greatlyreduced and communication within the officebecomes virtually instantaneous. It further assistsin facilitating decision-making and imple­mentation. Its objective is to provide a morehygienic and suitable work environment. To thiseffect, plants and foliage are used to beautify theoffice. Good colour schemes are imperative sothat they blend with the greenery, the draperyand the paintings (Abdullah Sanusi 1986).

"Vhen Dr Mahathir took office in 1981, heextended the introduction of the open officeconcept to government offices nationwide.Government General Circular 14 outlined severalmeans to implement the concept (ivIAlvIPU 1988:

32). The concept has not only saved space andmoney, but has also facilitated closer supervision,communication and interaction amongemployees and employers. To derive full benefitfrom the open space concept, there must be aproper office layout. All departments planningnew offices or renovating existing ones wereencouraged to adopt the open office concept(MAMPU 1988: 6).

Table 2 shows that more than half of therespondents (53%) favour this idea. It is quiteobvious that this technique has been perceivedas an effective means of increasing efficiency inthe public sel-vice. Perhaps the open spaceconcept is more appropriate for agencies wherespeedier interaction and workflow between staffis important rather than departments involvedin research work. According to one respondent,the open office system was implemented withouta proper study ever being done by MAMPU.This therefore resulted in some refusing to

implement the system.The work procedure manual was

implemented through a directive from the PrimeMinister on 6th April 1983 (MAMPU 1988: 6).Its main objective was to serve as a reference onprocedures and regulations. Its application andusefulness can be best seen in departments whichplace emphasis on the use of these documents,especially among new staff. Work proceduremanuals and deskfiles were introduced ingovernment agencies and departments to helpavoid mistakes and shortcomings.

All agencies are required to prepare workprocedure manuals and to assign one officer asco-ordinator (MAMPU 1988: 6). By April 1987,the work procedure manual had been fullyimplemented in 30 federal agencies (MAMPU1988: 32). So far, MAJ.\iIPU has been able to

design several work procedure manuals to beadopted by district offices: those on the issuanceof licences for sale of food and drink, revenuecollection and its accounting procedures,preparation and delivery of bills and due billsfor assessment, approval for setting up building,chart for processing the application of settingup building and issuance of certificate of fitness(MAMPU 1988: 6; see also Mariappen 1984).

I. Thc open space concept, first dcveloped in Germany in the late 19505, refers to planning office space without thewalls, corridors, private offices ancl straight rows of desks that typify a traditional office. The German name isBorolal1dschaJt. See Abdullah Sanusi (1986).

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Up to the end of 1990, the programme hasbeen very successful. Table 2 indicates that theeffectiveness of the work procedure manual as atool for increasing efficiency in the public serviceis evaluated positive by 71 % of the respondents.This positive evaluation indicates a bureaucraticacceptance of the use of such technique inincreasing efficiency among the civil servants.

The deskfiJe system is another work systemintroduced by the Mahathir administration toimprove office management. Its aim is to assistthe speedy processing of services by governmentagencies. MAlVfPU issued a guideline on the filesystem in June 1986. Most agencies have alreadyupdated their file system based on the guidelinesproduced by MAMPU (MAlVfPU 1988: 35). Table2 indicates that the effectiveness of the system isevaluated positive by 68% of the respondents.

Guidelines for postal correspondence wereaimed at ensuring all correspondence is managedefficiently and speedily. These reforms wereconsidered necessary to counter the numerousdelays in correspondence at various stages ofpreparation, delivery, receipt and posting. Forinstance, mail within the Kuala Lumpur areatakes about four to six days to arrive, while mailposted to Kuala Lumpur from other areas takesabout five to seven days Uabatan Perdana Menteri1989). The Prime Minister, Mahathir Mohamad,directed MAMPU on 22nd May 1984 to prepareguidelines (MAMPU 1988: 33). Each agency isrequired to assign a senior officer to co-ordinatethe implementation of these guidelines and toprepare a checklist for implementing them.

Table 2 also shows some improvements 111

the postal correspondence (about 64%). Thisshows that the civil servants complied with theorder to speed up replies to letters received, butthere might still be problems in the dispatch andpostal time. However, as privatization of the postaldeparunent was accomplished on 1stJanuary 1992,the mail service is expected to improve.

As most government agencies did not followa proper method for organizing meetings andreporting minutes and decisions taken, in 1983the government directed all agencies to adoptthe management through meeting concept(MAMPU 1988: 33). MAMPU has designed aspecial meeting format to be followed by agencieswhen reporting implementation progress onprogrammes under the detection and evaluationsystem for im proving public service (PUMPA)system.

In cOl~unctionwith the meeting format, thegovernment also issued an administrative circularoutlining proper ways of recording minutes (NewStraits Times 27Jan 1991). The circular preparedby INTAN and MAMPU contains several formatsfor recording minutes and decisions taken atmeetings. Another important aspect is the follow­ups and follow-through on decisions taken. It isimportant that proper minutes be recorded atgovernment departmental and ministerial levelcommittees. The circular is also aimed atenhancing the productivity and work ofsecretaries at such meetings. For this purpose,the Chief Secretary to the Governmen t instructedINTAN and MAMPU to conduct courses to traincivil servants in the drafting of communiquesand press releases for international meetingsand conferences (New Straits Times 27 Jan 1991).The new procedure has attained considerablesuccess. Table 2 shows 80% of the respondentsperceived the procedure to be an effective toolfor increasing efficiency among civil servants.Though the English language is not importantcompared with the other reform techniques, asenior officer suggested in the questionnairethat English should be emphasized. It was arguedthat mastering English would help increaseefficiency in conducting meetings andconferences, particularly those dealing withinternational affairs.

. The productivity measurement programme(PMP) was introduced on 20th September 1986following a directive from the Prime Minister.Its objective was to upgrade output (quantity)and increase the quality of service (MAMPU1986). Quality is obviously poor whenunnecessary cost is incurred. Therefore, goodquality service means prompt, courteous andtrouble-free sen'ice incurring minimum cost(Mahathir 1990). Generally, productivity is seenas the ratio of output to input. However,productivity is also a measure of how wellresources are utilized to accom plish specificdesirable results. Thus, productivity is defined asthe ratio of the effectiveness with whichorganizational goals are achieved to the efficiencyv,rith which resources are consumed in the courseof achievemen t (Drucker 1967).

As shown in Table 2, only 46% of therespondents perceived PMP to be effective, while24% perceived it as ineffective as a tool forincreasing efficiency in the public service. Manywritten comments in questionnaires reasoned

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Administrative Reform in Malaysia: Strategies for Promoting Efficiency and Productivity

that its limited success was due to the lack ofunderstanding of the purpose of PMP, the lackof clarity in setting operational objectives andthe lack of understanding of the techniques andprocesses involved in productivity measurement.In Table 2, the ovenvhelming opinion of theofficers surveyed is that not all the work systemsand procedures introduced by the Mahathiradministration have been effective in increasingefficiency. The QCC and productivitymeasurement programmes are among thoseevaluated negatively. However, many officersthought it may be too early to draw hard and fastconclusions about the QCC and PMPprogrammes.

Improving Service to th.e Public

The Mahathir administration emphasized thatdepartments dealing with the public need toimprove the quality of their services in order toupgrade the image of the government QabatanPerdana Mentri 1989: 95). One of the stepstaken was to improve the counter service. In1982, the one-stop counter service wasin trod uced, allowing paymen ts of various licencefees and public utility bills (previously made atdifferent departments) to be made at one centre(l'vlAMPU 1988: 36). Until 1989, about 880 suchcentres were established throughout the country.Since the introduction of the system in 1982, ithas resulted in a substantial increase in workload

in the post office, thereby leading to an increasein operating expenditure. Thus, the governmenthas authorized post offices to collect commissionor impose service charge for any servicesrendered Qabatan Perdana Mentri 1989: 97).84% of the respondents perceived the one-stoppayment counters to be an effective method ofincreasing efficient service to the public.

One-stop service centres were introduced inNovember 1982. Because of the substantialincrease in workload and congestion in certainservice departmen ts such as RIMV (RoadInspection and Motor Vehicles Department) andStamp Duty offices, the new system was aimed atdecenu'alizing the responsibility of the respectivedepartments so that efficiency and effectiveness ofservices to the public would be enhanced. Sincethen, certain agencies have been selected to manageservices of departments such as the Stamp Dutyoffice, RIMY and Judicial Office. Through theone-stop service cenu'e, the public is able to obt.:Linsenrices such as stamp duty, commissioner of oathsand renewal of dJiving licence at one place (JabatanPerdana Mentri 1989: 97).

Up to 1990, there were at least 140 servicecentres throughout the counu)' (Jabatan PerdanaMentri 1989: 97). As with the one-stop paymentcentre, this new system is evaluated positively by78% of the respondents.

The one-stop licence centre was launchedon 24th March 1984. Since then, the agencies

Services

TABLE 3Effectiveness of services to the public

Percent Posi tiveEvaluation

Percent NegativeEvaluation

Quite Extremelyineffective ineffective

1.6 0.3

1.8 0.3

2.5 0.3

27.1 6.0

7.5 1.7

Extremely Quite Neutraleffective effective

One-stop Payment Centre 53.1 30.4 14.7

One-stop Service Centre 39.5 38.7 19.7

One-stop Licence Centre 32.4 34.9 29.9

Suggestion Box 6.5 35.5 24.9

GIRO 17.1 39.2 34.5

Efficient and Courteous CounterService 20.3 56.9 14.7

Source: Survey data

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Ahmad AWl)' l-lussain

involved are required to facilitate the applicationprocess, shorten the period for processing orissuing approval of licences and permits, andimprove the format of application forms (JabatanPerdana Mentri 1989: 97).

Two agencies offered to provide one-stoplicence centres, Kuala Lumpur City Hall andMfDA (Malaysian Industrial DevelopmentAuthority). The Kuala Lumpur City Hall is incharge of granting entertainment licences toforeign artistes, while MIDA is in charge of theissuance of manufacturing licences (MAMPU1988: 36).

The concept of one-stop licence centres wasexpanded. The Kuala Lumpur City Hall startedits drive-through centre on 18th January J988.MIDA established a one-stop investment centre,aimed at providing speedier services relating tobusiness opportunities and other investmentinformation. The same facility is provided at thestate level by the respective State EconomicDevelopment Corporations (SEDC) (-IAMPU1988: 36). '''lith the introduction of the service,people from outside Kuala Lumpur City needno longer come to the city to get services relatingto investment opportunities or to get businessand manufacturing licences. The positiveevaluation of the new system by about 67% ofthe respondents is also surprising in view of anumber of problems arising from theimplementation of the new system.

Efficient and courteous counter service is aconcept introduced by the Mahathiradministration in an effort to boost the moraleand image of the civil service. Dr Mahathirwanted to change the behaviour of the civilservants to give more people-oriented service.

The positive evaluation of the concept (77%)as indicated in Table 3 stems from the fact thatthe government has attempted to overcomeproblems encountered in implementing theconcept. Thus, the positive evaluation mayindicate a bureaucratic acceptance of the use ofthe concept to improve services to the public.

The suggestion box is another techniqueadopted in an effort to take public views,suggestions and grievances into consideration inreforming the administration, particularly inmatters concerned with the implementation ofthe new concept of one-stop counter service(MAMPU 1988: 36). However, the negativeevaluation of the suggestion box by about 33% ofthe responden ts is surprising. This negative

evaluation may indicate the bureaucratic rejectionof the technique as being an ineffective methodfor increasing efficiency of the public service.Also, it may indicate that the government has notplaced emphasis on it as a method for gettinginfonnation from the public in an attempt toimprove services to the public, and that thegovernment may not have taken into considerationsuggestions or complaints lodged by the public.

The GIRO System is another reform effortwhich deals with the improvement of service tothe public. Its objective is to enable the publicto pay their utility bills such as water, electricity,telephone, insurance and income tax withouthaving to queue. This system is expected to

bring about rapid changes in revenue collectionand billing and a substantial increase inproductivity of employees (MAMPU 1988: 8).Dr Mahathir indicated the possibility ofestablishing the GIRO system in 1984 whendelivering his speech at the opening ceremonyof the Daya Bumi building. As a result, on 27thFebruary 1987, the national Giro system waslaunched for the Klang Valley area. InNovember 1987, the system was extendednationwide except for state of Sabah (MAMPU1988: 8).

In February 1988, the number of GIROaccount holders was about 165,508. Up to 1989,about 140 outlets were established throughoutthe country providing the facility for the publicto settle their utility bills through the system(MAMPU 1988: 36). There were problems facedby the National Saving Bank (BSN) such as lackof participation from the government agenciesin opening GIRO accounts with the BSN. Therewere two reasons for such poor response. First,the local authorities could not simply openGIRO accounts because the system does nothave facilities provided by commercial banks.Second, the agencies could not endorse theclients' payments within a certain time-frame.This would result in difficulty for customers inproving that they have already settled their bills(MAMP 1988: 37). Although some difficultieswere encountered in the implementation ofthe system, it does not indicate a rejection ofthe programme. It seems that the officers areconvinced of the benefit of the programme.This is indicated in Table 3 where it is positivelyevaluated by 56% of the respondents.

As Table 3 shows, the general consensusamong the respondents is that one of the five

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Administrative Reform in Malaysia: Strategies for Promoting Efficiency and Productivity

techniques adopted by the Mahathiradministration, the suggestion box, did notincrease efficiency.

Table 3 also indicates a positive evaluationof one-stop payment, service, licence centres.This may indicate a great improvement inproductivity and efficiency. However, one writtencomment on a questionnaire said thatimprovement of the one-stop centre was only inthe form of physical facilities, while actual deliveryof services is still slow. Another respondentcommented that much improvement hasoccurred in service-oriented agencies such ashospitals, registration and immigrationdepartments at the national level, whiledepartments issuing licences and permits havenot improved much since decision-making iscentralized and is often usurped by the politicalleaders.

Changing Attitudes of Civil Servants

Changing the attitudes of civil servants is one ofthe behavioural dimensions of Mahathir'sadministrative reforms in pursuit of efficiencyamong civil servants. Table 4 summarizes theresults of the effectiveness of behaviouraltechniques in increasing efficiency in the publicservice.

About 79% of the respondents find the'clean, efficient and trustworthy' concept to bean effective concept in bringing about a changein attitude among civil servants. As shown inTable 4, this concept is indeed considered to bea key part of the Mahathir administrative reformprogrammes. One of the written comments

accompanying the qllestionnaire also put theslogan as the most important aspect of ethics tobe cultivated among civil servants.

Leadership-by-example is aimed atincreasing efficiency and productivity in thepublic service. About 69% of the respondentsperceive the concept to be an effective tool inimproving attitudes of civil servants. Thisindicates that the civil servants have graduallybeen convinced of the concept's worth since itsintroduction ten years ago.

An excellent service award was introducedby the Mahathir administration to reward andrecognize those in the public service who haveshown excellent performance. The responsesindicate that there is a positive evaluation of theaward. About 65% of the respondents perceivedit to be an effective means of increasingefficiency, while 16% perceived it as beingineffective (negative). Although there is anindication that the concept of an excellent serviceaward is well accepted by the civil servants, therestill exists dissatisfaction over the way theauthority selects the recipients of the award.Recognition should be given to officials andstaff for their excellen t services and contributionsto the nation as a whole. This will help increaseefficiency and enthusiasm of the civil servants inthe public service.

Literature on the Malaysia Incorporatedconcept suggests that it has met wit.h limitedsuccess because bureaucrats have not been ableto incorporat.e it into their respective agency'spriorities, and t.hey need t.ime to becomeacquainted with it. However, the responses

TABLE 4Effectiveness of improving attitudes of civil servants

Administrative/BehaviouralTechniques

Percen t PositiveEvaluation

Percent NegativeEvaluation

Extremely Effective Neutraleffective

Clean, Efficient & Trustworthy 16.6 55.2 16.1

Leadership by Example 19.7 49.7 15.5

Excellent Service Award 16.8 48.6 18.2

Malaysia-Incorporated 10.5 47.5 31.0

Source: Survey data

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Quite Extremelyineffective ineffective

10.0 2.1

11.6 3.5

14.5 1.9

9.5 1.4

73

Ahmad AWl)' Hussain

indicate that there is a surprising degree ofacceptance of the concept and it has had someimpact on the agencies as a mean of improvingattitudes and efficiency of the civil servants. Table4 shows a positive evaluation by 58% of theeffectiveness of the concept.

Table 4 also shows that none of theadministrative techniques introduced in theMahathir administration received less than 50%assessment. The Malaysia Incorporated conceptis the least positively evaluated of all the reformtechniques. The other techniques which weremoderately evaluated are the excellent serviceaward, leadership-by-example, and the 'clean,efficient and trustworthy' concept.

Inculcating Work Ethics

There are seventeen positive values given priorityby the government (lNTAN 1991). They arelisted in Table 5, which also summarizes inpercentages the positive and negative opinion ofrespondents regarding each of them. Almost allwritten comments accompanying thequestionnaire stressed that efficiencyimprovement in the civil service must take intoconsideration the morale and work ethics.

As Table 5 shows, the overwhelming featureof the civil servants' evaluation is that most ofthe values inculcated among civil servants wereperceived positively, \\~th the exception of "thrift"and "enterprise" values which are among the

74

TABLE 5Improvement of work ethics

Values Percent Positive Percelll NegativeEvaluation Evaluation

Highly Improved Neutral Somewhat Notimproved improved improved

Accoun tabili ty 13.3 65.7 7.7 11.4 1.9

Self-managemelll 4.7 57.9 19.1 15.8 2.6

Co-operation 133 64.7 58 14.0 2.1

Self-developmem 5.3 47.3 20.2 23.3 3.5

Diligence 8.2 63.6 9.6 16.9 3.7

Intellect 7.5 47.3 24.6 16.9 3.7

Team Spirit 15.5 59.1 8.1 14.9 2.1

Thrift 2.4 46.5 29.6 16.7 4.8

Innovativeness 6.1 52.0 20.0 18.4 3.5

Posi tive Attitude 10.7 55.1 17.1 \4.7 2.1

Integrit)' 10.7 55.1 17.1 14.7 2.3

Responsiveness II.8 56.5 14. I 16.2 1.4

Self~discipline 7.9 59.7 12.6 17.5 2.3

Client-oriented 13.3 57.6 10.6 15.7 2.9

High Performancce Oriented 9.1 48.9 21.1 l8.5 2.3

Professionalism 11.8 52.2 13.9 9.1 3.\

Enterprise 4.3 39.9 30.6 20.0 5.2

Source: Survey data

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Administrative Reform in Malaysia: Strategies for Promoting Efficiency and Productivity

least positively evaluated (49% and 44%) by therespondents. The "thrift" value aims to encouragecivil servants to manage government property aswell as government expenditure with prudenceand th rift (TNTAN 1991).

Table 5 also shows values such asaccountability (79%), co-operation (78%), teamspirit (75%), diligence (72%), and client­orientedness (71 %) to be the most positivelyevaluated, while integrity (69%), self-discipline(68%), positive attitude (66%), professionalism(64%), self-management (63%) are also positivelyor moderately evaluated by a lesser percentageof the respondents. Among the values that wereaccepted at least partially (below the 60% mark)are creativity and innovativeness (58%), highperformance oriented (58%), intellectual honesty(55%), self-development (53%).

The positive evaluation of almost all workethics values inculcated among civil servants isattributed to a more comprehensive behaviouralsu-ateg;' and commitment on the part of theMahathir administration to adopt such worketllics towards cultivating positive attitudes amongcivil servants. The values the government isattempting to inculcate need more time to beinstitutionalized. We should bear in mind that awhole host of cultural and social factors havebeen responsible for the development of thevalues, which in turn support the existence of a

set of work ethics or positive values in the publicservice (Mohd Noordin 1991).

The Effectiveness of the Privatization Policy

A questionnaire survey undertaken in this studyconfirms that the privatization policy spurseconomic growth, relieves the financial andadministrative burden of the government,promotes competition, efficiency andproductivity, stimulates entrepreneurship,reduces the size of the public sector and meetsthe objectives of the EP. The analysis foundthat 77% of the respondents agreed thatprivatization is an effective tool for stimulatingthe economic growth of the nation. About 78%agreed that it relieved the financial andadministrative burden of the government and atthe same time reduced the size of the publicsector. About 65% agreed that it had promotedcom peti tion, improved the efficiency andproductivity of the public service. About 66%agreed that it stimulated entrepreneurship andprivate investment. About 75% agreed that itreduced the size of the public sector. Finally,57% agreed that it helped meet the objectives ofthe NEP (See Table 6).

Analysis shows that privatization brings aboutefficiency in the Malaysian civil service. Table 6presents percentages of positive and negativeevaluation of the impact of privatization policy

Purposeor Motive

TABLE 6Effectiveness of the privatization objectives

Percent PositiveEvaluation

Percent NegativeEvaluation

7.4 2.4

11.0 4.3

7.9 1.7

9.8 2.6

11.2 3.8

Extremely Quite Neutraleffective effective

To spur economic growth 25.1 51.6 16.9

Relieving financial & administrativeburden 30.5 47.7 11.7

To promote competition,20.0efficiency & productivity 16.9 47.9

To stimulate entrepreneurship 16.5 49.3 24.6

To reduce the size of public sector 34.9 40.4 12.2

Meeting objectives of NEP 14.4 42.8 27.8

Source: Survey data

PertanikaJ. Soc. Sci. & Hum. Vol. 3 No. l 1995

Quiteineffective

5.5

Extremelyineffective

1.0

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Ahmad Atory Hussain

TABLE 7Impact of privatization on o'-ganization

Purpose Percen t Posi tiveEvaluation

Percent NegativeEvaluation

Stronglyagree

Agree Neutral Disagree Stronglyagree

Fear of privatizationimproved work discipline

Privatization: more consciousabout efficiency

Privatization improvedservice delivery

Pri"atization promotesenterpreneurship & investment

Privatization: more consciousabout public accountability

Privatization: more consciousabout productivity

Privatization-led jobinsecurity

Source: Survey data

3.1

7.8

7.7

16.5

7.1

12.7

2.1

21.1 2.9 48.2 12.6

44.2 16.1 26.0 5.9

50.5 11.5 26.5 3.8

49.3 24.6 7.9 1.7

45.8 15.6 27.4 4.2

58.7 7.0 18.1 3.5

11.6 13.2 58.3 14.9

on behavioural changes of employees of publicorganizations. These responses also include somefrom respondents whose agencies may not bedirectly affected by the privatization policy.

Privatization appears to have producedbehavioural changes in the public organization.This can be seen from responses shown in Table7. For example, about 58% of the respondentsagreed that 'privatization has led to improvementsin the service delive!)1 and courtesy towards clients',while only 30% 'disagreed'. This strongly indicatesthat the service delivery in the public sector hasimproved. Therefore, efforts should be furtherintensified to improve services to the public.

About 53% of the respondents agreed that'privatization has made their organization moreconscious about public accountability', only 32%'disagreed', and another 16% were unable tostate their opinions.

About 71 % of the respondents agreed that'privatization has generated consciousness aboutproductivity and quality of service'. This indicatesthat the civil servants have been convinced ofthe objectives of privatization in bringing about

greater quality and productivity in public services.Only about 14% of the respondents felt

that, 'privatization movement has led to jobinsecurity among civil servants', while 72% didnot think so. This is a ve!)' different view fromthe one on the privatization constraintsmentioned earlier, such as job insecurity or thefear of loss of bumiputra control and theresentment of public servants over the reductionof prestige and power. The respondents viewthat they do not fear job insecurity is notsurprising because the privatization programmesin Malaysia did not follow the 'full privatizationphilosophy'. The government still retains itspower and authority over privatized agencies. Toa greater or lesser degree, civil servants continueto hold the view that public enterprises serveother than commercial purposes (Minogue andMinogue 1990).

Another reason they do not fear theprivatization exercise is because the governmenthas pledged to take care of their well-being iftheir agency is to be fully privatized. Thisprovision is contained in the government's

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Administrative Reform in iV!alaysia: Strategies for Promoting EHiciencv and Productivity

guidelines for privatization. Firstly, no personnelcan be retrenched within the first five years ofprivatization, except on valid grounds. Staffredundancy, if any, is to be overcome throughthe normal attrition, redeployment andexpansion of activities. Secondly, uponprivatization, affected personnel shall be offereda package of no-less-favourable terms andconditions of service than they have enjoyedwhile working for the government (Hanafiah1989). Affected employees will be given theoptions of joining or leaving the privatizedagency. Those who choose to leave have theoption of early retirement; in this case they aregiven retirement benefits accordingly andimmediately. Those who wish to stay on in theprivatized agency are offered two schemes ofservice, one which replicates the governmentscheme of service and another, a commercially­oriented one. Under the latter scheme, theemployees are entitled among other things, topurchase the privatized entity's shares and toenjoy whatever bonuses are declared. It shouldbe emphasized that the above policy decisionsapply to affected personnel of governmentdepartments and statutory bodies only, and donot cover personnel of government companies(EPU 1989).

Pinancial Management System Budget Reform

One of the important techniques which dealwith the executive budget process is programme,performance, and budgeting system (PPBS). Itwas firs tin trod uced as a resul t of therecommendations of the Montgomery-Esmanreport. It was introduced in stages beginningfrom the 1969 financial year and was adopted byall government agencies by the 1972 financialyear (Gorham 1967; Doh 1981). However, thePPBS has not been successful. The reasons forthe failure are as follows: (i) Lack of knowledgeand expertise at the Financial ManagementSystem Unit, Budget Division, ministry anddepartment developing the system; (ii) Lack ofcommitment towards the PPBS among topmanagement; (iii) Generally, the ministries werenot confident of the system because it has alsofailed in other countries, especially in UnitedStates; (iv) There was no special trainingprogramme provided for officials to support theimplementation of the PPBS (MAMPU 1988: 11­12); and (v) there was an implicit view that thelack of response from the agency chiefs toward

PPBS stemmed from the fact that the new systemrevoked their privilege of being the autlloritativepersons in the budget process.

The situation gradually changed when Dr.Mahathir took office in 1981. The PPBS wasrevitalized to suit the new administration.Consequently, PPBS succeeded in forcing theagencies to review their goals and objectives andgenerating a lot of useful information for thepurpose of budgeting and me decision-makingprocess. This reform effort has improved thefinancial system based on the amendment to theAudit Act 1957. Performance audit directlyattempts to evaluate the performance ofgovernment agencies in terms of economy,efficiency and effectiveness (Mohd Rais 1988).Given a strong top political support in budgetreform, there is a high degree of acceptance ofreform effort by the bureaucrats. Table 8summarizes the civil servants' perceptions of theeffectiveness of budgetary reform in improvingthe financial administration.

Table 8 shows that there is a degree ofpositive evaluation of all statements on thebudgetary reform. When asked to indicatewhether budgeting is now more programme andperformance-orieJ1<2d, about 81 % of therespondents perceived it to be so and only 7%thought otherwise. "\Then asked to respond tothe following statement: (1) 'Better evaluationof the costs and benefiL~ of projects', 73% of therespondents responded positively and only 10%negatively; (2) 'more comprehensive budgeting',78% respondents responded positively, while only8% responded negatively; (3) 'ensures greaterfinancial accountability', 77% of respondentsperceived positively, 9% perceived negatively;and (4) 72% of the respondents perceived thatthe budgetary reform allows more rationality inthe budget process in terms of evaluating socialgoals and choosing programmes to meet thesegoals, while 10% thought otherwise.

Based on the civil servants' positiveevaluations of the budgetary reform, budgetingin the Mahathir administration is perceived tohave improved upon the systems used in the1960s and 1970s.

Financial Management Control

Financial management control has also beenundertaken under the package of budgetaryreforms. One of the factors that led to theadoption of the privatization policy was therampant mismanagement in the financial

PertanikaJ. Soc. Sci. & Hum. Vol. 3 No.1 1995 77

Ahmad Atory Hussain

TABLE 10Overall improvement of administrative reform

Percent Rate Percent Number ofof Improvement Evaluation Respondents

10 1.5 615 .7 320 3.4 1425 1.0 430 6.8 2835 1.5 640 5.1 2145 1.7 750 7.0 2955 2.4 1060 12.9 5365 6.6 2770 16.0 6675 5.8 2480 18.4 7685 2.4 1090 3.9 1695 .5 2

100 4.8 21

100% 433

Source: Survey data

1981. About 80% of the respondents perceivedefficiency and capability of the civil service tohave improved between 50% to 100%. Of thetotal 433 respondents, 76 respondents (18%)perceived efficiency and capability to have beenimproved by 80%, 66 respondents (16%)perceived them to have improved by 70%, while53 respondents (13%) perceived them to haveimproved by 60%. Only 89 respondents (20%)did not perceive efficiency and capability in thecivil service to have improved at all. However, ifa mean response is used as a measure of centraltendency in evaluating the overall improvementin efficiency and capability of the civil service,the data indicate that the Mahathiradministration has been able to improveefficiency and capability of the civil service onlyby 62.15 of mean point or 62%.

Strategy of Reform

The second research question dealt with typesor strategy of reform related to the success orfailure of administrative reform. Analysis of thesurvey datas found that among the threestrategies, procedural, structural and behavioural,there is not much different in terms of increased

efficiency, effectiveness and productivity amongcivil servants. Table 11 demonstrates that allthree types of reform are highly effective, butthe procedural programmes appear to be themost effective of the three approaches. Forinstance, the name tag identification and thepunch card system were the most positivelyevaluated by the respondents.

Empirical investigations of administrativereform suggest that behavioural and structuralas well as procedural reform strategies areimportant tools of administrative reform of theMahathir administration. Howeyer, the data alsopoint to the fact that successful administrativereform of the Mahathir administration dependsnot only on the use of administrative reformstrategies (structural and behavioural) but alsoon the Prime Minister's personal leadershipqualities, political skills, leadership style andcommitment, and also on the bureaucraticacceptance of the reform strategies. In fact,administrative reform in the Mahathiradministration is positively evaluated across alldimensions of strategies both structural andbehavioural, despite the fact that some of theseprocedures, techniques and systems of reformshave at time been viewed as ineffective.

MAJOR FINDINGS

This section summarizes the significant findingsfrom the survey conducted and also from otherliterature sources on administrative reform.

From the Research Questions

The survey data established that, generally,perceptions of civil servants towards the variousreform measures carried out since 1980 werepositive. For example, all procedures andtechniques introduced in the public servicessince 1981 have been well received, particularlypunch card and name-tag identificationmeasures, and, to a lesser extent, the deskfilesystem. Other reform measures such as the open­space layout, QCC, work procedure manual,postal correspondence guidelines, managementthrough meeting and productivity measurementprogrammes have also been favourably received.Perhaps, more time is needed before theirbenefits become obvious and hence, theiracceptance.

With respect to these positively evaluatedreform measures for improving services to thepublic that were highly valued such as the one-

80 PertanikaJ. Soc. Sci. & Hum. Vol. 3 No.1 1995

Administrative Reform in Malaysia: Strategies for Promoting Efficiency and Productivity

Table 11Highest evaluation of selected reforms by strategy

Strategy Type ofProgramme

Effective%

Neutral%

Inffective%

Structure

Procedure

Behayiour

Privatization:Stimulate economicgrowthRelieve financialburden of Gov!.

System and Procedure:Punch card systemName tag

Services:One-stop payment centreOne-stop service cen tre

Budget Reform:Prog. & performance­orientedMore comprehensivebudgeting

Financial Mgt. Control:Consciousness of financialaccountabilityUtilization of financialresources

Improvement of Attitude:Leadership by exampleClean, efficient &trustworthy

Work Ethics:AccoountabilityCo-operation

77 17 7

78 12 10

91 3 690 6 6

84 15 278 20 2

81 12 7

78 6 8

81 12 7

79 12 9

69 16 15

72 16 12

79 8 1378 6 16

Source: Survey data

stop payment, service, and licence centres, theirgeneral acceptance and effectiveness can be seenfrom the improved overall performance of thevarious ministries and agencies that have adoptedthem. For example, there has been a generalincrease in the efficiency of revenue collectionby certain government departments such as IncomeTax and various local authorities. Processing timefor passports by the Immigration Department andfor the renewal of licences by the Road TransportDepartment has been dramatically reduced.

Another programme which has receivedfavourable response from the respondents is theprivatization policy. Senior civil servants surveyed

thought that merely privatiZIng formergovernment departments or agencies would bringabout behavioural modification among itsemployees.

One of the main thrusts of reform duringthe 1980s period was the behaviouralmodification of civil servants. Towards this end,various slogans such as "clean, efficient andtrustworthy" concept of government, "leadershipby example" and "Malaysia Incorporated" werelaunched. An excellent service award has alsobeen created in order to reinforce the adoptionof the various desirable values that thegovernment has identified. The survey data also

PertanikaJ. Soc. Sci. &: Hum. Vol. 3 No. I 1995 81

Ahmad Alory Hussain

showed that the majority of the respondentsagreed that these strategies were effective ininstilling a more positive outlook amongemployees. This positive view also extended toprogrammes for inculcating work ethics. Forexample, the seventeen measures introduced inthe programme for inculcation of work ethicswere seen as effective in instilling better workethics among the public employees.

Generally, the survey data showed that theopinions of the majority of the senior civilservants interviewed were positive "'ith regardto the ability of the behavioural approach inreform. Some of these programmes discussedearlier have been successful in increasingefficiency and productivity in some governmentdepartments and agencies. This opinion wasperhaps based on the notion that, in any reformeffort, there must exist a central and directionalauthority for reforms to be successful.Unsurprisingly then, the majority of those seniorcivil servants surveyed thought that the mostinfluential actors in the Malaysian reformprocesses comprise the Prime Minister, hisCabinet and the ruling party. Within the civilsen'ice, that power is exercised by the Treasury,Public Service Department (PSD), MalaysianAdministration and :vlanpower nit (r-,/fAMPU)and Economic Planning Unit (EPU).

Even though the administrative reforms ofthe 1980s and the early .l990s seem to have beenfairly successful, there are also weaknesses thatstill require serious attention. The shortfalls ofthe reforms are evident from the generouscomments and suggestions provided by seniorcivi I sen-ants who responded to the sur\'ey.

The findings of the survey data showed thatthere are some senior civil servants who are stillsceptical of some of the reform programmes.Many were of the opinion that some of theseprogrammes have yet to show positive results.There were some who argued that many reformefforts were merely circulars distributed togovernment departments and agencies; theirinstructions appeared good on paper, but theyhave yet to be fully implemented or adopted.Some respondents argued that some of theseinstructions are either hard to implement or aresimply ignored.

Furthermore, some reforms may be purely"administrative innovations" without definite ordirect association with improvement in attitudinalchange that would result in greater accountability

and efficiency. Some reforms, particularly thebehavioural aspects, are regarded as "sloganshouting" and political gimmicks. Reform effortspertaining to instilling positive values and workethics continue to be externally driven, notinternally directed. As such they have been lesssuccessful in bringing about any significantchange in attitudes. Some reforms are takingplace too fast, so the effect of theirinstitutionalization cannot be accurately assessed.1n this respect, one senior officer claimed thatsome efforts are merely protocol and ceremonialrather than having any real substance.

Many of the negative comments returnedwith the questionnaire contained some elementsof truth; some also contained constructivesuggestions. However, the overall responses seemto suggest that reform efforts undertaken by theMahathir administration received overwhelmingsupport among civil servants. This seems to bethe case with administrative reforms such as theLook East policy, Malaysia Incorporated concept,leadership by example, introduction of a civilservice code of ethics, the privatization concept,personnel improvement, and financialmanagement control. Although manyrespondents showed some dissatisfaction withthe increasing rate of white collar crimes ill. thepublic service, many felt that the Mahathiradministration has been serious in its effort tocom bat corrupt practices.

The survey data also showed that a largeproportion of the respondents felt that someform of programme for personnel improvementshould be taken into consideration in any effortto further improve the efficiency and capabilityof civil servants. Some respondents suggestedthat the opportunity for promotion ofprofessional staff should be at par with thataccorded to MCS officers. In this respect, therewas also a suggestion that the MCS should berevamped with a view to giving equalopportunities for all groups of civil servants tobe promoted to posts across the higher echelonof the civil service. This should include, therespondents further argued, equal opportunityfor all to be appointed Chief Secretal)' to theGovernment, the highest administrative post inthe civil service. In this way, the civil sen-icecould stop the "brain drain" of staff who leftbecause they were not satisfied with the termsand conditions of service. A.lso, at times the civilservice is not apolitical.

82 PertanikaJ Soc. Sci. & Hum. Vol. 3 No. I 1995

Administrative Reform in Malaysia: Strategies for Promoting Efficiency and Productivity

One officer offel-ed a suggestion that thenew remuneration scheme (NRS) introducedby the Government in 1990. NRS, with itsslogan "Caring Service", should complimentexisting reforms. Otherwise, according toanother officer, it can easily be manipulatedby some people to gain personal advantages.According to yet another respondent, thereis evidence to suggest that when MCS officershelp formulate government policies,especially on service matters, they are alwaysthinking of their own interests above othermatters.

Involvement of the top political leadershipis another area which distinguishes anddetermines the success of administrative reformsbefore and after 1980. For example, Malaysianpremiers before 1980 did not emphasize theimportance of links between the public andprivate sectors as the engine of growth. But after1980, and especially during Dr MahathirMohamad's premiership, the role of public andpublic sectors has been strongly emphasized.This is clearly evident from the government'semphasis on developing a positive corporateculture even in the public sector as a vehicle forgenerating efficiency, effectiveness andproductivity.

Summarily, reform efforts through thevarious behavioural, structural and proceduralmeasures undertaken since 1981 have so farbeen able to increase efficiency and productivityin the civil service by about 62%. However, moreeffort is still needed to further improveefficiency, effectiveness and productivity in thepublic bureaucracy. Equally important is theneed to get closer co-operation of some seniorcivil servants who are in a position to ensure thesuccess of whatever measures are introduced.

Recommendalions

Improvement in financial management is onlyone of the bureaucratic techniques to curbcorruption and mismanagement. Bureaucracyalone cannot eliminate the root causes ofcorruption. It is only one part of a largersociety, where corrupt practices abound.Therefore, unless the society at large is reformedor infused with positive values, bureaucracy itselfmay also be engulfed by these menaces. It istherefore important to reform society first, byinculcating positive values and morals beforestarting to reform the bureaucracy. However, we

should bear in mind that the civil servants areexpected to playa more important role in anyreform efforts than the society at large, as theformer are the elite who are in a position todeliver services to their intended target groups.

The findings suggest that civil servants weregenerally satisfied with the reform effortsundertaken by the Mahathir administration. But,it also appears that there is still some degree ofdissatisfaction among civil servants regardingvarious aspects of reform such as promotionopportunities, salary schemes, neutrality of thecivil service in politics, values and motivation ofthe civil servants, the tight control of MCS officerson other branches of the civil service. These areongoing issues which have yet to be resolved. Theyare likely to have an adverse effect on efficiencyunless they are seJiously addressed by the leadership.

Some of the issues and aspects inadministrative reform need to be studied ingreater depth, such as productivity measurementprogramme (PMP); quality control circles(QCC); the inculcation of work ethics amongcivil servants; the new remuneration scheme(SSB-Skim Saraan Baru); the proposed mergerbetween MCS and MAS; performance appraisal;the promotion system and the salary-based matrixsystem. Hence, future studies on administrativereforms should also be more micro inperspective covering state, statutory bodies anddistrict administration.

Since the privatization concept is also relatedto administrative reform, especially in terms ofefficiency and competitiveness among civilservants, it is the view of the writer that thisobjective has too often been underrated. It is,therefore, necessary to further study howprivatization can improve efficiency andproductivity by acting as a stimulus and challengefor civil servan ts to improve their performance.In this case, studies to analyse administrativereforms of the private sector are necessary todevise ways and means of transferring specificcompetencies and know-how from the private tothe public sector.

CONCLUSION

In Malaysia, reforms have been carried out usingan integrated approach in order to overcomeshortfalls of any particular model when appliedindividually. Three major reform models havebeen emphasized. These are: (i) structural­functional; (ii) procedural; and (iii) behavioural.

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Ahmad Awry Hussain

Various reform programmes implemented haveadopted a combination of two of these reformapproaches. ""hile the structural-behaviouralapproach has been closely adopted in the caseof privatization, the Mahathir administration hasnot neglected the need for institution-building,an approach strongly emphasized by Tun Razakin the 1960s and 1970s. In fact, structural,procedural, behavioural and institutionalapproaches have complimented one another inmany reform developments.

Reforms that have taken place duringl'vIahathir's leadership occurred during a periodof heightened national self-confidence. Forexample, there is no record to indicate that hisadministration has invited any foreign expertsor consultants to help out as was the case duringTun Razak's administration in 1960s. This shows~/Iahathir's confidence in the role of PSD andMA1V1PU, the main driving forces in the currentreforms, as reform agents.

Given that there is some degree of politicalcontrol over the civil service, pressures may beput on the bureaucracy to reform their rigidprocedures and attitude so that they are able toperform more efficiently in the complex tasks ofdevelopment planning. Hence, the bureaucracyhas been able to implement the government'spolicy development by introducing variousadministrative reforms.

Although administrative reforms during the1980s and the early 1990s seem to have beenfairly successful, there are also some negativeimpacts on the Malaysian bureaucracy. One ofthese is the ideal of neutrality of civil servantswhich is now being challenged as a result ofcertain reform programmes.

During the Mahathir administration, it isobserved that the neutrality of civil service is lesscertain than in Tun Razak's or Tun HusseinOnn's period. This popular conventional theoryof public administration is becoming increasinglyout of touch with the prevailing realities duringthe Mahathir administration. Since the adoptionof various reform programmes such as theprivatization policy and the MalaysiaIncorporated concept, the civil servants have toplay their important part hand in hand with theprivate sector in an effort to boost the economyof the nation. This is contrary to the Razak erawhere the civil servants were cast in their role asimplementers of the development plan with aclear-cut or dichotomistic role between civil

servants and politicians as well as businessmen.Under the conventional theory of publicadministration, the civil servant independentlycarries out the policy implementation withoutpolitical interference. However, this concept hasnow been challenged by several practices adoptedby the government under the Mahathiradm in istration.

The epitome of examples can be seen in thecurrent promotion of civil servant which isinvariably not related to the new remunerationsystem (NRS). Since it is the political masterswho make decisions over various policies, thereis a lot of instability or indecisiveness in terms ofCabi net resh uffles and appointment of politiciansto various government agencies. This has affectedthe image of the political masters. All theseindecisive practices have thrown civil servantsinto disarray and this has a spillover effectregarding their loyalty as civil servants.

Subsequent reappointments of retired topstrata civil servants in the public sector is anotherexample which has eroded the neutrality concept.In comparison with Tun Razak's period, whensuch reappointments rarely occurred, duringthe Mahathir period it has become a normalpractice which has affected the neutralityconcept. Amongst the objectives of such a policyare to create former boss-subordinaterelationships, exert their experiential knowledgein order to facilitate the implementation ofdevelopment projects and carry out them faster.Hence, the neutrality as an ideally stated conceptis being challenged because there are two criteriafor the appointment of civil servants into thepublic service, one based on merit andqualifications, the other one based on politicalappointments.

The appointment of top strata civil servantsin the private sector after their retirement isanother example which appears to go againstthe neutrality concept. This is because suchappointments would lead to unhealthy elementsin terms of pursuing business opportunities, suchas favouritism and nepotism. This deprives thosewho do not have access to officials inside thepublic agencies though they do have the samecriteria for any business application.

To effect the Malaysia Incorporated concept,the government has encouraged top civil servantsto co-operate with the private sector such ascorporate groups, businessmen and both localand foreign investors in an effort to boost the

84 Penanikaj. Soc. Sci. & Hum. Vol. 3 No.1 1995

Administrative Reform in \I1alaysia: Strategies for Promoting £tficiency and Productivity

economy of the country. For example, the topcivil servan ts are encouraged to have informalmeetings or recreational activities such as playinggolf with the private sector comm unity. Thisform of social interaction is encouraged topromote the government-business relationship.But one has to bear in mind that it has nowbecome a platform of lobbying and manipulatingfor business opportunities. This unhealthyelement certainly becomes discouraging, as thepolitical favours and influences of the so-calledpower elite became significant. Those who donot belong to the power elite are alienated fromthe process of decision-making in the publicbureaucracy.

As IVlalaysia prepares to en ter the 21stcen tury, greater challenges lie ahead. In allcertainty, the panel set up by the Government tomonitor the civil service is well aware of thesechallenges..AJthough the period of the NewEconomic Policy (1971-1990) ended three yearsago, Malaysia will continue to experiencedynamic changes in all aspects, as the nationprepares herself for development as embodiedin Vision 2020. A new economic policy, theNational Development Plan, has been introducedand it contains some of the basic principles ofthe previous NEP, with a new emphasis to suitthe new em'ironment in line with new goals setin Vision 2020.

ACKNOWLEDGMENTS

The author wishes to express hisacknowledgement to the anonymous membersof the JVlalaysian civil service who gave their timeand co-operation in completing and returningthe author's questionnaires. The writer is alsoheavily indebted to Puan Asiah Ahmad, Directorof MAMPU, who is also in charge of the PMP(productivity measurement programme) Divisionfor providing valuable materials regarding thistopic. Thanks are also due to Encik Abdul KarimMarzuki, Assistant Director of MAMPU, forvaluable materials on administrative reformefforts.

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