Advanced Public Sector Accounting

FACULTY OF ACCOUNTANCY UNIVERSITI TEKNOLOGI MARA

SUBJECT DESCIPTIONCOURSE : Bachelor of Accountancy (Hons)SUBJECT : Advanced Public Sector Accounting (PSA 521/520)CREDIT & CONTACT HOURS : 3 hrs/4 hrs (new syllabus) & 4 hrs/4 hrs

(old syllabus)

SUBJECT DESCRIPTIONThis advanced paper on Public Sector Accounting will emphasis on the various government policies and regulations as laid down in the National Policies, National Development Policies, National Development Policies, Administration Development Circulars, Treasury Circulars/Intructions in order to understand and appreciate the roles and functions of government agencies in their administrative reforms and efficient economic management in the new millennium. This paper will also introduce the government programmes and efforts in enhancing government systems/works by adopting TQM & ISO 9000 for quality management and using IT & Multimedia Technologies towards paperless civil service and Electronic Government.

SUBJECT OBJECTIVESThe objectives of this subject are:• To enable student to understand the major issues in the administration

and economic management in Public Sector including the government policies on corporatisation and privatisation, national development plans and any related current issues on globalised economy.

• To enable student to have an insight knowledge on the various systems adopted in the modernisation of government administration systemsuch as Total Quality Management & ISO 9000 and the innovative applications of Information and Multimedia Technologies in Multimedia Super Corridor and Electronic Government (EG).

• To develop student’s understanding on the detailed rules and procedures relating to procurement system in the government sector as required by the Treasury Circulars and Instruction.

• To enhance student’s understanding and appreciation on the roles and functions of public sector agencies such as Statutory Bodies and Local Authorities in their administration and financial management.

SYLLABUS(JANUARY-DECEMBER 2004)

COURSE : Bachelor of Accountancy (Hons)SUBJECT: Advanced Public Sector AccountingCODE : PSA 521/520CREDIT HOURS : 3 (New Syllabus) / 4 (Old

Syllabus)CONTACT HOURS : 4

FACULTY OF ACCOUNTANCY UNIVERSITI TEKNOLOGI MARA

• K – Economy Master Plan• Mahathir’s thoughts on Globalisation and K –Economy.

e. K- Economy

• Industrial Master Plan and Second Industrial Master Plan (1996-2005) and related articles.

d. Industrial Master Plan

• Government documents on NEP, NDP, OPP2, 6th and 7th M’sia Plan and related articles.

c. Long Term Plan

• Mahathir’s Vision-Vision 2020• Mahathir’s policies on national unity: caring society & meritocracy• Government documents on Vision 2020 and relayed articles.

b. Vision 2020

• Privatisation Master Plan and related articles on corporatisation and privatisation• Economic Policies of Mahathir’s premiership on Privatisation and Industrialisation and Malaysia Incorporated.

a. Corporation and Privatisation

1. GOVERNMENT POLICIES5

REFERENCESCOURSE TOPICSNO. WK

• Mahathir’s thoughts and policies on MSC• Articles and Seminar Papers on MSC

4. MULTIMEDIA SUPER CORRIDOR (MSC)

1

• Articles on related areas• Articles on related areas

3. INFORMATION TECHNOLOGY (IT) IN GOVERNMENT

a. The need for IT in governmentb. IT Applications in government

1

• Mahathir’s thoughts on Nature of Globalisation and Financial Policies• Other articles on related issues

c. Any related current issues – eg : Economic Crisis/Globalisation

• 2004 and 2003 Budget speech, Economic Report 2004/2003 and other related articles

b. Annual Budget Speech

• Development Administration Circulars 1/92 and 2/96 and related articles on TQM and ISO 9000 in Public Sector .

a. Total Quality Management and ISO 9000 (Version 2000) in Public Sector

2. ADMINISTRATION AND FINANCIAL AMANAGEMENT

2

Local Government Act 1976.8. LOCAL AUTHORITY1

Statutory Bodies Act 240 and Treasury Circular 15/94

7. PUBLIC ENTERPRISE-STATUTORY BODIES

1

Treasury Circulars 5/94, 2/95, 4/95, 8/95, 6/98, 1/99, 2/99 and 2/2001

6. PROCUREMENTS & E –PROCUREMENTS

1

Mahathir’s thoughts and policies on E-Government

Articles and Seminar Papers on EG

5. ELECTRONIC GOVERNMENT (EG)

1

Lecturers, tutorials and presentation of project paper.

METHOD OF ASSESSMENT

100%Total marks

50%2. FINAL EXAMINATION50%

10%d) Individual E-Assignment / Quiz

10%c) One Group Assignment

¤ One Group consists of 2-3 members only

15%b) One group Project Paper

15%a) One Test

1. CURRENT ASSESSMENT

MAIN READING TEXT

1. Kalsom Salleh (1992/2003), “A Study Guide For Advanced Public Sector Accounting (PSA 520)”, Universiti Teknologi MARA, Shah Alam.

2. Kalsom Salleh (1999/2003), “A Compilation Of Reading Materials For Public Sector Accounting (PSA 520),” Universiti Teknologi MARA, Shah Alam –Volume One and Two.

REQUIRED REFERENCES• Mahathir Mohamad, the Malaysian System of Government, Kuala Lumpur: Government

of Malaysia, 1995• Malaysia Incorporated and Privatisation: Its Rationale and Purpose by Mahathir

Mohamad in Mohd. Nor Abd Ghani et, al (eds)• Malaysia Incorporated and Privatisation : Towards National Unity, Petaling Jaya:

Pelanduk Publications, 1984.• Mahathir Mohamad, The Way Forward, London: Weidenfield and Nicolson, 1998• Mahathir Mohamad, The Challenge, Petaling Jaya: Pelanduk Publications, 1986• The Malaysian Currency crisis-How and why it happened? By Mahathir Mohamad

(Pelanduk Publications)• Mahathir Mohamad, Currency Turmoil, Kuala Lumpur, Government of Malaysia, 1998• Managing the Malaysian Economy, selected speeches by Dr Mahathir Mohamad,

Pelanduk Publications, 2000• Regional Cooperation and the Digital Economy, selected speeches by Dr Mahathir

Mohamad, Pelanduk Publications, 2000• Globalisation, Smart Partnership and Government, selected by Dr Mahathir Mohamad,

Pelanduk Publications, 2000• Mahathir Mohamad, Multimedia Super Corridor, Subang Jaya: Pelanduk Publications,

1998• Excerpts from the speeches of Mahathir Mohamad on the Multimedia Super corridor

(1998) (Pelanduk Publications)

OTHER RELEVANT REFERENCES• Privatisation Master Plan• Government documents and related articles on Vision 2020• Government documents and related articles on National

Economic Policy and National Development Policy• 7th and 8th Malaysian Plan• Third & Second Outline Perspective Plan• Industrial Master Plan & Second Industrial Master Plan• 2004 & 2003 Budget Speech• Economic Report 2002/2003 & 2003/2004• K-Economy Master Plan• Administration Development Circulars 1/92 and 2/96 and related

articles on Total Quality Management and ISO 9000 in Public Sector.

• Related articles and seminar papers on Multimedia Super Corridor

• Related articles and seminar papers on Electronic Government.

• Treasury Circulars and Treasury Instructions on Procurement System • Statutory Bodies Act 240 and Treasury Circular 15/94• Local government Act 1976• Malaysia’s Vision 2020-Understanding the concepts, implications and

challenges by Tan Sri Dato’ Seri Ahmad Sarji Abdul Hamid (Pelanduk Publications)

• Civil Service Reforms towards Malaysia’s Vision 2020 by Tan Sri Dato’ Seri Ahmad Sarji Abdul Hamid (Pelanduk Publications)

• Strengthening the Malaysian Economy-Policy Changes and Reforms by Ramon V. Navaratnam (Pelanduk Publications)

• Multimedia Super Corridor-What The MSC is all about, how it benefits Malaysians and the rest of the world-Ibrahim Ariff, Goh Chen Chuan (1998) (Leeds Publications)

• Electronic Government (Pelanduk Publications, January 2003)• Reengineering in Public Service Leadership and Change in Electronic Age-

Muhamad Rais Abdul Karim (Pelanduk Publications)• Local Newspapers (New Strait Times, Star, etc), relevant local magazines

(Khidmat, Massa, Malaysia Business, etc) and Government Website (internet/intranet)

FACULTY OF ACCOUNTANCY ITM, SHAH ALAM

• PUBLIC SECTOR ACCOUNTING– PSA 520

• Bachelor of Accountancy (Hons) Program• Fulltime and Parttime Syllabus• Prepared by Puan Kalsom Bt Salleh• Edited by Dr Nafsiah Bt Mohamad

• Malaysia Incorporated Policy

• Corporatisation• Corporatisation versus

Privatisation• Privatisation• Rational for Privatisation • Objectives of Privatisation• Methods of Privatisation• Privatisation Action Plan• National Development

Policy (NDP) (1991-2000)• National Economic Policy

(NEP) (1971-1990)

• M’sia Development Plan• 6th Malaysia Plan (1991-1995)• 7th Malaysia Plan (1996-2000)

– Development Thrusts – New Dimensions– Emerging Challenges

• Industrial Master Plan (IMP)• First IMP (1986-1995)• Second IMP (1996-2005)• Manufacturing ++ Concept• Cluster-based Industrial

Development

CHAPTER 1-GOVERNMENT POLICIES

CORPORATISATION• Definition• Rationale/Reasons• Objectives• Examples of Corporatisation

PRIVATISATION• Definition• Rationale/Reasons• Objectives • Methods of Privatisation

– Sale of equity/assets– Lease of assets– Management contract– BOT/BOO

• Privatisation Action Plan (PAP)– Major Components– Privatisation Grid (Diagram)

• Drawbacks/problem of Privatised Projects• Examples of Privatisation

CORPORATISATION & PRIVATISATION

GOVERNMENT BUSINESS (ACTIVITIES & FUNCTION)

OVERVIEW MAP

PRIVATISATION OF GOVERNMENT DEPARTMENT OR STATUTORY BODY

• University Malaya• Lembaga Urusan Tabung Haji• Lembaga Hasil Dalam Negeri

• TNB• TMB• KTMN• POS LAJU BHD

OVERVIEW MAP

COMMERCIALISATION CORPORATISATION DIVESTITURE(PRIVATISATION)

GOVERNMENTDEPARTMENT

SELF-ACCOUNTANCYENTITY

STATE OWNED CORPORATION

PRIVATE SECTOR COMPANY

A BODY CORPORATE(company Acts 1965)

MALAYSIA INCORPORATED POLICYA policy launched in 1993 by a governmentThe Malaysia Incorporated Policy represents a major component of the new paradigm in the Civil Service todayMalaysia Incorporated means that the private sector forms the commercial and economic arm of the “national corporation”, while the government lays down the major policy framework and directions, and the Civil Service provides the necessary supporting and ancillary services. In other words, the Civil Service becomes the service arm of the national corporation. The approach therefore requires that both private and public sectors see themselves as sharing the same fate and destiny as partners, shareholders and workers within the same “corporation”, that is the nation.Thus, the Malaysia Incorporate Policy requires that the economic and service arms of the nation work in full co-operation, so that the nation as a whole can gain, in the way that a well-run corporation prospers.

GOVERNMENT BUSINESS

• Began with provision of utilities eg. Water, electricity, telephone and roads

• Later involved in purely economic activities• Companies were formed to carry out trading, mining,

shipping, transport, construction & manufacturing• Many of these companies did not perform well

Water Electricity Telephone Roads

CORPORATISATION• The process of converting a statutory body or a department

undertaking to a body corporate and registered under the Companies Act 1965 with equity wholly owned by the government.

• A process involves the transfer of government assets and liabilities from govt. department or statutory body to a company still ownedby the government but operating on commercial lines with commercial accounting and commercial performance objectives.

• Reasons to be corporatised before privatised– To determine the true & fair value of assets & liabilities– Replacing bureaucratic administrarion with commercial

management– Replacing centralised production oriented decisions with

consumer and market driven decisions.– Management will be more efficient & flexible and quality of

work & staff productivity will also increase.

CORPORATISATION (CON’D)• Benefits of Corporatisation

– Bureaucratic administration replaced by a more flexible and speed-up decision making process

– Greater administrative and financial autonomy– Enhance management and staff aspects-better resource

allocation and utilisation of assets to generate income and better remuneration to motivate personnel for greater efficiency.

– Distancing from political influence– Facilitates introduction of clear financial operational

performance targets and commercial accounting– Production-oriented decision replaced by consumer and

market driven ones.

CORPORATIZATIONversus

PRIVATISATION

CORPORATION• Before privatise• No transfer of ownership• No issue of shares• Greater control• Revenue oriented• Less flexible

PRIVATISATION• After corporatized • Transfer of ownership• Issue of shares to public• Less control• Profit oriented• More flexible

PRIVATISATION

• Initiated by government in 1983.• Implemented in 1985• More privatisation from 1988DEFINITION

– The transfer to the private sectors of the activities and functions which have traditionally rested with the public sector. In effecting such transfers, 3 essential organisation related components are involved:

• Management responsibility• Assets or rights to use assets• Personnel

– A privatisation method must involved the transfer of at least one of the components.

RATIONAL FOR PRIVATISATION

• Government strategy for rapid economic growth.• Promote greater involvement of private sectors in the economic

and infrastructure development to overcome financial burdens and to gain expertise and greater competition.

• Minimum government involvement in commerce and industrial business to create market competition and improve efficiency andproductivity of economic activities.

• Government would gain through increased revenue from taxes collected on the profit of the company.

• Rapid economic growth brings about improved living standard and better quality of life. This reduces social & economic imbalances & disparities.

• Government should confine to basic functions of keeping law and order and leave commerce & industry to private sector.

OBJECTIVES OF PRIVATISATION

• Relieving financial & administrative burden of government.

• Promoting competition, improved efficiency and productivity.

• Facilitate rapid economic growth.• Reduce the size & presence of the public sector

in the economy.• Contribute towards achieving national

economic policies eg. NEP & NDP

4 METHODS OF PRIVATISATION1. Sale of equity-applies to sale of management responsibility, assets

& personnel. A sale of equity can either be partial or complete OR

1. Sale of asset-not involve the transfer of all the three components. Can apply to assets of any govt. organisation.

2. Lease of assets-the transfer of right to use assets for a specific period in return for specified payments.

3. Management Contract (Contracting – in)-management expertise of private sector can be purchased for privatising of certain govt. activities (transfer of management responsibility).

4. Build-operate-transfer – involves the private sector constructing the facility using its own fund, operates for a concession period and transfer it to government. (north/south highway by PLUS) OR

4. Build-operate-Own – similar method to Build-Operate-transfer but does not involve the transfer of facility to government (TV3)

PRIVATISATION PLANPrivatisation Action Plan (PAP)-represents a more systematic & organised manner of privatisation policy & objectives to be implemented. PAP consists of a 2 year rolling plan which is reviewed at the end of each year detailing the entities to be privatised and those to be prepared for privatisation.MAJOR COMPONENTS OR PAP:

• Flagships-GOEs which are of national importance eg. TNB, TMB• Easily Privatizable Government majority-owned entities-profitable

govt. companies already operating in competitive commercial environment.

• Restructuring projects-non profitable government companies operating in competitive commercial environment which require financial and operational restructuring.

• Services-not exposed to significant commercial competition eg. Training, health, services, etc.

• New projects-traditionally developed by the public sectors eg. Roads, bridges, water supply.

• Listed and minority holdings-low priority since involvement of private sectors in these entities is substantial.

PRIVATISATION DECISION GRID

SELECTION FACTORS FOR PRIVATISATION• FEASIBILITY

– Ease of privatisation to the private sector in respect of restructuring and legal changes.

– Attractiveness to the private sector in terms of competitive market position, potential growth & financial profile.

• DESIRABILITY– The benefits the privatisation can bring about to

economic development and to meet the national policies and objectives.

PRIVATISATION DECISION GRID

CONSIDERFUTURE

BACKBURNER

PRIORITYRESTUCTURING

IMMEDIATE PRIVATISATION

Low

Desirability(economic policy)

High

High Feasibility (Ease / attractive) Low

PRIVATISATION DECISION GRID (CONT’D)

• IMMEDIATE PRIVATISATION– Ranking high in ease of privatisation and

attractiveness to the private sector (feasibility) and also in terms of government’s objective priority.

• PRIORITY RESTRUCTURING– Ranking in terms of the government objectives

but are either difficult to privatise or unattractive to the private sector in their present structure. Hence, some form of restructuring need to be undertaken before privatised.

• BACK – BURNER– Government owned entity (GOE) or project

which is perfectly feasible to be privatised but the benefits of privatisation are likely to be less evident.

• CONSIDER FUTURE– GOE or project which ranks poorly both in terms

of feasibility and desirability for privatisation. It should be remained in the public sector for the time being.

PRIVATISATION DECISION GRID (CONT’D)

DRAWBACKS OF PRIVATISATION• Revision of related laws and regulations.• Valuation of assets and liabilities of government

agencies concerned • Difficulty in changing civil service (work culture) and

difficulty to carry out various programmes for administrative reforms (organisational culture)

• Resistance from employees and trade unions-threaten job security and might lose government benefits.

• Resistance from consumers-fear of increase in prices of product/services.

• Privatised company might abuse monopoly power-make higher profits by restricting output for domestic use.

• Lack of social responsibility by privatised company or privatised monopoly to the community.

OBJECTIVES OF VISION 2020

• Making Malaysia a truly united and developed nation by increasing social integration, improving economic standards, social justice, political stability, administrative system and the quality of life of its people (social & spiritual aspects)

OVERVIEW MAP

VISION 2020 (2 OBJECTIVES A united and

fully developed country) AND 9 CHALLENGES

A PROSPEROUS SOCIETY

A UNITED NATION

A PSYCHOLOGICALLY LIBERATED SECURED AND

DEVELOPED SOCIETY A DEMOCRATIC AND NATURE

SOCIETY

A FULLY MORAL AND ETHICAL

SOCIETY

A MATURE LIBERAL AND

TOLERANT SOCIETY

A SCIENTIFIC & PROGRESSIVE

SOCIETY

AN ECONOMICALLY JUST SOCIETY A FULLY CARING

SOCIETY & CARING CULTURE

9 CHALLENGES OF VISION 20201 The creation of a united

Malaysian nation with a sense of common and shared destiny (territorically & ethnically integrated ‘Bangsa Malaysia’)

2 The creation of a psychologically liberated, secure & developed society (self-confident, robust in facing adversity & pursuit of excellence)

3 The fostering and creation of a democratic and mature society(cooperation & society oriented)

4 The creation of a society with good ethics and morality (strong religious and spiritual values & highest ethical standards)

5 The creation of a society which is mature, liberal & tolerant (freedom to practise cultural & religious beliefs)

6 The creation of a caring society and a caring culture (a strong & resilient family system)

7 Ensuring an economically just society(full partnership in economic progress & fair distribution of wealth)

8 The creation of a scientific and progressive society (innovative, forward looking and a consumer & competitive, science & technology)

9 The creation of a prosperous society(living in harmony in a fully competitive, dynamic, robust & resilient economy)

OPP 2-SECOND OUTLINE PERPECTIVE PLAN (1991-2000)• The OPP 2 has been formulated based on a new policy

called National Development Policy (NDP). This new policy will maintain the basic strategic of the National Economic Policy (NEP) of eradicating poverty and restructuring society so as to correct social and economic imbalances and thereby contribute towards national unity.

• National unity remains the ultimate goal of NDP because a united society is essential to the promotion of social and political stability and sustained economic development.

• NDP will set the pace to enable Malaysia to become a fully developed and truly united nation by the year 2020 in terms of rapid economic expansion, social justice, moral and ethical values, political sophistication, improved quality of life and the administrative efficiency of the government.

NATIONAL DEVELOPMENT POLICY (1991-2000)

• Successor to New Economic Policy introduced in 1991.

• ObjectiveTo attain balanced development in order to create a more united and just society which emphasis on economic growth with equity to ensure social & political stability and national unity.

NATIONAL DEVELOPMENT PLAN (OPP2)OBJECTIVES• To strike an optimum balance between goals of economic growth

and equity distribution of wealth.• To ensure a balanced development in the major sectors of the

economy.• To reduce and ultimately eliminate social & economic inequalities

and imbalance (eradicate poverty & restructure society – NEP)• To promote & strengthen national integration by reducing wide

disparities in economic development between states & urban and rural areas.

• To promote human resource development• To promote science and technological upgrading development.• To maintain and protect environment & ecology system.

NEW DIMENSION OF NDP

• Anti poverty strategy to eradicate hardcore poverty and reducing relative poverty.

• Rapid development of an active Bumiputra Commercial and Industrial Community (BCIC) i.e. to increase permanent Bumiputra participation in the economy.

• Rely on the private sector involvement in the restructuring process.

• Human resource development with moral & ethical values.

MALAYSIA DEVELOPMENT PLAN• 1956 - 1960 1st 5 yrs development plan• 1961 - 1965 2nd 5 yrs development plan• 1966 - 1970 1st M’sia Plan• 1971 - 1975 2nd M’sia Plan = NEP (OPP1)(1971-1990)• 1976 - 1980 3rd M’sia Plan• 1981 - 1985 4th M’sia Plan• 1986 - 1990 5th M’sia Plan = First IMP (1986-1995)• 1991 - 1995 6th M’sia Plan = NDP(OPP2)(1991-2000)

= VISION 2020 (1991-2020)• 1996 - 2000 7th M’sia Plan = Second IMP (1996-2005)• 2000 - 2005 8th M’sia Plan = NVP(OPP3)(2001-2010)

NEP - NATIONAL ECONOMIC POLICYNDP - NATIONAL DEVELOPMENT POLICYNVP - NATIONAL VISION POLICYOPP1 & OPP2 & OPP3 - 1st & 2nd & 3rd OUTLINE PERSPECTIVE PLAN

SIX MALAYSIA PLAN (1991-1995)

• First half of OPP2• Main thrust is to manage and sustain growth

(economic & social) momentum in order to achieve a more balanced development.

• Rapid growth and longest sustained growth was achieved within an environment of low inflation (price stability) together with a sound social & political environment.

7TH MALAYSIA PLAN (1996-2000)

• Second half of OPP2• Greater strength (economic expansion &

social development) to meet future challenges to accelerate the attainment of the objective of balanced development as envisaged under NDP with the overriding objective of creating a more united and just society (national unity)

7TH MALAYSIA PLAN (1996-2000)

DEVELOPMENT THRUSTS• Effect further structural transformation and maintain balanced

development in economic developments.• Enhance potential output growth (productivity-driven)• Prepare for a strong human resource base for long term economic

development and global competition.• Enhance competitiveness, technological development &

information technology.• Maintain rapid growth with stability (macroeconomics stability)• Emphasize social development and upgrade quality of life.• Strive for sustainable development (economic, social &

environment)

7TH M’SIA PLAN – NEW DIMENSIONS

• Shift from input – driven to productivity – driven growth by enhancing contribution of total factor productivity (TFP)

• Enhance competitiveness by strengthening economic foundations, expanding global marketing and reinforcing competitive industry clusters.

• Accelerate human resource development• Strengthen Science & Technology and Research & Development

and promote IT.• Generate new growth sectors

– Indutriallisation strategy will target for global market, large scale operations and capital, skill & technology-intensive industries

– Revamp agricultural sector.– Develop outward-oriented services sector.

OPP3-THIRD OUTLINEPERSPECTIVE PLAN (2001-2010)

• The OPP3 has been formulated based on a policy called the National Vision Policy (NVP) with the central theme of “Building a Resilient and Competitive Nation” – NVP aimed at establishing a progressive and prosperous Bangsa Malaysia which lives in harmony and engages in full and fair partnership in economic wealth.

• Besides the usual projections of continued high growth annually for the next 10 years, the OPP3 emphasised five very human factors for the nation to reach its desired destination in 2020. They are poverty eradication, restructuring of equity ownership, human resource development, knowledge economy and national unity.

NVP – NATIONAL VISION POLICY7 NEW POLICY DIMENSIONS

• Developing Malaysia into a knowledge-based society.• Generating endogenously-driven growth through strengthening

domestic investment and developing indigenous capability while continuing to attract FDI.

• Increasing the dynamism of the agriculture, manufacturing and services sectors through greater infusion of knowledge.

• Addressing pockets of poverty in remote areas as well as increasing the income and quality of life of those in the lowest 30% income category.

• Achieving effective Bumiputera participant as well as equity ownership of at least 30% by 2010

• Increasing the participant of Bumiputera in the leading sectors of the economy.

• Reorienting human resources development to support a knowledge-based economy.

NVP – NATIONAL VISION POLICY7 KEY DEVELOPMENT THRUSTS

• Building a resilient nation by fostering unity, inculcating the spirit of patriotism, nurturing political maturity, cultivating a more tolerant and caring society with positive values, raising the quality of life and increasing economic resilience.

• Promoting an equitable society by eradicating poverty and reducing imbalances among and within ethnics group as well as regions.

• Sustaining high economic growth by strengthening the sources of growth, the financial and corporate institutions as well as macroeconomic management.

• Enhancing competitiveness to meet the challenges of globalisation and liberalisation.

NVP – NATIONAL VISION POLICY7 KEY DEVELOPMENTS THRUSTS (CONTINUED)

• Developing a knowledge-based economy as a strategic move to raise the value added of all economic sectors and optimising the brain power of the nation.

• Strengthening human resources development to produce competent, productive and knowledge workforce and

• Pursuing environmentally-sustainable development to reinforce long term.

EIGHTH MALAYSIAN PLAN (2001 – 2005)

DEVELOPMENT THRUST• Shift the growth strategy from input-driven

towards knowledge-driven• Accelerate structural transformation within

manufacturing and services.• Strengthen socio-economic stability through

equitable distribution of income and wealth.

Is primarily aimed at sustaining economic growth and competitiveness in the face of growing globalisation and liberalisation.

EIGHTH MALAYSIAN PLAN (2001-2005)KEY STRATEGIES

• Pursuing sound macroeconomic management, prudent fiscal and monetary policies and knowledge-based economy.

• Strengthening distributional programmes for balanced participant among and within ethnic and income groups.

• Enhancing productivity-driven growth through improvement in workers’ knowledge and upgrading research & development.

• Increasing competitiveness in key economic sectors.• Expanding the usage of information communications technology (ICT) • Strengthening human resource development (HRD) to ensure availability

of trained and creative manpower.• Adopting a holistic approach to attain balanced and sustainable

development• Enhancing the quality of life by making social services more accessible • Strengthening positive and ethical values including through the education

system.

INDUSTRIAL MASTER PLAN

3 BROAD OBJECTIVES• To ensure a continued rapid expansion of the

economy through the accelerated growth of the manufacturing sector to meet the objectives of the New Economic Policies & National Development Policies.

• To promote the optimum and efficient utilisation of the nation’s natural resources through value added manufacturing activities.

• To lay the foundation for the development of indigenous technological capabilities.

FIRST INDUSTRIAL MASTER PLAN ( 1986-1995)

It was introduced with a strong emphasis on the continuation of the export-led industrialisation strategy which focused on: -

• Further diversification and deepening of resource-based and non resource-based industries.

• Preparing the workforce with technical and industrial skills in product design and production technologies.

• Dispersal of industries to areas outside the main growth centre.

SECOND INDUSTRIAL MASTER PLAN (1996-2005)

It was built to address issues and challenges which have been identified upon the success of IMP 1 to sustain and enhance the growth momentum of manufacturing sector. It encompasses: -

• Improving economic foundation• To accelerate, deepen and diversity the manufacturing sub-

sectors.• To accelerate the development of indigenous technology and

capacity, international marketing and distribution capacity.• To strengthen economic linkages, both inter and intra-sectoral,

though further development and expansion of intermediate and supporting industries as well as to reduce high imports of intermediate and capital goods.

MANUFACTURING ++ CONCEPT• IMP 2 emphasises moving beyond manufacturing operations to include

various aspects of a value chain like R & D and design capacity,development of integrated supporting industries, packaging, distribution and marketing activities.

• Manufacturing ++ calls for a integration of manufacturing operations though the value chain to enhance industrial linkages increase productivity and competitiveness. This strategy requires building concentrations if innovative firms served by quality and efficient intermediate suppliers and services.

• 5 strategic thrusts of Manufacturing ++ Orientation• Global Competition – become world class & world manufacturer • Enhance Competitiveness – industrial – clusters development• Improving Economic Foundation – Human Resource Development,

technology development, physical infrastructure, incentives & services.

• Malaysian – Owned Manufacturing Companies.• Information – Intensive & Knowledge – Driven Processes – adoption

of this in manufacturing and other related activities eg. Research & Development product design, marketing in electronic commerce.

CLUSTER-BASED INDUSTRIAL DEVELOPMENT• IMP2 is based on a cluster based industrial development that will provide

the basis for a broad based, resilient and internationally competitive industrial sectors.

• Key objective is to provide higher value added goods and strengthen industrial linkages at all levels of the value chain.

• This approach also helps to address the following identified needs:– Issues of markets, linkages and networks which are central to the

competitiveness of industrial clusters.– Opportunities for domestics corporations (small & medium industries)

to achieve economies of scale.– The global market offers greater opportunities.– Development of new industrial areas.– Role of critical support industries & services.

• 3 categories of Industrial Clusters– Internationally linked clusters (electrical & electronics, textiles &

apparel)– Resource based clusters (wood, rubber, palm oil, petroleum)– Policy driven clusters (automotive & aerospace industry)

ELEMENTS OF CLUSTER-BASED INDUSTRIAL DEVELOPMENT

1 CLUSTERS– A cluster is an agglomeration of inter-linked or related

activities comprising industries, suppliers, critical supportingservices, requisite infrastructure and institutions that are inter-dependent.

– Within cluster, firms from partnerships with supplier and competitors to enhance value added activities.

– Concentrate on common labour pool concept2. VALUE ADDED AND VALUE-CHAIN

– VALUE ADDED – the value that an industry adds to its input by using labour and capital.

– VALUE CHAIN – the range of activities undertaken by an industry group within a region or country in the process of bringing the product from its earliest conception to its final sale.

ELEMENTS OF CLUSTER-BASED INDUSTRIAL DEVELOPMENT (CONT’D)

3 KEY SUPPLIERS– Strengthening suppliers sectors will improve the

performance of Malaysian Industry and contribute towards cluster-based industrial development.

4. REQUISITE ECONOMIC FOUNDATION– The performance of industry clusters is driven by

the responsiveness of sources of factor inputs which constitute the economic foundation.

– These factor inputs are human resources, technology, financing and physical infrastructure.

MALAYSIAN INDUSTRIAL CLUSTERS (Manufacturing Sector)

1 TRANSPORTATION INDUSTRY GROUPAutomobiles, motorcycles, marines transportation & aerospace.

2 ELECTRICAL & ELECTRONICS INDUSTRY GROUP

Electrical and electronics3 CHEMICALS INDUSTRY GROUP

Pharmaceuticals & petrochemicals4 TEXTILES & APPAREL INDUSTRY GROUP

Textiles and apparel

MALAYSIAN INDUSTRIAL CLUSTERS(Manufacturing Sector) – Cont’d

5 MACHINERY & EQUIPMENT INDUSTRY GROUP

Machinery and equipment6 MATERIALS & ADVANCED MATERIALS

INDUSTRYComposite, ceramics, polymers and metals

7 RESOURCE-BASED INDUSTRY GROUPWood based products, rubber based products, palm oil based products, cocoa based products.

8 AGRO BASED & FOOD PRODUCTS INDUSTRY

Fish & fish products, livestock & livestock products, fruits & vegetables, floriculture.

K - ECONOMY• K – Economy (knowledge based economy) is an umbrella term for

information technology (IT), basic research and associated sectors.• Bank Negara Malaysia termed the k-economy as the “generation”

and exploitation of knowledge to create new value in the economy.• Malaysia will adopt a national strategic plan by formulating a K-

Economy Mater Plan to launch Malaysia into the knowledge driven economy. This will be a complete transformation from the earlier Agri(A)-economy and Production(P)-economy.

• K-Economy is Malaysia’s second step to leapfrog into the Information Age. The first step was Vision 2020. The knowledge economy is described by the K-Economy Master Plan as the “maximum application of knowledge to every Malaysian economic and business endeavour”. Several features such as investment in education, brain gain and supply of information are needed for the transition into the new economy.

K-ECONOMY MASTER PLAN• Knowledge is said to be driver of economic growth. An essential element

of the K-Economy is the possession of world class information and telecommunication system that is accessible to all at competitive prices which can provide the competitive advantage to each sector of the economy.

• The K-Economy Master Plan that is to be developed will be holistic in approach and aimed at transforming Malaysia into a highly competitive and resilient economy in an increasingly borderless world, in which those in the forefront of knowledge and technological advancements such as in information and communication technological have the cutting edge Malaysia, must therefore, excel in acquiring, generating, communicating and exploiting knowledge commercially in order to be a global player and to be able to sustain long term economic growth. Malaysia’s K-Economy master plan emphasised on the maximum application of knowledge made in education, “brain-gain” and supply of information.

• The signing ceremony of a Memorandum of Understanding for the development of K-Economy Master Plan between Malaysian Government and Institute of Strategic and International studies (ISIS) was held on 27 March 2000.

SELF-TEST QUESTIONSCHAPTER 1 – GOVERNMENT POLICIES

1 Define the term “Corporatisation” and “Privatisation”

2 Identify the differences between “Corporatisation” and “Privatisation”.

3 What are the benefits of Corporatisation?

4 What are the objectives of Privatisation?

5 List down the methods of privatisation in Malaysia


6 What is the objective of formulated a Privatisation Action Plan (PAP).

7 Show and explain briefly the diagram of the Privatisation Grid as presented in the Privatisation Master Plan

8 List the two objectives of Vision 2020

9 State the nine challenges to make Malaysia a truly united and fully developed nation by the year 2020


10 List the two objectives of New Economic Policy (NEP)

11 List the six objectives of National Development Policy (NDP)

12 Identify five development thrusts of Seventh Malaysia Plan

13 List the objectives of Second Industrial Master Plan

14 What are the five strategic thrusts of Manufacturing ++ Concept in IMP2

15 Explain the following elements of Cluster-Based Industrial Developmenta) Value Added and Value Chainb) Economic Foundation

16 What are the linkages between IMP2 and Vision 2020

GOVERNMENT POLCIES

OCTOBER 2000The formulation of the Privatisation Action Plan has been guided by the Privatisation Master Plan Study undertaken by private consultants who received a large sample of Government-owned entities to determine both their feasibility and desirability for privatisation.a) List the objectives of privatisation.

(5 marks)b) Explain the major components of the Privatisation Action Plan and give one (1) example for each component.

(12 marks)c) State the difference between “sale of equity” and “sale of assets” in relation to privatisation in Malaysia.

(3 marks)(Total: 20 marks)

CORPORATISATION AND PRIVATISATION

JUN 2000 (Summer Class)In order to ensure that the privatisation effort is channelled to appropriate priority areas so as to optimize the impact of the policy implementation in terms of the achievement of the policy objectives, a Privatisation Action Plan (PAP) has been formulated. The PAP thus represents a more systematic and organized manner of policy implementation to be in consonance with the macro economies policies and development strategy.

(Privatisation Master Plan, 1991)a) One of the major components of the Privatisation Action Plan is “Flagship”. What are they?

(4 marks)b) List and explain the two (2) types of restructuring exercises to be undertaken by the government for non-profitable companies operating in competitive commercial sectors for the purpose of privatisation

(6 marks)c) What is the purpose of a Privatisation Grid and list the main categories in the four quadrants

(6 marks)d) State two (2) similarities and two (2) differences between Build-Operate-Transfer (BOT) and Build-Operate (BO)


OCTOBER 1999Privatisation will continue to be an important cornerstone of our national development and national efficiency strategy. Its is aimed specifically at enhancing competitiveness , efficiency and productivity in the economy, at reducing the administrative and financial burdens on the governments and at expediting the attainment of national distributional goals.(‘The Way Forward’ by YAB Dato’ Seri Dr Mahathir Mohamad, 4 November 1997)

a) One of the objectives of privatisation is to relieve financial and administrative burden of government. Discuss

(8 marks)b) List the six (6) major components of Privatisation Action Plan (PAP)

(6 marks)c) In the Privatisation Grid, “priority restructuring” ranks high in terms of achieving government objectives but is less attractive to the private sector. Why is it so?


APRIL 1999The Privatisation Policy was first announced as a national policy by the Government in 1983. This signalled the Government’s interest to reduce its presence in the economy, decrease both the level and scope of public spending and to allow market forces togovern economic activities.

(Privatisation Master Plan, 1991)a) Distinguish between corporatisation and privatisation.

(4 marks)b) Explain the two (2) criteria adopted in the selection of privatised projects under the Privatisation Action Plan.

(4 marks)c) Elaborate the Privatisation Grid as illustrated in the diagram presented in the Privatisation Master Plan.


MARCH 1998“Privatisation has saved the government RM7 billion annually in management costs and nearly RM80 billion in development costs since 1983. Over 416 projects and government owned entities has been privatised to date,” (Encik Othman Ismail, Deputy Director of the Economic Planning Unit (Privatisation Unit) – 12 July 1997).a) Define the term ‘privatisation’ and ‘corporatisation’

(2 marks)b) What are the objectives of privatisation?

(10 marks)c) Explain the methods of privatisation in Malaysia


NOVEMBER 1996In order to ensure that, the privatisation effort is channeled to appropriate priority areas so as to optimise the impact of the policy implementation in terms of the achievement of the policy objectives, a Privatisation Action Plan (PAP) has been formulated. The PAP thus represents a more systematic and organised manner of policy implementation to be in consonance with the macro economic policies and development strategy. Feasibility and desirability of those Government Owned Entities (GOEs) are takeninto account in the preparation of PAP (Privatisation Master Plan, 1991)In relation to the above, you are required to:a) List and explain the major components of the Privatisation Action Plan.

(8 marks)b) The combination of the feasibility and the desirability criteria can be explained through a Privatisation Grid as shown below: Explain the privatisation grid.

(12 marks)

CONSIDERFUTURE

BACK-BURNER

PRIORITYRESTUCTURING

IMMEDIATE PRIVATISATION

High

High Feasibility (Ease / attractiveness) Low

Desirability(economic policy)

Low

MAY 1996The government’s privatisation programme has acquired such momentum that hardly any privatised agencies is exempt from action and proposals. Evaluation of the programme must recognisethe diversity of the privatisation policies, and the tensions inherent within their objectives. This has led to a view that it is impossible to manage business efficiently with the public sector, the constraints of which can only be escaped by ‘setting the enterprise free (sic).

(David Heald, Public Administration Vol.63, 1985)a) In relation to the above, you are required to explain the possible benefits and drawbacks of privatising certain government agencies.

(10 marks)b) In your opinion, explain why we need government control on the privatised agencies.


MAY 1995In line with the government privatisation policy, the cabinet has recently directed the Ministry of Education to study the possibilities of corporatising all Higher Learning Institutions including Institute Teknologi Mara (ITM) by 1996.a) Briefly distinguish the terms “Corporatisation” and “Privatisation”

(5 marks)b) Identify and explain the significant benefits for the proposal to corporatise ITM in 1996


LONG TERM PLAN (VISION 2020, NEP, NDP, 7th Malaysian Plan & IMP)

APRIL 2020Vision 2020 is a national comprehensive agenda that sets out specific goals and objectives for long term development. To attain the fully developed nation status by 2020, pursuit of economic agenda must be sustained. The private sector should get together to consider how it can further enhance its role in the privatisation policy and continue to be an important cornerstone of the national development and national efficiency strategy.a) State and explain briefly the two (2) objectives of Vision 2020

(4 marks)b) List any six (6) strategic challenges of Vision 2020

(6 marks)c) Elaborate on the following two challenges of Vision 2020 that need to be dealth with for the long term economic development and to achieve the status of a fully developed country by the year 2020:1. Ensuring an economically just society2. The creation of a scientific and progressive society.


VISION 2020

OCTOBER 1998The Ninth Challenges of Vision 2020 is establishing a prosperoussociety with an economy that is fully competitive, dynamic and resilient. In this respect, the Vision stated that Malaysian must learn to be competitive through higher productivity and able to withstand the full force of international competition. The PrimeMinister stated that we have to be more competitive and more able to take on the world.a) Apart from being a competitive and a dynamic society, what other aspects of societal developments (any 4) are expected of the society by year 2020.

(12 marks)b) Discuss on the human resource development as one of the thrusts of National Development Policy for the societal developments in Vision 2020.


OCTOBER 1999The government will continue to promote social and political stability as well as efficient management of the economy in order to provide a favourable environment for pursuing growth with equityand to enhance the achievements of the objectives of National Development Policies (NDP) and Vision 2020.a) List six (6) objectives of National Development Policy (NDP)

(6 marks)b) Elaborate on any two (2) of the objectives mentioned above

(8 marks)c) Explain the meaning of “economic growth with equity”


LONG TERM PLAN (NEP, NDP& 7th Malaysia Plan

APRIL 1997The Seventh Malaysia Plan, 1996-2000, covers the second phase of the Second Outline Perspective Plan (OPP2), 1991-2000. The Seventh Plan emphasizes that the thrusts of the development policy would not only be on sustaining economic progress to achieve the status of fully developed nation as envisaged under Vision 2020 but also to attain the objectives of balanced development as envisaged under National Development Policy (NDP) with the overriding objective of creating a more united and just society.a) Identify and explain five development thrusts of Seventh Malaysia Plan.b) Explain briefly the new dimensions of Seventh Malaysia Plan in achieving the objectives of the National Development Policy.

(20 marks)

NOVEMBER 1994“The Second Outline Perspective (OPP2) covering the period 1991-2000 has been formulated based on a new policy called the National Development Policy (NDP). This new policy will maintain the basic strategies of the New Economic Policy (NEP) of eradicating poverty and restructuring society so as to correct social and economic imbalances and thereby contribute towards national unity”.(OPP2, 1991-2000, Malaysia Fact Sheet, Ministry Of Information)

a) In line with the above statement, trace the development of the NDP

(5 marks)b) Identify significant differences between NEP and NDP

(5 marks)c) Specify the new dimensions of the NDP


NOVEMBER 1993

a) Explain what are the objectives of the National Development Policy and the strategies taken to ensure that the objectives can be achieved

(10 marks)b) List and explain any five central strategic challenges

to make Malaysia a fully developed nation by the year 2020


OCTOBER 2000The Second Industrial Master Plan (1996-2005) emphasizes moving beyond manufacturing operations to include Research and Development and design capability, development of integrated supporting industries, packaging, distribution and marketing activities.a) List the components of economic foundation to be improved as laid down under the Second Industrial Master Plan

(4 marks)b) Explain any two (2) of five strategic thrusts of Manufacturing ++ Concept.

(10 marks)c) Explain the importance of K-economy in achieving the Manufacturing ++ Concept.

(4 marks)d) What do you mean by “indigenous technological capabilities”?


INDUSTRIAL MASTER PLAN

JUN 2000 (Summer Class)The implementation of the Industrial Master Plan had promoted the development of higher value-added resource based industries i.e. processed and semi-processed products in order to maximise export earnings and socio-economic contributions to the country.a) Identify the objectives of Industrial Master Plan

(6 marks)b) Explain briefly the meaning “improving economic foundation”

(4 marks)c) Elaborate any two (2) strategic thrusts of the Manufacturing ++ Concept


APRIL 2000The Second Industrial Master Plan (IMP2) has been formulated with a view to transform the manufacturing sector to be more competitive globally. IMP2 calls for the development of an integrated industry-wide vision, embracing both manufacturing and business support services.

(IMP2 (1996-2005), New Straits Times, 29 November 1996)

a) Explain the meaning of Manufacturing ++ Concept in the Second Industrial Master Plan (IMP2)

(4 marks)b) List and explain the five (5) strategic thrusts of Manufacturing ++ Concept

(10 marks)c) Establish the linkages between IMP2 and Vision 2020


JUNE 1999 (Summer Class)Manufacturing sector output is projected to turn around to register an increase of 0.8% in 1999 compared to a decline of 10.2% last year. The main impetus to growth in the manufacturing sector would emanate from the stronger expansion of 1.3% in output of domestic-oriented industries.

(Bank Negara 1998 Annual Report)a) List any four (4) Industry Groups that the government had identified under the Second Industrial Master Plan.

(4 marks)b) Explain any three (3) factors involved in improving economic foundation

(6 marks)c) Elaborate the meaning of “Value Chain of Manufacturing” under the Cluster-based Industrial Development.


MAY 1998While the First Industrial Master Plan 1986-1995 has laid down the foundation for the rapid growth of the manufacturing sector, theSecond Industrial Master Plan 1996-2005 has been formulated with a view to transform the manufacturing sector to be more competitive globally.

(Datuk Seri Rafidah Aziz, Minister of International Trade and Industry, November 1996)

a) What are the three objectives of Industrial Master Plan?(6 marks)

b) Elaborate on the five strategic thrusts of the manufacturing ++ approach

(10 marks)c) Explain briefly the meaning “development of indigenous technology and capacity”


SEPTEMBER 1997The launching of the Second Industrial Master Plan (IMP2) is a testimony of the government’s effort and commitment to propel Malaysia to become a fully developed industrial nation by 2020. In tandem with the New Development Policy, the Second Outline Perspective Plan and the Seventh Malaysian Plan, the IMP2 is setto boost the future contribution of the manufacturing sector on economic growth and focusing on establishing an equitable distribution of nation’s wealth.a) Identify and explain 5 objectives of National Development Policies.

(10 marks)b) Discuss the 5 strategic thrusts of Manufacturing ++ Orientation in Second Industrial Master Plan (1996-2005) to sustain and enhance the growth momentum of manufacturing sector and thus, to achieve the targeted economic growth of Vision 2020.


CHAPTER 2 – ADMINISTRATION & FINANCIAL MANAGEMENT

• Total Quality Management• ISO 9000• Annual Budget Speech• Any Related Current Issues

ADMINISTRATION & FINANCIAL MANAGEMENT

ADMINISTRATIONADMINISTRATION(QUALITY CULTURE)(QUALITY CULTURE) FINANCIAL MANAGEMENTFINANCIAL MANAGEMENT

TQMTQM(D.A.1/92)(D.A.1/92)

ISO 9000ISO 9000(D.A.2/96)(D.A.2/96)

BUDGET BUDGET SPEECHSPEECH

CURRENTCURRENTISSUESISSUES

Quality System Standard (ISO 9000)

provides quality assurance

Continuos improvement process to achieve total quality in all organisational operations

Budget 2002Budget 2003

ECONOMICCRISIS

Currencycrisis

Financialcrisis

CurrentAccountDeficit

TOTAL QUALITY MANAGEMENT

• Total Quality Management (TQM) is a management process aimed at bringing about excellence through the continuous enhancement of quality in an organisation. The basic philosophy of TQM is “Doing the right thing right the first time, on time, all the time, always striving for improvement, and always satisfying the customers”.

• By implementing TQM, an organisation not only can overcome the problem of wastefulness but also increase its performance to the maximum. This can be achieved by improving its performance and efficiency, innovation, productivity, quality of the workplace and introducing products or services which can fulfill or exceed the needs of the customers.

TQM IN PUBLIC SERVICE (D.A.Circular 1/1992)

• The purpose of the D.A.Circular 1/92 is to provide information and guidance to the Heads of Departments in planning and activating the process of improving quality in their departments. The implementation of the management principles in the circular will create an environment that is conducive for the inculcation of an excellent work culture.

• TQM Concept: -– TQM is a continuos process in creating a culture of excellence

for the whole organisation and is customer-driven– TQM aims to enable the organisation to achieve total quality

in all its operational aspects I.e. effectiveness of management,efficiency of the operational systems and capability and productivity of the employees.

PRINCIPLES OF TQMThese are several management principles of the quality culture should be practised by government agencies: - (D.A.Circular 1/92)

• 1. FOCUS ON THE CUSTOMEREvery member in the organisation has to be inculcated with the practise and the culture of pleasing their internal or external customers, especially the latter. Government Agencies must know who their customer are and make an effort to provide products and services that satisfy their needs. They need to constantly obtain feedback from their customers with regard to their performance.

• 2. QUALITY ASSURANCE – FOCUS ON PREVENTIONThis objective can be achieved by adhering to clearly laid quality standards for products, work processes and input used. This has to be supported in turn by quality inspection, tracing sources of flaws and taking remedial action.

• 3. STRATEGIC QUALITY PLANNING – FOCUS ON CONTINOUS IMPROVEMENTManagement should regularly plan and take appropriate measures to improve the work processes to ensure that the quality of the final output is on the rise all the time in line with the increasingly complex needs of customers.

• 4. TEAMWORKTeamwork is effective in contributing creative and innovative ideas and in implementing improvements successfully.

PRINCIPLES OF TQM (CON’D)5. TRAINING AND RECOGNITION – BUILDING A SENSE OF

OWNERSHIP AMONG WORKERSThis is to strengthen awareness, commitment as well as to instill a sense of responsibility among workers in upgrading quality in their department. This objective can be achieved by creating a sense of togetherness at the workplace by improving communication between the workers and management by involving the workers in the process of problem solving and decision making and by providing training and granting recognition.

6. LEADERSHIP AND COMMITMENT BY TOP MANAGEMENTTop management should be involved directly upgrading quality and ensuring that the objectives of the department are achieved.

7. MEASUREMENT OF PERFORMANCEManagement of quality requires support from an effective system of performance appraisal. As such the departments should formulate a comprehensive system of performance appraisal. For this purpose, the government has released a book called A Guide To Formulating Performance Indicators in Government Agencies.

• OBJECTIVE– Satisfaction customer– Zero defect/error-free– Producing the output

right the first time

• FOCUS– Processes and systems– Organisation culture– Customers– suppliers

• STRATEGY – Continuous improvement– Total involvement of the organisation – Strategic actions– Orientation towards long term

objective– Control of quality costs– Preventive action– Emphasis on quality assurance– Systematic problem solving

• IMPLEMENTOR– Top management (leaders)– Total participant of workers– Work teams

FEATURES OF QTM (D.A.Circular1/92)

ISO 9000WHAT IS QUALITY?Quality as defined by the ISO9000 Standard is“The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs”To achieve this, we need to understand, accept, continuously meet and exceed the expectations and need of our customersWHAT IS QUALITY ASSURANCE?Quality assurance refers to “all those planned and systematic actions that are necessary to provide adequate confidence that a product or service will satisfy given requirements for quality”. It encompass all personnel and activities within the organisation which affect the quality of products or services. ISO 9000 series are quality system standards against which a quality assurance system can be measured.

QUALITY SYSTEMS (ISO 9000) > QUALITY ASSURANCE

ISO 9000WHAT IS ISO 9000?ISO is the nickname for the International Organisation for Standardisation, and international body based in Geneva, which came out with the ISO 9000 series to represent standards for quality assurance and management which are internationally recognised and also to provide comprehensive guidelines for developing and implementing quality management system. Suppliers, manufacturers and service organisations can apply ISO9000 standards to establish quality, systems for producing or supplying goods and services. Customers and third party organisations can use ISO 9000 as a standard to evaluate suppliers’ quality assurance systems and their ability to produce quality products or services. By using ISO 9000 – organisations can demonstrate quality assurance of products or services to their customers.

ISO 9000 CONCEPT

• Quality Manual• Procedure• Work Instructions• Responsibilities• Authorities

CUSTOMER QUALITY ASSURANCE

QUALITY SYSTEM

DOCUMENTATION

INPUT PROCESS OUTPUT

Need For Quality

Organisation

Based on ISO 9000 series

Control Control Verify

STRUCTURE OF ISO 9000 SERIESISO 9000Quality Management and Quality Assurance Standards – Guidelines for Selection & Use ISO 9001Quality Systems – Model for Quality Assurance in Design/Development, Production. Installation and Servicing ISO 9002Quality Systems – Model for Quality Assurance in Production and InstallationISO 9003Quality Systems – Model for Quality Assurance in Final Inspection and TestISO 9004Quality Management and Quality System Elements – GuidelinesPublic Sector agencies are requires to refer to ISO 9000 and ISO 9004 as a guide for understanding and selecting the elements for the quality management system to be established. The other 3 standards namely ISO 9001, ISO 9002 and ISO 9003 will be used as quality system models for quality assurance on the agencies’ core business processes.

ISO 9000 IN GOVERNMENTThere 7 steps for implementation ISO 9000 in Malaysian Civil Service:

Carry out Quality AuditStep 7Implement Quality SystemStep 6Plan for implementation Step 5Evaluate current quality systemStep 4Training Step 3Establish ISO 9000 TeamStep 2Secure top management commitmentStep 1

The success of the ISO 9000 exercise is monitored through comprehensive quality audit at 3 levels:

• International Quality Audit after 6 months of operations of the system to evaluate its effectiveness

• Second Party Quality Audit or Compliance Audit carried out by Mampu before issuance “Malaysian Civil Service ISO 9000 certificate”

• Third Party Auditing for purposes of registration with international linkages.

ISO 9000 IN GOVERNMENT(D.A.Circular 2/1996)

• The main objective of implementing and obtaining the certificate is to utilise ISO 9000 as a blue – print for efforts to improve the quality system of the organisation so as to enable it to achieve greater effectiveness and efficiency and thus can enhance the quality of service delivery to customers.

• This move would also help to develop a quality management system with the following principles and features:– A philosophy of prevention rather than detection.– Continuos review of critical process points, corrective actions and

outcome.– Development of consistent work methods based on the principle of doing

it right first time and every time.– Basing of all works on policies and procedures that are documented.– Emphasis on maintenance of quality records as evidence of the

implementation of the necessary records.• The above principles and features will lead to competent management

decision-making control of process output, control of quality costs, reduction in waste and an increase in productivity.

BENEFITS OF ADOPTING ISO 9000 IN THE GOVERNMENT

The ISO 9000 quality standards provide organisations with a cost effective means of assuring quality of their products or services. However, potential benefits depend on the nature of the organisation. Fully implemented, the system may result the following benefits: -

• Enhance competitive position• Improve customer satisfaction and confidence• Saving in time and resources (reduce wastage & work-over)• Improve the quality system & institutionalise the quality system with

greater clarity of business processes and activities. This will result in less rework and inefficiency.

• Greater organisational transparency• Less fire-fighting as it is based on advanced planning• Improve filing and data retrieval systems• Speedier learning process for the new entrants • Improved specification and tendering controls leading to improved

capability assessment and realistic delivery schedules

IMPLEMENTATION OF TQM AND ISO 9000 IN GOVERNMENT

• Quality Culture started with the launching of the Excellent Work Culture in 1989, a movement where a change should first begin in the mindset of civil servants. Various quality improvements programmes introduced in the civil service have been successful in improving the capability of government agencies to achieve organisational excellence and to deliver quality-service to customers. Among the more important ones are the Quality and Productivity Management Programmes which includes the Total Quality Management (TQM) Concept, Human Resource Management, Improvements to System and Procedures and Information Technology.

• These changes laid the foundation for establishing a quality management system in the civil service and implementing the ISO 9000 Standard.

• The various administrative reform efforts undertaken in the last few years in developing a customer oriented public service have already laid the strong groundwork for the civil service to adopt the ISO 9000 standard. These reform effort encompass initiatives such as the preparation of Quality Manuals, Manual of Work Procedures, Desk File, Client’s Charter, Service Recovery System, Checklist, Quality Control Circles, Feedback Systems, and the System of Recognition & Rewards.

• The Guidelines (D.A.CIRCULAR 2/96) prepared by MAMPU for the implementation of the MS ISO 9000 in the civil service was issued on 11 July 1996. MS ISO 9000 is the Malaysian standard series issued by SIRIM containing the same elements with the internationally accepted ISO 9000 which are relevant to the public service and is to be effected for adoption in the civil service by the target date of year 2000.

1999 BUDGET• OBJECTIVES

– Facilitate business activities and stimulate economic growth with priority given to infrastructure development to pull the country out of recession

– To stimulate domestic demands.• BUDGET STRATEGIES

– Revive economic activities and insulate the economy from the contagion effects of the regional financial crisis to stabilise the financial market and the value of the ringgit.

– Strengthen the resilience and competitiveness of the nation’s economy

– Restructure the financial sector and improve governance in the private and public sectors

– Strengthen further the balance of payment and – Ensure the social well-being of the people.

2000 BUDGET

OBJECTIVEStrengthening the foundations for the achievements of economic growth and the well being of the people.BUDGET STRATEGIESSustain recovery and accelerate growthStrengthen resilience and competitivenessUtilising the Service Sector to stimulate growth and strengthening the Agriculture SectorHuman resources development especially skills and knowledgeContinuing the Social Agenda and preserving the environment.

2001 BUDGETThe budget entitled “A New Malaysia – from strategic vision to strategic implementation” captured the government’s new, robust but caring attitude in tacking the country’s social and economic challenges. The new 21st century budget takes fully into account the issue of globalisation and K-economy. Major implementations of strategic plans towards accelerating economic growth, enhancing competitiveness and improving the quality of life (5 guiding principles for strong economic growth –competitiveness, innovation, transparency, social equity and national unity) should be continued in our strive to become a developed country by year 2020.

BUDGET 2001 - STRATEGIES5 MAIN STRATEGIES

• Stimulating the nation’s economic growth• Identifying new sectors of growth• Continuing fiscal & monetary policies to support growth.• Strengthening further the nation’s competitiveness.• Enhancing the quality of life of Malaysia people.

3 MAIN THRUSTS (DIMENSIONS)• Stimulating the nation’s economic growth (k-economy,

ICT, venture capital….)• Implementing strategic initiatives to enhance nation’s

competitiveness (strategic partnership & FDI, strengthening financial system….corporate governance.

• Continuing caring society agenda (increasing incomes of the poor, public housing, upgrading health status….)

BUDGET 2002 - STRATEGIES

• Strengthening the nation’s growth economic growth through increased domestic expenditure, stimulating the role of private sector and increasing competitiveness.

• Diversifying sources of growth through trade and domestic industrial activities without reducing the role of foreign direct investment as well as ensuring the continued expansion of the nation’s export and

• Ensuring equitable distribution of wealth between urban and rural areas, between high and low income groups and between the more developed states.

BUDGET 2003 - STRATEGIES

• Increasing domestic investment in all sector with growth potential

• Identifying and venturing into niche areas in the services, agriculture and manufacturing sectors.

• Strengthening public sector finance and enhancing efficiency of the civil service

• Nurturing a progressive and harmonious society with high moral values and ensuring the well being of the people, especially in rural areas.

BUDGET 2004 - STRATEGIES• Accelerating domestic private sector and

stimulating the service sector to spearhead economic growth.

• Implementing fiscal consolidation towards a balanced budget in the near term.

• Implementing monetary policy that can support and harness private consumption and investment.

• Enhancing the nation’s competitiveness to enable Malaysia to become a truly trading nation.

• Strengthening the social agenda and caring society to enhance the quality of life and well being of Malaysians.

CONTINUED ECONOMIC RECOVERY – MAY 2003

• Government has introduced the package of new strategies towards stimulating the nation’s economic growth to enable the private sector to resume its role as the engine of growth.

• The package focused on four main strategies:Promoting private investmentStrengthening the nation’s competitivenessDeveloping new sources of growthIncreasing the effectiveness of the delivery system.

• The implementation of this package has achieved economic performance with a growth target of 4.5 for the whole year of 2003.

ECONOMIC CRISISThe Malaysian economy seems to have hit by a financial crisis, the ringgit and the stock market have fallen sharply and the momentum of the economic growth has stalled.CAUSES OF ECONOMIC CRISIS

• FINANCIAL & CURRENCY CRISIS– The bouts of speculative attacks triggered by developments in Thailand since

May 1997 have led to volatility in the movement of the interest rates and sharp depreciation of the local currency and share prices to the extent that the value of ringgit and share prices no longer reflect underlying economic fundamentals. The continuos slide in the ringgit value and share prices could lead to the erosion of investors’ confidence in financial markets and the adverse contagion effects on the economy strength and stability of financial system.

• CURRENT ACCOUNT DEFICIT– This is largely due to higher imports of capital goods and services (shipping

& air freight, etc) which have moderately affected the merchandise account surplus. The merchandise exports are expected to grow at a slow pace to global decline in prices. This will lead to country’s current account deficit to decline further.

ECONOMIC CRISIS – CONT’S

• 3 TYPES OF ECONOMIC CRISIS– Currency Crisis– Financial Crisis– Current Account Crisis

• ECONOMI RECOVERY MEASURES– Financial stimulus package (fiscal discipline)– National Economic Recovery Plan by NEAC– Establishment of Economic Council1. NEAC (MTEN) – National Economic Action Council2. NECC 2 (MAPEN 11) – National Economic

Consultative Council 2

ECONOMIC RECOVERY MEASURES1. FINANCIAL STIMULUS PACKAGE TO OVERCOME

ECONOMIC CRISISLOWER ECONOMIC GROWTH

- Downward revision of growth projection from 7% in 1998 budget to between 4 – 5%

STRENGTHEN BALANCE OF PAYMENT- To reduce the current account deficit from 4% of GNP in 1998 to

3% by taking the following measures:• Cutback in Federal Government expenditures by at least 18% in

1998.• A number of mega projects have been postponed• To intensify any effort to increase foreign exchange earnings

through promotion of exports and tourism• To promote utilisation of domestic products and high local

contents of input materials• National savings will be promoted.

FINANCIAL STIMULUS PACKAGE TO OVERCOME ECONOMIC CRISIS (CONT’D)

TO INCREASE QUALITY OF DOMESTIC ECONOMIC MANAGEMENT- Recapitalisation & consolidation of banking sectors (By Danaharta &

Danamodal)- To promote good corporate governance, transparency, accountability

and high disclosure standard in the public and private sector- Campaign to increase productivity & competition at home (high

quality of economic growth)DEFENDING DIMINISHING CURRENCY- Increase export and lower import.- Build upon foreign exchange reserves - To impose foreign exchange controls measures – fixed exchange rate

and capital controls.- Relax foreign ownership rules to attract foreign capital investment.

FINANCIAL STIMULUS PACKAGE TO OVERCOME ECONOMIC CRISIS (CONT’D)

NATIONAL UNITY AND POLITICAL UNITY (PREREQUISITE CONDITION)- To restore investors & public confidence in the

country’s economy- To maintain the discipline and unity among the

different races in the countryTO WORK ON REFORMS OF THE INTERNATIONAL FINANCIAL SYSTEM TO MINIMISE EXCHANGE RATE VOLATILITY AND CURTAIL CURRENCY SPECULATION (INTERNATIONAL FORUM)

2. SIX OBJECTIVES OF NATIONAL ECONOMIC RECOVERY PLAN BY NEAC

Stabilising the ringgitRestoring market confidenceMaintaining financial market stabilityStrengthening economic fundamentalsContinuing the equity and socio-economic agendaRevitalising affected sectors

NATIONAL ECONOMIC ACTION COUNCIL (NEAC)

• It was established on January 7, 1998 as a consultative body to the government to deal with economic problems and to ensure sustainable economic growth of the nation

• Objectives of the NEAC– Restore public and investor confidence with regard to the

economy which is still fundamentally strong despite the economic crisis.

– Ensure that the country does not enter into an economic recession as a result of the currency and financial crisis.

– Revive the national economy and enhance its global competitiveness

– Strengthen the economic base of the country so as to achieve a developed nation status through rapid and sustainable economic growth.

NECC 2 OR MAPEN II

• National Economic Consultative Council 2 (NECC 2) of Majlis Perundingan Ekonomi Negara (MAPEN II) was launched by PM Dr. Mahathir Mohamad on 4 August 1999.

• NECC 2 comprises 155 members from a wide spectrum of groups including political parties, professional bodies, industry & trading associations, NGO, minority groups, youth & women will be part of the crucial process of formulating Malaysia’s national development policy for the new millennium.

NECC OR MAPEN II (CONT’D)

• Objectives of NECC 2– To spur a new paradigm shift by allowing society to come up

with new ideas and areas which are futuristic and relevant to achieve national development goals in the context of globalisation and to be a developed nation status by year 2020.

– To evaluate the performance of the current National Development Policy and to make recommendations for a new policy which will steer national development beyond the year 2000 taking into account the objectives and challenges of Vision 2020.

– To look into the interest of all communities and to ensure that none would feel left out in policies implemented in the future. Thus this will boost the nation’s economy and maintain social unity and prosperity.

SELF-TEST QUESTIONSCHAPTER 2 – ADMINISTRATION AND FINANCIAL MANAGEMENT

1. Explain the concept of TQM and ISO 9000?

2. What is the objective of implementing ISO 9000 in the public sector?

3. List down the seven steps required in implementing ISO 9000 in the government organisations

4. Identifying any two of the budget strategies mentioned in the 1999 Budget Speech

SELF-TEST QUESTIONSCHAPTER 2 – ADMINISTRATION AND FINANCIAL MANAGEMENT

5. What are the three types of economic crisis?

6. Describe briefly what do you understand by the following crisis-currency crisis, financial crisis and current account deficit

7. Suggest and list down any four measures to overcome the economic crisis in Malaysia

OCTOBER 2000The ISO 9000 family of standards represents an international consensus of good management practices with the aim of ensuring that the organization can time and time again deliver the product or services that meet the client’s quality-requirements.

a) The first step of the 7 steps in implementing ISO 9000 in Malaysian Civil Service is “secure top management commitment”. Why is this factor given the top priority?

(5 marks)b) What are the three (3) levels of quality audit?

(3 marks)c) List and explain any four (4) benefits of implementing ISO 9000 in the public

sector.(8 marks)

d) Suggest two (2) reason why many government departments are still without the ISO 9000 certificate despite the due date (31 December 2000) is approaching.


ADMINISTRATION AND FINANCIAL MANAGEMENT

TQM AND ISO 9000

JUNE 2000 (Summer Class)The introduction of TQM and MS ISO 9000 programmes demand new skills in terms of leadership and management operations and the utilization of modern technology. Leaders in the civil service have to become more visionary and less bureaucratic. They need to craft a strategic vision of excellence to give their organisations direction.

a) Identify any three (3) principles of ISO 9000 for quality management system(3 marks)

b) Explain the meaning “improve the quality system of the organisation”(4 marks)

c) The success of the ISO 9000 is monitored through comprehensive quality audit at three levels. Name them.

(3 marks)

d) List and explain five (5) benefits of implementing ISO 9000 in civil service(10 marks)

(Total: 20 marks)

JUNE 1999 (Summer Class)There is no reason why the civil service should not pursue the ISO 9000. All this while the standards have only been limited to the industries and I believe that the civil service should move towards it.

(Dato Seri Dr Mahathir Mohamad, 1996)a) Explain the 7 steps in implementing ISO 9000 in the

government(14 marks)

b) Identify the three (3) levels of quality audit(3 marks)

c) List three (3) benefits of adopting ISO 9000 in the government


OCTOBER 1998“The government was proud to have a civil service which was responsive to changes to improve efficiency, management and administration in the public sector. Quality work culture, noble values and positive work ethics were vital to achieve excellence. All government organisations should think global and aim to improve their management system and provide high quality products and services by adopting Total Quality Management (TQM) and ISO 9000.”

(Prime Minister, Datuk Seri Dr. Mahathir Mohamad, 1997)a) What are the main objectives of adopting TQM and ISO 9000 in

government organisations(4 marks)

b) List down the 7 (seven) steps required in the implementation of ISO 9000 in Malaysian Civil Service

(10 marks)c) Discuss the specific problems (any 3) in implementing ISO 9000 in the

government organisations(6 marks)

(Total: 20 marks)

MARCH 1998The various administrative reforms undertaken in the last few years in developing a customer oriented public service have already laid the strong groundwork for the civil service to adopt the ISO 9000 standard.

a) What is the main objective of implementing ISO 9000 in the government sector?

(6 marks)b) Identify three principles of ISO 9000 for quality

management system in government(6 marks)

c) What are the benefits (any 5) of adopting ISO 9000 in government?


APRIL 2000Budget 2000, the first for the 21st Century, will take into account the external economic environment and domestic circumstances to continue with its pragmatic approach in strengthening the economy recovery. In fact, the new establishment of the two national consultative economic councils by the government would lead to the country’s economic revival and the nation’s readiness in facing the new millennium.

a) Identify any four (4) strategies of Budget 2000(4 marks)

b) Explain any two (2) of the above strategies(8 marks)

c) Name the two (2) consultative bodies which were established by the government to deal with economic crisis. State one (1) objective for the formation of each consultative body


CURRENT ISSUES

OCTOBER 1999The Economic Recovery Plan proposed by the National Economic Action Council (NEAC) has six recommendations to strengthen the country’s economic fundamentals. According to NEAC, it is important to ensure that inefficiencies in the economy are removed and excessive credit expansion is curbed to enable the economy to return to a sustainable growth path in 1999 and 2000

(NEAC, July 1998)a) List down five (5) recommendations from National Economic Action Council

(NEAC) with regard to economic recovery measures(5 marks)

b) Explain any two (2) of other measures as identified by the government for economic recovery

(10 marks)c) What are the two (2) most important factors considered to be the prerequisite

conditions for Malaysia to overcome economic crisis(5 marks)

(Total: 20 marks)

APRIL 1999It became clear that the nation’s economic and financial problems were caused by currency traders who manipulated to depreciate the Ringgit thereby impoverishing both the nation and the people.

(Dato’ Seri Dr. Mahathir Mohamed, 1999 Budget Speech)a) Identify any four (4) of the budget strategies mentioned in the 1999 Budget

Speech(4 marks)

b) Describe the following types of crisis:i) Currency crisisii) Financial Crisisiii) Current Account Deficit

(6 marks)c) Suggest four (4) measures to overcome the economic crisis in Malaysia


MAY 1998“The Malaysian economy seems to have been hit by a financial cyclone, the ringgit and the stock market have fallen sharply and the momentum of economic growth has stalled”. A comment made by the Prime Minister, Datuk Seri Dr Mahathir Mohamed.

(Malaysian Business, October 16, 1997)a) Identify 3 types of economic crisis

(6 marks)b) Describe four measures identified by the government to

overcome this economic crisis?(14 marks)

(Total: 20 marks)

CHAPTER 3 – INFORMATION TECHNOLOGY (IT) IN GOVERNMENT

• The need for IT in government• IT Applications in government

INFORMATION TECHNOLOGY IN GOVERNMENT• INFORMATION TECHNOLOGY (IT) can be defined as the acquisition,

processing, storage and dissemination of pictorial, focal , textual or numerical information using computers and telecommunications.

• THE NEED FOR IT IN GOVERNMENT • The need to upgrade and to increase services and benefits to the diverse range

of users of government information.• Government Department or Public Sector are overloaded with an increasing

number of customers due to the problems of inefficiencies, bureaucracy, long queues – countless forms to be filled-limited branches and manual processes. More efforts have to be continued to develop the IT infrastructure to facilitate government agencies in communication network and access to information resources (Public Services Network, Civil Service Link, Electronic Data Interchange, etc)

• Increased usage of computers to support counter service operations to provide efficient and quality services to the public. Amongst the most important infrastructure introduced is the PUBLIC SERVICES NETWORK (PSN) which will enable government agencies to offer their counter services through the computer network linking the post office eg Road Transport Department, and Permodalan Nasional Berhad are using post office outlets to modernise their counter services.

THE NEED FOR IT IN GOVERNMENT (CONT’D)

• The use of computer technology in government was not only restricted to traditionally data processing areas carried out independently, but now extended to several new IT areas (communication & access to information resources) such as ELECTRONIC DATA INTERCHANGE (EDI), OPEN SYSTEM, GEOGRAPHICAL INFORMATION SYSTEMS (GIS), CIVIL SERVICE LINK (CSL), GOVERNMENT INTEGRATED TELECOMMUNICATIONS NETWORK (GITN), INTERNET (JARING ILMU & TMNETS) AND MULTI MEDIA SUPER CORRIDOR.

• Developments in IT infrastructure and MSC project in the era of information age will be the foundation for the creation of an information rich society and knowledge based industries which could contribute more economic and employment opportunities and biggerincomes in the government efforts to become a fully industrialised and developed nation by the year 2020.

IT APPLICATIONS IN GOVERNMENT

IT Applications•Functions•Benefits

IT Applications•Functions•Benefits

Open SystemOpen System

Public servicesNetwork (PSN)Public servicesNetwork (PSN)

Civil Service Link (CSL)Civil Service Link (CSL)

Government IntegratedTelecommunicationsNetwork (GITN)

Government IntegratedTelecommunicationsNetwork (GITN)

INTERNETINTERNET

INTRANETINTRANET

GeographicalInformationSystem (GIS)

GeographicalInformationSystem (GIS)

Electronic DataInterchange (EDI)Electronic DataInterchange (EDI)

OPEN SYSTEM

• FUNCTION– Definition – integration of many information systems within

organisations so that they can operate with each other in a network.

– Transparent access to data anywhere with application development for multiple platforms, enterprise – wide applications and consistent user – interfaces.

• BENEFITS– Users can easily adapt to any of computer systems when all

suppliers have to comply with certain standards guidelines in integration and development adaptation.

– Capability of performing more powerful computing task – RISC (reduced instruction set computing)

– Vendors will have bigger market with the standards guidelines used in the future new system thereby reduce market competition and product price.

PUBLIC SERVICE NETWORK (PSN)

• FUNCTION– Is a joint of Permodalan Nasional Berhad. Pos Malaysia

Berhad and MAMPU.– Enables government department and agencies to offer

their counter services on-line to the public using the computer and network facilities of post offices.

– It is to enhance the quality and productivity of the counter services to the public and business community.

– To assist the government and agencies in integrating their business processes.

• BENEFITS– The public and business community could have

alternative service outlets reduce service time and traveling cost.

– The government would not have to invest in setting up more branches and could reduce congestion at the counters.

CIVIL SERVICE LINK (CSL)

• FUNCTION– To provide an on-line, one-stop resource center which

contained information repository on various aspects of public sector administration.

– An information kiosk available at strategic places for the convenience of the public and private sector allowing on-line public access to government database through one stop resource centre housing the latest information on government administration and management

– Many other government agencies are developing databases that are being made available to the private sector.

• PALMOILIS – Palm oil information on-line system• MASTIC – Malaysia science and technology information

centre • SIRIMLINK – sirimilmu.

– Information contained in the CSL was now available in the homepages of agencies in CSL HOMEPAGES in Internet.

GOVERNMENT INTEGRATED TELECOMMUNICATIONS NETWORK (GITN)

• FUNCTION– The capability to electronically link all levels of administration in the

government organisation– Is a telecommunications infrastructure that integrates the

government communication requirements for data, voice, image andvideo.

– A joint privatised project by Telekom Nasional Berhad. Permodalan Nasional Berhad and GITN Sdn Bhd and monitored by MAMPU

– Implemented phase by phase beginning with pilot project – Chief Secretary to Government, Treasury, EPU, MAMPU and Intan.

• BENEFITS– To provide inter and intra agency communications in the public

sector– The establishment of the backbone of an efficient and effective

government machinery.

ELECTRONIC DATA INTERCHANGE (EDI)• FUNCTION

– New technology in electronic commerce– To standardized and simplifying the generation, transmission, storage and

retrieval of documents resulting in substantial savings in time and resources.– Improve procedures and documentation for export and import trade.

• Expedite processing of import and export license and permits• Facilitate import and export declarations

– Several EDI projects are Port Kelang Community System, MITI Textiles Export system. Veterinary Services Dept’s import and export

– Successful implementation of EDI require that the government-carries, transporters, brokers, freight forwarders , banks and all other parties involved in trade must agree on a common goal I.e. simultancous EDI implementation and one standard (UN/EDIFACT)

• OBJCTIVE– Elimination or reduction of paper documents and reduction of data task – Facilitate JIT manufacturing and speeding up the turnaround time of orders– Reduces errors, shipping leadtime, clerical processing times.

GEOGRAPHICAL INFORMATION SYSTEM (GIS)

• FUNCTION– New technology used in the areas such as land administration,

agriculture, forestry, town and country planning– Is a computer-based tool for mapping and analysing things that exist

and events that happen on earth.– GIS projects are Penang GIS (PEGIS), Terengganu (TEGIS),

Melaka (GIS) and Sabah Forestry Department and Sabah Land & Survey Department, Putra Jaya and Hydro Bakun

• BENEFITS– GIS technology will give the power to create mapmaking and

geographical analysis, integrate information, visualize scenarios, solve complicated problems like overpopulation, pollution, deforestation, natural disaster and develop other effective solutions.

INTERNET

• FUNCTION– The use of personal computers to make communication and

information sharing more sophisticated and efficient – The mechanism for information dissemination and a medium for

collaboration and interaction between individuals and their computers without regards for geographical location

– Mimos Berhad is the first internet service provider to provide JARING network and Telekom Nasional Berhad is the second one to provide TMNET network

• BENEFITS– Integrated data communication network– Transparent access to the global information superhighway at a

affordable cost– Creation of innovative and creative education, research and

commercial activities.

INTRANET

• FUNCTION– Is the communication networks that are based on web

and internet technology to allow the internal users (management and employees) to access the full information and data resources available within the organisation (internal communication system)

– Sabahnet – intranet and web service provide information of state government, education, commerce and community service in Sabah

• BENEFITS– Inexpensive and easy to use without much training– Exchange information and keep information current– Information sharing data when working on

collaboration.

SELF-TEST QUESTIONSCHAPTER 3-INFORMATION TECHNOLOGY IN GOVERNMENT

1. List eight (8) of IT applications which are currently adopted and implemented in the public sector.

2. Describe the background and objectives of any two (2) IT applications which you have listed above.

CHAPTER 4 – MULTIMEDIA SUPER CORRIDOR

• Background and the Zone of MSC• Objectives of the MSC• MSC Vision & 3 phases to 2020• 7 Flagship Applications & Objectives• Role of MSC in Vision 2020 and leapfrog

into leadership in Information Age• Roles of MDC, MIMOS & NITC

VISION 2020 A fully developed country

A united nation

OBJECTIVES

•Productivity – led growth

•Leadership in Information Age

•Global bridge for mutual enrichment

7 FLAGS APPLICATIONS

MULTIMEDIA DEVELOPMENT

•Electronic Government

•Multipurpose Card

•Smart Schools

•Telehealth (telemedicine)

MULTIMEDIA ENVIRONMENT

•Research & Development Cluster

•E-Business (Borderless Marketing Centre & Worldwide Manufacturing Webs)

•Technopreneur Development

IMPLEMENTATION

•Phase 1•Phase 2•Phase 3

MULTIMEDIA SUPER

CORRIDOR

CHALLENGESSUCCESS

WHAT IS MULTIMEDIA?Multimedia is any combination of text, graphic art, sound, animation and video. Simply, it means a variety of media delivering information to us by computer or other electronic means. Hence, multimedia is a new information and communication tool.WHAT & WHERE IS THE MULTIMEDIA SUPER CORRIDOR?

• The MSC is a 15 by 50 km zone that encompasses, Kuala Lumpur and four mega infrastructure projects: Kuala Lumpur City Centre (KLCC), the administrative centre in Putrajaya, the ‘intelligent’ city Cybercity and the Kuala Lumpur International Airport. The massive corridor which is larger than Singapore – will be connected by a digital optical fibre backbone with an unprecedented 2.5 – 10 gigabits per second capacity.

• World class multimedia corporations will be invited to locate their business units and Research & Development facilities in this multimedia growth centre, which will be a springboard to create – distribute and serve the regional and world markets for multimedia products and services.

• Key features of the MSC will include a high capacity global telecommunications and logistics infrastructure (high capacity links to international centres, competitive telecommunications pricing and high speed switching enabling a rapid distribution of products along modern land, air and sea links) and an attractive living environment. World class physical infrastructure and next generation 2.5 – 10 gigabits multimedia network

• Special cyberlaws – policies and practices are tailored to enable residents to achieve the full promise of multimedia environment.

OBJECTIVES OF MSC

• To achieve the goals of Vision 2020 by catalysing productivity – led growth

• To leapfrog Malaysia into leadership in the Information Age by attracting and developing world – leading companies through “smart partnership” between leading foreign and Malaysian Firms

• To build global bridges between Malaysia and other intelligent cities for mutual enrichment.

Multimedia DevelopmentFlagship Applications

• ELECTRONIC GOVERNMENT

• MULTIPURPOSE CARD• SMART SCHOOLS• TELEHEALTH

Multimedia EnvironmentFlagship Applications

• RESEARCH & DEVELOPMENT CLUSTERS

• E – BUSINESS• TECHNOPRENEUR

DEVELOPMENT

7 FLAGSHIP APPLICATIONS TO CATALYSE THE MSC’S GROWTH

OBJECTIVES OF FLAGSHIP APPLICATIONS

• TO JUMP START DEVELOPMENT OF MSC– By providing business opportunities for companies

to participate in• TO MAKE MSC GLOBAL TEST BED FOR

INNOVATIVE SOLUTIONS– Hereby attracting web-shapers & service providers

• TO INCREASE MALAYSIAN PRODUCTIVITY AND COMPETITIVENESS– By creating the environment/infrastructure for E-

Business, E-Government/Education/Healthcare Systems & Other key areas

• TO REDUCE DIGITAL DIVIDE

ELECTRONIC GOVERNMENT (EG)• EG is the Malaysian Government initiative to reinvent itself to lead the

country into the Information Age. EG will improve both how the government operates internally as well as how it delivers services to the people of Malaysia. It seeks to improve the convenience, accessibility and quality of interactions with citizens and businesses, simultaneously. It will improve information flows and processes within government to improve the speed and quality of policy development. Coordination and enforcement. EG will play an essential role in catalyzing the development of the MSC as well as furthering political and economic development goals in Vision 2020.

• The Vision of EG calls for both reinventing government (using information technology to improve productivity) and creating a collaborate environment for the ongoing development of Malaysia’s multimedia industry.

• 5 pilot applications (projects) have been identified:– Project monitoring system (PMS)– Human Resource Management Information System (HRMIS)– Generic Office Environment (GOE)– Electronic Procurement (EP)– Electronic Delivery Services (E-Services ++)

MULTIPURPOSE CARD• The national multipurpose card (MPC) seeks to provide a

single and common MPC that will enable the government and private sectors as providers to implement smart card solutions without duplications of investment. Initially 2 cards will be used I.e. the Government Multipurpose Card (GMPC) and Payment Multi-purpose card (PMPC) and eventually revert to a single multipurpose card.– Examples of GMPC = national ID, driving license,

immigration, MEPS Cash, Health Information & public key infrastructure.

– Examples of PMPC = credit, debit, ATM & MEPS Cash• Objectives of MPC Flagship Application are:

– To provide the government and payment applications and other future applications on a single MPC

– To provide enhanced service to customers and– To enhanced security and convenience of existing and new

applications delivered on the MPC.

SMART SCHOOL

• The Malaysian Smart School applications is the government’s initiative to enhance learning institution’s “teaching-learning process” of curriculum, pedagogy, assessment and teaching-learning materials which may enable students to practice self-assessed and self-directed learning that focuses on individual architecture of mind development. This flagship is driven by theneed for Malaysian’s transformation from an industrial to an information based economy.

• Objectives of Smart School Flagship Application are:– To produce a thinking and technology literate workforce– To develop opportunities to improve individual strengths and

abilities – To increase stakeholders involvement– To democratize education

TELEHEALTH

• Telehealth is a process that focuses on the individual to provide greater access and increased knowledge on healthcare. It empowers the individual to manage his/her own personal health and integrates information to allow the smooth flow of services and products throughout the healthcare system.

• The objectives of Telehealth Flagship Application are:Enhance the quality of medical servicesImprove outreach in urban and in particular in rural areasReduce delivery timeSave costsBecome a regional centre of excellence in Telehealth developmentDeliver leading edge health care products and services worldwide.

• Four components of Telehealth – TELECONSULTATION (TC)– MASS CUSTOMISED/PERSONALISED HEALTH INFORMATION

AND EDUCATION (MCPHIE)– LIFETIME HEALTH PLAN (LHP)– CONTINUING MEDICAL EDUCATION (CME)

R & D CLUSTERS• R & D is a critical pillar of the knowledge based-economy in order to enhance

intellectual capital and to improve/sustain the country’s competitiveness. R & D clusters emphasised on the creation of a world class corporate multimedia activities and the development of a web of world class corporate multimedia centers and universities collaborating to develop leading-edge multimedia products and technologies by leveraging on the infrastructure provided by the MSC

• Objectives of R & D Clusters are:– To encourage collaboration between key players to produce leading-edge products

and technologies– To promote multimedia technology transfer to Malaysia and encourage local high-

tech start-up innovations– To increase local R & D activities to improve Malaysia’s human capital and

competitiveness• To catalyze R & D activities in MSC, the following programs have been initiated:

– MSC R & D Grant Scheme (MGS)– MSC Student Attachment Programs (SAP)– MSC Technology Forum Series– Exhibitions (local & overseas)– Collaborative R & D efforts between firms, universities & research institutes.

E - BUSINESS

• The E – Business cluster, driven with the objectives of the MSC, aims to shape an Electronic business to be more competitive with the major economic powers. This cluster has an enormous potential market that have the driving force for future economic growth. It is transforming the way in which business was conducted – it enable businesses to become more responsive. The E – Biz aims to provide more efficient and better quality services to the community and the business.

TECHNOPRENEUR DEVELOPMENT

• Technopreneur Development Flagship (TDF) was launched on 6th

November 2001 as the 8th MSC flagship aimed to generate a rich pool of business and innovative technologically boost entrepreneurship in Malaysia. The technology-based small and medium enterprise (SMEs) would contribute to economic growth by creating new wealth and job opportunities in the knowledge based economy. This flagship willfurther drive the establishment of a highly competitive cluster of Malaysian ICT/MM companies which will in time become world class.

• Objectives of this flagship are:– To spawn a critical mass of SMEs and start-up companies involved

in the ICT/MM industries.– To facilitate the growth of potential Malaysian world-class

companies– To create the nuclei for the physical rollout of the MSC nationwide,

though the National Incubator Network– To spur the growth of the venture capital industry.

FLAGSHIP APPLICATIONS AND THE LEAD AGENCIES

- Ministry of International Trade & Industry & Multimedia Development Corporation

E-BusinessTechnopreneur Development

- Ministry of Science, Technology & environment

R & D Cluster

- Ministry of Health Telemedicine

- Ministry of EducationSmart Schools

- Bank Negara & J. Pendaftaran Negara.Smart Card

- Malaysian Administrative Modernisation & Management Unit (MAMPU)

Electronic Government

Lead AgencyFlagship Applications

MSC IN VISION 2020

• The MSC is the centrepiece of Malaysia’s multimedia and IT development for the period to the year 2020 and therefore plays the dual roles of guarantor and accelerator for the ultimate goals of Vision 2020.

MSC – LEAPFROG INTO SUCCESSIN INFORMATION AGE

GO GLOBAL AND LEAD REGIONAL BY:

• Create the ideal multimedia environment to attract world-class companies to use as a hub

• Enhance domestic productivity • Create value from Information Age businesses• Catalyze a highly competitive cluster of

Malaysian multimedia/IT companies that become world-class overtime.

MSC VISION – 3 PHASE TO 2020

• PHASE 1Successfully create the multimedia super corridor i.e (One Corridor, 50 worldclass companies, launch 7 flagships, put in place a world-leading framework cyberlaws & establish Cyberjaya and Putrajaya as world - first intelligent city)

• PHASE 2Link the MSC to other cybercities in Malaysia and worldwide i.e. ( a web of corridors, a second cluster of world class companies (250 world class companies), set global standards in flagship applications, champion cyberlaws within the global society and establish a number of intelligent globally - linked cities (4-5 intelligent cities linked to other global cybercities)

• PHASE 3Transform Malaysia into a knowledge based society in InformationAge Era i.e. being a true global test bed for new multimedia and IT applications and a record of high number of multimedia companies (a cluster of intelligent cities linked to the global information super highway and become the platform for the International Cybercourt of Justice)

MULTIMEDIA DEVELOPMENT CORPORATION

• A fully empowered “one-stop super shop” focused on ensuring the unconditional success of the MSC and its companies by cutting through red tape to expedite permit and license approvals, providing information and advice on the MSC and introducing companies to potential local partners and financiers. It will also market the corridor globally, shape MSC laws and policies by advising the government and set standards for the MSC’s information infrastructure and urban developments. It is also empowered to grant MSC status to qualified companies.

• The MDC Sdn. Bhd was funded by the Federal Government initially but will become self funding eventually by participating in value creation activities in the MSC

• As the minder of the MSC, MDC’s priority is to address target companies to locate in the MSC and to help local small and medium enterprises prepare and develop their expertise to the standard and become more competitive. The MDC will monitor technology transfer is carried out to achieve national economic and social goals of MSC.

MULTIMEDIA DEVELOPMENT CORPORATION (CON’T)

• MISSION– To ensure that the goals of the MSC are rapidly

and efficiently achieved • OBJECTIVES

– To shape a world-leading environment– To attract and nurture leading-edge and world-

class companies– To facilitate knowledge transfer and wealth

creation– To build a well-mandated, value-based, highly-

effective institution.

ROLES OF MIMOS AND NITC• MIMOS (Malaysian Institute of

Microelectronic Systems)– The Institute is part of the

country’s long term strategy to develop a reservoir of knowledge and know how locally in microelectronic as well as IT arena

– Institute works hand in hand with both the private and public sectors in various aspects relating to Research & Development education & training and technology development

– Acts as an instrumental in developing Malaysia’s MSC and becomes Malaysia’s centre of excellence in Microelectronics and IT

• NITC (NATIONAL INFORMATION TECHNOLOGY COUNCIL)– To coordinate planning and

management of IT development

– To formulate a national action plan to promote the development of Malaysia into an IT hub

– To manage and promote public awareness regarding the importance of IT

• Provide a world-class physical and information infrastructure.

• Allow unrestricted employment of local and foreign knowledge workers

• Ensure freedom of ownership by exempting companies with MSC status from local ownership requirements

• Give the freedom to source capital globally for MSC infrastructure, and the right to borrow fund globally

• Provide competitive financial incentives.

• Become a regional leader in intellectual property-protection and cyber laws

• Ensure no internet censorship • Provide globally competitive

telecommunications tariff• Tender key MSC infrastructure

contracts to leading companies willing to use MSC as their regional hub

• Provide a high-powered implementation agency to act as an effective one stop super shop.

The government commits the following to companies with MSC status:

BILL OF GUARANTEES

INCENTIVES

• Besides the Bill of Guarantees, companies with MSC status will enjoy:

• Substantial financial incentives such as a 0 per cent income tax for up to 10 years or a 100 per cent investment tax allowance, and no duties on multimedia equipment.

• The sole right to tender for key implementation contracts for flagship applications

• Support from the MDC’s one stop client centre that will expedite visas, licences and permits.

• Direct access to Malaysia’s top leadership through membership of the MSC’ International Advisory Panel and the Founders’ Council.

SELF-TEST QUESTIONSCHAPTER 4 – MULTIMEDIA SUPER CORRIDOR

1. List the objectives of Multimedia Super Corridor (MSC)

2. List the 7 flagship applications of MSC

MULTIMEDIA ENVIRONMENT

MULTIMEDIA DEVELOPMENT

3. Identify the government departments which is or are involved as the lead agency in the flagship applications given below:

2. ELECTRONIC GOVERNMENT1. SMART SCHOOL

4. State any two factors that MSC would enable Malaysia to leapfrog into success in information age.

OCTOBER 2000The vision of the Multimedia Super Corridor or the MSC is to create the ideal multimedia environment in Malaysia to attract world-class companies to use as a hub. It is a long-term plan, fully supported by the Malaysian Government, that has been realistically divided into three phases, stretching from the year it was launched in 1996 until 2020.

a) Describe how MSC can transform Malaysia into a knowledge society by 2020.

(8 marks)b) MSC can create value from Information Age business. Explain.

(3 marks)c) Elaborate on the following Multimedia Environment Flagship

Applications:(i). Research and Development Clusters;(ii). World Wide Manufacturing Web; and(iii). Borderless Marketing Centres.


MULTIMEDIA SUPER CORRIDOR

JUN 2000 (Summer Class)Malaysia has created the Multimedia Super Corridor (MSC) to helpcompanies of the world test the limits of technology, and prepare themselves for the future. The MSC will also accelerate Malaysia’s entry into the Information Age, and through it, help actualize Vision 2020.

a) State the four (4) factors that world leapfrog Malaysia into success in the Information Age.

(4 marks)b) Elaborate on any two (2) of the factors stated in (a) above

(6 marks)c) Explain the following terms:

i) Smart Partnershipii) Intelligent citiesiii) Borderless marketingiv) Knowledge society


APRIL 2000Multimedia Super Corridor (MSC) is a global facilitator of the Information Age and a carefully constructed mechanism to enable mutual enrichment of companies and countries using leading technologies and the borderless world. The MSC is both a physical area and a new paradigm for creating value in the Information Age.Dato’ Seri Dr. Mahathir Mohamad – Speech at the opening of Multimedia Asia on MSC, 1 August 1996.

a) What are the three (3) objectives of MSC(3 marks)

b) List the seven (7) flagship applications to catalyse the growth of MSC(7 marks)

c) Describe the current phase of MSC’s development (5 marks)

d) State the role of Multimedia Development Corporation (MDC) as a “one-stop super shop”. You are required to state any five (5)


OCTOBER 1999Based on the premise that a thriving IT and multimedia industry will bring new added value to our economy, besides fuelling productivity in other economic sectors, the Multimedia Super Corridor is now regarded as the next engine of growth to leapfrog Malaysia into the information age.

(Datuk Seri Dr. Mahathir Mohamad – NST 20th December 1998)a) List the seven (7) flagship applications in Multimedia Super Corridor

(7 marks)b) Explain any two (2) of the seven flagship applications mentioned above

(10 marks)c) Give three (3) examples of public and private organisations that have been

operating their business in the Multimedia Super Corridor(3 marks)

(Total: 20 marks)

JUNE 1999 (Summer Class)To initiate multimedia-based activities in the Multimedia Super Corridor (MSC) project, the government has identified a group of seven applications which utilise the technology as the main output. They represent key multimedia usage that are aimed at spearheading the creation of a multimedia industry in the country.

(Dr. Mohamad Arif Nun, MDC, 1997)a) List the seven (7) flagship applications in MSC

(7 marks)b) Identify the three (3) objectives of MSC

(3 marks)c) Describe under Phase 1 how would Malaysia successfully create

the MSC(10 marks)

(Total: 20 marks)

MAY 1998The government is fully committed to the success of the Multimedia Super Corridor (MSC). To realise this, we are now implementing a unique package to attract for pioneering multimedia applications and the seven flagship application will push technology to new limits which will change our future life.

(Datuk Seri Dr. Mahathir Mohamad, April 1998)a) Where is the MSC located?

(5 marks)b) List down the seven flagship applications to catalyze the MSC

growth.(7 marks)

c) How can MSC transform Malaysia into a knowledge society in the Information Age?


APRIL 1997“The Multimedia Development Corporation is a fully empowered ‘one-stop super shop’ focused on ensuring the unconditional success of the Multimedia Super Corridor (MSC) and its companies by cutting through red tape to expedite permit and licence approvals, providing information and advice on the MSC and introducing companies to potential local partners and financiers”.

(News Sunday Times, January 12, 1997)a) Explain the seven flagship applications which have been

targeted for development by the year 2000 to catalyze the MSC’s growth.

b) Establish the linkage between MSC and Vision 2020.(20 marks)

SEPTEMBER 1997“The Multimedia Super Corridor (MSC) will enable Malaysia to leapfrog into the Information Age by employing the tools of the information and multimedia technologies. The development of the MSC will have a significant impact on Malaysia as it promoting a new way life to her people”.

(Dato’ Professor Zainuddin bin Muhamed, 25 July 1997)

a) Identify the 3 objectives and the 3 phases of MSC(12 marks)

b) Explain the 4 factors that would leapfrog Malaysia into success in the Information Age.


CHAPTER 5 – ELECTRONIC GOVERNMENT

• The need for Information Technology in Government.

• Introduction of Electronic Government• Vision of Electronic Government• Objectives of Electronic Government• Key elements of Electronic Government• Approach & Pilot Application• Benefits & Changes Required in Electronic

Government

REINVENTING GOVERNMENT – A RICH PICTURE

VISION 2020 – Industrial & fully develop

NITA MSC

E -GOVT

Smart schoolSmart cardTelehealth

R & D ClustersE – BusinessTechnopreneur DevelopmentImprove Internal

GovernmentMechanism

EffectiveServiceDelivery

INTRA - GOVT INTRA-MINISTRYCITIZENTO - GOVT

BUSINESSTO - GOVT

EFFECTIVE USE OF MULTIMEDIA & INFORMATION TECHNOLOGY

ELECTRONIC GOVERNMENTMSC 7 FLAGSHIPS

EG

REINVENTING GOVERNMENT THROUGH CONNECTIVITY To catalyze MSC rapid development

INTRAGOVERNMENT GOVT + CITIZEN GOVT + BUSINESS

Improved internal operations/communications

Improved information flow

Reengineering process

Superior communication network

Empowered employees

Service quality and effective delivery to customers

-Reliable, transparent and fast turnaround cycle

-Using multiple delivery channels, info kiosk one-stop service window, internet etc.

2 OBJECTIVES

USING MULTIMEDIA AND INFORMATION TECHNOLOGY

ELECTRONIC GOVERNMENT

• One of the seven MSC Flagship Applications with aspiration of employing multimedia technologies to reinvent government operations towards a paperless Civil Service

• Involves 3 key elements – intra government, business to government and citizen to government which will:– Offer efficient and high quality administrative services

to citizens and businesses – Streamline government’s internal processes to

improve quality of service, reduce costs and strengthen data security and protect privacy.

• Play an essential role in catalysing the MSC’s development

VISION OF ELECTRONIC GOVERNMENT

To see the people in government, business and citizenry working together for the benefit of all Malaysians in our overall effort to become a fully developed nation by 2020 and beyond.

• The vision calls for:– Reinventing government using multimedia/IT to improve

productivity– Creating a collaborate environment that fosters the ongoing

development of Malaysian’s multimedia industry.• The vision focuses on:

– Effectively & efficiently delivering services from government topeople (citizen & business) of Malaysia.

– Become more responsive to the needs of citizen– Built close link & develop collaborative approach in problem

solving.

OBJECTIVES OF ELECTRONIC GOVERNMENT

• Reinventing the concept of government though connectivity – EG will redefine the relationships of government to citizens to business

and to itself. To citizens, the new relationship will mean to have greater access to more convenient, more responsive, higher quality, lessexpensive and direct delivery of government services via paperless information exchange and on-line transactions eg. Through kiosks and internet. To business and industry, EG will mean improved relationships and greater responsiveness to applications and approvals. Withingovernment, the new relationship means improved information flows, superior communications between the components of government andimprovements in the coordination of government resources.

• Catalysing the MSC’s rapid development– EG will spearhead the conversion to paperless throughout the country.

By doing this, the productivity of the public sector will stimulate increased productivity in the private sector. The combined effect would be to sustain Malaysia’s rapid economic growth.

KEY ELEMENTS OF ELECTRONIC GOVERNMENT

CITIZEN TO GOVERNMENTUse smart card to access govt. service

• Registrations (birth, marriage etc)• Driver’s Licence • Tax and social security • Pension payments• Personal health data• Public information services, databases• Electronic voting

BUSINESS TO GOVERNMENT• EDI-based govt. procurement• Corporate online services – registrations,

licensing, corporate tax filing• Online access to economic-business, policy,

legal information• Electronic patent, copy right, trademark• PM-CEO videoconferences.

INTRA GOVERNMENT• PM’s Department

– Intra-ministry and cross ministry intranet

– Collaborative office environment across ministries

– High presence video conferencing – Multimedia mobile office– Digital signature– Document filing and shared

databases.• MINISTRY – SPECIFIC

APPLICATIONS• SIMILAR AND COMPATIBLE

APPLICATIONS WITHIN AND ACROSS ALL OTHER MINISTRIES

APPROACH TO ELECTRONIC GOVERNMENT

• Reengineered processes, new system, better structures & training programmes to develop new skills and foster shared values.

• Prioritising and then implementing pilot applications based on their potential impact and feasibility

• Five pilot applications have been prioritised by Concept Request For Proposals (CRFP’s) which described the requirements and flexibility given to innovate and deliver the best solution.

5 PILOT APPLICATIONS

• Electronic Delivery of Driver and Vehicle Registration, Licensing and Summons Services, Utility Payments and Ministry of Heath On - Line Information

• Electronic Procurement• Prime Minister’s Office – Generic Office

Environment• Human Resource Management Information

System• Project Monitoring System

ELECTRONIC GOVERNMENT – 5 PILOT APPLICATIONS

Licencing and RelatedVehicles Services and

Utility Payment

Electronic Procurement

Prime Minister’s OfficeGeneric OfficeEnvironment

Project MonitoringSystem

Human Resource Management Information

System

5 PILOTAPPLICATIONS

LICENCING AND RELATED VEHICLES SERVICES AND UTILITY PAYMENT

BACKGROUND• This application will enable the public to

transact more easily with government and utility companies. With the one-stop service window provided by Electronic government, it will be possible to go to a kiosk in a shopping mall or use the PC at home to renew driver licences and pay electricity bills.SCOPEFour major services under this pilot applications

• Driver & Vehicle Registration, Licensing & Summons

• Payments of Tenaga Nasional Berhad Electricity Bills

• Payment of Telekom M’sia Berhad Bills• Ministry of Health Information

OBJECTIVES• To enhance service access to the public

– MULTIPLE DELIVERY CHANNELS

– ONE-STOP SERVICE WINDOW– MULTILINGUAL CAPABILITIES– EQUALITY OF ACCESS

• To improve service quality to the public– SPEED– RELIABILITY– TRANSPARENCY – SECURITY

ELECTRONIC PROCUREMENT

BACKGROUND & SCOPE• This application aims to reengineer,

automate and transform the current procurement system. The system will deliver cost savings and faster turnaround times by enabling government to become a smart buyer

• Suppliers, large and small, will also benefit from the transparency created in this new system and will receive faster and more accurate payment

• Electronic Procurement will allow government agencies to electronically select items to be procured from the desktop, initiate an electronic approval process, to create, submit and receive purchase orders, delivery orders and other related documents & information electronically.

OBJECTIVES• To ensure best value for

money for electronic procurement

• To ensure accountability and transparency in line with the established procedures

• To contribute towards achieving government policy objectives through procurement

• To ensure orderly – efficient and effective management of stores and materials.

PRIME MINISTER’S OFFICE – GENERIC OFFICE ENVIRONMENT

BACKGROUND• This pilot application will provide a fully

integrated, distributed, manageable and scalable paperless office environment for the Prime Minister’s Office by deploying multimedia & information technologySCOPE

• GOE – is capable of being customised to suit the business needs of other departments within the government as well as capable to support future business needs

• GOE consists of 3 modules– Enterprise wide Information Mgt

System– Enterprise wide Communication Mgt

System– Enterprise wide Collaboration Mgt

System

OBJECTIVES• Central management of computing

resources• Reduced cost of ownership• Easier application and data

integration• Central control of policies and

guidelines.

HUMAN RESOURCE MANAGEMENT INFORMATION SYSTEM (HRMIS)

BACKGROUND• HRMIS will provide a single

interface for government employees to perform human resource management function effectively and efficiently in an integrated environmentSCOPE

• HRMIS will cover areas such as recruitment & selection of personnel establishment of posts, design of organisational structures, performance appraisal and training.

OBJECTIVES• To achieve effective staffing and

rightsizing through better availability of HRM information

• To automate HRM operational processes which are currently done manually

• To build up-to-date consolidated HRM information for effective HRM planning among agencies

• To improve paperless HRM capabilities among agencies

• To achieve better communication, horizontal integration and to achieve a richer collaborative system environment among agencies.

PROJECT MONITORING SYSTEM (PMS)

BACKGROUND• PMS is designed to provide a

mechanism for monitoring the implementation of government projects eg. Electronic Government, 5th

year development plan & etc.• The service will provide a

platform for exchanging ideas and demonstrating best practices models in information management and communication services.

OBJECTIVES• To establish a richer collaborative

systems environment among agencies to maximise the efficiency and effectiveness of project monitoring and communication process

• To provide an open and flexible system which will fulfill and improve information needs of operational and managerial processes at different levels of agencies.

• To provide paperless project monitoring capabilities among agencies involved in the project monitoring.

BENEFITS OF EG FOR MALAYSIA (REINVENTING GOVERNMENT)

• Improving Government Services– Better access– Higher Quality– Expanded Spectrum– Better tailored to

individual need

• Improving effectiveness and efficiency of Government– Improves processes– Better Systems– Empowered Employees.

REINVENTING GOVERNMENT – REQUIRE CHANGES

• EG PARADIGMS– Open and citizen – centered – Transparency – Accountability for results– More analytical policy making

• PROCESSES– Improved information flow– Higher productivity – Shorter cycle times– Better quality monitoring

• PEOPLE– Enhanced skills– Higher motivation

• TECHNOLOGIES/SYSTEMS– Interconnectivity and

integration– Better security and privacy

protection

• Knowledge Economy (K-Economy)– Knowledge is becoming more important and has always been central to

economic growth and development. An essential element of the knowledge based economy is the possession of a world class information andtelecommunications system that is accessible to all at competitive prices which can provide the competitive advantage ton each sector of the economy. Malaysia’s K-Economy master plan emphasised on the maximum application of knowledge to every Malaysia economy and business activities by investment made in education, “brain-gain” and supply of information.

• Knowledge Society (K-Society)– Is a learning society where people have to learn how to learn with the help of

information and communication tools. It requires a life-long and a discipline of continous learning.

• Electronic learning (K-Learning)– The creation, delivery and management of learning and training via CD-ROM,

an organisation’s intranet and internet. It allows an organisations to take full advantage of their existing desktop/portable PC and their network technologies to deliver directly to learner or trainers as when and where it is convenient and the facilitator can easily track learner progress.

Impacts of MSC & CIT Developments

SELF-TEST QUESTIONSCHAPTER 5 – ELECTRONIC GOVERNMENT

1. State the two objectives of Electronic Government

2. What are the three key elements of Electronic Government

3. List the five pilot applications in implementing Electronic Government

4. Explain briefly the background and objectives of electronic procurement.

OCTOBER 2000The Electronic Government project in Malaysia is widely believed to be the first such project in the world undertaken on a nationwide scale. It will reinvent how the Government works, thus resulting in dramatic improvements in every aspect of Malaysian life, from straightforward services to top security information flow.

a) Reinventing government requires changes. What are these changes?(8 marks)

b) List the three (3) key elements of Electronic Government.(3 marks)

c) State and explain two (2) benefits of Electronic Government(4 marks)

d) Explain the meaning of the term “Generic Office Environment” in relation to the pilot application of the Prime Minister’s Office in Putra Jaya.


ELECTRONIC GOVERNMENT

JUNE 2000 (Summer Class)Malaysia’s Multimedia Super Corridor project will change the waycitizens view the Government and likewise the way the Governmentviews its interaction with the citizens. The Electronic Government initiative is aimed at making it easier for citizens to lead their daily lives and find a wide range of services and information from theGovernment through a single “window”

a) Explain the meaning “reinventing the concept of government through connectivity”

(6 marks)b) Identify and explain the four (4) factors involved in reinventing

government(8 marks)

c) List any three (3) of the Pilot Applications in Electronic government and elaborate on one of them.


APRIL 2000The vision of Electronic Government (EG) sees the people, government and business sector working together for the benefit of all Malaysian. The vision calls for both reinventing government (using multimedia or information technology to dramatically improve productivity) andcreating a collaborative environment that fosters the on-going development of Malaysia’s multimedia industry.

Datuk Seri Dr. Mahathir Mohamad, 1998a) What are the three (3) key elements involved in Electronic Government

(EG). Give two (2) examples of electronic services for each of the key elements

(9 marks)b) What are the benefits of reinventing government through EG

(6 marks)c) Define the term ‘Electronic Procurement’


OCTOBER 1999Electronic Government (EG) will not be simply a transplanting ofgovernment departments from their current quarters to Putrajaya and putting computers on everybody’s desk but more of reconceptualising how each of the core services are provided using IT and Multimedia as enabling tools to dramatically enhance performance.

(By Dato’ Prof Anuar Maarof, Deputy Director General of MAMPU)REQUIRED:

a) State three (3) reasons for the need of Information Technology (IT) Applications in government.

(3 marks)b) List the five (5) pilot applications in Electronic Government

(5 marks)c) Select and describe one of the five pilot applications above


APRIL 1999Electronic Government provides a rare opportunity to reinvent the government of Malaysia. It will redefine the relationships of government to citizens, to business and among its components. Byenabling improved connectivity and communications between all parties. Electronic Government will facilitate Malaysia becomingfully developed in line with Vision 2020.

(Dato’ Prof Anuar Maarof, 1998)a) Explain the two (2) objectives of Electronic Government

(4 marks)b) Identify and explain the four (4) factors involved in reinventing

government.(12 marks)

c) List any four (4) benefits of intra-government concept in Electronic Government


OCTOBER 1998Over the last three decades, Information Technology (IT) has been used as an enabler towards better government through grasping the opportunities presented by new technologies, and more effective, less costly government through improved information management policies and practices. This is where Electronic Government flagship fits in as a full – fledged, concerted effort which calls for people in government, business and citizenry working together in a collaborative environment for the benfit of Malaysia.

(Dato’ Dr Muhammad Rais Abdul Karim, Ketua Pengarah MAMPU, 18 December 1997)

a) List 5 (five) pilot applications for Electronic Government which have been prioritised by Concept Request For Proposals (CRFP) and discuss any 2 (two) of them

(13 marks)b) State 3 (three) benefits of any 2 (two) IT Applications currently adopted in the

government sector(7 marks)

(Total: 20 marks)

MARCH 1998The vision of Electronic Government sees the people in government, business and citizenry working together for the benefit of all Malaysians. The vision calls for both reinventinggovernment (using multimedia/information technology to dramatically improved productivity) and creating a collaborativeenvironment that fosters the ongoing development of Malaysia’s multimedia industry.

a) What are the objectives of Electronic Government?(2 marks)

b) In relation to the above, explain the three elements of Electronic Government

(12 marks)c) State and explain two benefits of Electronic Government in

relation to the three elements above.(6 marks)

(Total: 20 marks)

CHAPTER 6 - PROCUREMENTS

• Objectives of Government Procurement• Procurement Classification – supplies,

services & works• Procurement Methods purchase, quotation

& tender• Rules & Procedures – TC 5/94, 2/95, 8/95,

1/99, 2/99 & 2/2001 and TC 4/95

PROCUREMENTSRULES & PROCEDURES

TC5/94 (TI 166-200), TC2/95, TC 8/95, TC 1/99,TC2/99 & 2/2001 and TC 4/95

TC 4/95(Preferences given to Bumiputra Contractor)

CLASSFICATION (3) – TC 5/94•Supplies•Services (T1185)•Works (T1179)

1) Definition of Bumiputra Co & Bumiputra Status Co.

2) Pricing priority for supplies & Services

3) Pricing Priority for Works

METHODS-TC5/94, TC2/99 & TC 2/2001Purchases for supplies & services (<RM50,000)Quotation for supplies & services (>RM50,000<RM200,000)Purchases for Works (<RM20,000)Requisition for Works (<RM100,000:Schedule of Rates/Pricing List)Quotation for Works (>RM20,000<RM200,000)Tender (>RM200,000) & Tendering process (T1168-200)

Decentralised (procurement separately handled by the related Ministry of Govt. Agencies.

OBJECTIVES (7)

PROCUREMENT

SYSTEM

Centralised (T1178)(Central Contract)

- common use items)

OBJECTIVES OF GOVERNMENT PROCUREMENT

• To support Malaysia’s industrial development and policy to ensure the achievement of Vision 2020.

• As a tool or means to achieve government policies/principles• To get the best value for money spent in terms if price, quantity and

quality of the goods, delivery time, after service and time to complete a contract.

• To create a healthy competitive market• To encourage the development of local industries and to maximise the

use of local sources, items and materials.• To encourage the bumiputra participant in commerce & industry• To upgrade the institution and local capability through technology and

technical transfers• To encourage the development and the application of local service

sectors especially in transportation and insurance.

PROCUREMENT SYSTEMS1 CENTRALISED PROCUREMENTS

The goods that are in the same use are handled and centralised by Ministry Of Finance (MOF). The objectives are to get the best acceptable price and a perfect logistic supply. Central contract in procurement process is based on specification and approximate estimation from various government departments and agencies and verified by MOF. Purchase of common use items must be made from treasury circulars in force on such central bulk purchase contract.

2 DECENTRALISED PROCUREMENTIt is personally handled by the related ministries, statutory bodies, local authorities. Treasury only involved at Board of Tender stage to coordinate, supervise and verify that the basic principle of procurement is followed.

PROCUREMENTS IN PUBLIC SECTOR –TC5/94

Procurement Classification – 3 Types:• Supplies – goods supplied to carry out certain activities of

government programmes I.e. the input for the work processing andservices. Examples are materials for repair & maintenance works,furniture’s clothes etc.

• Services – manpower or technical expertise obtained to complete a specified work/job. It can be categorized into consultant and non-consultant services.

• Works or constructions – involved in construction and civil & electrical engineering work such as building, road, water dam & irrigation. This includes minor/small works (eg. No changes in the original structures of building construction)

PROCUREMENTS IN PUBLIC SECTOR –TC2/2001

Procurement methods for SUPPLIES and SERVICES• Direct purchase (<RM10,000) involving an annual aggregate expenditure of

not more than RM10,000 in respect of one item or class of related items. Procurement made by placing orders directly from any interested suppliers at a reasonable price.

• Direct Purchase (>RM10,000<RM50,000) involving an annual aggregate expenditure of more than RM10,000 but not more than RM20,000 in respect of one item or class of related items. Procurement made by direct purchase from registered Bumiputra suppliers known for consistently dealing at reasonable price.

• Quotation (>RM50,000<RM200,000) involving an annual aggregate expenditure of more than RM50,000 but not more than RM200,000 in respect of one item or class of related items. Procurement of >RM50,000<RM100,000 have to be made by obtaining quotations from at least 5 registered Bumiputra suppliers only. However, procurement quotation from at least 5 of any registered suppliers. (registered suppliers with Ministry of Finance).

• Tender (>RM200,000) involving an annual aggregate expenditure of more than RM200,000 in respect of one item or class of related items. Procurements made by invitation for tenders (open tenders)

PROCUREMENTS IN PUBLIC SECTOR – TC 2/2001

Procurements method for WORKS or CONSTRUCTIONS• Direct Purchase (<RM20,000) involving an annual aggregate expenditure of not

more than RM20,000 in respect of one item or class of related items. Procurement made by appointing and purchasing directly from any eligible contractors of class ‘F’ and had by registered with the Contractor Service Center or PKK.

• Quotation (>RM20,000<RM200,000) or Requisition of small works & repairs (>RM20,000<RM100,000). Any type of maintenance/upgrading works which do not change the original plan of building structure involving an annual aggregate expenditure of more than RM20,000 but not more than RM200,000. Requisition of small works & repairs (>RM20,000<RM100,000) must use the approved schedules of pricing rates prepared by Civil Engineering Department and offered to contractor appointed by rotation/balloting to all qualified Contractors of class ‘F’ who had registered with PKK (Pusat Khidmat Kontraktor). However, Quotation (>RM20,000<RM200,000) must be invited from at least 5 qualified contractors who had registered with PKK or Lembaga Pembangunan Industri Pembinaan (CIDB)

• Tender (>RM200,000) involving an annual aggregate expenditure of more than RM200,000 in respect of major works/construction. Procurements made by invitation for tenders (open tender).

TC 5/94 & 2/99TI 173 – PURCHASING (RM50,000)

a) Direct purchase involving an annual aggregate expenditure of not more than RM50,000 for Supplies or Services or RM20,000 for Works in respect of one item or class of related items may be made by the Head of Department by placing orders directly from selected firms known for consistently dealing at reasonable price in accordance with TC 2/99 procedures.

b) Emergency purchases are in such cases where delay in purchase would be detrimental to the public service. Purchase is to be limited to the quantity of stores sufficient to cope with the particular emergency and a report is to be submitted to the controlling officer for transmission to Secretary General to Treasury or State Financial Officer.

TC 5/94, TC 2/99 & TC 2/2001TC 170 – QUOTATION (>RM50,000<RM200,000)• Quotation is required for purchases in respect of any one item or

class of related items involving an aggregate annual expenditure of more than RM20,000 but nor exceeding RM200,000 for works or more than RM50,000 but not exceeding RM200,000 for supplies or services.

• A quotation using borang Q should be sent to at least 5 suppliers to ensure unbiased and fair decision can be made.

• Uniform and standard criteria for quotation must be notified by hand or registered mail.

• Proper public notification and period for the quotation should be at least 7 days.

• Results of the Quotation committee should be based on the lowestacceptable price with good quality.

• The quotation should be submitted, received, opened and preparedschedules following instructions as per tender procedures in TI 195, 196, & 197.

TI 171 – TENDER (TC 5/94, 2/99 & 2/2001)An open tender will be invited for supplies and services or works with value of more than RM200,000 for one item or class of related items for an annual aggregate expenditure.TENDERING PROCESS AND PROCEDURES (STEP BY STEP PROCESS)

• Sanction for procurement (TI 168)• Preparation or Specifications (TI 174)• Preparation for Tender Documents.• Tender Advertisement (TI 172) & Tender Notice (TI 195)• Contractor Registration & Tender Deposit (TI 184 & 175)• Contractor Registration & Tender Deposit (TI 184 & 175)• Opening of Tender (TI 196 & 197)• Tender Evaluation – Analysis & Ranking (TI 197(3))• Preparation of Tender Briefs (TI 192 & TI 193)• Approval of Tender and Contract Signing (TI 198 & TI 200)• Monitoring

TENDERING PROCESS FOR WORKS OR SUPPLIES/SERVICES– TC 5/94, TC 2/2001 (DETAILED EXPLANATIONS)

TI 166 – Central Authority for government procurementTI 181 – Works >RM200,000TI 185 – Services >RM200,000TI 168 – Sanction for procurement (eg. Adequate budge

provision)TI 169 – Market Survey and Tender planningTI 174 – Specification and condition of tender & tender

document. - Fullest specification to be provided so that the firm will

have a clear identification of government requirementTI 172 – Publicity/Advertisement – at least one malay newspaper

for local tender and two newspaper in Malay & English for international tender.

TI 195 – Public notice – at work place, civil service link, Dewan Perniagaan & Perusahaan Melayu.

TENDER SPECIFICATION (T.I 174 & T.I 174.2)

• Fullest specification should be provided so that the tenderer would be able to identify the government requirements before they can reply. There should be no specific trade or brand name used in tender specification. All government departments are required to use the general conditions of tender as defined and issued by Secretary General to Treasury. For ‘Supplies’ or ‘Services’ tender, technical committee is required for preparation of technical specifications for every capital goods required. For ‘work’ tender, specifications have to be prepared by Department of Engineering or Consultant appointed.

TENDER DOCUMENT

• Upon agreement with the Technical and User Department/Ministries, the responsible department who calls for the tender has to prepare tender document consist of the following procedures:

• Conditions of general contract– Special provisions to the contract conditions– Tender form consists of time period, price and

condition of tender to be awarded by the tenderer.– All necessary drawings, specifications, bills of

quantities including their references to standards– Plan of architecture or engineering works– Other relevant requirements.

• Tender documents have to be charged accordingly.

TENDERING PROCESS FOR WORKS OR SUPPLIES/SERVICES

TI 184 - Contractor Registration- Works contractors (civil & electrical) who registered with the Contractor

Service Center (PKK) in requisite classes of registration and supplies &services contractors who registered with Ministry Of Finance as central registration are eligible to tender.

TI 175 - Tender Deposit- Deposit is exempted for local tender and deposit for international tender

are charged accordingly. All deposits must in the form Bank guarantee or Bank draft.

TI 196 - Tender box- Tenders should be deposited unopened immediately on receipt in a

locked tender deposit on which shall be marked the date and time at which it is to be opened.

TI 197 - Tender Opening Committee- The committee of at least 2 officers should open the tender infront of at

least 2 officers at a specified time. Each tender shall be opened and numbered serially and the name of tenderer, the amount tendered, completion/delivery date shall be entered in a schedule form and each member of the committee must have signed the form.

TENDERING PROCESS FOR WORKS OR SUPPLIES/SERVICES

-Tender acceptance & contract signingTender approval & acceptance limit (eg. Federal Ministry/Dept – RM30 million for tender for work & RM15 million for supplies & services). Contract Management include signing the contract, performance bond and insurance before work commencement and duration of defect liability period & amount of retention money.

TI 198 & 200

-Tender Board Appointment & Meeting The tender board consists of members appointed by the Ministry of Finance in respect of Federal Contract and by the Chief Minister in respect of State Contract. At least 3 person should be appointed in the tender board and there must be one representative from Treasury (refer details on page 3 & 4 of TI 2/99)

TI 191 & 192

-Evaluation Of Tender (TI 197.3 & TI 197.4)It is the duty of the department who managed the tender to analyse the tender received and to make recommendation to Procurement Division whichever appropriate. Tender Brief submitted shall consist of tender status, financing, means, budget, estimated cost, date of completed tender, date of advertising, background of tender, summary of technical evaluation report and legal consultant report.

TI 197

FUNCTION OF TENDER BOARD• To consider the recommendation of the Head of Department and

advise the appropriate authority as to the most advantageous purchase (price, quality, fit to purpose of use)

• Check the advertisement calling for tenders, the specification, the schedule of tender prepared by tender opening committee and technical report

• To check the financial status and performance capability & experience of tenderer

• If the tender board is satisfied that the procedure has not beenfollowed or any suspected irregularities, it can reply for retendering or other methods of procurement

• They have to accept tender within a limited value/budget provision which has been approved.

• There should be no conflict of interest. They withdrawn from attending meeting if they have any personal interest or vested power in that tender.

BUMIPUTRA PARTICIPANT – TC 4/95

Treasury Circular No 4/95 containing policies and special preferences for Bumiputra Companies are established to encourage bumiputra participant in government procurement and to increase the quota of Bumiputra participant in commercial and industrial sector.

BUMIPUTRA PARTICIPANT – TC 4/95

BUMIPUTRA COMPANIES- Majority shareholders (51%) are Bumiputra and they

are members of the board of directors- 51% of the workers are also Bumiputra - The administration and financial management are

controlled by the Bumiputra managementOTHER BUMIPUTRA STATUS COMPANIES

- Government owned companies- Any trust companies of government- Sole Bumiputra importer/exporter

Note: Bumiputra status is conferred by Ministry of Finance.

BUMIPUTRA PARTICIPANTSPECIAL PREFERENCE GIVEN TO BUMIPUTRA CONTRACTOR

1. Contract for Supply and Servicesa) For procurement of goods and services contract value of RM100,000

below, 100% preference are given to Bumiputra I.e. invitation tobumiputra tenderers only

b) For procurement of goods and services with contract value above RM100,000, certain percentage of preference cost (pricing priority) as stated in the table below are given to Bumiputra tenderers.

10%7%5%3%

2.5%

>RM100,000<RM500,000>RM500,000<RM1,500,000>RM1,500,000<5,000,000>RM5,000,000<10,000,000>RM10,000,000<15,000,000

% TO PREFERENCE COSTTENDER VALUE

NOTENOTE: Preference Cost is based on the lowest tender value offered by Non Bumiputra tenderer.

BUMIPUTRA PARTICIPATION (CON’T)

SPECIAL PREFERENCE GIVEN TO BUMIPUTRA CONTRACTOR

2. Contract for Works• Small value of works of less than RM50,000 are given

to bumiputra contractors only by using the schedule of rates.

• 30% from the annual value of works/constructions (aggregate annual expenditures excluded 2(a) above) must be first allocated to Bumiputra Contractors and the remaining balance can be offered to the lowest tender value offered by the Non – Bumiputra or Bumiputra Contractors.

SELF-TEST QUESTIONSCHAPTER 8 - PROCUREMENT

1. State the 3 types of procurement classification

2. List the 3 methods of government procurement

3. List down the tendering process for government procurement as required by Treasury Circular 15/94.

4. Explain briefly the special preference given to Bumiputra Contractors as laid down in Treasury Circular 4/95 for procurement of supply and services.

OCTOBER 2000It is incumbent on every officer authorizing or recommending a purchase to ensure after making reasonable inquiries that the item to be purchased is one which it would be must advantageous to purchasetaking into account price, quality, the use to which the item is to be put and other relevant factors

a) Explain the four (4) objectives of government procurement(4 marks)

b) Explain the following two (2) methods of government procurement as required by Treasury Circular 2/99:i) Purchaseii) Quotation

(10 marks)c) Describe the following tendering procedures:

i) Tender Specification andii) Tender Document


PROCUREMENTS

JUNE (Summer Class)Central contract in procurement process is based on specification and approximate estimation from various government departments and agencies and verified by Ministry of Finance. Purchase of common items must be made from Treasury Circulars.

a) Explain the three (3) types of procurement classification(6 marks)

b) Identify the differences with regard to direct purchase and quotation between the procurement methods for supplies and services and the procurement methods for works or constructions.

(10 marks)c) List any two (2) functions of Tender Board


APRIL 2000The treasury instructions are issued to serve as a guide to public officers in respect of financial procedures of procurement system. Treasury Circular No: 2/99 was issued to upgrade the existing procurement procedures and Treasury Circular No: 4/95 was issuedto encourage Bumiputra participation in government procurement.

a) List any four (4) objectives of government procurement(4 marks)

b) What are the three (3) types of procurement classification(3 marks)

c) Describe the procurement methods for Supplies and Servicesunder Treasury

(8 marks)d) Under what criteria can a company be classified as a Bumiputra

Company under Treasury Circular 4/95(5 marks)

(Total: 20 marks)

OCTOBER 1999Procurements in the Public Sector comprised of three types of classification: supplies, services and works/constructions. Treasury Circular No: 5/94 and 2/99 were issued to Government Agencies on the procurement procedures and Treasury Circular No: 4/95 was issued for Bumiputra participation in government procurement.

a) List the three (3) methods of government procurement(3 marks)

b) Describe the procurement method for Works or Constructions under Treasury Circular No: 2/99

(9 marks)c) What are the two (2) objectives of Treasury Circular No: 4/95 in

relation to Bumiputra participation in government procurement(2 marks)

d) Explain briefly the special preference given to Bumiputra Contractors as laid down in Treasury Circular No: 4/95 for procurement of Works or Constructions


JUNE 1999 (Summer Class)The Electronic Procurement aims to reengineer, automate, and transform the current procurement system. The system will deliver cost savings and faster turnaround times by enabling government to become a “Smart Buyer”.

a) Explain the methods of procurements practiced in government departments

(6 marks)b) List 4 objectives of government procurement

(4 marks)c) Explain briefly the following:

1. Market Survey2. Tender Specification3. Publicity 4. Tender Notice.


APRIL 1999Electronic Procurement is one of the pilot applications for Electronic Government. The pilot agencies to be involved in Electronic Procurement are the Government Procurement Management Division and the Administrative Division of the Finance Ministry and the Administration Division of MAMPU.

a) Describe the three (3) types of Procurement Classification(6 marks)

b) Explain the following two (2) methods of government procurement as required by Treasury Circular 5/94:i) Purchaseii) Quotation

(10 marks)c) Determine the benefits of adopting electronic procurement in the

tendering process(4 marks)

(Total: 20 marks)

OCTOBER 1998Government procurement policies and procedures are in line with the objectives and aspirations of the National Policy and Vision2020. The policies are formulated to stimulate the growth of local industries and to encourage the involvement of the bumiputra (indigenous) entrepreneurs. The procurement policies and procedures are based on the principles of public accountability,transparency, value for money, and open and fair competition.

a) Describe 3 (three) methods of government procurements(6 marks)

b) Discuss the similarity and the different procedures in the prices of receiving, opening and evaluation of quotation and tender

(10 marks)c) Identify the benefits of adopting ISO 9000 in the tendering

process(4 marks)

(Total: 20 marks)

MAY 1998The objective of government procurement is to support Malaysia’s industrial development policy and national economic policy to ensure the achievement of Vision 2020. Apart from that it is to get the best value for money spent (price, quality and purpose of use) and to ensure that a fair decision can be made.

a) What are the three types if procurement classification?(6 marks)

b) Explain the procurement procedures for quotations under Treasury Circular 5/94

(11 marks)c) List down the criteria for companies to be classified as

Bumiputra Companies as stated in Treasury Circular 4/95(3 marks)

(Total: 20 marks)

MARCH 1998Write short notes on any four of the following tendering process and procedures:a) Publicityb) Tender Specification and Tender Document.c) Tender Openingd) Tender Boarde) Bumiputra Participation

(20 marks)

SEPTEMBER 1997Government spending through government procurement continues to be a primary lever of economic policy. Handling and managing contracts are thus an important government responsibility to support NEP and NDP objectives and Malaysia’s industrial development.In order to facilitate this, Treasury Circular No: 5/94 was issued to government agencies on the systems and procedures for procurements.

a) Explain the 4 objectives of government procurement.(8 marks)

b) Discuss the requirements of Treasury Circular No: 5/94 on the tendering process and procedures for government agencies. Support your answer with the relevant Treasury Instructions.


NOVEMBER 1996Procurements in the Public Sector comprised of three elements I.e. supplies, services and works/constructions. Methods of procurements consist of Purchase, Quotation and Tender. Treasury Circular No: 5/94 was issued to Government Agencies on the systems and procedures for procurements.“The introduction of 0.25% levy on projects worth more than RM500,000 starting 1 July 1996 to be collected by the Construction Industry Development Board (CIDB) is to upgrade and bring professionalism in the construction industry. The CIDB acts as the custodian of the construction industry and is aself-financing body”, said Datuk Abdul Rahman Abdullah, Chief Executive CIDB. (News Straits Times, June 15, 1996)In relation to the above, you are required to explain the requirements of the Treasury Circular 5/94 on the tendering process for works. (Quote the relevant para in T.I 5/94)

(20 marks)

NOVEMBER 1993“Leaving approvals, formalities and technicalities aside, we cannot understand the necessity to buy as many as twenty-two Volvos in addition to the fleet of Pajeros bought just two years earlier….” commented by a reader relating to the purchase of Volvo cars by the City Hall.

(News Straits Times, August 26, 1992)In relation to the above, describe in detail the tendering process and procedures which should be followed by a government agency to ensure compliance with the government rules and procedures. Support your answer by quoting relevant Treasury Instructions and Treasury Circulars.

(20 marks)

NOVEMBER 1992“Government contracts for goods and services should be awarded through public tenders wherever possible and practicable” said by Auditor General Tan Sri Ishak Tadin. He added “this is in line with the basic economic principle of making the utmost use of competition among potential suppliers”

(News Straits Times, May 11, 1992)In relation to the above, explain the requirements of the Treasury Instructions on the tendering process and procedures for government agencies. Support your answer with the relevant Treasury Instructions.

(20 marks)

MAY 1992“…..Controlling Officers should bear in mind that they should whenever possible, invite suppliers to tender rather than to quote for the supply of the stores concerned….”

(Treasury Instructions 174 (a))In relation to the Purchasing Procedure of the government, explain the distinguishing features and procedures of ‘Tender’ and ‘quotation’. Support your answer with the relevant Treasury Instructions and Circulars.

(20 marks)

MAY 1991Write short notes on the following which involve procurement of stores by the government departments: -

a) A quotationb) A tenderc) A casual purchased) Central contract

(20 marks)

CHAPTER 7 – PUBLIC ENTERPRISES –STATUTORY BODIES.

• Definitions, Types and Formation

• Objectives and Functions• Statutory Bodies Act 240• Treasury Circular 15/94 (Part

1, 2 & 3)

PUBLIC SECTOR AGENCIES.Defined as all government organisations which are not privately owned and operated and will exhibit a variety of social, economic, political and legal characteristics. They have different objectives, functions and activities which are financed in different ways and also have different organisational structures. Public Sector Agencies included LOCAL AUTHORITIES and PUBLIC ENTERPRISES (Statutory Bodies and Non Statutory Bodies)

PUBLIC ENTERPRISESare those organisations formed by the government for the purposes of Socio economic developmentCreating a bumiputra industrial and commercial communityPrivate sector cannot deliver goods and services adequately and cheaply to the public at large in greater geographical areas.Accelerating economic growth.

PUBLIC ENTERPRISES

STATUTORY BODIESServices and revenue orientedA statutory corporation established under Act of ParliamentFunded from government and revenues generated activities.Examples are MARA, SEDC, ITM, LUTH, PORLA, RISDA, LPN, etc.

NON STATUTORY BODIESCommercial and profit orientedA body corporate formed under Companies Act 1965Self-financing (share capital & loan)Examples are BERNAS, PNB etc.

STATUTORY BODIES

-Formation-Objectives-Functions

Regulatory Guidelines –Annual Report and Financial Statements

ACT 240 (1980)Accounts & Annual Reports

Objectives Sect 5 – 6 months to Auditor GeneralSect 7 – 1 month to MinistrySect 8 – Ministry submits to ParliamentSect 9 – extension of 3 monthsSect 11 – power of Ministry

TC 15/94 – Guidelines for preparation and presentation of Annual Report and Financial Statements

ObjectivesPart 1 – Annual Report (Content)Part 2 – Forms and standards of Financial

StatementsPart 3 – Schedules (Activities and Dates)

STATUTORY BODIES• Established by statute and subject to provisions

prescribed in such relevant act• A body corporate• Perpetual succession and common seal• A public authority or government agency but does not

include a local authority & a body incorporated under Companies Act (Section 2, ACT 240) egs. MARA, UDA, FAMA, SEDC.

• Fully autonomous • Wholly owned by government (public

authority/government agency)• Managed by a Board consisting of Chairman &

representative from public sector• Board formulate policies activities & proper instructions.

STATUTORY BODIES – ACT & GUIDELINES

• Act 240 – Statutory Bodies (Accounts & Annual Reports) Act 1980 on accountability & proper financial management and control.

• Treasury Circular 15/1994 (Guidelines for the preparation and presentation of the Annual Reports and Financial Statements of Statutory Bodies). There are three parts if minimum disclosure requirements by each Statutory Body to the responsible Minister are– PART 1 – Guidelines in Annual Report Preparation– PART 2 – Form and Standard of Financial Statements– PART 3 – Schedules (dates & activities) for the

preparation and presentation of Annual Report & Financial Statements

ACT 240 STATUTORY BODIES (ACCOUNTS & ANNUAL REPORTS) ACT 1980

• Applicable to all statutory bodies• Section 5 – annual statement of accounts for the preceding

financial year should be submitted for audit within 6 months or as extended within 3 months under section 9

• Section 7 – audited account to be submitted to Minister within one month

• Section 8 – The Minister shall table the audited statements of accounts, Auditor General’s report & activities report in Parliament

• Section 9 – Minister may grant an extension of time of the statement of account for audit not exceeding 3 months with the approval of Minister of Finance.

• Section 11 – Minister may make rules for statutory bodies –(power, functions, duties & responsibilities of Board of Management, officers & servants and accounts & other operations record.)

TC 15/1994 – GUIDELINES FOR ANNUAL REPORTS AND FINANCIAL STATEMENTS OF STATUTORY BODIES

OBJECTIVESTo further enhance public accountability by proper and timely preparation of Annual Reports and Financial Statements within the specified timeframeTo facilitate understanding of statutory Body, its objectives, functions, operational activities, projects undertaken during the year.Establish uniform accounting standard for all statutory bodiesTo standardise the application of accounting principles & practise To provide clear & complete figures of financial position to meet the information demands from various users.To further enhance the accounting standard & preparation of Financial Statements.

PART 1 – GUIDELINES ON ANNUAL REPORT PREPARATION (TC 15/1994)

Contents Of Annual ReportCorporate InformationBackground Of Statutory Body – objectives, functions, operational programmes, etcChairman’s Statements – achievements, targets & benefits of programmesReport on Government Assistance/ContributionsSummary of Financial StatisticPerformance Report (see Lampiran ‘A’)Audited Financial Statement should include – income & Expenditure Statements, Balance Sheet, Notes to accounts. Cash flow Statements, other supporting supplementary statements. Auditor General Report, Financial Declaration by Chairman or anyone of Directors and Financial Declaration by Officer responsible for financial management.Other information as necessary – any information apart from above which one considered important and where its omission may affect the readers’ understanding of the statutory body and its performance.

OBJECTIVES OF ANNUAL REPORT

• To facilitate understanding of statutory bodies, its objectives, functions and operational programmes during the year.

• To provide information on the intended targets and benefits of programmes/project

• To indicate the extent of the government’s assistance or contribution

• To provide overall picture of financial position• To provide information of achievements/success

in its social economic developments/progresses.

AUDITED FINANCIAL STATEMENTS• AUDITED FINANCIAL STATEMENTS should include the

following documentsBalance sheetProfit and loss statement or income and expenditure statementStatement of changes in financial position or cash flow statementNotes to the accountsAny other relevant statements that have been prepared according to any treasury circulars and are duly audited as other supporting supplementary statementsAuditor general reportFinancial declaration by chairman or any one of the directorsFinancial declaration by the officer primarily responsible for the financial management of statutory body.

REPORT ON GOVERNMENT’S ASSISTANCE AND CONTRIBUTION

• 3 TYPES OF GOVERNMENT’S ASSISTANCE AND CONTRIBUTIONGrants – operating grants, development grants, specific grants and capital asset gifted.LoansGuarantees

• DISCLOSURE REQUIREMENTSIt is important to provide feedback on the extent of financial assistance received from the Federal/State government and the application of such assistance. Figures for the current and the preceding year should be provided to enable comparison to be made. Information on the following should be disclosed:

DISCLOSURE REQUIREMENT (CONT’D)• GRANTS

– Operating grants – amount receive and the application of such grants– Developments grants – amount received and the application of such grants.– Specific grants – purpose of the grant and the amount received– Capital assets gifted – the description, estimated value, useful life and the

usage of such assets and– Grants approved but not yet received – type or purpose of grant, amount

and date receivable)• LOANS

– Loans – purpose and conditions of the loan, amount received, amount repaid and the balance

– Loans approved but not received – purpose and conditions of the loans, amount and date receivable and

– Arrears on loans repayment – amount and age of the arrears.• GUARANTEES

– Guarantees on loans – purpose and amount guaranteed and– Guarantees currently sought – purpose of each guarantee being sought,

amount and date guarantees expected to be given.

PART 2 – FORM & STANDARD OF FINANCIAL STATEMENTS (TC 15/1994)

• Financial Statements – Balance Sheet/income & Expenditure/cash Flow Statement or SAFS/notes to Account/certificates/other Statements & Materials

• GAAP & Accounting Policies• Conform to general disclosure requirements

– Revenues, expenses, transfers, assets & liabilities.• For subsidiary corporation• Valuation of assets to include bad debts & investments• Valuation & Presentation Of Liabilities to include interest accrued & secured

or not • Reserves & Provisions• Resources Provided Free of Charge• Flowchart on Financial Documents

SAGA (Standard Accounting System For Government Agencies)SOFTWAREAims to produce daily, monthly & yearly financial reports to help management in detecting weaknesses & signs of poor financial position by providing reliable & timely information.

PART 2, TREASURY CIRCULAR 15/1994 –VALUATION TREATMENT

ASSET• All known bad debts written off and adequate provisions made for doubtful

debts• Any known current assets shown at an amount that exceed replacement cost

need adequate provision to show the expected realisable value.• Quoted investment at market value and unquoted investment at Director’s

Valuation to be disclosed in Notes to the Accounts.LIABILITIES• Amount shown in the Financial Statement is at nominal value inclusive of

accruals • In respect of secured liabilities or contingent liabilities, details of the

security need to be disclosed.RESERVES AND PROVISIONS• Reserves shall not be used for any amount written off or retained by way of

providing for depreciation, renewal or diminution in asset values, etc.• Where provisions are made for the depreciation, diminution in value, etc

there shall be shown separately by way of note or otherwise.

PART 2, TREASURY CIRCULAR 15/94 –VALUATION TREATMENT (CONT’D)

CONTRIBUTION (GRANTS)Grant received from Federal & State Govt. for the operations andmaintenance of Statutory Bodies activities shall be treated as incomeWhere money is given for specific purpose eg. Revolving Fund for vehicle loan, the grant received should not be treated as income but long term liabilityFor development or investment, the grant received should be credited to the Development Fund.

RESOURCES PROVIDED FREE OF CHARGEIf Fixed Asset or current Asset (cash) is a significant/material itemValue of support must be disclosed in the Accounts of the recipients and donors, either in the form of notes of supplementary statementsIf resources are gifted (assets), disclosed at assessed realisable valueIf resources are gifted (services), the actual or estimated amount received to be disclosed.

PART 3 – SCHEDULES FOR PREPARATION & PRESENTATION OF ANNUAL REPORTS AND FINANCIAL STATEMENTS (TC 15/1994)

• Preparation of Draft Activity Report – not later than 31 January

• Submit the Financial Statements to Auditor General –not later than 30 August

• Preparation of Audited Financial Statements to Board of Directors – not later 15 September

• Submit Audited Financial Statement and Annual Report to Cabinet – not later than 31 October

• Presentation Of Annual Report & Audited Financial Statement to Parliament – not later than 31 December

PART 3 – SCHEDULES (ACTIVITIES & DATES)

Prepare Draft Activity Report

Submit Financial Statements to Auditor-General

Issue audit certificate by Auditor-general

Submit Audited Financial Statements and Annual Report to Cabinet

Present Audited Financial Statements and Annual Report to Parliament

Submit Audited Financial Statements to Board of Directors

Not later than 31 January

Not later than 30 April

Not later than 30 August

Not later than 15 September

Not later than 31 October

Not later than 31 December

SELF-TEST QUESTIONSCHAPTER 9 – STATUTORY BODIES

1. Name the two guidelines used by all Statutory Bodies in Preparing and submitting their performance and financial reports.

2. List down the three parts of Treasury Circular 15/94 on the reporting requirements to be complied with by all statutory bodies.

3. Identify the types of financial assistance that a Statutory Body shall receive from the government.

4. State the contents of the Annual Reports of Statutory Bodies as required by Part 1 of Treasury Circular 15/94.

5. What are the accounting treatments on such grants and resources provided free of charge received by Statutory Body as required by the Treasury Circular No: 15/94

OCTOBER 2000The purpose of Act 240 (Statutory Bodies [Accounts and Annual Reports] Act 1980) and Treasury Circular 15/94 is to provide for certain time limits in relation to the preparation and submission of the statements of accounts for audit of all statutory bodies incorporated pursuant to the provisions of federal law.

a) List down four (4) objectives of Treasury Circular 15/94.(4 marks)

b) State the contents (any three [3]) of the Annual Report of Statutory Bodies as laid down in the circular above.

(3 marks)c) State the time limit imposed by Act 240 in relation to the preparation and

submission of the financial statements and annual reports.(10 marks)

d) Identify any three (3) types of financial assistance provided by the government to Statutory Bodies.


STATUTORY BODIES

JUNE 2000 (Summer Class)The purpose of Treasury Circular 15/94 is to provide guidelines for the preparation and presentation of the Annual Reports and Financial Statements of Statutory Bodies.

a) List any four (4) objectives of Treasury Circular 15/94(4 marks)

b) Describe any four (4) items disclosed in the Chairman’s Statements as published in the Annual Report of Statutory Bodies .

(4 marks)c) Describe the timeframe in the preparation and submission of

financial statements of the Statutory Bodies as required by Part3 of Treasury Circular 15/94


APRIL 2000A Statutory Body is a corporation established under its relevant Act of Parliament. This activities and functions differ from one statutory body to another and the information to be presented and disclosed in the annual reports and accounts of each statutory body may also vary. However, annual reports and accounts of each statutory body must be properly and timely prepared and presented to Parliament as laid down by the legal requirements and treasury guidelines.

a) Name the two (2) guidelines used by all Statutory Bodies in the preparation and submission of their annual reports and accounts.

(4 marks)b) State and explain the legal requirements which all Statutory Bodies

have to comply with in order to enhance public accountability and proper financial management and controls.

(10 marks)c) Identify three (3) types of grants that Statutory Body shall receive as

required by the treasury guideline(3 marks)

(Total: 20 marks)

OCTOBER 1999One of the objectives of Treasury Circular 15/94 is to further enhance public accountability by proper and timely preparation of Annual Report and Financial Statements of Statutory Bodies within the specified timeframe.

a) List the three (3) parts of Treasury Circular 15/94 on minimum disclosure requirements for the annual report of Statutory Bodies.

(3 marks)b) Describe the timeframe in the preparation and submission of

financial statements of the Statutory Bodies as required by Part 3 of TC 15/94

(12 marks)c) Identify any five (5) types of financial assistance provided by the

government to Statutory Bodies.(5 marks)

(Total: 20 marks)

JUNE 1999 (Summer Class)The purpose of the Treasury Circular 15/94 is to provide guidelines for the preparation and presentation of the Annual Reports and Financial Statements of Statutory Bodies. The intention is to standardise and harmonise the differing provisions provided in the various incorporating Acts of FederalStatutory Bodies.

a) Identify any four (4) objectives of Treasury Circular 15/94(4 marks)

b) State any three (3) reporting information by the Chairman in theAnnual Report of any Statutory Body as required by the circular.

(6 marks)c) Explain in accordance to Part 11 of the Circular, the accounting

treatment for Grants(10 marks)

(Total: 20 marks)

APRIL 1999The purpose of the statutory bodies is to implement specific objective of government that is to achieve a fair distribution of wealth of the economy and to undertake a multiplicity of functions mainly to accelerate the growth of national development. Statutory bodies have to comply with certain rules and regulations to comply with, in the presentation and preparation of their annual financial statement.

a) State the two (2) regulatory documents used in the administration of Statutory Bodies

(2 marks)b) Elaborate on the timeframe in the preparation and submission of the

accounts of the Statutory Bodies as required by the above two (2) regulatory documents.

(14 marks)c) State the contents (any four [4]) of the Annual Report of Statutory Bodies


OCTOBER 1998The annual report of each Statutory Body should include a report on the government’s assistance/contributions. It is important for the Statutory Body to provide feedback on the extent of financial assistance received from the government and the application of such assistance.

a) Identify the types of assistance that a Statutory Body shall receive from the government

(3 marks)b) Explain the reporting requirement on this financial assistance as

required by Part 1 of treasury Circular 15/94(6 marks)

c) Explain the accounting treatments under Treasury Circular 15/94 on the following items:-i) Grants

(6 marks)ii) Resources provided free of charge.


MAY 1998On August 1, 1997 the Chief Secretary to the Government Tan Sri Abdul Halim Mohd Ali reported that until the end of 1996, 148 financial statements dating back to 1987, had not been submitted by the State Statutory Bodies.

(News Straits Times, August 1, 1997)a) Name the legal requirement and the guideline which all Statutory

Bodies have to comply with in order to establish uniform accounting standards.

(2 marks)b) Describe the reporting requirements of Statutory Bodies as laid

down under Part 3 of the above guideline(12 marks)

c) Relate 2(b) above to legal provisions on similar reporting requirements.


MARCH 1998Annual reports of Statutory Bodies need to be presented to Parliament and as such the annual reports should be informative, meaningful and of certain standards.

a) State the contents (any 5) of such reports as required by the Treasury Circular 15/94

(10 marks)b) What are the required documents that should be

included in the audited Financial Statements for tabling in Parliament.


SEPTEMBER 1997Statutory Bodies (Accounts and Annual Reports) Act 240 and Treasury Circular No: 15/94 require that all Statutory Bodies toadopt and implement specific provisions and guidelines on the preparation of their financial statements and annual reports.

a) Explain 6 main objectives of Treasury Circular No: 15/94(6 marks)

b) State the time limits imposed by the above provisions and guidelines (Act 240 and TC 15/94) in relation to the preparationand submission of the financial statements and annual reports.

(10 marks)c) Suggest 2 measures currently undertaken by the government to

ensure that the production of the Statutory Bodies Accounts are timely.


APRIL 1997a) What are the powers given to Ministers as provided in the

Statutory Bodies (Accounts and Annual Reports) Act 1980? (support your answer with the relevant sections)

b) The Treasury Circular 15/94 provides information regarding the treatments on

I. AssetsII. LiabilitiesIII. Contributions for development and operationsIV. Resources provided free of charge

Explain the treatments as required by the Treasury Circular 15/94

(20 marks)

MAY 1996a) Statutory Bodies are required to use the document

flowchart as per TC 15/94 as a guideline for the preparation of the financial statement. You are required to explain the requirements of the documents flowchart.

(10 marks)b) TC 15/94 specifies the important dates for the submission

of the Annual Report and Financial Statement for Statutory Bodies. This is to ensure proper presentation and up-to-date submission. You are required to list the important dates and their activities for the preparation and presentation of the Annual Report and Financial Statement of the Statutory Bodies.


MAY 1995Dato’ Mohamed Khalid, the Auditor General of Malaysia mentioned that many State Statutory Bodies are showing minus or deficit when it comes to submitting their annual financial reports on time. Besides that they are slow in preparing their financial reports.

a) Explain the main reporting requirements of Statutory Bodies as required by the Act 240 and TC 15/94

(10 marks)b) Identify the reasons for the delay in submission of the

reports and ways to overcome the problems.(10 marks)

(Total: 20 marks)

CHAPTER 8 – LOCAL AUTHORITY

Functions and Objectives of Local AuthoritiesDefinition & types of Local AuthorityFormation and AdministrationNational Council For Local AuthoritySources of FinanceResource AllocationAccounts and Audit.

LOCAL AUTHORITY (LA)LOCAL GOVERNMENT ACT 1976 (ACT 171)

ADMINISTRATION PROVISIONS

FINANCIAL PROVISIONS

•SECT 2 – Definition & types of LA

•SECT 3 – Determination of status of LA areas

•SECT 4 – change of name, status & alteration of Boundaries

•SECT 5 – Merger of two or more LA

•SECT 8 – Administration of LA areas

•SECT 9 – Power of State Authority to issue directions

•SECT 10 – COUNCILLORS

•SECT 13 – LA to be corporations.

SOURCES OF FUNDS•SECT 39 – Revenues•SECT 41 – Loans•SECT 46 – Loans for specific purpose•SECT 47 – Loans by Government•SECT 49 – Advances by OverdraftANNUAL BUDGET/ESTIMATES•SECT 55 – Annual Estimates•SECT 56 – Supplementary Estimates •SECT 57 – Unapproved Expenditures•SECT 58 – Virement•SECT 59 – Forms of Estimates.ACCOUNTS & AUDITS•SECT 53 – Accounts to be kept•SECT 54 – Financial Year & Final Accounts•SECT 60 – Audit of Accounts.

•Formation•Objectives•Functions

FUNCTIONS AND OBJECTIVES OF LOCAL AUTHORITY

Local Authorities comprise City Hall, Municipalities and District Councils. These Local Authorities have many functions. These include cleanliness, maintaining public health, planning, landscaping and beautification of public places, collection of taxes, and issuance of permit & licences.The main objective is to be an efficient and productive Local Authority in providing quality urban or rural services and a balanced provision of social amenities, recreational facilities and economic opportunities. In the modernisation process of the Local Authorities. Their new role as agents for change and development, involves not only providing services and basic amenities but also to develop the area as an agent for development by providing propersystem of housing, infrastructure facilities & other amenities to eradicate poverty and to upgrade the quality of life of people at the local level.

DEFINITION & TYPES OF LOCAL AUTHORITYLocal Authority is defined in Section 2 of the Local Government Act 1976 (Act 171) as any City Council, Municipal Council or District of the states in relation to the Federal Territory means the Commissioner of the City of Kuala Lumpur appointed under section 3 of the Federal Capital Act, 1960.All Local Authorities in Peninsula Malaysia are under the purview of the Ministry Of Housing and Local Government except City Hall of Kuala Lumpur which is under the Prime Minister’s DepartmentLocal Authority is the administration Corporate Body which is given by the law the authority and responsibilities to administer the affairs of areas called Local Authority areas. The Local Authority areas is determined by the State Authority (Rules – in Council or Governor – in – council and includes Y.P. Besar N. Sembilan, Ruling Chief or Minister (Federal Territory)In view of the rapid socio economic development, there are proposals to upgrade the status of district council to municipalities to answer the calls for better service to the public (5 city halls, 21 municipalities & 118 district councils reported by Housing & Local Govt. Minister in Sunday Mail 11/6/96 & he also reported that to upgrade into a municipality, a district council must have a min. population of 100,000 and an annual revenue of RM 5 million.)Refer to section 3, 4 & 5 of the Local Govt. Act on declaration, determination, change of name, status & boundaries and merger of two local authorities.

FORMATION AND ADMINISTRATIONEach Local Authority has a defined area, a population, an organisation and the authority to undertake and power to carry out their functionsSection 13 – every local authority shall be a body corporate, have perpetual succession and a common seal. They have a separate legal entity which means they may sue and be sued and can enter contract.Section 8 – The affairs of every local authority area shall be administered by a local authority established by and in accordance with this Act.Section 9 – The power of State Authority/Minister (F.Territory) to issue directions & not inconsistent with this ACT provisions. Tosubmit returns, accounts & other information as required by State Authority from time to time.Section 10 – elaborate on the appointment, terms of office & other related information of Councillors (Local Authority Council) which consist of Mayor/President & >8 & <24 other Councillors.

NATIONAL COUNCIL FOR LOCAL AUTHORITY

• Under Articles 95A of Federal Constitution requires the formation of a Council to control LA

• Duties to formulate national policy for the promotion, development and control of LA after consulting Federal & State Government.

• NCLG acts as an agency to ensure uniformity on policies & law matters

• NCLG comprise of:– Minister of Housing & Local Govt. as Chairman– Representative from State (1 each)– Maximum of 10 from Federal Govt.

SECTION 10 – APPOINTMENT, TERM OF OFFICE AND OTHER RELATED INFORMATION OF COUNCILLORS

Councillors shall be appointed where majority are persons ordinarilly residents in the local area who:

Have wide experience in local government affairsHave achieved distinction in any profession, commerce or industryCapable of representing the interests of their communities in the local authority area.

Term of office shall not exceed 3 years and eligible for reappointment upon the expires of his term of office.The seat of a Councillors may be vacant due to

ResignationDisqualified under section 34 (7)Appointment is revoked by State Authority.

State Authority must be informed immediately when a vacancy occursIf the mayor or president does not agree with the other councillors, he shall refer the matter to the Menteri Besar or Chief Minister for final decision.The mayor or president may grant leave of absence to the Councillors in accordance with State Authority’s term and conditionEach councillors shall be paid such salaries or allowances as the State Authority may determine.

SECTION 10 – APPOINTMENT, TERM OF OFFICE AND OTHER RELATED INFORMATION OF COUNCILLORS (CONT’D)

SOURCES OF FINANCE

• Section 39 – The Revenue Of Local Authorityconsists of:– All taxes, rates, rents, licence fees, dues and other

charges payable to the Local Authority– Profit arising from any trade, service or undertakings

carried on by the Local Authority– All interests on any monies invested & all income

arising from/out of the property– Grants (Federal Govt. – Launching Grant, Annual

Grant, Infrastructure Grant), contributions, Endowments & others accruing from Federal/State Government & Statutory Authorities.

SOURCE OF FINANCE• Section 41 – Power of LA to raise loan

– LA may raise loan with the consent of the State Authority for any of the following purposes

• For the acquisition of land, construction of buildings & renewal/replacement of plants or vehicles

• To pay off existing loans provided that the loan shall not make the total indebtness of LA to exceed 5 times the annual value as contained in the current valuation list and the maximum repayment period is 60 years

– To borrow by issuing mortgages or debentures stock under Sect. 42• Section 46 – Borrowings Powers for special purposes

– In addition to Section 41, raise loan from any person with the approval of state authority for the purpose of carrying out any development for residential, commercial & industrial undertakings. Loan is secured by a 1st mortgages or charge or by debentures upon assets or revenues from assets in respect of which the money is borrowed.

• Section 47 – Loans from Federal & State Government• Section 48 – Loans to be first charge on revenue and assets

– Every loan granted under section 41 & 47 subject to any prior charge, be a first charge upon the revenues and assets of the LA

• Section 49 – advances by way of overdraft.

LOCAL AUTHORITY FUND

• Section 40 – All money’s received by the Local Authority by virtue of this Act or any written law shall constitute a fund known as the Local Authority Fundwhich becomes vested in and under the direction and control of the local authority. All moneys received by the local authority for Local Authority Fund shall be kept on current or deposit account with one or more banks licenced under Banking Act 1973 & may be invested in any securities in which Trustees are empowered to invest or other manner as authorized by shall be signed by two officers authorized in writing by local authority.

RESOURCE ALLOCATION• Section 55 – Annual Estimates

– Not later than 10th day of November of each year pass detailed estimates of revenue & expenditures for next financial year.

– Form of draft estimates deliver to each Councillor not later than 7 days before the meeting.

– The local authority council may pass, modify, reject or add in such draft estimates

– Forwarded to State Authority not later than 20th

November and be considered by State Authority not later than 31st December. State Authority may reduce or reject any item therein.

– Budget summary shall be published in the Gazette.

RESOURCE ALLOCATION• Section 56 – Supplementary Estimates

– Additional financial provision may from time to time pass supplementary estimates by applying Section 55 provisions

– State Authority shall consider not later than six weeks after the date of receipt.

• Section 57 – No Local Authority shall incur any not include in the approved estimates except with the sanction of State Authority

• Section 58 – Virement– Local Authority may transfer all or part of the monies

assigned to one item of annual recurrent expenditure to another item of annual recurrent expenditure under the same head of expenditure. The approved budget summary shall be published in the gazette.

• Section 59 – Annual & Supplementary estimates and summaries shall be prepared in such form as required by State Authority.

ACCOUNTS AND AUDIT• Section 53 – Books & Accounts shall be kept and open to

inspection of any councillor with prior concern of the Mayor/President

• Section 54 – The financial year shall be 12 months ending on 31 December of each year. The accounts shall, as soon as may be, bebalanced for the preceding financial & annual statement shall beprepared. Such annual statement signed by Mayor/President shall be laid before the Local Authority not later than its First Ordinary – Meeting in the month of May following or at any time thereafter as followed by the Local Authority. Annual statement shall be prepared in such form and shall contain information as required by the State Authority. The Accounts contain annual statement of Revenue & Expenditure (P & La/c), Balance Sheet & other supporting supplementary statements.

AUDIT OF ACCOUNTS – SECTION 60

• Audit will be undertaken by the Auditor – General or other auditor appointed by the State Authority on the recommendation of Auditor – General

• It is the duty of the auditor to submit to local Authority on or before 31st October in each year in respect of the preceding financial year of an annual observation on account and to certify: -– The accounts were in order– Separate accounts of all commercial undertakings

had been kept– The account presented a true and fair view of the

financial position of LA and commercial undertakings.

AUDIT OF ACCOUNTS – SECTION 60 (CONT’D)

– Provisions made for redemption and repayment of all monies borrowed by Local Authority

– The amount set aside for deprecation & renewal of all assets were adequate.

– All the requirements of the auditor had been complied with

• The audited accounts & auditor’s observations shall be laid before the LA and be published in the Gazette

• A copy of the statements & accounts shall be forwarded to State Authority to be laid & tabled to State Legislative Assembly & House of Representative.

SELF-TEST QUESTIONSCHAPTER 10 – LOCAL AUTHORITIES

1. State the main functions of Local Authorities.

2. What are the powers of State Authority in the determination of local authority area?

3. Identify the powers of Councillors in relation to the financial matters of a Local Authority.

4. List down the sources of revenue for Local Authority under section 39 of the Local Government Act 1976 (Act 171)

5. Explain the borrowings powers of Local Authority under Section 41 and Section 46 of the Local Government Act 1976.

6. State the procedures under the relevant sections in the Local Government Act 1976 for the approval of annual estimates, supplementary estimates and virement.

OCTOBER 2000According to section 57 of the Local Government Act 1976. “No local authority shall incur any expenditure which has not been include in the approved estimates except with the sanction of the State Authority.”

a) Explain the financial provisions for the budgetary procedures ofLocal Authorities under section 55 and section 56 of the Local Government Act 1976.

(12 marks)b) Distinguish the differences between the supplementary estimates

and virement.(4 marks)

c) Describe the meaning of the Local Authority Fund under section 40 of the Local Government Act 1976.


LOCAL AUTHORITIES

JUNE 2000 (Summer Class)According to Section 10 of the Local Government Act 1976, “Councillors of the local authority shall be appointed from amongst persons the majority of whom shall be persons ordinarily resident in the local area….”.

a) What are the other factors required for a person to be eligible for appointment as a Councillor

(6 marks)b) Under what circumstances may the seat of a Councillor be vacant

(4 marks)c) Explain the borrowing powers of Local Authorities under Section

41 and Section 46 of the Local Government Act 1976.(10 marks)

(Total: 20 marks)

APRIL 2000Local Authority is the administrative corporate body which is given by the Local Government Act 1976 (Act 171) the authority and responsibility to administer the affairs of local authority areas as determined by the Federal or State Government. There are 144 local authorities in the peninsula of Malaysia.

(New Straits Times, 1997)a) Identify three (3) types of Local Authorities in Peninsula

Malaysia. Support your answer with one (1) relevant example for each of the respective Local Authorities.

(6 marks)b) List the sources of revenue for Local Authority under section 39

of the Local Government Act 1976.(8 marks)

c) State and explain any three (3) powers of State Authority in relation to the financial matters of local Authority.


OCTOBER 1999Forty of the ninety-six local authorities in the peninsula are facing annual financial deficits which have affected their performance. Many of the small district councils are the ones facing this financial constraints as they have limited revenue resources. The Housing and Local Government Ministry would look into details including expenditure, management and sources of income before remedies could be recommended.

(Datuk Dr. Ting Chew Peh, Minister of Housing and Local Government, NST 12th June 1999)

a) Explain how the councillors of Local Authority may be appointed under the Local Government Act 1976.

(4 marks)b) Describe the budgetary procedures of Local Authority as laid down by section 55, 56 &

58 of the Local Government Act 1976.(10 marks)

c) Identify the procedures/course of actions to be taken by the Controlling Officer of local Authority when the following situations/events occur.1. Development expenditure incurred by the District Council was not included in the

approved annual budget.2. One item of the annual recurrent expenditures of the Municipal Council had been

overspent.Support your answer with relevant sections under Local Government Act 1976.


JUNE 1999 (Summer Class)The purpose of the Local Government Act 1976 (Act 171) is to ensure uniformity of law and policy to make law with respect to local government

a) Explain the financial provisions on the submission and approval of annual estimates of Local Authorities as stated in Section 55 of the Act.

(12 marks)b) Section 39 of the Local Government Act 1976 states

four (4) types of revenue allowed to be collected by local authorities. What are they?


APRIL 1999Local Authority is the administrative Corporate Body which is given by the law the authority and responsibilities to administer the affairs of areas called Local Authority Areas. The Local Authority areas are determined by the state and federal Government. Local Authorities comprise of City Hall, Municipalities and District Councils. Local Authorities require sufficient funds in order to be efficient and productive in providing quality urban and rural services.

a) Local Authority are is determined by the State Authority. List down the four (4) changes that State Authority can make in the administration affairs of Local Authorities.

(4 marks)b) Elaborate on the sources of funding of Local Authorities in

accordance with Local Government Act 1976. Support your answer with relevant sections.


OCTOBER 1998The Local Government Act 1976 (Act 171) provides exceptionally detailed financial and accounting requirements to be followed by local Authorities for a better control and management of Local Authority Fund

a) Define the meaning of “Local Authority” as laid down in section 2 of the Local Government Act 1976 and list down 4 (four) main functions of Local Authority.

(6 marks)b) Explain the financial provisions on the submission and approval

of the annual financial statements of Local Authority(6 marks)

c) Discuss the financial provisions on the audit of the Local Authority as stated in section 60 of the Act.


MAY 1998In accordance to the Local Government Act 1976 (Act 171), Local Authorities are required to prepare their annual estimatesfor revenue and expenditure to be approved by the State Authority.

a) Discuss the relevant sections in the Local Government Act 1976 for the approval of annual estimates, supplementary estimates and virement.

(12 marks)b) Identify the powers of the Councillors on the annual and

supplementary budget.(4 marks)

c) List one similarity and one different procedures on the approvalof estimates between annual estimates and supplementary estimates.


MARCH 1998Local authorities require financial assistance in order to be efficient and productive in providing quality urban or rural services and a balanced provision on social economic development and economic opportunities.

a) Explain the borrowing powers of Local Authorities under Section 41 and Section 46 of the Local Government Act 1976.

(12 marks)b) You are required to explain the Local Authority Fund

as legally laid down under Section 40 of the Local Government Act 1976.


SEPTEMBER 1997According to Section 10 of the Local Government Act 1976. “The Local Authority shall consist of the Mayor or President and not less than eight and not more than twenty four other Councillors to be appointed by the State Authority.”

a) Elaborate further on other issues discussed under this Section

(12 marks)b) What are the powers of Councillors in relation to the

accounts and financial matters of a Local Authority? Support your answer with relevant sections of the Act.


APRIL 1997According to the Local Government Act 1976, the sources of finance for Local Authorities include money received from revenue and from loans.Elaborate further on these two sources of finance and support your answer with the relevant sections

(20 marks)

NOVEMBER 1996The main thrusts of Local Government is to promote, develop and assist the Local Authorities in providing quality urban services and a balanced provision of social amenities, recreational, facilities and economic opportunities. All local authorities in Peninsula Malaysia are under the purview of the Ministry of Housing and local Government except City Hall of Kuala Lumpur which under the Prime Minister’s Department to achieve the objective of creating efficient and productive LocalAuthorities, the Federal Government provides financial assistance in the form of annual grant, project grants and loans.

(Malaysia Official Year Book, 1993)In accordance to the local government Act, 1976 (Act 171), localauthorities are required to prepared their annual estimates for approval by the State Authority.You are required to explain the relevant sections in the Local Government Act 1976 for the approval of annual estimates including the supplementary estimates, virement and form of estimates.

(15 marks)

MAY 1996“Housing and local government Minister, Datuk Dr. Ting Chew Peh said that five to ten councils would be upgrade to municipalities and city halls status in five years time. To be upgraded into a municipalities, a district council must have achieved a minimum population of 100,000 and an annual revenue of RM5 million”.

(Sunday Mail, June 11, 1995)a) In relation to the above, you are required to explain the various

ways that have been implemented by the district councils in order to achieve a maximum level of revenue.

(12 marks)b) Give suggestions on other approaches that district councils can

implement in order to increase its revenue(8 marks)

(Total: 20 marks)

COURSE : ADVANCED PUBLIC SECTOR ACCOUNTING

COURSE DATE : PSA 520DATE : 26 SEPTEMBER 2002TIME : 3 HOURS (9.00 A.M. – 12.00 P.M.)FACULTY : AccountancySEMESTER : May – October 2002PROGRAMME/CODE : Bachelor of Accountancy (Hons)

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UNIVERSITI TEKNOLOGI MARAFINAL EXAMINATION

AC/SEP 2002/PSA520

INSTRUCTIONS TO CANDIDATES1. Answer ONE (1) question in Section A and FOUR (4)

questions in Section B2. Start each answer on a new page.3. Do not bring any material into the examination room

unless permission is given by the invigilator.4. Please check to make sure that this examination pack

consists of:i) the Question paper – includedii) an Answer Booklet – provided by

the Faculty.

SECTION AAnswer one (1) question only.Question 1

The accelerated privatization programme generated domestic investment, particularly in the utilities, transportation and social services. The privatization programme will continue to serve as a vehicle to increase the proportion and scope of private sector participation in the economy.

(The Third Outline Perspective Plan 2001-2010)Required:a) Define the terms ‘Privatization’ and ‘Privatization Master Plan.’

(4 marks)b) Explain any five (5) of the major components of the Privatization Action

Plan.(10 marks)

c) Describe the methods of privatization that do not involve the transfer of ownership.


Question 2In supporting the development of Malaysia’s competitive cluster industries, as envisaged under the Second Industrial Master Plan(IMP2), the government will continue to ensure adequate provision of quality infrastructure and other support facilities to facilities their development.

(Dato’ Seri Dr. Mahathir Mohamad, 1996)Required:a) Identify the objectives of the Industrial Master Plan

(6 marks)b) Elaborate on the five (5) strategic thrusts of the Manufacturing

++ Concept(10 marks)

c) Why is the success of IMP2 important in relation to Vision 2020?


SECTION BAnswer four (4) questions only.Question 1

The establishment of the Multimedia Super Corridor (MSC) offers innovative multimedia developers and users a unique opportunity to help shape tomorrow’s world through intelligent use of multimedia technology.

Required:a) Where is the MSC located?

(3 marks)b) Describe the three (3) phases of MSC.

(12 marks)c) Elaborate on ‘Technopreneur Development’ which was the latest

Flagship Application introduced in November 2001.(5 marks)

(Total: 20 marks)

Question 2The concept of Electronic Government can bring about fundamental changes in the fabric society and be an important contribution in Malaysia’s overall effort to become a fully developed nation.

Required:a) What are the key elements of Electronic Government?

(3 marks)b) Identify and explain the four (4) factors that require changes in

reinventing government.(12 marks)

c) Describe any one (1) of the Pilot Applications of Electronic Government


Question 3Continued reform efforts throughout 1996 have brought above encouraging progress within the Civil Service. Among major improvement programmes are the implementation of MS ISO 9000 and efforts towards the development of a paperless Civil Service.

Requires:a) What is the main objective of implementing ISO 9000 in the

Malaysian Civil Service?(4 marks)

b) Explain five (5) benefits of implementing ISO 9000 in the Malaysian Civil Service.

(10 marks)c) Why is top management commitment very important in ensuring

the success implementation of ISO 9000?(6 marks)

(Total: 20 marks)

Question 4The vision of the Local Authority in Shah Alam is to transform Shah Alam into a smart city, beautiful and progressive and in harmony withits environment towards the creation of civil community with emphasis on sustainable development.

Required:a) Identify the three (3) types of Local Authorities in West Malaysia.

(3 marks)b) Explain the financial provisions on the submission and approval of

annual estimates of Local Authorities as stated in Section 55 of the Local Government Act 1976.

(12 marks)c) Give two (2) suggestions on how Local Authorities could improve the

quality of service delivery to the public.(5 marks)

(Total: 20 marks)

Question 5The 2002 Budget provides the biggest ever allocation of 5.34 billion ringgit to further increase the facilities and amenities in the rural areas.

Requires:a) Identify three (3) types if facilities and amenities that were

include in the 2002 Budget allocation above.(6 marks)

b) Describe how the government intends to strengthen the nation’s economic growth as mentioned in the 2002 Budget Speech.

(10 marks)c) List down four(4) issues normally discussed under the ‘social

agenda’ strategy at the budget.(4 marks)

(Total: 20 marks)

Question 6Statutory Bodies are required to prepare their financial statements and Annual Reports in accordance to the Act 240: Statutory Bodies (Accounts and Annual Reports) Act 1980 and Treasury Circular 15/94 (Guidelines for the Preparation and Presentation of the Annual Report and Financial Statements of Statutory Body).

Required:a) Act 240 was established in 1980. Explain the purpose of the Act.

(4 marks)b) Describe the time frame in the preparation and submission of Annual

Reports as required by Act 240.(8 marks)

c) Identify three (3) objectives of preparing Annual Reports as stated in Treasury Circular 15/94. Give two (2) examples of items found in the Annual Report of a Statutory Body.


Question 7The primary objectives of government procurement are to support Malaysia’s industrial development and to encourage Bumiputra participation in commerce and industry.

Required:a) Under what criteria can a company be classified as a Bumiputra

company as stated in the Treasury Circular 4/95?(4 marks)

b) Explain the procurement methods for supplies and services under Treasury Circular 2/99.

(8 marks)c) Explain briefly the special preferences given to Bumiputra

companies for procurement of supply and services as laid down in the Treasury Circular 4/95.



COURSE DATE : PSA 520DATE : 24 MARCH 2002TIME : 3 HOURS (9.00 A.M. – 12.00 NOON)FACULTY : AccountancySEMESTER : November 2001 - April 2002PROGRAMME/CODE : Bachelor of Accountancy (Hons)

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AC/MAR 2002/PSA520

INSTRUCTIONS TO CANDIDATES:1. Answer 1 (ONE) question in Section A and 4

(FOUR) questions in Section B.2. Start each answer on a new page.3. Do not bring any material into the examination room

unless permission is given by the invigilator.


The Privatisation Policy was initiated and launched in 1983 as a National Development Policy as to publicly announce the government interest to reduce its presence in the economy and to allow the market forces to govern the economic activities.

Required:a) Define the term “Corporatisation” and “Privatisation”

(4 marks)b) List and explain the four (4) methods of privatisation in Malaysia as

described under the Privatisation Master Plan. Giver one (1) relevant examples is privatised entity or development project for each method of the privatisation adopted.

(10 marks)c) “Privatisation is the primary engine of the economic growth”. Explain the

linkages between Privatisation and Vision 2020(6 marks)

(Total: 20 marks)

Question 2Vision 2020 is a national comprehensive agenda that sets out specific goals and objectives for long term development. The Third Outline Perspective Plan (OPP3) (2001-2010), marks the second phase of the nation’s journey to realise Vision 2020 that we embarked upon in 1991. The OPP3 has been formulated based on a policy called the National Vision Policy (NVP) with the central theme of “Building a Resilient and Compatitive Nation”.

Required:a) State the two (2) objectives of Vision 2020

(2 marks)b) Establish the linkages between Vision 2020 and OPP3

(5 marks)c) List any five (5) strategic challenges of Vision 2020 other than creation of a scientific

and progressive society, and creation of an economically just society(5 marks)

d) Elaborate on the following two challenges of Vision 2020 that have to be addressed for the achievement of long term economic development and the status of a fully developed country by the year 2020:1. The creation of a scientific and progressive society2. The creation of an economically just society



Treasury Circular No: 2/99 and 5/94 were issued to Government Agencies on the procurement procedures and Treasury Circular No:4/95 was issued for Bumiputra participation in government procurement. Those treasury circulars serve as the guidelines to government officers in respect of the financial procedures in the government procurement system.

Required:a) State the four (4) objectives of government procurement

(4 marks)b) Describe the tendering procedures (step by step process) for government

procurement as required by Treasury Circular No:5/94(12 marks)

c) Identify the different procedures for quotation method between supplies/services and works/constructions as laid down in Treasury Circular No:2/99


Question 2The 2002 Budget is focused on three strategies in light of the difficult global economic outlook and challenges and to address domestic issues. The generous, comprehensive and caring Budget 2002, with incentives for virtually all sectors and society, is also focused on driving domestic spending amid an ailing world economy.

Required:a) Identify any two (2) strategies of Budget 2002

(4 marks)b) Elaborate further on any one (1) of the strategies in (a) above

(4 marks)c) What is K-Economy and explain what do you understand by K-Economy

(6 marks)d) State any two (2) challenges to be addressed by Malaysia in its

transformation efforts towards K-Economy(6 marks)

(Total: 20 marks)

Question 3Electronic Government (EG) is identified as one of the seven (7) flagship applications to catalyse the growth of Multimedia Super Corridor. The Vision of Electronic Government calls for both reinventing government using multimedia and information technologies to become a paperless administrative office and creating a collaborative environment to foster the ongoing development of Malaysia’s multimedia industry.

Required:a) What are the two (2) objectives of Electronic Government

(4 marks)b) Identify any two (2) Information Technology Applications currently adopted in the

government sector(2 marks)

c) List down the five (5) Pilot Applications of Electronic Government(4 marks)

d) State and explain two (2) benefits of reinventing government through Electronic Government.

(4 marks)e) Explain briefly how Electronic Government will facilitate Malaysia to become a

fully developed country in line with Vision 2020.(5 marks)

(Total: 20 marks)

Question 4The Multimedia Super Corridor (MSC) is right on track to create a multimedia environment that will transform Malaysia into a world-class information technology hub. The MSC is a real success story that should be told not only in the country or region but the whole world. The Malaysian government has put in place the necessary infrastructure to ensure the success of this project.(Members of the MSC International Advisory Panel, NST, Friday 7 September 2001)

Required:a) What are the three (3) objectives of MSC

(3 marks)b) Elaborate on the following Multimedia Development Flagship Applications:

i) Smart Schoolsii) Telemedicineiii) Smartcard.

(9 marks)c) Describe how Malaysia can successfully create Multimedia Super Corridor

(4 marks)d) Explain the roles played by MSC in achieving the ultimate goals of Vision 2020


Question 5The Local Authority is the administrative corporate body which is governed by the Local Government Act 1976 (Act 171). Part V of the Local Government Act 1976 provides the general financial provisions or local authorities.

Required:a) Define the meaning of “Local Authority” as laid down in Section 2 of Local Government

Act 1976 and state three (3) main functions of Local Authorities in Peninsular Malaysia.(6 marks)

b) Explain the powers and purposes of Local Authority to raise loans under the following financial provisions of Local Government Act 1976:i) Section 41ii) Section 46iii) Section 47

(6 marks)c) Identify the power of state Authority in relation to the borrowing powers of a local

Authority.(2 marks)

d) What are the duties of External Auditor in relation to the accounts and financial matters of a Local Authority? Support your answer with relevant sections of the Local Government Act 1976.


Question 6Annual Reports and Accounts of each Statutory Body must be properly and timely prepared and presented to Parliament as required by the legal requirements and treasury guidelines.

Required:a) Define the meaning of a Statutory Body and give any two (2) examples of

Statutory Bodies(4 marks)

b) What are the two (2) regulatory guidelines which are issued and used by all Statutory Bodies in preparing and submitting their Annual Report and Financial Statements

(4 marks)c) Describe the time limit imposed by the treasury guidelines in relation to the

preparation and submission of the Annual Report and Financial Statements of Statutory Bodies.

(6 marks) d) List down the contents (any six (6)) of Annual Report of Statutory Bodies as

required by the treasury guidelines(6 marks)

(Total: 20 marks)

Question 7Treasury Instructions (TI) have been prepared and upgraded from time to time by the Treasury in respect if financial and accounting procedures for the revenue collection and payment system of the Federal and State Government.

Required:Explain the requirement of the Treasury Instructions on the following procedures:

a) Revenue Collection System – The Counter Service (TI60-70)(10 marks)

b) Payment System – The bulk Bill Payment (TI92-107)(10 marks)

(Total: 20 marks)


COURSE DATE : PSA 520DATE : 29 SEPTEMBER 2001TIME : 3 HOURS (2.15 – 5.15 P.M.)FACULTY : AccountancySEMESTER : May – October 2001PROGRAMME/CODE : Bachelor of Accountancy (Hons)

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AC/SEPT 2001/PSA520

INSTRUCTIONS TO CANDIDATES1. Answer ONE (1) question in Section A and

FOUR (4) questions in Section B2. Start each answer on a new age3. Do not bring any material into the examination

room unless permission is given by the invigilator

SECTION AAnswer one (1) question onlyQuestion 1

The privatisation programme will continue to be implemented during the Eighth Malaysia Plan period as it has contributed to increase efficiency and productivity of privatised entities or projects. Emphasis will be given to viable projects that have high multiplier effects and, at the same time; meet social objectives.

Required:a) Define the term “Privatisation”

(2 marks)b) State any four (4) objectives of privatisation

(4 marks)c) Identify and explain the two (2) criteria adopted in the selection of government owned

entities (GOE) for privatisation programme.(4 marks)

d) List the privatisation decision categories as illustrated by the four quadrants in the diagram of Privatisation Decision Grid. Explain any two of them.

(6 marks)e) Discuss any two (2) reasons why the government needs to control the privatised

entities or projects.(4 marks)

(Total: 20 marks)

Question 2The Third Outline Perspective Plan (OPP3)(2001-2010), marks the second phase of the nation’s journey to realise Vision 2020 that we embarked upon in 1991. Besides the usual projections of continued high economic growth, the OPP3 has emphasised on poverty eradication, restructuring of society, the development of human resources, knowledge economy and national unity. The Eighth Malaysia Plan (2001-2005), is the first phase in the implementation of the OPP3 which presented strategies and programmes aimed at putting the nation towards becoming a united and fully developed country in our own mould by the year 2020.

Required:a) State the main difference between OPP2 and OPP3.

(4 marks)b) What is the primary objective of the Eighth Malaysia Plan.

(4 marks)c) List any six (6) key strategies of the Eighth Malaysian Plan.

(6 marks)d) Explain any two (2) of the above key strategies.



Treasury Circular No:2/99 and 5/94 were issued to serve as a guide to government officers in respect of the financial procedures in the government procurement system.

Required:a) What are the two (2) procurement systems practised in government sector.

(2 marks)b) List the three (3) methods of governments procurement.

(3 marks)c) Describe the procurement methods for Works or Constructions under Treasury

Circular No:2/99.(9 marks)

d) Identify one different procedure between Quotation and Requisition method in the Procurement procedures for Works or Constructions.


Question 2The government has always made serious efforts to improve the quality of public services by adopting and implementing TQM and ISO 9000. A quality public service organisation will be capable of carrying out its responsibility effectively, besides providing excellent services to the public.

Required:a) Explain the concept of Total Quality Management (TQM) and ISO 9000.

(4 marks)b) In relation to the implementation of ISO 9000, explain briefly the meaning of

the following terms:1. Quality2. Quality Assurance

(4 marks)c) List down the seven (7) steps required in the implementation of ISO 9000 in

government sector.(10 marks)

d) Name any two (2) Local Authorities that have been awarded with the ISO 9000 certificate.


Question 3The implementation of Electronic Government (EG) is intended to bring to the public sector the benefits of multimedia and the IT revolution that are leading to new paradigms of performance improvements globally and are moving towards a creative public service.

Required:a) What are the objectives of Electronic Government.

(4 marks)b) What are the three (3) key elements involved in Electronic Government.

(3 marks)c) List down the five (5) Pilot Applications of Electronic Government and

describe briefly any one (1) of them.(8 marks)

d) Define the tem ‘E-Services’ and list any two (2) E-Services that are currently provided by the government to its customers.


Question 4The development of the Multimedia Super Corridor (MSC) will have a significant impact on Malaysia as it enables the country to reach the target of Vision 2020 through productivity – driven and knowledge –based economy as well as promoting a new way of life to its people.


(3 marks)b) List the seven (7) flagship applications in MSC

(7 marks)c) Describe any one (1) of the seven flagship applications as mentioned above.

(3 marks)d) Describe the first phase of MSC’s development from 1996 to year 2003

(4 marks)e) Explain the roles played by MSC as the guarantor and accelerator for the

ultimate goals of Vision 2020.(3 marks)

(Total: 20 marks)

Question 5Local Authority is the administrative corporate body which is governed by the Local Government Act 1976 (Act 171). All local Authorities comprise of City Council, Municipal Council and District Council are required to prepared their annual budget for revenues and expenditures to be approved by the Federal or State Authorities.

Required:a) Explain the appointment criteria and the term of office for the Councillors of

Local Authority under Section 10 of Local Government Act 1976.(6 marks)

b) Describe the procedures for the approval of annual estimates andsupplementary estimates under the relevant sections in the Local Government Act 1976.

(10 marks)c) Identify the powers of State Authority in relation to the budgeting procedures

of a Local Authority.(4 marks)

(Total: 20 marks)

Question 6To enhance public accountability, the annual report and financial statement of each statutory body must be properly and timely prepared and presented to Parliament as laid down by the legal requirements and treasury guidelines.

Required:a) Give any two (2) examples of Statutory Bodies.

(2 marks)b) What are the two (2) regulatory guidelines which are issued and used by all

Statutory Bodies in preparing and submitting their Annual Report and Financial Statements.

(4 marks)c) Explain the legal reporting requirements of Statutory Bodies in relation to the

preparation and submission of the Annual report and Financial Statements.(8 marks)

d) What are the relevant documents that should be included in the audited Financial Statements of a Statutory Body as required by the Treasury Guideline.


Question 7Treasury Instructions (TI) are the written instructions issued by the Treasury for the financial and accounting procedures in the payment system of the Federal and State Government.

Required:a) What are the two types of payment system.

(2 marks)b) Explain the requirements of the Treasury Instructions on the

payment system using payment vouchers (TI 92-107).(10 marks)

c) Explain the meaning of non-voucher type of payment system.(4 marks)

d) Describe two (2) benefits of using non-voucher type of payment system.



COURSE DATE : PSA 520DATE : 9 APRIL 2001TIME : 3 HOURS (2.15 – 5.15 P.M.)FACULTY : AccountancySEMESTER : November 2000 - May 2001PROGRAMME/CODE : Bachelor of Accountancy (Hons)

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INSTRUCTIONS TO CANDIDATES:1. Answer 1 (one) question in Section A and 4 (four)

questions in Section B.2. Start each answer on a new Page.3. Do not bring any material into the examination room

unless the invigilator gives you permission to do so.

SECTION AAnswer 1 (one) question onlyQuestion 1

The purpose of privatisation is to promote greater involvement of private sector in the economy and minimum government involvement in commerce and industry.

a) List down the main objectives of privatisation.(5 marks)

b) Elaborate on the Privatisation Grid in the Privatisation Master Plan.

(10 marks)c) Explain the meaning “corporatisation” and flagships”.


Question 2Industrial Master Plan 2 is based on a cluster based industrial development that will provide the basis for a broad, resilient and internationally competitive industrial sector.

a) List down the objectives of industrial Master Plan (6 marks)

b) Explain any 3 (three) factors involved in improving economic foundation.

(6 marks)c) Elaborate the meaning “value chain” and “value added” under

the cluster based industrial development.(6 marks)

d) What is the impact of K-economy on the industrial sector?(2 marks)

(Total: 20 marks)

SECTION BAnswer 4 (four) questions only.Question 1

In 1997, the Government announced that all government departments and government agencies, had until the year 2000 to quality for the ISO 9000. However, only 25% succeeded in achieving the target.

a) What is ISO 9000?(3 marks)

b) What is the main objective of ISO 9000 in the government?(4 marks)

c) List and explain any 4 (four) principles underlying the development of ISO 9000.

(10 marks)d) State 3 (three) reasons for the delay in achieving the ISO 9000 certificate

by most government departments and government agencies.(3 marks)

(Total: 20 marks)

Question 2Malaysians can benefit directly from MSC in many ways. It allowsthe nation to learn new skills and expertise brought in by companies and countries setting up in MSC. The MSC will also push Malaysia one step forward from the manufacturing industry to being the region’s key player in the information age.

a) What is MSC?(2 marks)

b) What are the objectives of MSC?(6 marks)

c) Describe the development of MSC from 1996 to year 2020.(10 marks)

d) Why is the multimedia development corporation (MDC) called ‘one-stop super shop”?


Question 3Electronic Government will play an essential role in catalyzing the development of the MSC, as well as furthering the political and economic development goals in Vision 2020. Electronic Government will improve both how the government operates internally as well as how it delivers services to the people of Malaysia.

a) Explain the meaning “reinventing the concept of government through connectivity”.

(4 marks)b) List down the 5 (five) Pilot Applications of Electronic Government

and describe any 2 (two) of them(9 marks)

c) Describe 2 (two) benefits of Electronic Government.(4 marks)

d) Identify the key elements of Electronic Government.(3 marks)

(Total: 20 marks)

Question 4Section 8 of the Local Government Act 1976 states that the affair of every local authority area shall be administered by a local authority established by and in accordance with the Act.

a) Identify the 3 (three) types of Local Authorities found in the states.(3 marks)

b) List down 3 (three) sources of funding of a Local Authority as stated in the Local Government Act 1976. Support your answer with the relevant sections of the Act.

(6 marks)c) Under what conditions can a person be appointed as a Councillor?

(6 marks)d) Describe any 2 (two) types of expenditure allowed under Section 41 of

the Local Government Act 1976.(5 marks)

(Total: 20 marks)

Question 5Statutory Bodies are established under the Act of Parliament andare governed by Act 240 and Treasury Circular 15/94. They are managed by a Board consisting of a Chairman and representatives from the public sector.

a) What is the purpose of Act 240 and Treasury Circular 15/94?(6 marks)

b) Elaborate on the time frame in the preparation and submission offinal accounts by Statutory Bodies as required by Act 240 and Treasury Circular 15/94. Support your answer with relevant sections from the above documents.

(10 marks)c) Suggest 2 (two) measures that could be undertaken by the

government to ensure that the final accounts are produced on time.(4 marks)

(Total: 20 marks)

Question 6Treasury Circular 4/95 contained policies and special preferences for Bumiputra Companies. This is to encourage Bumiputra participation in government procurement and to increase the quota of Bumiputra participation in commercial and industrial sector.

a) State any 4 (four) objectives of government procurement.(4 marks)

b) Explain the classification of Bumiputra Companies and Bumiputra Status Companies.

(6 marks)c) Explain the special preferences given to Bumiputra Contractors

with regard to Supply and Services as stated in Treasury Circular 4/95.

(6 marks)d) Explain the meaning “Tender Specification”.


Question 7The purpose of Bulk Payment System is to speed up the payments of bills especially utility bills by government departments and government agencies.

a) Describe the Bulk Payment System.(8 marks)

b) State 3 (three) differences between the Bulk Payment System and the Ordinary Payment System.

(6 marks)c) Who are the authorized payment officers stated in the relevant

Treasury Instructions.(3 marks)

d) List down any 3 (three) examples of improper payment.(3 marks)

(Total: 20 marks)

PSA 520 – ADVANCED PUBLIC SECTOR ACCOUNTING

Privatisation Master PlanRelated articles from seminar papers, local newspapers (NST, STAR, Business Times, etc), relevant Magazines (Khidmat, Malaysia Business, etc), Books and Websight (Internet/Intranet) on the following topics:• Corporatisation & Privatisation• Vision 2020• 6th and 7th Malaysian Plan• Second Industrial Master Plan• 2000, 1999, 1998 & 1997 Budget Speech• Economic Report 1998/99 & 1999/2000• Malaysia’s Vision 2020 – understanding the concepts, implications and

challenges by Tan Sri Dato’ Seri Ahmad Sarji Abdul Hamid• Administrative Reforms by Civil Services – identified & written by Tan Sri

Dato’ Seri Ahmad Sarji Abdul Hamid• TQM & ISO 9000 in Government• Multimedia Super Corridor• Electronic Government• Economic Crisis & Economic Recovery Measures

SOURCES AND ACKNOWLEDGEMENTS

Government documents and related articles on Government Policies• National Economic Policy• National Development Policies• Privatisation Master Plan• Second Outline Perspective Plan• Malaysia Incorporated.

Development Admin. Circulars – Total Quality Management and ISO 9000Treasury Instructions – Revenue Collection & PaymentsTreasury Circulars 5/94, 2/95, 4/95, 8/95, 6/98, 1 & 2/99 – ProcurementsStatutory Bodies Act 240 (1980) & Treasury Circular 15/94Local Government Act 1976Past Years Examination Questions – Advanced Public Sector Accounting (PSA 520), Faculty of Accountancy, Universiti Teknologi Mara, Shah Alam.


COURSE DATE : PSA 521/520DATE : 2 May 2003TIME : 3 HOURS (8.30 – 11.30 a.m)FACULTY : AccountancySEMESTER : December 2002 – May 2003PROGRAMME/CODE : Bachelor of Accountancy (Hons)

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questions in Section B.2. Start each answer on a new page.3. Do not bring any material into the examination room unless

permission is given by the invigilator.4. Please check to make sure that this examination pack consists

of:i. The Question Paperii. An answer Booklet – provided by the Faculty.

SECTION AAnswer ONE (1) question onlyQuestion 1

The successful implementation of the Second Industrial Master Plan (IMP 2) will be one of the important variables required in the transformation into a fully developed industrialized nation as envisaged under Vision 2020.

Required:a) State any three (3) of the identified issues and challenges to be addressed

by IMP2 to enhance the growth momentum of the manufacturing sector.(6 marks)

b) Elaborate on the importance of the Manufacturing ++ Concept (5 marks)

c) List the five (5) strategic thrusts of Manufacturing ++ Concept(5 marks)

d) Explain the meaning ‘to accelerate, deepen and diversity the manufacturing sub-sectors’.


Question 2“Hopefully the Malaysian who is born today and in the years to come will be the last generation of our citizens who will be living in a country that is called ‘developing’. The ultimate objectivethat we should aim for is a Malaysia that is a fully developed country by the year 2020”.

(Dato’ Seri Dr. Mahathir Mohamad, 1991)Required:a) Explain the meaning ‘a fully developed country’ in the context of

Vision 2020.(5 marks)

b) List down any six (6) strategic challenges of Vision 2020.(6 marks)

c) Elaborate any three (3) of the strategic challenges mentioned in(b). Support your answer with examples.


SECTION BAnswer FOUR (4) questions only.Question 1

One of the objectives of the Multimedia Super Corridor (MSC) is to leapfrog Malaysia into leadership in the Information Age by attracting and developing world-leading companies through ‘smart partnership’.

Required:a) List and explain any two (2) factors that would leapfrog Malaysia into

success in the Information Age.(6 marks)

b) Explain the meaning ‘smart partnership’.(3 marks)

c) Explain the other two (2) objectives of MSC.(4 marks)

d) List down the current seven (7) Flagship Applications in MSC.(7 marks)

(Total: 20 marks)

Question 2Achieving the vision of Electronic Government requires major changes –fundamentally changing how government operates and implying a new set of responsibilities for civil servants, businesses and citizens. Thus, the objectives of the Electronic Delivery of Driver and Vehicle Registration, Licensing and Summons Services, Utility Payments and Ministry of Health On-Line Information (eServices) are: to enhance service access; and to improve service quality to the public.

Required:a) Elaborate on two objectives of eServices application as mentioned above.

(8 marks)b) Explain the objectives of Electronic Government.

(4 marks)c) List the four (4) changes required in reinventing government towards

Electronic Government Concept.(4 marks)

d) Explain any two (2) of the changes mentioned in (c) . Support your answer with examples.


Question 3Statutory Bodies are government agencies that are fully autonomous, managed by Board of Directors consisting of Chairman and representatives from the public sector. The Annual Reports and Accounts of Statutory Bodies must be timely prepared and presented to Parliament as required by legal requirements and Treasury guidelines.

Required:a) Describe the three (3) types of government’s assistance and contribution

disclosed in the Annual Reports of Statutory Bodies.(9 marks)

b) Identify two (2) users of the Annual Reports of Statutory Bodies and explain how the Annual Reports are important to them.

(6 marks)c) List five (5) items included in the audited financial statements of Statutory

Bodies as stated in Treasury Circular 15/94.(5 marks)

(Total: 20 marks)

Question 4According to Section 10 of the Local Government Act 1976, a Local Authority should comprise not less than 9 and not more than 25 Councillors including the Mayor or President.

Required:a) What are the criteria required for a person to be eligible for

appointment as a Councillor under Section 10 of the Local Government Act 1976.

(4 marks)b) What are the powers of Councillors in relation to the accounts and

financial matters of a Local Authority?(8 marks)

c) Explain the sources of revenue for Local Authorities under Section 39 of the Local Government Act 1976.


Question 5ISO 9000 is sweeping the world. It is rapidly becoming the most important quality standard. Thousands of companies in over 100 countries have already adopted it, and many more are in the process of doing so.

Required:a) Explain any three (3) principles of ISO 9000 for quality management

system in government.(6 marks)

b) Elaborate on any three (3) benefits of adopting ISO 9000 in government.

(6 marks)c) State two (2) differences between ISO 9000:1994 and ISO 9000:2000

(4 marks)d) Explain the terms ‘Quality Assurance’ and ‘Total Quality

Management’.(4 marks)

(Total: 20 marks)

Question 6The 2003 Budget adopts an innovative approach to the challenges of globalisation and technological advancements which are pervadingeconomies the world over. One of the steps taken to achieve the 2003 Budget strategy is to develop human resources for the new economy.

Required:a) List down any two (2) of the strategies stated in the 2003 Budget.

(4 marks)b) Elaborate on one (1) of the strategies mentioned in (a).

(4 marks)c) Explain any four (4) reasons why Malaysia should undertake the

development of a Knowledge-based economy.(8 marks)

d) Explain the meaning ‘infrastructure’ as one of the critical factors to the development of a Knowledge-based economy.


Question 7One of the objectives of government procurement is to get the best value for money spent in terms of price, quantity and quality of the goods, delivery time, after sales service and time to complete a contract.

Required:a) List any other four (4) objectives of government procurement.

(4 marks)b) Explain the three (3) types of procurement classification.

(6 marks)c) Explain briefly the following terms of tendering procedures.

i) Tender Documentii) Tender Specificationiii)Tender Advertisementiv) Tender Board



Privatisation will continue to be an important cornerstone of Malaysia’s national development and national efficiency strategy. The privatisation programme will continue to be implemented during the Eighth Malaysia Plan period as it has contributed to increase efficiency and productivity of privatised entities or projects.

Required:a) Define the term “Privatisation”

(2 marks)b) State any four (4) objectives of privatisation

(4 marks)c) Identify and explain the two (2) criteria adopted in the selection of government owned

entities (GOE) for privatisation programme.(4 marks)

d) List and explain the privatisation decision categories as illustrated by the diagram of Privatisation Decision Grid in the Privatisation Master Plan.

(8 marks)e) State any two (2) problems that the government needs to be awared of in implementing

privatisation policy.(2 marks)

(Total: 20 marks)

Question 2The Third Outline Perspective Plan (OPP3) (2001-2010), marks the second phase of the nation’s journey to realise Vision 2020 that the country embarked upon in 1991. The Eighth Malaysia Plan (2001-2005), is the first phase in the implementation of the OPP3 which presented strategies and programmes aimed towards achieving a new formulated policy called “National Vision Policy(NVP).

Required:a) State the two (2) objectives of Vision 2020.

(2 marks)b) NVP has been formulated based on the central theme called “Building a

resilient and competitive nation”. Explain the meaning of the theme.(4 marks)

c) What is the primary objective of the Eighth Malaysia Plan(4 marks)

d) List any four (4) key strategies of the Eighth Malaysia Plan(4 marks)

e) Explain any two (2) of the above key strategies.(6 marks)

(Total: 20 marks)


Treasury Circular No: 2/2001 was issued to serve as an additional guide to government officers in respect to the financial procedures in the government procurement system.

Required:a) List and explain the three (3) types of procurement classification

(6 marks)b) Describe the procurement methods for Works or Constructions

under Treasury Circular No:2/2001(8 marks)

c) Define the term “electronic procurement” and describe two (2) objectives of using this new system.


Question 2ISO 9001 applies to all types of organizations. It can help both product and service oriented organizations achieve standards of quality that are recognized and respected throughout the world. A quality public service organisation will be capable of carrying out its responsibility effectively besides providing excellent services to the public. ISO 9001 (2000) has replaced the old ISO 9001 (1994) standard. In addition. ISO 9002 (1994) and ISO 9003 (1994) quality standards have been discontinued.

Required:a) State the main objective of implementing ISO 9000 in the government sector

(4 marks)b) List and explain any three (3) benefits of adopting ISO 9000 for quality management

system in government organizations(6 marks)

c) In relation to the implementation of quality culture, explain briefly the meaning of the following terms:1. TQM

2. ISO 9000(4 marks)

c) List down the six (6) steps required in the implementation of ISO 9000:2000 standard in government sector.


Question 3“Government can and should, be at the leading edge of the information revolution, a model user of new technologies to improve services to its citizens”, Jean Chretien, Prime Minister of Canada.

Required:a) What is the Vision of Electronic Government in Malaysia

(3 marks)b) State and explain two (2) benefits of Electronic Government in Malaysia.

(4 marks)c) List down the five (5) Pilot Applications of Electronic Government in

Malaysia and describe briefly any one (1) of them.(8 marks)

d) Define the term ‘E-Services’ and list any two (2) E-Services that are currently provided by the Malaysian Government websites to its customers.


Question 4The creation and development of the Multimedia Super Corridor (MSC) will have a significant impact on Malaysia as it enables the country to achieve the objectives of vision 2020 through productivity-driven and knowledge-based economy as well as promoting a new way of life to its people.


(3 marks)b) List the seven (7) flagship applications in MSC

(7 marks)c) Describe the following flagship applications to catalyse the growth momentum

of MSC 1. E-Business2. Technopreneur Development

(6 marks)d) Globalisation makes people realized that computer literacy is important.

Discuss how the government has encouraged computer literacy to ensure that all citizens benefit from Information, Communication and Technology (ICT) system.


Question 5Local Authority is the administrative corporate body which is the closest government department to people’s heart. Councilors and officers are appointed in order to ensure the smooth running of the organization. All Local Authorities comprise of City Council, Municipal Council and District Council are required to prepare their annual budget for revenues and expenditures to be approved by the Federal or State Authorities.

Required: a) State the main functions of Local Authority

(4 marks)b) Explain the appointment criteria and the term of office for the Councillors

of Local Authority under section 10 of Local Government Act 1976.(6 marks)

c) Describe the procedures for the approval of annual estimates andsupplementary estimates under the relevant sections in the LocalGovernment Act 1976.


Question 6The annual report and financial statement of each statutory body must be properly and timely prepared and presented to Parliament as laid down by the legal requirements and treasury guidelines in order to enhance public accountability and corporate governance.

Required:a) What are the two (2) regulatory guidelines which are issued and used by all


(4 marks)b) All statutory bodies are required to produce annual reports. How does the

treasury guidelines emphasized on the timely preparation and submission of annual reports?

(12 marks)c) Statutory bodies received several types of grants. List and briefly explain the

types of grants that the statutory bodies receive.(4 marks)

(Total: 20 marks)

Question 7Prime Minister and Finance Minister Datuk Seri Dr. Mahathir Mohamed announced in the 2003 Budget speech that the services sector is expected to be largest contributor to the increase in Malaysia’s Gross Domestic Production (GDP) while the manufacturing is expected to record the highest growth.

Required:a) State any two (2) strategies of Budget 2003 and explain further on any

one (1) of them(8 marks)

b) What is K-Economy and define the meaning of K-Economy as described by K-Economy Master Plan

(6 marks)c) K-Economy is Malaysia’s second step to leapfrog into the Information

Age. Identify the three (3) features required for the transition into the new economy.



COURSE DATE : PSA 521/520DATE : 1 MARCH 2004TIME : 3 HOURS (2.15 – 5.15 p.m)FACULTY : AccountancySEMESTER : November 2003 – March 2004PROGRAMME/CODE : Bachelor of Accountancy (Hons)

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The successfully implementation of the Second Industrial Master Plan (IMP2) will be one of the important variables required in the transformation of Malaysia into a fully developed industrialised nation as envisaged under Vision 2020.

Required:a) State the three (3) objectives of Second Industrial Master Plan (IMP2).

(3 marks)b) Elaborate the meaning of Manufacturing ++ and Cluster-Based Development

concepts under the second Industrial Master Plan.(6 marks)

c) List the five (5) strategic thrusts of Manufacturing ++ Concept.(5 marks)

d) Knowledge-Based Economy (K-Economy) is Malaysia’s second step to leapfrog Malaysia to become a fully developed nation in the digital economic era. Establish the linkages between IMP2 and K-Economy.


Question 2Vision 2020 was first unveiled by Tun Dr. Mahathir Mohamad at the inaugural meeting of the Malaysian Business Council on February 28, 1991. Vision 2020 makes it perfectly clear that we must be a developed country in our own mould.

Required:a) State the two (2) objectives of Vision 2020.

(2 marks)b) Elaborate on the following three (3) challenges of Vision 2020 that emphasized on

sustaining a resilient and competitive economic growth in order to achieve the status of a fully developed nation.1. The creation of an economically just society2. The creation of a scientific and progressive society3. The creation of a prosperous society.

(12 marks)c) We must be a ‘developed country in our own mould’, said by Tun Dr. Mahathir

Mohamad, in his speech on Vision 2020. Discuss on the idealistic belief of our Ex-Prime Minister, the man who brought Malaysia to its current state of balanced development.



The thrust of the 2004 Budget will continue with policies and strategies to stimulate and accelerate domestic economic activities with greater participation of Malaysians in economic growth.

Required:a) State any two (2) strategies of Budget 2004 and explain further on any one (1) of

them.(8 marks)

b) Describe how the 2004 Budget Strategies can help the government to strengthen and build a resilient and competitive nation as envisaged by National Vision Policy (NVP).

(6 marks)c) Knowledge is said to be the driver of economic growth. Define the meaning of

Knowledge-Based Economy (K-Economy) as mentioned in the K-Economy Master Plan


Question 2Local Authority or Local Government is one of the government agencies which is governed by the Local Government Act 1976 (Act 171). Part V of the Local Government Act 1976 provides the general financial provisions of Local Authority.

Required:a) Identify three (3) types of Local Authorities in West Malaysia. Give three (3)

names of Local Authorities that had been upgraded from their status of Municipal councils to city councils.

(6 marks)b) Explain the role of Local Authority as an agent for change and development.

(4 marks)c) Explain the financial provisions of Local Government Act 1976 on the

preparation and approval of annual financial statements of all local authorities.

(6 marks)d) State any two (2) powers of Councillors in relation to the accounts and financial

statements of a Local Authority.(4 marks)

(Total: 20 marks)

Question 3The establishment of Statutory Bodies is to assist Federal and State Government in undertaking social economic functions with specific objectives mainly to accelerate the growth of national development and to achieve a fair distribution of economic wealth. Statutory Bodies are required to comply with certain rules and guidelines in the preparation and presentation of their annual report and financial statements.

Required:a) State the two (2) reporting guidelines which are issued and used by all


(4 marks)b) Describe the reporting requirements for all Statutory Bodies as laid down

under the legal provisions.(10 marks)

c) State the contents of the Annual Report of Statutory Bodies as required by the treasury guideline.


Question 4Development Administrative Circulars: D.A. 1/92 and D.A. 2/96 in respect to Total Quality Management (TQM) and Quality System Standards (ISO 9000 series) were issued to serve as guidelines to all government organisations in their efforts of administrative reforms towards developing a customer oriented public service.

Required:a) State the reasons of adopting TQM concept, and implementing ISO 9000 in

the government sector.(4 marks)

b) In relation to the above question, explain briefly the main difference between TQM and ISO 9000.

(4 marks)c) List and explain any three (3) benefits of adopting ISO 9000 for Quality

management system in government organizations.(6 marks)

d) In the implementation process of ISO 9000, state any two (2) differences between ISO 9000 (1994 standard) and ISO 9000 (2000 standard).


Question 5The Electronic Government (E-Government) initiative is aimed at making it easier for citizens and business communities to find a wide range of services and information available from the government organisations through a single window.

Required:a) List and explain the three (3) key elements of Electronic Government.

(6 marks)b) State and explain two (2) benefits of Electronic Government.

(4 marks)c) List down the five (5) Pilot Applications of Electronic Government.

(5 marks)d) Name and explain any two (2) E-Government initiatives that are currently

provided by the Malaysian government to its external customers.(5 marks)

(Total: 20 marks)

Question 6The Multimedia Super Corridor (MSC) was established as a strategy for Malaysia to leapfrog into the Information Age by providing intellectual and strategic leadership. The seven Flagship Applications have been identified and implemented to accelerate for the ultimate goals of Vision 2020.

Required:a) What are the three (3) objectives of MSC?

(3 marks)b) List the seven (7) Flagship Applications in MSC.

(7 marks)c) State any two (2) factors on how MSC can transform Malaysia into success in

the Information Age.(6 marks)

d) “MSC is now regarded as the engine of economic growth to leapfrog Malaysia into the Information Age”, as commented by Tun Dr. Mahathir Mohamad in New Straits Times (NST), 20th December 1998. Explain the roles played by MSC in achieving the ultimate goals of Vision 2020.


Question 7The procurement policies and procedures in the public sector are designed to achieve the principles of public accountability, transparency and value for money.

Required:a) List any three (3) types of procurement classification.

(3 marks)b) State any three (3) methods of government procurement.

(3 marks)c) Describe the procurement methods for Supplies and

Services under Treasury Circular No: 2/2001.(8 marks)

d) Define the term and explain the benefits of using Electronic Procurement System.



COURSE DATE : PSA 521/520DATE : 5 OCTOBER 2004TIME : 3 HOURS (9.00 a.m. – 12.00 p.m)FACULTY : AccountancySEMESTER : June 2004 – October 2005PROGRAMME/CODE : Bachelor of Accountancy (Hons)

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“The Privatisation Policy was launched as a national development policy as to announce the government interest to reduce its presence in the economy, decrease both the level and scope of public spending and to allow the market forces to govern the economic activities”.(Privatisation Master Plan, 1991)

Required:a) Define the meaning of the terms “Corporatisation” and “Privatisation”.

(4 marks)b) State four (4) objectives of privatisation policy.

(4 marks)c) Describe the four (4) methods of privatisation adopted by Malaysian government

and state one (1) relevant example for each method.(4 marks)

d) List the four (4) decision factors in implement privatisation policy as illustrated by the Privatisation Decision Grid. Explain the two (2) decision factors which would benefit the government in terms of economic growth.


Question 2The National Vision Policy (NVP) will build upon the efforts initiated under the past development plans and strengthen the basis of transforming Malaysia into a fully developed nation as envisaged under Vision 2020.

Required:a) Define the primary objective of NVP.

(4 marks)b) Explain the meaning of “building a resilient and competitive

nation” as emphasised by NVP.(4 marks)

c) State and elaborate any three (3) development thrusts of NVP.(6 marks)

d) Establish the linkages between NVP and Vision 2020.(6 marks)

(Total: 20 marks)


“We must now make a paradigm shift from a production-based economy (P-economy) to a K-Based economy. This is in line with the Government’s efforts to intensify the development of high technology industries as well as make IT the catalyst for growth in the 21st century”.

(Tun Daim Zainuddin, 2000 Supply Bill in Parliament on 25 February, 2000).Required:a) State any two (2) strategies of Budget 2004 and explain further on any one (1)

of them.(8 marks)

b) What is K-Economy and define the meaning of K-Economy as mentioned in the K-Economy Master Plan?

(6 marks)c) K-Economy is Malaysia’s second step to leapfrog Malaysia to become a fully

developed nation in the digital economic era. Describe how the 2004 Budget Strategies can help the government to strengthen and build K-Economy.


Question 2Local Authority is governed by the Local Government Act 1976 (Act 171). This Act provides the general administration and financial provisions of Local Authority.

Required:a) What are the criteria required for a person to be eligible for

the appointment as a councillor?(6 marks)

b) Describe the budgetary procedures of Local Authority as required by the financial provisions of Local Government Act 1976 (Act 171).

(10 marks)c) What are the powers of Councillors in relation to the

budgeting procedures of Local Authority?(4 marks)

(Total: 20 marks)

Question 3Statutory Bodies are required to comply with certain rules and guidelines as provided by Act 240 (1980) and Treasury Circular 15/94 in the preparation and presentation of their annual reportand financial statements.

Required:a) Define the purpose for the establishment of Statutory Bodies.

(4 marks)b) State and explain any two (2) objectives of Treasury Circular

15/94.(4 marks)

c) Identify three (3) types of disclosure requirements as laid down in Treasury Circular 15/94.

(6 marks)d) State the contents of the Annual Report of Statutory Bodies as

required by the treasury guideline.(6 marks)

(Total: 20 marks)

Question 4Globalisation is about breaking down national boundaries as barriers to the flow of capital and goods to where the most profit can be made (Mahathir Mohamed, 2000). In order to ensure the perfect global climate for multimedia, the government has designated specific areas for MSC. Information, communication and technology (ICT) efforts in Malaysia are channeled through the Multimedia Super Corridor (MSC).

Required:a) What is the purpose of creating the Multimedia Super Corridor?

(3 marks)b) Describe the current phase of the Multimedia Super Corridor.

(4 marks)c) How does the nation benefit from the following two (2) Flagship

Applications?1. Telehealth2. Technopreneur Development

(8 marks)d) “The MSC is the next engine of economic growth”. Explain the idealistic

belief of our former Prime Minister on the rationale of this statement.(5 marks)

(Total: 20 marks)

Question 5Electronic Government (EG) is a multimedia networked paperless administration linking government agencies within Putrajaya with government centers around the country to facilitate a collaborative government and efficient service to businesses and citizens.

Required:a) State the two (2) objectives of EG and explain one (1) of them.

(4 marks)b) Describe two (2) of the pilot applications of EG.

(8 marks)c) Explain four (4) benefits of EG in improving government

services to customers.(8 marks)

(Total: 20 marks)

Questions 6Every year the government has to spend substantial amount on procurement of supplies, services and works or construction. Since the private and public sectors are working in cooperation for the development of this country, it is vital for these employees to familiarize themselves with the government procurement procedures.

Required:a) List four (4) objectives of procurement.

(4 marks)b) Explain the criteria of quotation method for procurement of

supplies and services.(6 marks)

c) Describe the tendering procedures of government procurement.(10 marks)

(Total: 20 marks)

Question 7“It is envisaged that as Malaysia moves into the Second Millennium, every Malaysian government agency should have one core business process to one of the ISO 9000 Quality Management System models”.(Director General of MAMPU at the 9th Asean conference on Civil Service on 30 June until 4 July 1997 in Singapore).

Required:a) What is the objective of implementing ISO 9000 in the government

sector?(4 marks)

b) What is meant by the term “Quality Assurance” as mentioned in ISO 9000?

(4 marks)c) Describe three (3) benefits of adopting ISO 9000?

(6 marks)d) What are the strengths of MS ISO 9000:2000 as compared to MS ISO

9000:1994?(6 marks)

(Total: 20 marks)

Advanced Public Sector Accounting

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