CURRENCY EQUIVALENTS(as of October 1992)

Currency Unit = Malaysian Ringgit (M$)US$1 - M$2.51M$1 = US$0.398

ABBREVIATIONS AND ACRONYMS

ADS - Asian Development BankSM - Bahasa MalaysiaCDC - Curriculun Development CenterCIP - Core Investment ProgramDC - Development Committee (Ministry of Education)DDU - Distant Deprived Underenrolled SchoolsDSD - Development and Supply Division (Ministry of Education)EMIS - Educational Management Information SystemEPC - Educational Planning Comnittee (Ministry of Education)EPRD - EducationaL Planning and Research DivisionEPU - Economic Planning Unit (Prime Minister's Department)ETD - Educational Technology DivisionETS - Education/Training SectorFLU - Foreign Loans UnitICU - Implementation Coordination UnitIIEP - International Institute for Educational PlanningJKR - Jabatan Kerja Raja (Public Works Department)JS - Joint SecretariatKBSM - Kurikulun Bersepadu Sekolah Menengah (Integrated

Secondary Curriculum)KBSR - Kurikulun Sari Sekolah Rendah (hew Primary School

Curriculum)M&E - Monitoring and EvaluationKEMAS - Coimunity Development Department (Ministry of Uational and

Rural Development)MOE - Ministry of EducationMOF - Ministry of FinanceNDP - New Development PolicyNEP - New Economic PolicyNIC - Newly Industrialized CountryO&M - Organization & ManagementOPP2 - Second Outline Perspective PlanPAC - Project Advisory CommitteePGDE - Post-Graduate Degree in EducationPIER - Program for Innovation, Excellence and ResearchPKG - Teacher Activity Center (same as District Resource Center)PMT - Project Management TeamPY - Project YearRC - Resource CenterRM6 - Sixth Halaysia PlanSDP - Staff Development ProgramSED - State Education DepartmentTED - Teacher Education DivisionTTAC - Teacher-Training Advisory CommitteeTTC - Teacher Training CollegeUPE - Universal Primary EducationUSM - University Sains MalaysiaVET - Vocational Education and Training

FISCAL YEARJanuary 1 - December 31

ACADEMIC YEARJanuary 1 - December 31

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FOR OMCIAL USE ONLY

T.URD PRIMARY AND SECOMDARY EDUCATION SECT-PROJECT

Tde)lS of Contentspage No.

LOAII AND PROJECT SUMMARY

I. INTRODUCTION

II. THE SECTORA. Overview . . . . . . . . . . . . . . . . i . . . . . . . . 2B. Achievements in Primary and Secondary Education . . . . . . . 3C. Issues in Primary and Secondary Education

Quality of Education ............... 4Access . . . . . . . . . 6Efficiency of Educational Management . . . . . . . . . . . 7

D. Government's Strategy . . . . . . . . . . . . . . . . . . . . 9E. The Bank's Role . . . . . . . . . . . . . . . . . . . . . . . 11

III. THE PR-OJECTA. Objectives and Scope . . . . . . . . . . . . . . . . . . . . 14B. Detailed Description

Policy Framework . . . . . . . . . . . . . . . . . . . . . 15Promoting Quality and Excellence ... . . ..... . . . . 16Expanding Equitable Access to Quality Education . . . . . . 20Improving the Efficiency of Educational Management . . . . 22

IV. PROJECT COST. FINANCING AND IMPLEMENTATIONA. Costs . 24B. Financing . 26C. Management and Implementation

Status of Preparation .... . . . . . . . . . . . . . . . 28The Sector Approach .... . . . . . . . . . . . . . . . . 28Management and Implementation . . . . . . . . . . . . . . 29Procurement ..... . . . . . . . . . . . . . . . . . . . 29Disbursement ..... . . . . . . . . . . . . . . . . . . 31Accounts, Audits, Reporting and Supervision . . . . . . . . 32

V. IMPACT ON POVERTY ALLEVIATION. WOMEN IN DEVELOPMENT AND THEENVIRONMENT . . . . . . .... .... . .... .... . .... .... . .... ...... . 32

VI. BENEFITS AND RISKSA. Benefits .... . . . . . . . . . . . . . . . . . . . . . . 32B. Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

This report Is based on the findirgs of an ppraisal misson which visited talaysia In Novewber-DccAmber 1991comprfsIng f. Oelatoy (Sr. Operations Officer, Task Manager), H. Go (Architect/Implaemntation Specalifst,Consultant), K. Hinchtiffe (Economist, Consultant), J. KIrk (Distance Education Specialist, Consultant) and H.Martinez (Principal Educator). Contrfbutions were also made by 0. Chpnmn CManagement Infornatfon SystemSpecialist, Consultant), N. Dalupan (Education Planner) anH A. Salmon (Principal Educator) iho led the pr.-apprafsalmission. Peer Reviewers were S. Asher (Sr. Operations Offieer), H. Martinaz, W. Ree (Principal Economist), endC. Shaw (Sr. Educator). N. Lockheed (Sr. Sociologist) provided valuable cowmnts. The post*apprasfsl mission(April 1m9) consisted of Delannoy, Go, Hinchtiffe and Martinez. The document was reviewed by B.O. Babson (Chief,EA1PH) and C.E. Nadavo (Director, EAI).

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

PagEe No,

VII. AGREEMENTS REACHED AND RECOMMENDATION . . . . . . . . . . . . . . 33

TEXT TA-BLES

1. School Construction Program .212. Breakdown of Education Core Investment Program under RM6 253. Phase I Investment Costs by Categories of Expenditures . 254. Financing Plan .275. Procurement Arrangements .30

AhNqNEXES

1. Socio-Economic Indicators ... . . . ..... . . . . . . 352. Basic Educational Data . . . . . . . . . . . . . . . . . . 363. Past Trends and Future Options for Education Expenditure . 404. Fifth and Sixth Plan Sectoral Allocations, 1986-95 . . . . 485. Statement of Policy .... . . . . ... . . . . . . . . 506. Action Plan and Performance Indicators . . . . . . . . . . 597. Teacher Requirements for Primary and Secondary Education . 698. Distance Education/Resource Centers . . . . . . . . . . . . 709. Program to Support Innovation, Excellence and Research . . 7110. Projections of Enrollments and Classroom Requirements . . . 8011. Staff Development Program, Specialist Services, Studies . . 8112. Education Management Informatior System (EMIS) . . . . . . 8513. Project costs estimates: (a) Project cost summary;

(b) Project components by year; (c) Project components byyear, including contingencies; (d) Summary accounts by year;(e) Summary accounts by year, including contingencies;(f) Summary accounts by Project components ... . . . . . 89

14. Recurrent Costs Implications . . . . . . . . . . . . . . . 9215. General & Specific Implementation Criteria and Guidelines . 9316. Guidelines for the Allocation of Loan Proceeds . . . . . . 9817. Project Management and Implementation . . . . . . . . . . 9918. Disbursement Schedule and Profile . .. . . . . . . . . . . 10219. Supervision Plan .... . . . . ...... . . . . . . . 10320. Project Processing and Implementation Schedule ..... . 10421. Selected Documents and Data Available in the Project File 105

CHARTS

1. Structure of the Education System . . . . . . . . . . . . . 1062. Ministry of Education .... . . . . . . . . . . . . . . 1073. Education Plan,iing and Research Division . . . . . . . . . 1084. State Education Department ... . . . . . . . . . . . . . 1095. District Edu^ation Office ... . . . . . . . . . . . . . . 1106. Project Management Operational Chart . . . . . . . . . . . 1117. Project Management Team .... . . . . . . . . . . . . . . 1128. Development and Supply Divisiov . . . . . . . . . . . . . . 1139. Foreign Loans Uni': .... . . . . . . . . . . . . . . . . 114

t4PS: IBRD Nos. 23711, 23712, 23713, 23714

THIRD PRIMARY AND SECOND ATION SECO POCT

Loan and Project Simmary

1423xDYe[: Malaysia

622 = : US$141.0 million equivalent

TerIm: Repayable in 17 years, including 5 years of grace, at the standardvariable interest rate.

Oh1ectiy : The proposed Project would support implementation of the SixzhDevelopment Plan (1991-95) and attaimment of Malaysia's goal ofreaching fully developed nation status by 2020 ("Vision 2020").Building on the achievements of the first two Sector Projects whilepaving the way for change, it would strengthen and expand thefoundations of the education pyramid, primary and secondary generaleducation, and improve the efficiency of sectoral management.

The Government has prepared a Letter of Policy reflecting itscommitment to these objectives. The Letter stresses: (a) the use ofresource allocation and implementation criteria designed to equalizeeducational opportunities and pursue quality improvements; (b)greater flexibility in approachling sectoral issues through operationsresearch; (c) the introduction and systematic monitoring of measuresto improve effectiveness of the delivery system and to reduce unitcosts; and (d) containment of the growth of recurrent expenditures.Progress would be measured against agreed quantified indicators.

Dhscrlation: The Project would be the Third Sector Loan for primary and secondarygeneral education, and the first one following a financial time-sliceformat. Given the magnitude of the Sixth Plan, agreement has beenreached with the Government on (a) a core program of Investments tobe supported by the Bank Loan and (b) a phased implementationtotalling seven years in two time-slices. The Project would financeabout 41% of the first four-year (1993-96) time-slice. It would:(a) Promote guality and excellence in the teaching/learning processby: (i) strengthening the teacher-training system and expanding itscapacity by about 10% (3,000 places); (ii) supporting curriculumimplementation through improvements in the quality, availability andutilization of educational resources including: institution-buildingin existing State and District Resource Centers, rehabilitation of 4State Resource Centers, and provision of distance education, openlearning and conventional equipment, programs and materials; (iii)developing and implementing a Program to support Innovation,Excellence and Research (PIER) with a four-fold focus on: mathematicsand science achievements; small, isolated primary rural schools;pilot-operations in educational communications; and experimentalresearch with new pedagogic approaches and different input mixes;technology; (b) Ex&and equitable access to quality education by: (i)finalizing strategies for early childhood development and specialeducation and initiating their implementation; (ii) constructing/

- ii -

rehabilitating and equipping about 4,400 primary, and 3,200secondaryclassrooms; and (iix) providing housing units for about3,000 teaihers and boarding facilities for about 20,000 primary ardsecondary students in selected rural areas; (c) Improve theefficiency of sectoral and project management by: (i) implementinga staff development program with a strong practical orientation forabout 1,000 senior and middle level managerial and technicalpersonnel; (il) strengthening the existing Educational ManagementInformation System (EMIS) for policy-making, sectozal planning andbudgeting, monitoring and evaluation (M&E); and (iii) upgradingproject management/implementation capabilities.

Benefits: The Project would create some 253,000 student places, mostly forchildren from educationally or economically disadvantagedbackgrounds; this would help Government to maintain universal primaryeducation, to increase secondary enrollments by about 8%, and todirectly enhance the schooling environment where sub-standardclassrooms threaten learning achievements. However, its mainbenefits would be of a qualitative nature, as quality inputs and theemphasis placed on research, M&E and management would enhance thesystem's ability to produce graduates equipped with the skills,attitudes and values required to maximize the productivity of tnelarge public and private investments planned in knowledge-basedindustries, vocational/technical training and higher education.Greater flexibility would prepare the education system to meet thedemands of an increasingly complex and volatile economic environment;increased efficiency would facilitate the accommodation of manycompeting sectoral claims within resource availability.

Rinks,: The risks involved in this third-generation project are relativelylimited, although those facing the Sixth Plaa for Education/Trainingas a whole are worth mentioning. At the project level, enere is arisk of implementation delays and disbursement lags. Measuresrecently adopted concerning site acquisition, civil works supervisionand disbursement requests processing have begun to show results andare expected to prevent a reoccurrence of this type of problem. Theother two risks relate more to the Plan. One is that, at the macrolevel, sustainability might become problematic if all of the sectoralinvestments in the Sixth Plan (notably in higher education andvocational/technical training) were to materialize simultaneously andunder the present high unit cost/low cost-recovery regime. This riskis considered manageable given the quality of the macro and sectoraldialogue concerning fiscal reform and the financing of the socialsectors, the advanced stage of Government's thinking on alternativedelivery and financing mechanisms, and Malaysia's strong record inhuman resource development. The third risk -- that of slowimplementation of key policy measures of a sensitive nature -- couldcompromise the educational and training capacity-building effortneeded to achieve fully industrialized status. The commitmentsexpressed in the Letter of Policy and the focus of the policydialogue underlying the Annual Implementation Reviews should beadequate safeguards against this risk.

; 9~~~~~~~~~~~~ iii -

Estimated Castv:a/k/ Local Forelgn Tota--------- US$ million ---

A. Oualitv and exeellence1. Teacher training 15.1 12.9 28.02. Educational resources 6.9 9.7 16.63. Research/Innovation 1.8 ....

Sub-Total 23.8 23.8 47.5

B. Access and eauity1. Primary schools 72.3 41.6 114.02. Secondary schools 76.1 47.7 123.83. Housing and boarding ,132 7.0 20.2

Sub--Total 161.7 96.3 257.9

C. Manw-erial efficiency1. Staff development 3.0 6.6 9.62. EMIS 0.5 2.0 2.53- Project implementation/management Q..

Sub-Total 3.8 8.9 12.7

Total Baseline Cost 189.2 128.9 318.1

Price contingencies 11.7 12.2 23.9

Total Project Cost 201.0 1L 2

Financing PlanGovernment 201.0 - 201.0IBRD -11. 141.0

Total 201.0 ,4. au

Estimated Disbursements: IBRD Fiscal Year1993 1994 1995 1996

------- US$ million ----------Annual 29.6 46.8 45.2 19.4Cumulative 29.6 76.4 121.6 141.0

Eg2nomicRate of Return: Not applicable

MGMs: IBRD No. 23711, 23712, 23713, 23714

A/ Inclusive of taxes equivalent to US$7.9 million.

k/ Amounts may not add up due to rounding.

NALIAYSI

THIRD PRIMARY AND SECONDARY EDUCATION SECTOR PROJECT

I. INTRODUCTION

1.1 The New Economic Policy (NEP) implemented during 1970-1990 largely achievedits objectives of accelerating growth, sharply reducing ,everty and promoting ethnicequity. Over this period, real GDP growth averaged alwost 7% p.a. (over 9% in thepast four years), and poverty incidence declined from 49.3% of households to 17.L%.By the eighties the modernization of the economy from a mainly agro-based to a moreiniustrialized one was well on its way. This trend was reinforced by the pragmaticshift from a strategy of heavy Government interventions and regulations to a processof liberalization and privatization, following the economic downturn of the mid-fllghties. Liberalization was also instrumental in attracting substantial foreign.nvesv 't vhiich has doubled every year sinee 1987 and has considerably strengthenedeconomic; owih.

1.2 A new basis for overa , development policy -- the New Development Policy(NDP) -- has been set out i, Second Outline Perspective Plan (OPP2) for thenineties and in more detail Sixtb Plan (1991-95). The objectives of growthwith equity are retained, but &: chani,.; in emphases and approaches. Strategiesto maintain high growth rates include add&.Acinal encc^agement to the private sectorand a concomitant reduction in the public -ector's direct participation in theeconomy, further trade liberalization ':nd iiacentives to stimulate investment andcompetitiveness, and measures to accelerate industrial development. The 7.5% annualprojected GDP growth rate through the nineties is expected to be driven by twoforces: first, a widening and a diversificatio?. of the manufacturing base away fromelectronics and apparel towards high technolog- high value-added sectors; second,an expansion of the tertiary sector involving the ahoorpt{on of newly emergingcommunication and data processing technologies. In terms cf distributionalobjectives, the focus is to be narrowed on eradicating hardcore poverty (about 4% ofhouseholds), while the private sector is expected to play a greater role inequalizing participation of the various ethnic groups in the economy.

1.3 The Plan, and Malaysia's goal of becoming a newly industrialized country,or NIC, by 2020 ("Vision 2020") have considerable quantitative and qualitativeimplications for the education and training system. Demand for labor is projectedto increase by 3.1% p. a., with the largest shares of new jobs expected to be in theservices (55%) and in manufacturing (36%). As the labor market is already verytight, this implies the need for a larger pool of more and better educatedindividuals, i.e. secondary education graduates (a) whom employers find more readilytrainable in sophisticated technologies and capable of swiftly adapting to thechanging needs of a highly )mpet;tive economy, or (b) who have mastered the higherorder and problem solving b..lls required to go into higher education. Those peopleshould have received a broad based education emphasizing mathematics, science,technology, innovativeness and communicative abilities, including proficiency inEnglish as a second language. The importance of these disciplines is underlined bythe fact that, with natural resources becoming less plentiful and labor, more scarce,productivity gains will play an increasing role as a source of growth. Whether andhow Malaysia can finance and sustain the many competing investments required by OPP2at all levels of the education system, and how best to achieve the "culture of meritand excellence" underlying Vision 2020 is the challenge facing the Ministry ofEducation (MOE). Socio-economic data are provided in Annex 1.

II. THE SECTO

A. Overview

2.1 Since Malaysia's independence in 1957, education has always figuredprominently as an integral part of Government's development policy. The sector hasbeen used as a major vehicle for promoting national social, economic anddistributional objectives. A unified education system has been established, and acommon curriculum has been adopted. Bahasa Malaysia (Bh) (the Malay language) is thesole language of instruction in secondary education.1/ The structure of theeducation system is presented in Chart 1. Universal Primary Education (UPE) haspractically been achieved (99.8% in 1990), and gross enrollment ratios are 83% and49% respectively, for lower and upper secondary education, 16.4% for post-secondaryand 2.7% for higher education (17.5% and 4.5% when students abroad are included).The gender gap is closed in primary and secondary education, and educational parityhas been practically achieved across the races. Primary teachers are trained in 28Teacher Training Colleges (TTCs), and secondary teachers, in the TTCs and/or theUniversities. In-service training is offered on a large scale in the TTCs, in theexisting network of 4 State, 350 District and 4,230 school Resource Centers (RCs)and, for administrative training, in local institutes. MOZ, with its 13 professionaland 12 administrative divisions and services, is responsible for the formal educationsystem (Chart 2). Its four-tiered (five in Eastern Malaysia) chain of commandreflects the country's administrative structure. The Educational Planning Committee(EPC), the sector's highest policy making and planning body, is assisted by theEducational Planning and Research Division (EPRD)(Chart 3). In each of the 13states, a State Education Department (SED)(Chart .4), supported by Division andDistrict Education Offices (DEOs)(Ghart 5) are in charge of implementing theGovernment's educational policy and of providing feedback to central MOE.Development and support services include the Federal Inspectorate, a CurriculumDevelopment Center (CDC), an Examinations Syndicate, a Textbook Division, anEducational Technology Division (ETD), and the Resource Center network. Basiceducational data are provided in Annex 2.

2.2 Education Finance. Malaysia's educational strategy has consistently beenbacked-up by substantial budgetary allocations. Over 1987-92 the Government hasallocated to MOE between 17.7% and 19.6% of its total recurrent expenditures, andbetween 12.9% and 17.1% of its development expenditures. Between 1981 and 1991,combined public recurrent and capital expenditures, expressed as a percentage oftotal Government expenditure, increased from 13% to 18%. As a percentage of GNP theyhave hovered aroutnd 6%. and compare *ery favorably with expenditures/GNP ratios inthe region. The distribution of recurrent expenditures across levels of educationhas been quite equitable and remarkably constant over the past decade. In 1990, theallocations were 39% for primary, 38% for secondary and 23% for post secondaryeducation. Additional scholarships incorporated within the development budget arethe equivalent of an additional 1.5% for secondary and 3% for tertiary. Thecontribution of private financing is, on average, comparable to the mean for Asia(1987) but it reflects the combined result of limited cost recovery in local highereducation (5.8%) and almost 100% private financing for the bulk of students enrolled

I/ At the primary level, BM is taught in all schools, but the main language ofinstruction in some schools is Chinese or Tamil. One extra year (remove claas)following primary education is provided to students from Chinese and Tamil-language schools to upgrade their BM to the proficiency level required forsecondary education where BM is the sole language of instruction.

abroad. The pattern of capital expenditures suggests that relative allocations arelikely to char.ge in the future. Between 1981-89, primary and secondary educationwere allocated 58%, and vocational/tertiary education, 42% of developmentexpenditures. Over 1986-90, the shares rev&rsed to 42% and 56%, respectively. Whileactual capital expenditures fell over the two periods for primary and secondaryeducation, they increased by 62% at the tertiary level. Such changes will havecarry-through effects on recurrent funding during the ninoties (Annex 3).

B. Achievements in Primary and Secondary Education

2.3 Overall, the development of education in Malaysia has been impresslve, dueto the strong commitment of the Government, supported by substantial resources. Themost noteworthy achievements are discussed below.

2.4 Egualization of educational onnortunities. Rapid enrollment growth (9%during 1985-90) has been accompanied by a gradual closing of attainment andachievement gaps across rural and urban areas. By 1987, the mean level of educationfor the three major ethnic groups ranged from 7.4 to 7.6 years for males and from 5.8to 6.4 years for T3males. This is all the more remarkable that, at independence,only 2% of Malays, 8% of Chinese and 11% of Indians had post-primary education.While there is still ger.der inequality in higher education, the gap is closingrapidly, especially for Malay females (Mnex 2, Table 7).

2.5 Innovative curricula. New curricula were introduced in primary educationin 1983 (the KBSR) and in lower secondary education in 1989 (the KBSM). Based ona child-centered approach in the acquisition of basic skills (the "3Rs"), the KBSR.encourages active pupil participation, as well as the provision of remedial andenrichment activities by teachers. The KBSM provides general education with majortime allocations dedicated to basic skills and core subjects (BM, mathematics,English, and science), contributing to higher student achievements. Introduction ofthe new curricula was supported by the publication of new textbook& for all gradesand by extensive teacher in-service programs. Implementation was carefully monitoredand evaluated through a broad process involving the CDC, the Federal Inspectorate,the Universities, the Teachers' Association and the SEDs. Evaluations have beenpositive and there is widespread recognition that the KBSR and KBSM have largely mettheir objectives of promoting unity, quality and equity.

2.6 Teachers. The number of teachers, classroom sizes and teacher workloads aremore than adequate to provide quality instruction. The 120,000 primary and 73,000secondary teachers are all qualified by G.,vernment standards, except for some 14,000teachers in remote schools. Ordinary p0mary teachers teach .; 21 hours/week togroups averaging 33 students. Their secondary counterparts t . 18 hours/week toclasses averaging 34 students. The training network prov' both pre- and in-service training for teachers at all levels. The priorit -ten to high qual. yteacher education is reflected in the significant level oa resources allocated tothis activity. Unit costs in TTCs are as high as those tn the Universities, andtriple those in the Polytechnics. In-service training is provided to upgrade theacademic and professional skills of teachers, to guide them in the implementation ofthe new curricula and to enhance their commitment and motivation. About one-thirdof all teachers attend at least one course every year.

2.7 Tnxtbooks. The textbook production and distribution system is well-structured and managed. Students have a set of books which reflect the KBSR and KBSMrequirements. The textbooks for the Malay-language primary schools are written byMOE writers and the printing and distribution are contracted to private firms, while

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those for the Chinese and Tamil-language primary schools are written and publishedby commarcial publishers. The secondary school textbooks are mostly contracted, ona competitive basis to commercial publishers, workirg under MOE's guidance. Thisjoint public/private effort has resulted in high-qnality secondary textbooks whilestrengthening national editorial and publishing capacity. An 6fficient Textbook LoanScheme has ensured that books are available free of charge for 90% of the pupils.

2.8 Resource Centers (RCs). The network of RCs supports teachers and schoolmanagers in improving educational quality by encouraging active teaching/ learningmethods, while emphasizing resource-based delivery techniques. Initially designedfor in-service teacher training, the State RCs were reoriented during the FourthBank-financed Project (Ln 1329-MA) to assume responsibility for coordinatingprofessional and training activities as well as research, and acting as a vehicle foreducational decentralization. The District RCs, also called TeachAr ActivityCenters. or PKGs, have played an increasingly important role as intermediates betweenthe State and the school level RCs and the bases from which support networks forheadmasters and teachers operate.

C. Issues in Primary and Secondary Education

2.9 As the Malaysian education system matures, the challenges it faces are alsochanging. The emphasis is shifting away from the planning of large physicalprograms, now well in hand, towards more sophisticated problems of technologicalchoices, cost-effectiveness and marginal resource allocations, requiring greaterflexibility and a stronger managerial orientation. Quality concerns (paras. 2.10-2.15) now tend to focus on the skills and knowledge implications of "Vision 2020" andon closing the achievement gap between urban and rural areas. The access problem(paras. 2.16-2.18) has both a quality dimension (the need to improve or replaceexisting facilities where rapid enrollment growth is jeopardizing learning outcomes,mostly in urban areas), and an equity dimension (the need to create new capacity tomaintain UPE, notably in hard-to-reach areas, and progress towards universalsecondary education). Efficiency in the management of resources (paras. 2.19-2.25)is assuming increasing importance, as the search for excellence and a relative lackof financial constrairits have led to a tendency to select costly options, which maynot be sustainable given the already high level of recurrent expenditures and theproposed expansion of vocational and higher education.

Quality of Educa&ion

2.10 MOE is constantly seeking ways to improve educational quality. Forinstance, examination results are closely monitored to diagnose problems (Annex 2,Table 8). Scores have generally improved, notably in BM, but. MOE is concerned abouta declining trend in English and slow progress in mathem.. itcs and science, as wellas persisting differences by disciplines across types of p,mary schools and betweenurban and rural areas at the secondary level. This analysis focuses on: (a)teachers; (b) educational resources; (c) curriculum implementation; (d) mathematicsand science.

2.11 Sunnly and demand of Teachers. Given that training teachers is expensive,matching the supply of teachers to demand is an important task. Like many otherLDCs, Malaysia went through a period in which pria education was expandingrapidly, requiring a fast growth in the number of primary teachers. This period isover. UPE is practically achieved, the primary cohort is not growing as fast, andteacher requirements will start decreasing soon. Government estimates that the needfor TTC graduates will decline from about 8,000 p.a. (1991) to about 6,500 by 1996.

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This assumes classes of 25; if class size was larger, teacher requireuents would befurther reduced. The need for secondgry teachers is projected to continue growinguntil 1997, when it will stabilize azound 10,000 p.a. Half of this demand isproposed to be met by the TTCs, and half by the universities. Government needs tcplan in greater detail the distribution of capacity across both types ofinstitutions, given world-wids recognition that Universities provide more broad-ranging training and deeper subject-matter competency.

2.12 Teoching methods. Malaysian educators are engaged in a professional debateabout what makes good teaching practice and how best to achieve high educationalstandards. The KBSR calls for "student-centered" teaching nractices and for anactive participation of teachers in the development of teaching aids; yet,evaluations show that even in the best Malaysian schools, teachers continue to use"teacher-centered" approaches and to rely more on commercially-produced teachingaides, as students seem to respond better to these. Given the objective of raisingperformance in mathematics and science, there is a continuing need co bettarunderstand which methods and practices are most effective. Another debate concernsthe role the existing radio and IT programs should be playing in support of teachers.Radio programs are designed as "enrichment" activities and do not cover the corematerial of the currieulum. More interactive radio, better sequencing of theprograms and more monitoring of their impact on achievements would be advisable. Yetanother debated topic is the use of multigrade teaching practices in isolated,underenrolled rural schools. These techniques, which would be well adapted to the37% underenrolled primary sokaols (averaging 81 students), are practiced in less thanone-third of these schools. Administrators generally prefer to resort to biannualintake and boarding schools. These debates tend to be compounded by the fact thatTTCs' response to demands from the profession, e.g., in introducing new courses, hasbeen limited by other constraints and priorities.

2.13 Educational Resources. The school system has been well endowed with qualityinputs (textbooks; teaching/learning materials; radio, TV and audio programs; and RCnetwork). Although these programs have had a positive impact on learning outcomes,a more rigorous approach to their management could further enhance their benefits.In this respect, the textbook production and distribution system is exemplary, whileother educational support services still offer room for improvement. For instance,the Educational Technology Division (ETD) is aware that the collection of radio andTV programs held at the District RCs is now outdated and needs to be replaced. Alongwith the increased support expected from it by the RC network, the replacement ofthese tapes will require an increase in capacity, technology, and staff development.The RCs, at the State level, suffer from inefficiencies in the balance betweendifferent facilities, wide variations in the utilization of different types ofservices, quantitative redundancies and qualitative weaknesses in staffing and lackof maintenance capacity. At the district level, staffing, and operating budgetconstraints have reduced the RCs' level of activity and impact. At the school level,the number of TV sets or VCRs made available to individual institutions, in theabsence of global timetable planning, has considerably 'imited viewing time, whilein other schools, endowments, some from parental sources, exceeded needs. At thisstage of Malaysia's development, the way marginal resources are allocated and managedis as important as their level.

2.14 Curriculum Implementation. A review of KBSR and of KBSM implementationsuggests three p.oblem areas: (a) primary textbooks, (b) the student assessmentsystem, and (c) the addition of new subjects to the curriculum. The primarytextbooks were produced rapidly to meet the schedule for introducing the KBSR andhave not yet been revised to reflect recommendations from practitioners and

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researchers. Pupils continue to learn from textbooks which have recognizedweaknesses in sequencing, illustration, in being too demanding at some stages and toosimple at others. The fact that workbooks are sometimes too difficult has sloweddown the introduction of multigrade teaching techniques which require independentstudy by the pupils. The use of textbooks as exercise books in the first threetrades is also costly, in that it requires their replacement every year. Theissessment system provides information on students' scores by subject but not on the;opics or areas in the curriculum which are not being mastered and need to berevised. For instance, schools and curriculum developers are not provided withinformation on whether concepts and skills introduced in a parti.4ular grade are tooeasy or too difficult for children to master, whether sciencl and mathematicalconcepts are acquired when taught under an integrated approach, stc. As a result,urriculum revisions are more based on subjective observation than on factual datacf. footnote to Annex 2, Table 8). At the Central level, the Exam.nation syndicates good capabilities but wishes to increase the international training of its staff

in state-of-the-art techniques. Such capacity building would also help, downstream,to strengthen school-based assessment administration which MOE plans to improve bytraining principals and teachers and by developing an item bank. Finally, over theyears the curricula have become cluttered with additional topics which, whileintrinsically legitimate, tends to compete for pupils' time with core subjects.

2.15 Mathematics and Science. To increase the economy's pool of high leveltechnicians, engineers, and scientists, MOE is seeking ways to stimulate earlypupil's interest in mathematics, science and technology. OPP2's aim is to raise thenumber of scientists from about 400 to 1,000 per million population (Japan:5,000) bythe year 2000. To that effect, MOE is pursuing a multi-pronged strategy. The KBSR's"Man and his environment" integrated science program attempts to show the relevanceof science in everyday life, as a first step towards attracting secondary students,especially from rural areas, into advanced scientific streams. Other activitiesinclude the opening of science centers, the introduction of computers in schoolsublications, science fairs, school-based science projects, etc.. An in-depth atud'If secondary science teaching is being conducted with assistance from II

nternational Institute for Educational Planning). It is to be discussed beforeschool year 92/93 at a national/IIEP Feminar, and is expected to lead to a revisionin the curriculum and in teacher training. The Second Bank-financed Project (Ln 974-MA) which included science education, showed that the provision of laboratoryfacilities is not sufficient, and examples elsewhere suggest that modest incentivescould spark local initiatives and innovations that would promote a "scientificulture".

Access

16 The Ouality Dimension. Although some 26,000 classrooms were built durinie Fifth Plan, the even faster expansion of enrollments means that many students

especially in urban areas, still work in difficult conditions which tend tonegatively affect academic performance. About 30% of primary, and 15% of secondarclasses have more than 40 students. The students: classroom ratio averages 39:1 i)rimary, and 48:1 in secondary education, which is on the high side; it reaches 63:some districts, which is beyond the critical threshold. The classroom; class rati

ias remained around 85% in primary, and 69% in secondary education in recent yearsthis implies an abnormal level of double sessions, including entire "afternoonschools". Double session, while manageable in primary education, is a more seriousconstraint in secondary education, especially in examination classes and under theSM, as time spent on task has to be reduced, putting Malaysian students at asadvantage compared to children from countries where both the school year and the

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school day are longer. Finally, the stock of schools include about 15% and 5%overage buildings (over 40 years old), some of which present safety hazards and mustbe replaced for capacity maintenance.

2.17 The Equity Dimension. Maintaining UPE and increasing the secondaryenrollment ratio will also require additional capacity creation, especially indisadvantaged districts. Taking into account the expected decline in enrollmentgrowth, the maintenance of UPE during the Sixth Plan period is estimated to requireconstruction of about 9,600 classrooms. At the secondary level, there are widedifferences in transition rates among districts (ranging from 45% to 98% betweenprimary and secondary and from 19% to 87% between lower and upper secondary); thesediscrepancies reflect a combination of capacity constraints and movement towardsschools other than those operated by MOE and tend to match the poverty map. The Planprojects classroom needs for secondary enrollment growth and expansion alone at about4,000.

2.18 Boarding Facilities and Staff Housing. MOE's policy of providing boardingfacilities to students and housing to teachers in remote areas is justified but needsto be more rigorously targeted. About 2% of primary and 11% of secondary studentsare accommodated at school. Although the cost of boarding is high, it is requiredin order to attract and retain at school children from hard-to-reach areas ordisadvantaged socio-economic backgrounds. Similarly, the provision of teacherhousing is necessary to implement government's teachers' deployment policy and toincrease commitment, stabilitv and efficiency in isolated regions wherecommunications and living conditions are poor. MOE plans to pursue this programwhile tightening the criteria for linking it to demonstrated needs.

Efficiency of Educational Management

2.19 A study of 15 Asian countries in the mid-80s (Mingat and Tan, 1989) showedthat Malaysia had lower than expected post-basic enrollment ratios, given its GNPp.c. of about US$2,300, and the high share of GNP spent on education (6%). At a timeof growing competing claims on educational allocations, raising efficiency wouldenhance the sustainability of the proposed investments while accelerating progresstowards quality and equity objectives. This analysis focuses on: (a) unit costs;(b) technical and managerial skills; (c) physical norms; (d) Monitoring andEvaluation (M&E); and (e) absorptive capacity constraints.

2.20 Unit Costs. Publicly financed recurrent unit costs are high, especially inprimary education, and offer ample scope for efficiency gains. The above studyindicated that, as a percentage of GNP p.c., unlt costs in Malaysia were 25% abovethe average for 15 Asian countries (all levels of education), and 39%, 12% and 24%above, respectively, for primary, secondary and higher education. More recent sectorwork has shown that unit costs in primary secondary education increased by over 30%between 1990-92 and that educational recurrent expenditures have been risingsubstantially faster than total recurrent expenditures. The main reason behind thehigh unit costs is not teacher salaries, which until recently tended to be lower thanthe regional averages (when compared to respective p.c. GNP). Rather, it is, forRrimary education, the very low pupil:teacher ratio -- averaging 20:1 overall and12:1 in underenrolled schools -- compared to 33:1 in the 15 Asian countries, or 24:1in 26 upper middle income countries (Annex 2). This, in turn, is due to theautomatic application of generous staffing norms -- 1.5 teacher per class under theKBSR (which has led to an average of 1.7:1 in regular schools) and 3 non-teachingstaff, even in schools with as few as 20 students. In secondary education, unitcosts are more in line with regional norms. They are driven up by the much higher

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expenditures in residential and vocational schools and in the junior science colleges(under the responsibility of the Ministry of Rural Development) which togetheraccount for 35% of expenditures in upper secondary schools, while they enroll only9% of students. In teacher training, the student:trainer ratio is exceptionally low,at 6.8:1.

2.21 These practices have resulted in two worrying trends. First, during 1988-90, the number of teachers increased much faster, by 10.0% and 11.7% for primary andsecondary education, respectively, than enrollments (4.9% and 0.8%). Second, thegrowth rate of actual operating expenditures has accelerated over the past years(from 2.2% in 1987 to 20.7% in 1991), due partly to increases in unit costs atindividual levels and partly to faster growth of enrollments at the more expensivelevels. These trends are not sustainable and need to be corrected, especially inlight of MOE's plan to expand other levels of education. In any restructuring,special attention should be paid to protecting the non-salary part of recurrentexpenditures, especially the "per capita grants" (paid to schools to financepedagogic materials and equipment) which remained at the same level during 1972-90.These were revised in 1991 under the Second Sector Project, and should continue tobe adjusted regularly to protect instructional quality.

2.22 Physical norms and standards. Physical planning norms andfacility/equipment utilization criteria also contribute to high unit capital costs.Space standards and building norms tend to be generous (para. 2.37), resulting in asavings potential of around 15% on school buildings. There is a need to review therationale of the adopted norms and standards of boarding, staff housing and communalfacilities, (a) to plan and build more economically without sacrificing quality and,(b) to set up a national school building code based on research and studies.

2.23 Technical and Managerial Skills. MOE still faces shortages of thesophisticated technical and managerial skills required to achieve its goals.However, the management of its large staff development program first is to bestrengthened foi maximum practical impact. Under the First and Second SectorProjects, some 8,000 educators and administrators will have been trained in a broadrange of techniques and under a variety of options (this is additional to the 9,600officials trained under national financing). Yet, some MOE top officials expressskepticism about the multiplier effect of this program. The training lacked aspecific long-range, carefully mapped out strategy to address well identifiedsectoral issues. It was biased towards pedagogy over management. Returning traineesoften transferred to other positions; some feel the environment to which theyreturned was not conducive to innovation and initiative; no feedback based onmonitorable indicators of progress was requested. MOE has now decided to establisha Unit to select and orient the trainees more rigorously, monitor their performance,and follow-up on the application or dissemination of their new skills.

2.24 Policy Research and Analysis. Monitoring. Evaluation. MOE has a rich database which can be more systematically tapped as new information needs emerge. Itssophisticated Educational Management Information System (EMIS) consists of twomainframe computers and eight data bases (covering statistics, examination results,and inputs; data on budgets, costs and expenditures are not included). The systemis well integrated vertically; an experiment is on-going to decentralize it via theuse of computers down to the school level, so as to improve the quality/timelinessof data and their use for microplanning and management. It has allowed a strongmonitoring of statistical trends as well as of project schedules and inputs delivery.A recent development is that the Ministry of Finance is now experimenting, prior toGovernment-wide adoption, with a new MIS designed to improve fiscal management, which

will require the derivation of efficiency indicators. Estimates of this type -- aswell as analysis of the trade-offs of different investment strategies and financingscenarios, and the establishment of realistic priorities -- are likely to becomeincreasingly critical to support MOE's case in budgetary arbitrations. They couldalso be used to guide new investment. Given the large volume of solid pr' Lry dataalready collected by MOE, this should not pose a problem and in fact, wodld allowfuller utilization of precious information presently underexploited. MOE is in aposition to evaluate the cost-effectiveness of particular input mixes and models ofschool organization.

2.25 Absorptive capacity constraints. The pace of physical implementation ofMOE's program under the First and Second Sector Projects has been adversely affectedby lengthy administrative procedures, staffing constraints, communication andlogistical problems, particularly in Eastern Malaysia States (Sabah and Sarawak) andthe lack of experience of many contractors in a fast-growing construction sector.These issues (para. 2.36) were a major cause of the Fifth Plan "spill-over" (M$1.5billion, consisting of unfinished hardware elements). They need to be addressedupfront, under the Sixth Plan.

D. Government's Strategy

2.26 General. The Government's educational strategy underlying Vision 2020 andOPP2 is mapped out in a revised version of the 1961 Education Act expected to beapproved in early 1993. The supporting investment program is presented in the SixthPlan (1991-95) approved in July 1991. The Plan allocates 15.4% of total projectedexpenditures to education/training, (M$8.5 billion, or US$3.4 billion), a 46%increase over the Fifth Plan. This is to be compared to a 40% increase acrosssectors. The allocation for primary and secondary general education (includingteacher traLiing) is M$2.8 billion or 33% of the education/training sectoral (ETS)total (Annex 4, Table 3).

2.27 bj.ectivs. Human resource development is a major thrust of Vision 2020,OPP2 and the Sixth Plan, as achievement of the country's socio-economic objectives(unity, growth, and equity) depends on thte availability of an educated, skilled,adaptable and trainable labor force as well as the existence of a responsiblecitizenry wi.h attitudes and values conducive to industrial development. The focusis on raising the quality of education and expanding access to the low income groupsand the undeserved regions by improving the efficiency of the delivery system.

2.28 ProRosed Policies and Investment Program. (a) grimary Education: UPE(Universal Primary Education) would be maintained through the construction of 12,200new classrooms. Suspension of the automatic promotion policy is under consideration.Other features include materials to promote a strong reading culture and developmanipulative skills and scientific interests at an early age; and consolidation ofthe curriculum reform through a large-scale program for teacher training in remedialinstruction and upgrading in key disciplines (M$1,020 million, or 12% of the ETStotal). (b) Secondary General Education: towards the goal of universal secondaryeducation, the Plan envisages enrollment increases of 60% in lower, and 19.3% inupper secondary education (1990-95), through the construction of some 18,000classrooms. The policy framework proposes to (i) replace the arts/science streamingby a more liberal arrangement under which students would choose from among 2 to 4electives from 4 groups (humanities, vocational/technical, or VET, science, religiouseducation) to give students an early exposure to technical subjects; (ii) providespecial education; and (iii) strengthen the role of Parents-teachers associations,especially in rural areas. Other investments cover: the construction and equipment

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of four additional fully residential schools for rural students with high academicpotential; the provision of boarding facilities for good performe-rs in lowersecondary schools; the construction of two elite sports schools; and the productionof reading materials, workbooks and teaching kits (M$1,472 million, or 17% of the ETStotal). (c) Teacher Training: the Plan aims at increasing enrollments by 26.50while improving the quality of teacher training. This goal would be reached throughthe construction of seven new TTCs (8,400 places) including one for VET teachertraining. Qualitative improvements would result from tighter selection criteria andthe retraining of trainers. The policy of increasing the proportion of graduateteachers in secondary schools would be pursued through skills upgrading andcontinuation of the post-graduate diploma in education (PGDE) (M$334 million, or 4%of total ETS total). (d) Other. Secondary vocational and Tertiary Education falloutside the immediate purview of this report, but should be mentioned because of themagnitude of the investments contemplated and their implications for the rest of thesector, respectively, M$531 million (or 6% of ETS total) and M$2,591 million (30% ofETS total). The remaining allocations are M$1,636 million (19% of ETS) for non-MOEeducation Programs and M$777 million (9% of ETS) for programs in non formal,industrial, commercial and management training.

2.29 Assessment of the Government's Strategy. The above strategy iseducationally sound, and its objectives are appropriate in the context of Vision2020. The emphasis on a "culture of merit and excellence", the importance given tomathematics, science and technology (S&T), R&D, and greater efficiency are especiallywelcome. The strategy does, however, raise a number of issues.

2.30 First, the proposed investment program is a formidable one, and there is aneed to grioritize. Physical needs have been overestimated in a number of cases(e.g., for primary education). Technically, the Plan's Investment program could beimplemented, as it is within MOE's proven absorptive capacity; however, it wouldcover only 63 and 41%, respectively, of identified needs in primary and secondarygeneral education. Therefore, the Government reviewed the trade-offs betweencompeting objectives such as (a) introducing repetition in primary education vs.maintaining UPE; (b) the allocation of new secondary education capacity betweenquality improvements and enrollment expansion; (c) giving priority to primary or tosecondary education in the effort to reduce double session teaching; (d) the pace atwhich to proceed towards the universalization of lower and upper secondary education.Its choices are reflected in the sub-projects implementation criteria and guidelines.(Annex 15).

2.31 The financial feasibility of the program is the second question, ifdevelopment expenditures are to increase by 34% at the primary, 29% at the secondary,55% at the tertiary levels, and 100% for training programs (compared to the previousPlan). OPP2 states the priority to be given to primary and secondary education, toequalize income and help the rural poor. Yet the post-basic enrollment ratios aremuch lower than in comparable countries, and developing vocational/technical andhigher education is particularly expensive. Improving quality and the efficiency ofdelivery to expand access is also costly. Assuming these investments areimplemented, thair sustainability could become problematic, in view of the trendsdiscussed in para. 2.21 and the already high share of Government's recurrent budgetallocated to education (19.6%).

2.32 Third, the strategy reflects a preference for traditional, uniform, oftencostly options, where flexibility and experimentation might lead to greatereffectiveness and efficiency. Examples include: (a) the proposal to reintroducerepetition in primary education, a policy which in many countries has resulted in a

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further lagging behind of at-risk students; (b) the dominance of teachers in thequality input mix; (c) the sub-optimal utilization of physical facilities, due todesign problems (State RCs), staffing problems (Distric2 RCs), or reluctance to usemultigrade teaching in unde-- nrolled schools; and (d) o.casional conceptual over-design, for instance with t . large range of additional subjects offered in uppersecondary education, combined with a tendency to overequip workshops in arts andhumanities streams.

2.33 Conclusions. Bank missions reviewed with Government the entire Sixth Plan'sPrimary and Secondary Education Investment Program and the underlying policies. Thisled to the identification of: (a) a core program of investments approved forpossible Bank financing, subject to agreed implementation criteria and guidelines;(b) "potentially core" activities which would be supported on an experimental basisand could be brought to scale in a next phase, under specific conditions; takentogether, categories (a) & (b) account for about 80% of the total MCE Plan allocationfor primary and secondary general education; and (c) non-core activities, which havea lower priority or high unit costs or alreaey have secured a source of financing.Given the sophistication of Malaysia's educational management, it was agreed thatBank support of the Plan would be based on a financial time-slice format. Bycontrast with the physical investment approach followed for the first two sectorprojects, involving a pre-set number of sub-projects and implementation schedule, thefinancial time-slice gives Government the flexibility to substitute, from year toyear and within agreed limits and criteria, among various types of investmentsidentified for Bank support (categories a and b above). This formula allows fasterdisbursements by giving priority to sub-projects most ready for implementation. Inview of the magnitude of the Plan's investment program, it was also recognized thatits implementation would be stretched over seven years and supported by twosuccessive time-slices to reduce commitment charges to the Government. In thisreport, the term "Phase I" is used to refer to the first four-year time-slice (1993-1996) while the term "Third Sector Project" refers to Phase I, plus a fewconventional (software) project elements (cf para. 3.1). Tables 2 and 3 in Annex 4show the Core Investment Program and Phase I in relation to the Plan.

E. The Bank's Role

2.34 Past involvement. Since 1969, the Bank has invested US$ 464.2 million inten projects, which makes it the main source of external finance for education (over90%). These operations, spanning all levels of the sector, have made a substantialcontribution to physical expansion, quality improvement, and management. Fourprojects are still under implementation: the First and the Second Primary andSecondary Education Sector Projects (Loans 2685-HA and 2987-MA); the IndustrialTraining Project (Loin 2601-NA): and the University Development Project (Loan 2887-MA). Overall implementation progress is satisfactory, although somewhat slow withrespect to disbursement processing under the First Sector Project, and strategyformulation under the University Development Project.

2.35 Lessons learned. Project Performance Audit Reports (PPARs) have beenprepared for the First, Third and Fifth Projects (PPARs No 2520, 6280 and 9709) andProject Completion Reports (PCRs) for the Second, Fourth and Fifth (PCRs No 4471,6499, and 7749). The main problems encountered and lessons learned from thesedocuments, and from on-going supervision work, are summarized below.

2.36 A number of projects, especially the first four, experienced administrativebottlenecks, leading to implementation delays (up to 117% for Ln 974-MA) and costoverruns (19% for the same project). These problems, which were especially acute in

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Sabah and Sarawak, were related to: the acquisition of communal land ruled by triballaws; the absorptive capacity of JKR, the local Public Works Department in charge ofsupervising and controlling the quality of civil works; the difficulty experiencedby HOE in collecting evidence of payment for pre-financed expenditures; quantitativeand qualitative staffing and equipment constraints in MOE's Finance, and Developmentand Supply (DSD) Divisions, which for a long time slowed down the processing ofaccounts; and the two-tier auditing system, involving MOE and the Auditor-General'sOffice, which had led to delays of up to one-year in submitting audits. A range ofremedial measures have been taken by Government, including: (a) advance planning forland acquisition, facilitated by the availability of adequate funds (introduced underLn 2987-MA); (b) the increased engagement of private engineering consultants to backup JKR (introduced under Ln 974-MA); (c) regular DSD trips to Sabah and Sarawak (Ln2987-MA) to collect perforated vouchers as evidence of payments, and active searchfor streamlined disbursement procedures better adapted to Government's sophisticated,computerized financial reporting and control system; (d) assignment of a full-time,certified and experienced accountant to DSD (para. 3.33). MOE's strong performancein the Fifth Project led to the adoption of the sector loan format by the EighthProject.

2.37 A number of projects illustrate Malaysia's tendency to apply liberal spacenorms and cost standards (Lns 599, 810, 974, 1657, 2685 and 2987-MA): for instance,in the two on-going Sector Loans (2685 and 2987-MA), classrooms for primary classesof 40 continue to be built on the basis of 750 sq.ft, although 600 sq ft is agenerally accepted norm for Bank-financed projects. The tendency to overdesign hasoccasionally led to hasty capacity expansion: PCR No 7749 (Ln 1657-HA) mentions thatnew, expensive facilities were built for two training institutes, although theexisting buildings could probably have been remodelled and expanded at a far lowercost; similarly (Lns 1657-MA and Sixth Plan proposals), the type of workshopequipment selected for electives is costly. Such efficiency considerations so farhave not been particularly worrisome for an upper middle income country such asMalaysia; they do, however, take on a new urgency in the context of an ambitiousSixth Plan. For the proposed project, the norms to be applied have been clearlydefined, and efficiently gains will be sought through experimental research and willbe jointly monitored.

2.38 The Second and Third Projects (Lns 810 and 974-MA) which introducededucational radio, TV, etc. offer important lessons on the use of esucationaltechnology. One is that the impact of these programs depends on their quality,relevance, and utilization. Surveys of teachers suggest a number of factors whichhave reduced viewing time, such as poor linkages with the curriculum, limited appealto children, sub-optimal time tabling, and uneven distribution of equipment acrossschools. Additionally, teachers were not trained in the utilization, maintenance andevaluation of audio-visual aids, and the budgetary requirements for operation andmaintenance (spare parts, consumables) were not taken into account. This has raisedsome skepticism about distance education among MOE officials in the more remotestates, presumably the main beneficiaries of these technologies. Rather than ignorethese potentially powerful teaching aids, the project proposes, as per PPAR No 2520and PCR No 4471, to: (a) focus on basic aids (library endowments) along with advancedtechnologies; (b) provide for timely and adequate training and recurrent funding toensure the productivity of these costly investments; and (c) monitor distribution,utilization, students' perception and impact on achievements.

2.39 Another important set of lessons relates to the limited impact of softwareaspects (training, specialist services, studies) of projects (Lns 599, 974, 1329 and2685-MA). Under Lns 599 and 974-HA, spe.ialist services were not utilized, or were

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replaced by more training. Similarly, the studies financed under Ln 2685-MA to laythe ground for a revision of the sectoral strategy did not fulfill their potentialas a vehicle for strengthening national research capabilities and for promoting abroad dialogue. At this stage of its development, the sector can confidently seekmore exposure to, and cross-fertilization with, outside trends and experiences andthe matter is a design one. PCR No 6499 (Ln 1329-MA) stresses the importance ofclosely linking the specialist services and training to the issues addressed by theproject, and of carefully planning all stages of the process, from TORs toimplementation and impact indicators. The same recommendations, which hold true forinnovations such as curriculum changes (Lns 599, 810 and 1329-MA), are relevant forthe research, the MIS and the staff development components of this project. They arefully compatible with the time-slice sector lending format, which requires clearinitial agreements, criteria and indicators. Twinning arrangements between MOE andreputable specialized institutions would be used to optimize the impact of theproject's software aspects.

2.40 Bank Assistance Strategy. The Bank's country strategy aims at helpingMalaysia to define and implement the broad policy and institutional measures and theinvestments required to achieve growth with equity. This involves economic andsector analyses focusing on stA.ategic issues, the development of sound policyframeworks, institution-building and investment programs and support to Government'skey areas of emphasis. Human resources development is one of these, as a pre-requisite for increases in productivity and in private sector investment. Ineducation/training, the strategy aims at enhancing the ability of the system torespond to the skills demands of a competitive, rapidly evolving, hi-technologyeconomy, while completing the unfinished equity agenda. Central to this is the needto determine the most efficient mix, level and type of public and private sectorinterventions in the regulation, financing and delivery of services. in primary andsecondary general education, the Bank will continue to support a strategy of (a)balanced expansion to reach underserved regions and expand the pool of secondarygraduates and (b) quality to reduce remedial costs and ensure the productivity of thelarge investment planned in industry,'VET and higher education.

2.41 Rationale for Bank Involvement. With this project, the close workingrelationship built between the Government and the Bank over twenty-two years ofcooperation in education would continue in a new phase. The types of non-financialinputs for which Bank involvement has been appreciated -- a constructive sector-widepolicy dialogue, assistance in sharpening the focus of programs, and institution-building -- would now be applied to the new educational challenges raised by therefocusing of -,he economy mapped out in Vision 2020, OPP2 and the Sixth Plan. Thefinancing of the social sectors has already become a central theme of the overallpolicy dialogue with Government. The project would provide an opportunity to discussfuture sectoral policy issues, including efficiency, the need for increasinglysophisticated management tools (EMIS, M&E), and the strengthening of capacity forinnovation and introduction of cutting-edge technologies such as distance educationand open-learning. Helping the Malaysian. education system to meet the skill demandsimplicit in the transition to NIC status would also mean supporting an educationalmodel of relevance to other Bank borrowers, especially rapidly industrializingcountries and culturally diverse societies.

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III. THE PROECT,

A. Obiectiveg and Scope

3.1 General. The proposed Third Primary and Secondary Education Sector Projectwould build on the achievements of the first two Sector Projects with a shift inemphasis to reflect evolving sub-sectoral needs and issues. It would finance thefirst financial time-slice (1993.-96) of the agreed core and potentially coreinvestment program (para. 2.33) plus three conventional (software) project components(a research program, para. 3.17; an Educational Management Information System, para.3.30; project management, para. 3.33). The next time-slice (from 1997 or.) is alsoexpected to be financed by the Bank, on the b&sis of agreed efficiency criteria(para. 3.5).

3.2 Objectives. In support of the Sixth Plan, OPP2 and "Vision 2020" (para.1.3), the proposed Project would promote qMalitc and excellence in, and expandequitable access to, primary and secondary general education; it would also improvethe efficiency of sectoral management.

3.3 Scone. To achieve these three objectives, the Project involves a Policyframedork and three investment components:

(a) Policy framework. The Letter of Policy and the Action Plan would emphasize(i) the use of resource allocation criteria designed to equalizeeducational opportunities; (ii) greater flexibility in approaching sectoralissues, notably via operations research; (iii) the systematic monitoring ofmeasures to improve the effectiveness of the delivery system and reduceunit costs; and (iv) containment of the growth of recurrent expenditures;

(b) Ouality and excellence. Funds would be provided to: (i) rationalize andexpand teacher training capacity by about 10% (3,000 places) and enhancethe quality of teacher tratning; (ii) improve the quality, availability andutilization of educational resources through a distance education/openlearning program involving institutional strengthening, the upgrading of 4state RCs, the production/distribution of multi-media kits and packages forteachers and students, and the provision of library endowments to schools;(iii) conduct a Program to promote Innovation, Excellence and Research(PIER), with a focus on small rural schools, innovation in mathematics/science, research, and pilot-operations in communications technology;

(c) Equitable access to guslity education. Funds would be provided to: (i)construct/rehabilitate and equip about 4,400 primary and 3,200 secondaryclassrooms; (ii) provide housing for about 3,000 teachers and boarding forabout 20,000 students mostly from rural areas; and

(d) Efficiency of educational management. Funds would be provided to: (i)implement a staff development program for about 1,000 senior and middlelevel managers and professionals; (li) strengthen policy analysis, sectoralplanning and budgeting, and implementation monitoring, notably byreinforcing the existing Educational Management Information System (EMIS),and introducing a Geographic Information System (GIS); and (iii) reinforceproject implementation capacity at the central and state levels.

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B. Detailed Descriltion

B.1 Pollcy framework

3.4 The Government and the Bank have agreed on a Letter of Sectoral Policy(signed by MOE's Secretary-General, Annex_ O including an Action Plan (Annex 6),targets and performance indicators, which would guide Project implementation. Themain policies contained in the Letter would be linked to the above objectives of:

(a) Promoting guality. In primary education, MOE plans to pursue its all-outeffort to improve the effectiveness of remedial programs. It would clarifythe roles of the various institutions involved in teacher training forsecondary schools; with the Teacher Training Advisory Committee (TTAC),headed by the Deputy Direccor General of Education and composed of theDeans of Education of the Universities and representatives of the Teachers'Union and of principals, it would prepare a concerted plan for secondaryteacher training; in particular, appropriate measures would be taken tostrengthen the training of mathematics and science teachers, on the basisof the joint MOE-IIEP study. MOE would also implement a number ofinstitutional and budgetary measures required to better integrateeducational technology in the curricula. Finally, it proposes to improvethe effectiveness of the teaching/learning process by experimenting withalternative approaches to implementing the KBSR and the KBSM, involvingvarious input combinations; the findings would be disseminated amongpractitioners and taken into account in the revised edition of thetextbooks (1994 for the KBSR), the TV and radio programs, and the methodsused for training teachers, school and classroom management practices.Innovation in the teaching of mathematics, science, and in small schoolswould be supported at the school and district level. Criterion-referencedachievement tests would be introduced in Year 3 to monitor progress inmathematics in a representative sample of schools;

(b) ExDanding equitable access. Comparative review and operational researchwould be used to determine the most appropriate and replicable strategiesfor early childhood development and for providing compensatory care andeducation to rural children from deprived homes. In the schoolconstruction program, priority would be given to maintaining UPE;preserving the existing stock over expansion; increasing the lower, overthe upper secondary enrollment ratio; reducing double sessions at thesecondary, before the primary level; and eliminating classes over 46; and

(c) Imnroving managerial efficiency. MOE would prepare a staff developmentplan to organize training and specialist services around three thematicclusters. Trainees would be selected on the basis of a specific workprogram and impact would be monitored. In order to accommodate the SixthPlan's numerous claims on its budget, the Ministry would experiment with amenu of unit cost-reduction and efficiency measures including: basing thenumber of teachers on the number of students instead of classes to bringthe student/teacher ratio more in line with that in middle incomecountries; improving multigrade teaching; greater use of distance educationtechniques for teacher training and classroom instruction; continuing thedevelopment of private education at the secondary and higher levels;reviewing its staffing, technical, budgetary and utilization norms for alleducational facilities.

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3.5 Given the importance of improving both quality and efficiency, atnUntia;ions. assurWars were provided by Government that, in line with its statedpolicy objective of lowering average unit costs, and the proposed introduction oftighter new budgeting practices scheduled for MOE in 1995, it would: (a) develop andimplement a mechanism to monitor in detail the growth and distribution ofGovernment's education recurrent expenditures; (b) beginning in FY 1993, develop andsubsequently introduce efficiency measures and budgetary norms satisfactory to theBank designed to contain the growth of recurrent expenditures in primary andsecondary education while ensuring that the share of such expenditures allocated topedagogic materials and administrative costs is maintained at no less than theiraverage 1991-92 level (about 11); and (c) not later than June 30, 1993, develop andimplement a formula to maintain the real value of the per capita grants in primaryand secondary education at no less than their 1991 level. To provide furtherguidance, during the first project year (PYl) sector work would be conducted by ateam from public and private institutions to determine, in light of labor marketneeds, the justification for, and magnitude of needs in, specific areas ofexpenditures in the sector.

3.6 At negotiations, assurances were also provided that Government would (a)implement the project in accordance with (i) the policies, procedures, criteria, andindicators as stated in its Letter of Sectoral Policy (and specified in the ActionPlan), and (ii) guidelines and criteria satisfactory to the Bank; and (b) consultwith the Bank sufficiently in advance in respect to any material change in anyprovision of said Letter or Action Plan during project implementation. Finally, anunderstanding was reached on the dates and procedures for the joint reviews:beginning in 1993, (i) implementation reviews would be held between Government andthe Bank by April 30 of each year, on the basis of annual progress reports to besubmitted to the Bank for comments by March 15; (ii) interim reviews -in the form ofjoint workshops focused on priority quality issues-would be held by November 30 ofeach year, on the basis of progress reports to be submitted by October 15; and ('ii)an independent in-depth review would be held by the end of the second year of projectimplementation (by November 30, 1994).

B.2. Promoting quality and excellence

B.2.1 Teae.her Training (USS31.0 million equivalent, including contingencies)

3.7 This sub-component would (a) rationalize and expand teacher trainingcapacity for primary and secondary teachers; and (b) improve the quality of pre- andin-service training in the TTCs, the RCs, and the Universities.

3.8 The TTAC (para. 3.4 a) has been created to advise MOE on: the numbers tobe trained, locus of training, taking into account teacher:class ratios and teacherspecialization; courses and methods; the training of trainers; and the developmentof linkages between TTCs and the Universities. In line with Government and Bankestimates, some 3,000 additional teacher training places would be provided. Theywould either take the form of 3 new TTCs or be located in Universities, depending onGovernment's final decision on the institutional locus for (a) secondary teachertraining; and (b) in-service training, which could continue to utilize 20% of TTCcapacity or could increasingly be shifted to the RCs with open-learning and distanceeducation support. A qualifying implementation criterion against teacher trainingcapacity expansion would be preparation of a Plan, approved by the TTAC andsatisfactory to the Bank, based on a study of world-wide trends in teacher training,to determine how many secondary school teachers will be trained by the Universitiesand by the TTC8 respectively, as well as the areas of training and the cost. The

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Proj act would finance civil works contracts, furniture and equipment for tnese 3,000places. Annex 7 gives details on teacher requirements.

3.9 To improve the quality of teacher training, Government proposes to continueto tighten admission into the TTCs, to upgrade one-third of their trainers, and tostrengthen the teaching of key disciplines and methodologies (mathematics, science,multigrade and the use of audio-visual aids). The project would complement theseactions with the introduction of self-paced learning kits for the teachiuig of theKBSR and KBSM and for untrained teachers (para. 3.14) and training (para 3.27).

B.2.2 Educational Resources (US 18.7 million)

3.10 In support of curriculum implementation, this sub-component would improvethe quality, accessibility for hard-to-reach schools and broad use of educationresources. It would (a) develop distance education and introduce oRen learning onan experimental basis (paras. 3.11-3.14); (b) strengthen and/or expand the networkof Resource Centers at the State, District and school level (para. 3.15); and (c)continue to provide schools with librarv endowments (para. 3.16).

3.11 Distance Education and 0pen Learning. The Project would support: (a) astrengthening of ETD's institutional capacity; (b) the provision or renewal ofequipment at the school level and improvements in its management; and (c) thedevelopment and distribution of multimedia instructional kits and packages,videotapes and cassettes. First, in order to produce new radio, TV and audio-visualprograms, to provide adequate support to the RCs and to adopt new emergingtechnologies, ETD needs some institutional building. ETD is in the process oftendering (under Government financing) the construction and equipment of a newCenter, which will bring under one roof its 6 Sections, presently scattered over thecapital city, and will provide it with improved facilities. In addition, the Projectwould finance the training of specialized staff in techniques of program and materialproduction, research methodology and equipment maintenance (costed in the StaffDevelopment Program, or SDP, paras. 3.27-3.29).

3.12 Second, the Project would continue the program undertaken under the FirstSector Project to equip all 6800 primary and 1325 secondary schools with audio-visual(VCR, TV, radio and radio-cassette) equipment. In addition to the hardware, it wouldprovide for an (a) inventory of all equipment in the school system coupled with atechnical audit to provide recommendations for more effective use, including theintroduction of a budget line for maintenance and parts; and (b) the strengtheningof the countrywide M&E system to monitor utilization and impact, provide feedback,allow for adequate and timely replenishment and maintenance of the stock, ensureequitable deployment and reduce interruptions in utilization. Teachers would betrained in how to make the best use of progrAms in the classroom. Completion, andreview with the Bank of the inventory and the technical audit would be animplementation criterion for this investment. The M&E system would be upgraded priorto approval of the PY2 expenditure program. The Project would finance the equipment,the inventory / audit, the M&E system, and (under the SDP) specialist services andtraining.

3.13 Third, teaching/learning resources produced by CDC, the State RCs, theTeacher Education Division (TED) and the Schools Division with the help of practicingteachers would be made available to selected institutions. They would include multi-media kits and packages as a priority, together with videotape and audio-cassettes.The kits are boxed packs of resources on a particular curriculum-related topic foruse by teachers in the classroom; the integrated packages are activity-based, self-

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instructional modules designed for students working individually or in small groups.The proposal to broadly distribute material of international quality standards comesin response to the finding that the effectiveness of less experienced teachers, oftenposted in poor rural areas, increases sharply with the availability of well designedinstructional material. Although the production by teachers would not bediscouraged, it would be de-emphasized. A set of 8 kit for the teaching of BM,English and mathematics, specially designed for 1,000 small, isolated Schools, and5 pre-school kits for 250 rural "chools would be developed by CDC and the schoolsDivisions (in liaison with KEMAS, the government agency to whom the pre-scILoolprogram was returned in March 1992) and distributed.

3.14 While these kits aim to provide top quality pedagogic support to promote theadoption of more flexible and stimulating teaching practices, four packages would bedesigned to experiment, in at-risk schools, with more up-to-date, open-learningtechnologies where the learner is the center of the process. The first Rackag (2modules, 10 copies each to 125 districts) would be developed by CDC and TED for thein-service training of teachers in the new methods and approaches of the KBSR andKBSM. The second package (5 modules, 10 copies each to all TTCs and RCs) wouldsupport the self-paced skills upgrading of untrained primary teachers. The thirRackage would consist of self-learning materials for children in rural schools, whoneed more systematically sequenced instruction, more practice and more remedialactivities to master the key concepts of the four core subjects taught in primaryschool. Thes- materials would be developed by the Schools Division in coordinationwith Universiti Sains Malaysia (USM) which has already successfully experimented withthis approach in the small rural schools of Sabah. They would be made available toall students in 250 selected rural schools, with priority given to the schools usingmultigrade techniques. The fourth Rackage would support the introduction of moreopen and flexible learning strategies in secordary schools. It would consist of 12self learning modules for lower secondary students in mathematics (3), geography (3),learning skills (5) and citizenship (1) which have already been partly developed.With minor quality upgrading, they would be distributed to the 350 Teacher ActivityCenters or PKGs (10 copies each). The utilization and impact of these resourceswould be carefully monitored on a sample basis. The Project would finance thedevelopment and distribution of all the above kits and packages.

3.15 Resource Centers network. The Project would upgrade the 4 State EducationResource Centers financed under the Second Sector Project, develop/pilot a morepedagogically efficient model for the future, and increase the effectiveness of theexisting 350 PKGs by upgrading the skills of their staff and ensuring the adequacyof their operating budget. In light of the issues discussed in para. 2.13, anindependent O&M study of State RCs would be conducted and reviewed with the Bank.The study would make recommendations for improving the organization and managementof the existing State RCs, in turn leading to proposals for the design and operationof future ones. As for the 350 PKGs, they have just been allocated one full-timestaff each; these 350 officers would be trained (e.g, at Universiti Sains Malaysiaor at Institute Aminuddin Baki, under Government financing) in resource managementand resource-based training. Because maintenance and the provision of spare partshave been a problem in the past, they would be contracted under Government financing,and monitored at the annual joint reviews, together with RC utilization and impact.The opening of budget lines to ensure adequate capital/recurrent budgetaryallocations and to allow the efficient operation and maintenance of the RCs, as wellas of all project-financed educational facilities would be an implementationcriterion. Subject to the above criteria, the project would finance thedevelopment/piloting of a more cost-effective model for State RCs including the O&MStudy; remodelling and additional equipment as needed to that effect for the 4

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existing State RKs; the equipment of 200 PKGs (the remaining 150 having been equippedunder the Second Sector Project); and additional training and specialist services forRCs and PKGs under the SDP (Anne8$_).

3.16 Llbrary endowment:s for schogls. Primary schools have book shelves in astorage room, and books are taken to the classroom by the teachers whereas, secondaryschools have school libraries which are widely utilized to support the variousactivities recommended by the curriculum. Throughout the country there is a needto continue the programs undertaken under the first two sector projects to upgradethe book collections and increase the number of reference books (dictionaries,atlases, etc.). On the basis of an inventory of needs to be prepared by districtsas an implementation criterion, books, shelves and related library science equipmentwould be purchased to ensure an adequate supply of books. The Project would financeabout 5 books per primary school student and 10 books per secondary school student,and adequate storage space as needed.

B.2.3 Program for Innovation. Excellence & Research (PIER) (USS3.2 million)

3.17 To promote innovation and excellence, a Program supporting four types ofactivities would be undertaken under the gfi eral responsi'ility of EPRD. The fourPIER sub-programs would finance, respectively: (a) mathematics/science sub-Rrogram:(i) pilot operations aimed at improving the teaching and practical applications ofmathematics and science in primary and secondary schools; (ii) implementation, insecondary schools, of the recommendations of the MOE/IIEP study on science teaching;(b) small. isolated rural schools: proposals presented by districts and PKGs toimprove the quality of teaching, improve transition rates and raise examinationscores in schools; (c) distance education sub-program: pilot testing of newcommunication technologies to accelerate the process of educational development inline with breakthroughs taking place in more industrialized countries; and (d)research sub-program: research projects designed to explore alternative approachesto make the delivery system more flexibla, more effect:.ve and more efficient, witha view to maximizing learning achievements and equalizing learning opportunities.

3.18 More specifically: (a) (i) the mathematics/science sub-program would makemini-grants available at the local level to schools (up to M$5,000 each) and PKGs (upto M$10,000) to finance science proj"cts such as school science fairs, competitions,science camps, or applied science research (e.g, pollution monitoring andprevention). About 200 proposals, equally split between schools and PKGs -- wouldbe supported over a 4-year period; (b) the small rural and poor urban schools sub-program would support (up to M$l million for each of Sabah, Sarawak and Pahang) on-going or new experiments such as the "training and visit" system and the"godfathering" system of Sarawak, or the training of rural primary teachers inEnglish (RUPEP, initially supported by the British Council) and the "principalsupport group" system of Sabah; (c) the distance education sub-program (M$0.5million) would support feasibility studies, trials and evaluation of pilot operationsdeveloped by ETD and approved by the Bank to reach the most isolated schools. Thesub-program would cover interactive radio as well as such other technologies asbattery-operated HF radios, with print material support; use of solar-or battery-powered satellite earth stations for direct broadcasting of live TV and radioprograms or for video downloading; video-conferencing; and interactivi computing; and(d) under the research sub-program (totalling M$3 million), about 10 researchproposals leading to policy formulation would be prepared by the relevant divisicnswith local Universities involvement. Examples of topics include (i) alternativestrategies for pre-schooling and early childhood development (in liaison with KENAS);

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(ii) more flexible classroom organization and management models; (ili) interactiveradio in mathematics and languages; (iv) development of curriculum-based assessmentsin remedial education; (v) criterion-referenced assessment of Year 3 mathematicsachievements. This education research sub-program would be closely linked to thepolicy research activities described in paras. 3.30-3.31.

t.19 All the above sub-programs would be under the responsibility and overviewof EPRD (except for the distance education sub-program, to be managed directly byETD). One MOE Division has been appointed to coordinate each of the four sub-programs. Worldwide experience has shown the importance of fair, open and balancedparticipation of the various stakeholders in this type of activity. To launch thiscomponent, a workshop would involve MOE central and local officials andpractitioners, and University and independent researchers to (a) ensure their broadparticipation in the operations research and educational research sub-programs; (b)specify their respective roles in the preparation, selection, conduct, peer review,result monitoring and dissemination/ utilization processes; (c) finalize thesemechanisms, including funding arrangements. As research is relatively new toMalaysia, EPRD would, under a twinning arrangement spanning training, specialistservices, and studies, receive design and implementation support from a 'world-classeducational research institution working in association with local universities.

3.20 Armex 9 provides details on responsibilities and procedures for thepreparation, screening and selection of the proposals, their costing/ funding,monitoring and evaluation, and findings analysis and dissemination, in which localagencies would play an important role. Results would be discussed at the jointAnrr.al Reviews with a view to subsequent expansion. The funds would be disbursedthrough EPRD and ETD, whose budgets would be replenished prior to approval of eachyear's expenditure plan. The Year 3 mathematics assessment would be prepared by theExaminations syndicate and CDC. Its results would be used for KBSR and textbookrevisions and for teacher in-service training.

3.21 Assurances were provided by Government that: (a) all Project-relatedresearch, studies and pilot-operations would be conducted on the basis ofarrangements, including terms of reference, satisfactory to the Bank; and (b) notlater than the beginning of school year 93/94, MOE would introduce in a sample ofschools a Year 3 mathematics criterion-referenced test and monitor/analyze itsresults. The Project would finance: contracts payments and research grants to EPRDand other MOE units, SEDs, PKGs, schools, University and independent researchers; thepublication of outstanding research papers; equipment or training as recommended bythe MOE/IIEP study; Malaysia's participation in international learning assessmentsand communication equipment. The twinning arrangement is included in the SDP (paras.3.28-3.30).

B.3 Expanding equitable access to quality education

B.3.1 Early Childhood Development and Special Education (outlay_ includedunder the PIER)

3.22 Government has adopted a pre-school approach to early childhood development,an option which could be complemented by home or community-based care to maximize thebenefits for the children and improve the conditions for replicability. As forspecial education, a term used to refer to pupils with learning difficulties as wellas to handicapped children, it is central to the Government's goal of promoting acaring society. Given the early stage of MOE's thinking in these two areas, theproject would focus on pilot-operations with different approaches, and the

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finalization of a strategy, prior to expansion under the next time-slice, to bedetermined at the in-depth review (end-1994). The Project would finance operationalvisits, training, experimentation under the PIER, and limited equipment/civil works.

B.3.2 Primary and Secondary School Construction Program (US$ 254.2 million)

3.23 These two programs would finance the construction, equipping and furnishingof primary and secondary schools to maintain UPE, improve the studying conditionswhere quality is jeopardized by overcrowded or sub-standard facilities, and increasethe enrollment ratio in secondary general education. They would cover all 13 Statesand the Federal Territory as shown in Table 1:

Table 1: School Construction Proarm

Number of Ctasses New Places New Teachers(000) Needs

Level of Number of Quality Quality Scen. Soen.Education Classrooms New Inr. New Imr. 1 2

Primary 4,420 3,536 684 117 29 6,365 4,597

Secondary 3.132 1566 566 53 54 2819 819

Total 1 7:552 |5J102 2450 170 83 9 184

Based on: (a) Classroom:class ratios of 85X (P) and 69X tS) respectively;Cb) Students:class ratios of 33:1 (P) and 34:1 (s) respectively;(c) Teacher:class ratios of 1.8:1 (actual, both levels) for scenario 1,

and 1.3:1 fn primary, for scenario 2, to illustrate the potentialefffcfency gains.

3.24 The proposed Project would build about 253,000 student places, equivalentto about 38S of the Sixth Plan total school construction program. Of these, aboutone-third would be for replacements or quality improvements (replacement of unsafe,overcrowded or double-shift facilities). The breakdown between primary and secondaryeducation is about 59% and 41%, reflecting Government's concern for equity. Theresource allocation and implementation criteria have been designed to prioritizeamong districts essentially on the basis of needs, using poverty as a furthercriterion to select among districts with otherwise equal needs. Annex 1Q showsenrollment projections as well as estimates of needs, Sixth Plan and Phase Iproposals for school construction.

3.25 Three potential constraints received special attention during preparation:(a) lengthy and intricate land acquisition procedures (para. 2.36), especially inSabah and Sarawak due to, inter alia, lack of an effective cadastre system; (b) thelimited experience of the Federal Development Office (JPP) newly established in theState of Sabah to implement all Federal Development Projects in lieu of the StateJKR; and (c) rudimentary self-help construction ("gotong-royong") based ontraditional techniques, which are used by rural communities in Eastern Malaysia whenGovernment services are slow in responding to demand for schools. To address theseconstraints: (i) tlhe Economic Planning Unit has now adopted the practice of approvingfor inclusion in each year development budget only those projects for which siteshave been acquired; to facilitate advance acquisition, special government-financedfunds have been set up in Sabah and Sa'rawak, and site selection and acquisitionprocedures have been streamlined; as a result, sites have already been secured forover 60% of the entire civil works program; (ii) in Sabah, the new JPP, in carryingout its responsibilities, would exclusively use the services of experienced privateconsulting firms to eliminate implementation delays in past projects due to siteproblems and dubious contractors performance; for Sarawak, the threshold amount for

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school construction to be directly handled by private consultants through the SED hasbeen raised, reducing the workload of the overburdened State JKR; and (iii) duringPFY, the SEDs of East Malaysia would review the possibility of improving the buildingmethods and technical standards of gotong-royong to extend the life of thesefacilities and improve the quality of the schooling environment they provide. Finalunderstanding on these mechanisms was reached at negotiations.

B.3.3 Teacher housing and boarding grogran (USS21.2 million)

3.26 This sub-component would provide housing units for about 3,000 teachersposted in isolated rural areas, and about 20,000 boarding places for able secondarystudents from poor rural families. Implementation criteria in both cases wouldinclude commuting distance for the teachers, and the boarders. The boarding schoolscould be located in urban areas due to catchment considerations, but would onlyaccept rural or hard core poor urban children. The Project would finance civil workscontra;cts for construction of the above schools, housing units and boardingfacilities.

B.4 Improving the efficiency of educational management

B.4.1 Staff development program (SDP)(USSl0.4 million)

3.27 The SDP would be geared towards promoting exchanges of experiences andcross-fertilization with the international educational community, while obtainingconcrete results at the school level. It would combine training, specialistservices, and studies around three "thematic clusters": (a) the teaching/learningprocess (about 40% of SDP costs) including curriculum innovation, teachingmethodologies, instructional design, educational technology, computers science,distance education/ open learning, and research; (b) management, cost and financingof education systems, including planning, financial and personnel management, testingand assessment (40%); and (c) specialized areas such as early childhood developmentand special education (20%).

3.28 Some 1,000 middle to sr. level MOE professionals and managers wouldparticipate in the SDP, which would complement Government-financed in-countrytraining program for about 20,000 teachers/principals over the Sixth Plan. Theprogram would cover (a) fellowships abroad for Master's (30 staff) and PhD (10 staff)programs in technical and managerial fields not available in Malaysia; (b) speciallydesigned courses (6-12 weeks) in collaboration with reputable universities abroad(about 200 staff); (c) operational visits for selected key officials to observesuccess stories with approaches which Malaysia is considering (about 85 staff-weeks);(d) in-country courses (6-12 weeks) by top world specialists in specific areas (about700 staff) and (e) regular and ad-hoc consultancies by outside specialists toprovide assistance in critical project areas or on sectoral issues (about 7 man-years).

3.29 The SDP, to be implemented by EPRD's Central Staff Development Unit, wouldbe articulated around a number of umbrella "twinning arrangements" between MOE andreputable international Universlties or specialized institutions, in partnership withlocal Universities. Two key twinning arrangements would focus respectively oneducational research (the PIER, paras. 3.17- 3.21), and on the EMIS (paras. 3.30-3.31). Under the various twinning arrangements, well-known subject matterspecialists would help MOE to finalize the design of the SDP; they would providetraining, as well as technical guidance and operational support to the States, andan independent perspective on research activities (peor reviewing, advisory panel).

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Applicants for training under the SDP would be selected on the basis of a contractwith MOE linking the proposed courses to a concrete task or work program related toone of the three clusters; the contracts would outline a follow-up plan, indicatorsof impact, and a bonding clause. Annual reviews would examine the supportingadministrative measures required to ensure the institutionalization of approaches,methodologies and skills learned by the trainees. Pending its formal creation,EPRD's Central Staff Development Unit is already functioning under the Chairmanshipof the Deputy-Director General I. Development and execution of the twinningarrangements would be based on a detailed plan, including a phased schedule ofimplementation, which was reviewed at negotiations. Agsurjnses were provided byGovernment that not later than March 1, 1993, it would enter into contractualarrangements satisfactory to the Bank with appropriate institutions or universitiesto provide support for implementation of the research (PIER) and the EMIS components.The Project would finance twinning arrangements for a total of about 270 staff-yearsof training (of which 120 abroad) and 7 staff-years of specialist services. Detailsare provided in Annex L1.

B.4.2 Policy Analysis. Planning and Budgeting. =&E (USS2.7 million)

3.30 The Project would strengthen the capacity and utilization of the EMIS as atool for policy-analysis, management and decision-making. The focus would be on (a)improving the horizontal integration of the .EMIS; (b) developing complementaryindicators and an early warning system to monitor progress towards Sixth Plan goals;(c) conducting special studies; and (d) reinforcing the budgetary process in responseto Ministry of Finance's (MOF) requirements. (a), (b), and (c) wculd be closelylinked to the educational research sub-program under the PIER (para. 3.18).

3.31 EPRD's Policy and Research Unit would play a central role in this sub-component, to be coordinated by EPRD's Director himself. This senior official wouldoversee the preparation of an overall MOE Plan identifying the studies to beconducted, assigning responsibilities and proposing a dissemination scheme; however,the main focus would be the use of the EMIS to strengthen the budgetary process (d)above. Improving the horizontal integration of the RMIS to include budgetary andfinancial data would allow progress towards monitoring and studying the linkagesbetween inputs, outputs and costs/expenditures. By the first Annual Review, on thebasis of a survey of information needs of decision-makers and an analysis of MOE, EPUand MOF reporting requirements, a set of the most critical indicators of Planimplementation would be specified to form an early warning system. Special studiesrequiring cross-divisional coordination would be conducted to shed light on importantissues for decision-makers, while intensifying the use of existing data and enhancingnational research capacity. For PY1, these studies, to be fed into the budgetpreparation process, would cover: (a) the efficiency of educational expenditures inthe past five years; (b) financing scenarios for the development of post-basiceducation; (c) impact evaluation of the use of radio and TV programs in theclassrooms; (d) achievements in mathematics/science of pupils in single-grade,multigrade, double-session Alasses. Finally, to reinforce the budgetary process, acost accounting and analysis function would be established in the Finance Divisionprior to the first Annual Review. Training in advanced analytical and quantitativetechniques would be provided to existing staff in the concerned MOE and MOF Units.

3.32 At neg2tiatogns, Government and the Bank reached an understanding on thestaffing, funding, operating and utilization norms for all project-financedfacilities. These norms would be reviewed annually between MOE and the MOF and withthe Bank with a view to increasing efficiency. The Project would finance: under thetwinning arrangement mentioned in para. 3.29, the necessary specialist services (3

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staff-years), staff training (49 staff-years), operational visits (8 staff-months)and seminars; the purchase of advanced microcomputers; and selected software,including the Geographic Information System which allows multivariate analysis ofdistributional inequities. Annex .12 provides details on the EMIS, including thenorms and the instruments to be used to monitor and oval &ate project implementation,especially learning achievements.

B.4.3 Proiect management and imolementation (USSQ.6 million)

3.33 MOE's implementation capacity at the central level (DSD) is being and wouldbe further strengthened in line with the on-going and proposed increase in its workload. DSD is already a well managed entity, headed by a senior, experiencededucator. Its capability is being reinforced through (a) the computerization of itsproject management system, and the purchase of additional computers, printers,software and training services under Loan 2601-MA (Secone Industrial Trainingproject) and (b) the recruitment of a full-time architect/civil engineer under theproposed Polytechnic Development Project. These measures would go a long way towardseliminating occasional bottlenecks. To further sharpen DSD's efficiency, the projectwould support three actions. First, a full-time qualified and experienced accountantwas appointed to DSD to reinforce the effectiveness of its loan management; this isexpected to result, among other things, in the submission, to the Auditor General'sOffice (AGO), of higher quality financial statements, in turn definitivelyeliminating past delays in the submission of audit reports to the Bank. Second, theProject would finance, and build on the recommendations of, an independent 0&Kassessment of DSD (to be reviewed at the first Annual Review) covering trainingneeds, procedures governing the flow of information and work, physical lay-out,additional computer software, etc. Third, the project would also provide modestsupplemental funding for operation and administration to assist PMT staff inintensifying its supervision of State and District level implementation activitiesand to provide additional technical assistance to the SEDs, particularly Sabah andSarawak. At the State level, JKR has, in recent years, begun resorting toconsultants to reduce backlogs in civil works quality control. The adequacy andtimeliness of this assistance would be examined at each Joint Annual Review. TheProject would finance the O&M study, the supervision fund as well as the preparatoryreport for the in-depth review (end CY-94) to be conducted by an independent body.

IV. PROJECT COSTS. FINANCING AND IMPLEMENTATION

A. CostsSummary of Costs

4.1 Sixth Five-Year Plan. The baseline cost of the Government's InvestmentProgram in Education proposed under the Sixth Plan (RM6:1991-1995) is estimated atN$8.5 billion, equivalent to about US$3.4 billion. The allocation for primary andsecondary general education and related activities amounts to about N$2.8 billion(US$1.1 billion equivalent), of vhlch MS$2.1 billion (US$0.8 billion) represents theCore Investment Program (CIP). The CIP foreign exchange component is estimated atUS$0.3 billion equivalent, about 40% of baseline costs. Detailed costs are providedin Annex 13.

4.2 Summary of Phase I Costs. The Project costs of US$342.0 million, coveringa time-slice of 4 years (1993-1996), represent about 42.7% of the total costs of theCIP, with an estimated foreign exchange of US$141.0 million, or 41.2 % of the totalcost (Table 2). Table 3 provides a breakdown of investment costs of Phase I bycategories of expenditures.

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x3bt2 : Breakdown of Education Core Investment Progran wnder RN6

RK6US milton a/

Phase I X Phase II X Total Wh

Prwmotina quality and Excellence1. Teacher Prof. Dev. Prog. 31.0 46.0 77.02. Educational Resources 18.7 13.6 32.33. Educational Research

Subtotal 52.9 15.5 6. -W T am

ExDandina Access &-Eauftv1 PRE Schools 31.8 31.8

2. Primary Schools .120.9 146.2 267.13. Secondary SchooLs 133.3 151.4 284.74. Teacher Housing 10.6 25.2 35.85. Student Boarding Fac. 10.6 25.2 35.86. SpeciaL Education 2 1

Subtotat 275.5 80.5 U319H0 W- &64.

ImorQving Wnaaerial EffIc.1.7Staff Developminnt Prog. 10.4 0.5 10.92. Monitoring & Evaluation 2.7 4.8 7.53. Project Management & Admin. 0.6 -0.62

13.7 5.9 1..3 19.6

TotaL Project cost 342.0 100.0 460.9 100.0 802.9

Nu mnbers may not add up due to rounding.i Including physical & price contingencies.

TabLe 3: Phase I Investment Costs by Categories of Expenditures

Ms U6S % Totl

%FoFWgn BasLoca Foreign Tota Ll FoMagn Total Excage Cost

1. INVESTMENT COSTSA. CMI Wors 303.3 194.8 558.1 144.5 77.8 222.4 34.9 09.9

B. Equdpment 0.7 00.1 00.8 2.7 23.9 20.6 90.0 8.4C. Funitur 68.0 19.3 77.3 23.1 7.7 30.6 24.9 9.7D. Bool and Matab 29.7 9.9 39.0 11.9 3.9 15.6 24.9 6.0F. Spabt Sevices 0.8 1.4 2.2 0.3 0.0 0.9 04.9 0.3

F. Staff Tradning1. Loca FelowsNpe &Trg. 6.6 2.8 9.4 2.6 1.1 3.6 29.9 1.2

2. Ovasea Fallow. &Tig. 3.3 29.8 33.2 1.3 11.9 13.2 90.0 4.2- - - - - - - - -- -- -- - -

Sub-Tottl 9.9 32.7 42.0 4.0 13.0 17.0 70.0 5.3G. Rsaearch, Studies & Grnrt 0.4 4.3 10.7 2.6 1.7 4.2 39.9 1.3H. Management and AdrnSntrat 0.8 0.5 1.3 0.3 0.2 0.5 39.9 0.2

Total BASEUNE COSTS 475.0 322.9 796.6 199.2 128.9 316.1 40.5 100.0Phyesc Condngxce 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Prb Contlngerw 30.0 30.7 73.3 11.7 12.2 23.0 50.9 7.6

…- - - - - - - -- -- -- -- -

Totl PROJECTS COSTS 512.2 359.0 871.8 201.0 141.0 342.0 41.2 107.5

…______ ______- -_ _-___ _ __ __-__ _ __ __ _ _-_

Value Sced by 1000000.0 . 10/15/92

IV Numbers may not add up cdue to rounding

4.3 Baseline costs for the RM6 program refer to May 1992 prices. Civil workscosts were based upon awarded contracts and cost analyses for similar facilitiesunder the ongoing First and Second Primary and Secondary Education Sector Projects.The total cost of construction and site development averages M$414 (US$165

- 26 -

equivalent) per m2 for primary schools and N$650 (US$259 equivalent) for secondaryschools. Prices in the remote and mountainous areas of Sabah and Sarawak are about10% higher. The cost of land and professional fees are not included in the aboveunit costs. Equipment and furniture costs are based on MOE/DSD and JKR's standardequipment lists, which are adequate and economical. Specialist Services (SS) costestimates are based on recent experience in Malaysia and comparable SS in ongoingBank supported human resource projects. The costs of overseas fellowships includetravel, housing, accompanying family, if any and tuition costs.

4.4 Project costs include a contingency allowance of US$23.9 million forestimated price increases. No physical contingencies have been applied to the basecost estimates, since total expenditures are limited by the total budget allocationfor the Sixth Plan period and any significant changes in costs would be handledthrough adjustments in physical targets. Price contingencies were estimated on thebasis of the implementation schedule and expected annual price increases of 4.0% forlocal costs and 3.9% for foreign costs. Accordingly, aggregated price increasesrepresent about 7.5% of baseline costs.

4.5 The foreign exchange component of US$ 141.0 million (about 41.2% of totalestimated project costs) has been calculated on the basis of the following estimatedforeign exchange percentages: civil works 35%; imported equipment 90%; furniture25%; books 25%; specialist services 65%; and overseas training 90%; localfellowships and training 30%.

4.6 Indirect taxes and duties are estimated at M$19.9 million (US$7.9 millionequivalent) based on the current 2.75% tax on building materials, furniture andeducational materials. Imported equipment and instructional materials would beexempt from import duties.

B. Financing

4.7 The loan of US$ 141.0 million would finance 41% of total estimated projectcosts, equivalent to 100% of its foreign exchange costs (Table 4) or 42% of totalnet- of-tax cost. As Sixth Plan implementation is an on-going process, retroactivefinancing of up to US$14.1 million (no more than 10% of the proposed Loan) would bemade available to the Government to finance expenditures (all eight categories)incurred after July 1, 1992. Government has agreed that all contract eli§ible forretroactive financing (tentatively at about US$8 million) would comply with BankProcurement Guidelines.

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Tabi 4.: Finacfng Plan )CMS mittion)

X ShareCatesory of Expenditures Government IRD Total IBRD

CIAl Works 152.0 84.3 236.3 35

Equipment 2.8 26.2 29.0 90

Furniture 24.3 8.4 32.7 30

Books and Educationat 14.3 5.3 19.7 30Materials

Spefialtst ServicesFellooship. Studies 0.3 0.6 0.9 80and Special Support

Research and Studfes 2.7 1.9 4.5 40

Training 4.2 14.2 18.3 40

I eration & Adininistration 0.3 0.2 0.6 40

Total | 201.0 14110 342.0

ad Figures may not add up due to rounding.

4.8 Recurrent Costs Implications and Sustainability. Over the past two decadesthe Malaysian economy has been extremely buoyant (para. 1.1), allowing Governmentrecurrent expenditures to increase considerably during the period and by 15% p.aduring 1990-92. Even with these large overall increases, education has beenallocated above the average. The result has been to increase the sector's share inGovernment total recurrent expenditures from 17.7% in 1989 to a historical high of19.6% in 1992. Government revenue increases now appear to be slowing down. For 1992they are forecast at 5.7% and for 1993-96 at around 7%. Unless MOE's share of totalexpenditures continues to rise, or revenues are substantially above those forecast,the rate of growth of allocations seen in the recent past cannot be continued. Overthe past two years, unit costs have increased substantially due largely to salaryincreases and restructuring, and the 1992 budget allocations are 38% higher thanactual 1990 expenditures. All additional costs resulting from these exercises shouldbe worked out by end-1993. To achieve the enrollment targets set in the Sixth Planand assuming constant 1992 unit costs over the remainder of the period, expenditureswill roughly need to increase by around 7% p.a. (in real terms). This is broadly inline with the forecast growth in total Government recurrent expenditure and should,therefore, be feasible within NOE's current share of total recurrent expenditures(subject to the provisos in para. 4.11 below).

4.9 The Project will increase recurrent costs mainly through those parts of theschool building program which allow for an expansion of primary and secondaryenrollments. Additional enrollments in Project schools are estimated at 117,000 atthe primary, and at 53,000 at the secondary levels. Based on current unit costs,these will add around M$216 million to MOE's budget. The total addition isestimated at M$274 million once all project components are in operation (the othercomponents with recurrent cost implications are school boarding places and the newteacher training places). If MOE maintained its share of total recurrent Governmentexpenditure at the 1992 level and total expenditures grew at around 7% p.a. asforecast, the Project's recurrent costs would be equal to 3.1% of the Educationrecurrent budget in 1996. They would be equivalent to 13.2% of the total increaseallocated to Education.

4.10 These projections and the apparent relative ease of Project sustainability(and to a lesser extent the feasibility of sectoral expansion planned over the Sixth

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Plan period) are subject to a number of considerations which, given the behavior ofMOE's expenditure over the past few years, are critical. First, they assume nofurther increases in unit costs which, between 1990 and 1992, will have increased byover 30 percent (current terms) for primary and secondary schooling. Any furtherincreases would probably have to be met by a reduction in the volume of inputs aspressure develops to halt MOE's rising share in total recurrent Governmentexpenditure. Second, an additional pressure on primary and secondary education willcome from the need to rapidly expand post secondary education, for which enrollmentratios are still low. Sixth Plan allocations for this sub-sector have increased ata higher rate than for primary and secondary schooling and their higher unit costsare likely to drive up the share of the total recurrent MOE budget. Third, a numberof additional policy changes being considered for primary and secondary schoolingcould have important cost implications. These include vocational wings in secondaryschools, special education, a rapid expansion of upper secondary schooling and afully university-trained secondary school teaching cadre. Fourth, the educationexpenditure projections as shares of overall expenditures are based on an assumptionthat Government revenues will remain buoyant through the mid 1990s. This may requireadditional revenue raising actions which are under active review as part of the macrodialogue on fiscal reform.

4.11 While the Project's recurrent costs appear to be comfortably within theGovernment's and sector's financial capability, the possible sources of the aboveconcerns will need to be taken seriously. In the event of recurrent fundingproblems, the Project is such that the school building program which generates themajority of recurrent costs could be slowed down. Iowever, a more proactive approachis recommended, involving: (a) a rigorous examination of the recurrent costimplications of initiatives which are planned or being considered; (b) a concertedapproach to issues of cost recovery and private education, especially in tertiaryeducation; and (c) efforts to increase efficiency, especially at the primary level.Annex 14 provides estimates of the Project's and the sector's recurrent fundingrequirements.

C. Management and Implementation

4.12 Status of Drenaration. At Negotiations, the DSD/PMT submitted for MOE adetailed expenditure plan for the first year of the 4 year time-slice (Phase I) anda projected plan for the next three years; both plans are being finalized in lightof the Bank's review and comments. Sites for about 60% of the entire constructionprogram have been acquired; land titles and proofs of acquisition would be retainedby DSD for random review by Bank missions. The identification of Key TwinInstitutions is at an advanced stage and all TORs were reviewed during negotiations.

4.13 The Sector ARRroach. With its long implementation period (1991-97), theSixth Plan lends itself well to a sector approach with time-slice financing, whichoffers flexibility for making adjustments as the Plan progresses and sharpening thefocus on key policy areas as needs evolve. As this would be a third-generationoperation, implementation responsibilities are now fully integrated in the MOEstructure, and there is no need to a set up a special entity to provide centralizeddirection and coordination to design, select and supervise "sub-projects". However,the Project would mai.ntain the use of criteria to guide the implementation, and, asneeded, the substitution of sub-projects within the general framework defined inChapter III, and of indicative guidelines for the broad allocation of the Loan amongprograms (with a margin of flexibility not exceeding 10% in financial terms). Gi-enthe high degree of substitutability among investments implicit in the time-sliceformat, this is necessary to ensure that the key objectives of the project are

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achieved and that an appropriate balance is maintained between hardware and softwarecomponents. The criteria and the guidelines are detailed in Annexes 15 and 1i.

4.14 Management and implementation responsibilities. The primary executingagency for the Project would be MOE, which has established a MOE DevelopmentCommittee (MDC) to oversee the implementation of all ongoing Bank-financed projects.The MDC, which is chaired by MOE's Secretary-General (Chart 2), is assisted by aSecretariat which provides regular technical guidance to DSD/PMT on projectimplementation, raises issues needing attention and makes recommendations. Itincludes senior MOE staff from the Educational Planning and Research (EPRD) and theDevelopment and Supply (DSD) Divisions (Charts 3 and 8). The Secretariat providesinteragency consultation and coordination with (a) the Economic Planning Unit (EPU)of the Prime Minister's Department, which allocates investment budgets, (b) theTreasury, which allocates recurrent budgets, (c) the Public Works Department (PWD),which is responsible for the execution of civil works and, (d) other governmentagencies. In managing, monitoring and evaluating project components the Secretariatis supported by and receives advice from a number of Technical Subcommittees. At thecentral level the Secretariat works closely with the Implementation Coordination Unit(ICU) of the Prime Minister's Department, which is in charge of monitoring thephysical and financial aspects of national projects. At the regional level, theSecittariat collaborates with the State and District Development Committees, whichinclude representatives from all federal and state agencies involved with theproject, and are in charge of overseeing development programs at their respectivelevels, under the chairmanship of the State Chief Minister, ex officio, and therespective District Officers.

4.15 To ensure more effective integration of policy/quality considerations on onehand, and physical/financial aspects on the other hand, project implementation wouldbe entrusted to a Project Management Team (PMT, Chart 7) consisting of existing staffand fully integrated in MOE's structure. PMT's institutional locus is the ForeignLoans Unit (FLU) of MOE's Development and Supply Division (Chart 8). The FLU (Chart9) is a permanently established unit responsible for implementing projects supportedby bilateral or multilateral sources. The PMT is headed by a project director, asenior education specialist, who ensures articulation between EPRD's pedagogicalconcerns and PWD's requirements for civil works. PMT members include staff from DSDand EPRD under a teaming arrangement essentially similar to that in previouseducation projects. The DSD and EPRD both have considerable experience in projectmanagement, having jointly implemented a number of Bank-financed education projects.The PMT would, in addition to its usual implementation tasks, prepare each year forthe joint Annual implementation review (by end-April) a draft detailed expenditureand implementation plan for the following year of project implementation andestimated budget lay-outs for subsequent years. In preparing this plan, PNT wouldensure that the agreed-upon criteria and guidelines for of implementation andsubstitution of sub-projects by the relevant Directorates, and for allocation of BankLoan funds among programs are complied with. Joint Annual reviews would examine lO1of district allocations at random. Annex 17 provides details.

Procurement

4.16 Procurement arrangements are shown in Table 5 below:

- 30

Toble : Pro curement Arrange enta(US$ million)

Total CostCategory of Expenditure Procurement Method (inc. cant.)

ICe LCB Other

Civil Works 25.0 211.3 - 236.3(9.0) (75.3) (84.3)

Equipment 16.7 8.3 4.O 29.0(16.3) (6.9) (3.0) (26.2)

Furniture 32.7 - 32.7(8.4) (8.4)

Books & Educational 19.7Q 19.7Naterfals (5.3) (5.3)

Specialist ServIces - 15.3 15.3and Fellowships (13.6) (13.6)

Studfes - - 4.5 4e5(1.8) (1.8)

Local Training 4.0 4.0(1.2) (1.2)

Operatf0n and Adeinistratfon - - 0.5 0.5(0.2) (0.2)

Total 41.7 252.3 48.0 342.0(25.3) (90.6) (25.1) (141.0)

0v International and local shopping an basis of three prico quotations.SpecIalist services engaged in accordance with Bank guidelrnes

Note: Ffgures In parenthese fndicate moumts ffnanced by the Bank.

4.17 Civil Works. Civil works contracts costing US$5 million equivalent(aggregate US $25 million or more) would be procured under ICB procedures inaccordance with Bank guidelines. This would be the case for civil works contractsfor the construction of new TTCs (or university-based teacher training capacity).All other civil works contracts, valued below US$5.0 million (and estimated to totalUS$211.3 million equivalent, including contingencies) would consist of newconstruction or expansion of school buildings. Experience in current Bank-financededucation operations has shown that these contracts do not attract foreigncontractors, due to their dispersed locations and small size. The domesticconstruction industry is well developed and competitive and can carry out the civilworks components efficiently. Foreign firms would be allowed to participate in LCBcontracts in accordance with PWD procedures, which are acceptable to the Bank.

4.18 Goods. Procurement methods for goods and services are as follows:Equipment would be grouped to the extent practicable to form bid packages costingUS$200,000 or more. These packages would be bid under international competitivebidding (ICB) procedures. Small items or. groups of items estimated to cost less thanUS$200,000 would be purchased on the basis of competitive bidding, advertised locallyin accordance with government procurement practices, which are acceptable to theBank. The aggregate amount of such packages would amount to US$8.3 million forequipment and US$32.7 million for furniture. Small packages of equipment of aspecialized nature, not exceeding US$100,000 each, may be procured throughinternational shopping procedures based on comparing price quotations from at leastthree suppliers from two countries. Other small value items estimated to cost lessthan US$50,000 may be procured through local shopping procedures based on at least

- 31 -

three price quotations or may continue (as under the first two Sector Projects) tobe supplied under existing Government bulk procurement contracts, based on localcompetitive procedures which are acceptable to the Bank. All of these Items wouldnot exceed an aggregate total of US$4.0 million (US$2.5 million for internationalshopping and US$1.5 million for local shopping and direct contracting). Books andinstructional materials amounting to US$19.7 million would be procured by local(US$13.5 million total) and international shopping (US$6.2 million total) fromsources which assure that the rights of copyright owners are respected. TheGovernment has developed a network of national and international publishers who arecost-effective, competitive, and best placed to respond to the linguistic andpedagogic demands of the KBSR and KBSM. For comparing foreign and local bids underICB, qualifying domestic suppliers and manufacturers would be allowed a margin ofpreference equal to the rate of customs duty applicable to non-exempt importers or15% of the CIF price, whichever is lower.

4.19 Consultant&. Consultants for Bank-financed services would be selected andappointed in accordance with Bank Guidelines for the Use of Consultants. Overseasfellowships would be arranged in accordance with agreed criteria for fellowshipselection and through negotiated employment contracts acceptable to the iBank.

4.20 Review Qf Procurement. The following contracts will be subject to Bank'sprior review: (a) all contracts awarded on the basis of ICB; (b) the standardbidding documents to be used in LCB and the first LCB contracts for goods and works;and (c) sampling (10%) of overseas fellowships, training, consultants and studies,to be determined at each Annual Review. All other contracts would be subject topost-review by the Bank. Prior review would cover about one-fifth of the value of thecontracts to be funded from the Loan.

Disbursements

4.21 The proposed Sector Loan of US$141.0 million equivalent would finance 100%of the estimated foreign exchange of the project. Disbursements would be made on thebasis of: (a) 35% of the cost of civil works and related professional services; (b)100% of the C.I.F cost of directly imported equipment, 100% of the ex-factory costof locally manufactured goods and 65% of the costs of other locally procured goods;(c) 30% of the cost of furniture, books and materials; (d) 80% of the cost ofconsultants, overseas fellowships and operational visits; (e) 40% of the cost oflocal training; (f) 40% of the cost of research and studies; (g) 40% of the cost ofoperation and administration. All disbursements for contracts above US$1,000,000equivalent for civil works and US$400,000 equivalent for goods and services financedby the Bank loan would be fully documented. Disbursements for contracts belowUS$400,000 (US$1,000,000 million for civil works) and for fellowships and study tourswould be made on the basis of statements of expenditures (SOEs). Documentation ofexpenditures would be retained by the Project Management Team at DSD and madeavailable for review by Bank missions. In view of the satisfactory budgetaryprocedures and financing of previous education and training projects, it was agreedto accept the Government's preference not to establish a Special Account.

4.22 Disbusement Profile. The proposed Sector Loan would be disbursed over atime-slice of four years. The closi_g date is expected to be December 31, 1996. Thedisbursement schedule (Aznnex 13) indicates a faster pace of disbursements than theBankwide and Regional averages for education projects. This is judged feasible inlight of the strong pipeline of sub-projects (equivalent to over two years ofimplementation) at an advance stage of preparation, Including fully secured sites.

- 32 -

Monthly reviews would be held by MOE and MOF, in order to identify any slowd(.Wl indisbursements and promptly take corrective action as needed.

Accounts. Audit. Renorting_and Supervision

4.23 The DSD/PMT would establish and maintain project accounts for all projectexpenditures in accordance with accounting principles and practices acceptable to theBank. Project accounts and the SOEs would be maintained separately. The Proji..ctwould be subject to normal Government accounting and auditing procedures, which areconsidered acceptable by the Bank. DSD/PMT would submit to the Bank within sixmonths of the end of the Malaysian fiscal year, i.e. by June 30 of each year,starting in 1993, auditors' reports including separate audit of accounts relating tcdisbursement against SOEs. The Project's Supervision Plan is in Annex 19. ItsProcessing and Implementation Schedule is in Annex 2Q.

V. IMPACT ON POVZRTY ALLEVIATION. WOMEN IN DEVELOPKENT AND THE ENVIRONMENT

5.1 The NEP has been a resounding success in terms of poverty alleviation andthe equalization of educational opportunities. Through its resource allocationcriteria, the Project would further support achievement of the Sixth Plan's centralobjective of eradicating hardcore poverty. Regarding female promotion, while thereis still an unfinished agenda in higher, vocational and non formal education, genderparity has been achieved in primary and secondary education. There is still however,qualitative differentiation. The Project would, 6ith the assistance of the Women'sBureau, explore and introduce measures to encourage girls in secondary education toprepare for admission into the more technical and managerial streams in highereducation, leading to more remunerative professions.

5.2 In recent months, environmental concerns have assumed central prominence inGovernment's development plans and in the Bank's country strategy, cutting acrosssuch sectors as forestry, sanitation and environmental health. The project wouldreinforce this strategy in several ways. By supporting implementation of the KBSR,which has a strong environment focus, and school-based science projects in such areasas pollution monitoring and prevention, it would contribute to enhancing awarenessof the need to protect Malaysia' s rich natural resource base and would encourage morestudents to enter environment-related scientific streams. Safety procedures similarto those practiced in industry would be followed in the construction of civil works.Additionally, the wide use of cement asbestos materials in the construction of schoolbuildings, which presents potential health hazards, would be strongly discouraged.At negotiations, assurances were provided by the Government that it would maintainand enforce regulations (issued in May 1992) to prohibit the use of cement-asbestosmaterials in project school and educational buildings.

VI. BENEFITS AND RISKS

A. Benefits

6.1 The Project would create some 253,000 school places for children mostly fromeducationally or economically disadvantaged backgrounds; this would help Governmentto maintain UPE, to increase capacity in secondary education by about 8%, and todirectly enhance the schooling environment where sub-standard classrooms threatenlearning achievements. However, its main benefits would be of a qualitative nature,as quality inputs and the emphasis placed on research, M&E and management wouldenhance the system's ability to produce graduates equipped with the skills, attitudes

- 33 -

and values required to maximize the productivity of the large public and privateinvestments planned in knowledge-based industries, vocational/technical training andhigher oducation. Greater flexibility would prepare the education system to meet theskills demands of an increasingly complex, competitive and volatile economicenvironment. Increased efficiency would facilitate the accommodation of manycompeting sectoral claims within resource availability.

B. Risks

6.2 The risks involved in this third-generation project are relati-. ly limited,although those facing the Sixth Plan for Education/Training as a whole are worthmentioning. At the project level, there is a risk of implementation delays anddisbursement lags. Measures recently adopted, and assurances received concerningsite acquisition, civil works supervision and disbursement requests processing havebegun to show results and are expected to prevent a reoccurrence of this type ofproblem. The other two risks relate more to the Plan. One is that, at the macolevel, sustainability might become problematic if all of the sectoral investments inthe Sixth Plan (notably in higher education and vocational/technical training) wereto materialize simultaneously and under the present high unit cost/low cost-recoveryregime. This risk is considered manageable given the quality of the macro andsectoral dialogue concerning fiscal reform and the financing of tho social sectors,the advanced stage of Government's thinking on alternative delivery and financingmechanisx.s. and Malaysia's strong record in human resource development. The thirdrisk -- that of slow implementation of key policy measures of a sensitive nature --could compromise the educational and training capacity-building effort needed toachieve fully industrialized status. The commitments expressed in the Letter ofPolicy and the focus of the policy dialogue underlying the Annual ImplementationReviews should be adequate safeguards against this risk.

VII. AGREEMENTS REACHED AND RECOMMENDATION

7.1 During negotiations, the Government provided assurances that:

(a) it would (i) develop and implement a mechanism to monitor in detail thegrowth and distribution of Government's education recurrent expenditures;(ii) beginning in FY 1993, develop and subsequently introduce efficiencymeasures and budgetary norms satisfactory to the Bank, designed to containthe growth of recurrent expenditures in primary and secondary educationwhile ensuring that the share of such expenditures allocated to pedagogicmaterials and administrative costs is maintained at no less than theaverage 1991-1992 level; and (iii) not later than June 30, 1993, developand implement a formula to maintain the real value of the per capita grantsat no less than their 1991 level (para. 3.5);

(b) it would (i) implement the project in accordance with the policies,procedures, criteria and indicators as stated in its Letter of SectoralPolicy (and specified in the Action Plan) and in accordance with guidelinesand criteria satisfactory to the Bank; and (ii) consult the Banksufficiently in advance when considering material change of any provisionof said Letter or Action Plan during project implementation (para. 3.6);

(c) all Project-related research, studies and pilot-operations would beconducted on the basis of arrangements, including terms of reference,satisfactory to the Bank (para. 3.21);

- 34 -

(d) not later than the beginning of school year 93/94, MOE would introduce ina sample of schools a Year 3 mathematics criterion-referenced test andmonitor/analyze its results (para. 3.21);

(e) not later than March 1, 1993, MOE would enter into contractual twinningarrangements satisfactory to the Bank with appropriate institutions oruniversities to provide support for implementation of the PIER and EMIScomponents (para. 3.29);

(f) it would maintain and enforce regulations to prohibit the use of cement-asbestos materials in project school and educational buildings (para. 5.2).

7.2 During negotiations, the Government and the Bank reached final understandingon the following, which will guide implementation of the Letter of Policy:

(a) the Action Plan, including targets and indicators (para. 3.4);

(b) the dates and procedures for the joint annual implementation reviews,interim reviews and the in-depth review (para. 3.6);

(c) final details of the mechanism to ensure adequate advance land acquisitionand civil works planning, including the use of consultants by JKR (para.3.25);

(d) the plan for developing and implementing the twinning arrangements (para.3.29);

(e) present staffing, funding, operating and utilization norms for all Project-financed facilities, to be reviewed annually (para. 3.32);

(f) a detailed implementation and expenditures plan for the first year ofproject implementation, and budget outlays for the following years (para.4.12); and

(g) criteria and guidelines for the implementation of sub-projects and theallocation of Bank Loan Funds (para. 4.13).

7.3 Expenditures incurred after July 1, 1992 and eligible for reimbursementunder the proposed loan, would be financed retroactively up to a total of US$14.1million equivalent (para. 4.7).

7.4 Subject to the provisions in paras. 7.1 through 7.2 above, the proposedproject would constitute a suitable basis for a Bank loan of US $141 millionequivalent to Malaysia, with a term of 17 years, including a grace period of 5 years,at the standard variable rate.

MALAYSIA

THIRD PRIUARY AND SECONDARY EDUCATION SECTOR PRoJEI

Socio-Economc Indicators

I Per Capita MP Mean onthLy Poverty hI Enrollments f/ Transition Rates £/te (978 prces) Household Inome pj (000) Infant Deaths andState Ns NS AbsoLuto Rotative Pr1bery/ Lower Sec./ Rate IV

(XO f _ou_eholds) Pr_ _rv Secondary Lower Sec. U_ _er Sec.Johor 3,983 1,220 1.6 10.2 283 159 86.46 60.59 12.23Kedah 2.600 860 8.6 30.1 185 100 74.69 65.21 15.74KeLantan 1,739 726 7.3 29.9 176 88 70.05 66.87 15.17Kuala 7,60% 2,102 . 135 84 . .Lspur

Labumn . . 1.6 15.3 . . 103.61 60.77 -

klaka 3.587 1,190 3.8 12.5 70 49 91.82 65.95 10.12Negan 3.62A 1,162 2.3 9.6 103 59 88.26 64.36 9.86

Pahang 3,278 1,092 2.2 10.3 156 78 82.64 59.50 14.65Perak 3,357 1,067 4.9 19.4 285 176 86.71 58.22 15.63Portis 2,973 852 3.4 17.6 24 14 91.01 58.23 11.67Pulau 4,934 1,375 2.2 8.9 128 90 93.42 61.94 11.96Pino9

SaIeh 4,500 1,358 8.7 . 227 101 83.76 57.00 17.6Sarawek 3.883 1,199 3.3 . 222 122 81.90 59.11 10.5Seltngor 6,558 1,790 1.1 7.9 280 142 83.50 61.93 10.92TerensgEnu 7.124 905 10.2 31.5 114 49 75.54 63.96 15.53Malaysia 4,392 1.254 4.0 2,390 1,311 83.29 61.58 13.45

Sources: a Sixth alaysioa Plan, 1991-1995y Household Survey, 1989LI MIOE, 1989

N Dep,rtment of Statistics - Vital Statistics, Peninslar Maloysia, Sabah, and Sarawak (1989)

Nuwbens msy not add up due to rourding.

F lam

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ANNEX 2Page 1 of 4

NALAY$IA

THIRD PRIMUAR AM SECONDARY EDUCATION SECTOR PROJECT

Basic Educational Data(1990, unless otherwise indicated)

Total Population : 17.9 million (Malays: 61.7%; Chinese: 29.6%;Indians: 8.0%; Others: 1%)

Population Growth Rate : 2.5% p.a. (1985-90)GNP per capita : US$2,227Urban Population : 41.5%

I. EDUCATION DATA

.-able 1: Enrollments

EnrollmentLevel Age-Group Grade Enrollment % Female Ratio (%)

Primary 6-11 1-6 2,447,206 49 99.8

Secondary 12-16 7-11 1,304,212 - -

Lower I 12-14 7-9 942,801 50 83.0Upper k/ 15-16 10-11 361,411 51 49.1

Post-Secondaryand Colleges g, 17-18 12-13 121,042 - 16.4

Form VI - - 55,799 59 -Pre-Uri-versity - - 12,124 47Colleges d/ - 53,119 45 -

Higher u/ 19-22 14-17 53,476 44 2.7

g/ Includes 89,221 students in Remove Classes. The lower secondary enrollment ratfo excluding students inRemove Classes Is 75X.

kf Includes 331,289, 24,845 and 5,277 students in academic, vocational and technfeal secondary schools,respectively.

/ 1989 data. Governwent calculation of the enrollment ratfo fs based on the 17.18 age growp although maancollege coure exceed two years.

gy Includes 17,011 and 7,978 students in teacher training and polytechnic colleges, respectively, and 28,130students in the Hra Institute of Technology and Tunku Abdul Rahman College.

s/ 1989 data on enrollments In the country's seven universftfes. The higher educatfan enrollment ratio fsbased on the 19-24 age group.

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Table 2: Physical DataPage 2 of 4

StaffEnrollments Teachers Schools Clamroo Classe Boarders Housing

Primary 2.447,206 120,025 66828 62440 73,639 52,817 12,343

Secondary y 1,367,493 72,455 1,327 28#281 40,769 151.292 6,475

f Ordinary teachers (i.e., excluding special function teachers) um br 106550 nd 63,396 in primry andsecondary schools, respectively.

g/ Utility classroom. Plan classroom are 63.362 and 29,9SS for primary nd s*condery sAools, respectively.h NuWer of teachers in staff quarters. The n -ers of availabte units are 9,310 and 5,107 for primary nd

secondary school staff, respectively.i Includes Remove Classes through Form VI, and GCE/Natriculation ClaesaJ In secondary schools.

Table 3: Key Ratios

Student- Student- Student- Te cher- Ctassroour Bo rders- N0uAIngsTeacher Cless Clsssroon ctess Class Enrollment Staff

Primary 20 33 39 1.6 0.85 0.02 0.10

Secondary 19 34 48 1.8 0.69 0.11 0.09

/ For ordinary teachers, the student-teacher ratios are 23 and 22 and teacher-elass ratios are 1.4 nd 1.6.at the primary and secondary levels, respectively.

/ Utility classrooms.The ratios of availeble units to teachers are .08 rnd .07 at the primry n socondary levels, repctively.

Tabl2-4: Class Utilization

Double Shiftingf

Number Percent Nukbe Percentmf

Primary 1,060 16% 10,158 14%

Secondary 781 61% 12,755 31%

Oversized Classes

Mora Than 45 More than 40Students SLW2nts

Number Percent Number Percent

Primary 8,456 11 22,025 30%

Secondary 1,072 3% 6,132 15%

Underenrglled PriMary Schools (Less than 150 Students)

Number 2,532Average enrollment 82Students:teacher 12Percent with Multigrade Teaching 31%

M/ The n,ber of afternoon schools is dedted frm the total nuer of schools In calculating theseproportiors.

- 38 -

Page 3 of

Table 5: Teacher Training

Teacher Training Output

Teacher Training Colleges a/ 11,215

Primary n.d.

Secondary n.d.

Unziversities 2d 2,328

Proportions of Graduate Teachers in Secondary Schools

Lower Secondary 9%

Upper Secondary 76%

Lower/Upper Secondary 52%

n/ 1989 data.of 1987/88 data.

Zakble 6: Private Education

Private Schools I/

i Nuka Enroll£ enus Teachers

Primary 43 6,896 475

Secondary 447 115,903 6,669

2 1989 data. Includes full-tfme teachers only.

Table 7: Mean Years of Education by Sex and Age Groups, 1984 and 1987

Ago Mean Years of Iducatlon. 1984 Nean Years of EdLucation, 1987

-at- Fent -es - -ales Fomales

roL Nalaw Chinese Indian Palay Chinese Indfan Malay Chfnese rIndian Nalay Chfnose fIiEan15-19 7.0 7.1 6.6 6.4 6.7 6.0 9.2 8.5 8.5 9.2 8.6 7.920-24 7.3 7.7 7.0 6.4 6.8 5.8 9.9 9.0 8.9 9.5 9.7 9.225-34 6.6 7.2 7.2 4.8 5.7 5.5 9.0 8.6 8.2 8.0 7.8 6.835-44 5.0 6.0 6.5 2.5 4.0 4.5 7.2 7.6 8.0 5.3 5.6 5.345-54 4.3 5.8 6.3 1.7 3.1 2.5 5.0 5.8 6.3 2.4 3.3 3.755-64 3.7 5.0 4.1 1.2 2.0 1.7 3.4 4.3 5.5 1.0 1.6 2.5: 65 2.8 3.7 4.0 0.9 1.1 1.52 2.3 2.6 3.2 0.2 0.6 1.1

All 5.7 6.4 6.3 4.0 4.8 4.7 7.6 7.4 7.6 6.4 6.0 5.8

oure*: 30 percent smloe 1984 and 1987.otes: The obwe caluelatfons are based on the _aabers file" I.e. all mabers of a household *14 years have been considered

In the calculations.

- 39 -

Page 4 of 4Igtaa: Studen PerformaneIP Ratm *t the Pdrtlmrv Sdwobl Acheemt tast IUPORI Iltnad 61. 19097.190 tIn lEI

UMaOW F INSTIWCTIOI BAHASA MALAYSIA IBM) CHtSEU TAML

Sub99 19 1987 1199 1987 1998 1897 1000 19e 1990 1987 1989 1988 1890

_aes MValsa IsMI o-70.0 0.70.0 e-84.0 e-80.1 o-08.4 o-02.4 o-54.0 0-64.1 e-47.091.90 w-59.7 w-04.5 w-90.0 50.1 w-35.8 w-38.7 w-34.1 34 w-22.0 w-30.4 w-28.9

or-87.0 or-90.9 - _ _ _

Chise *-826.0 c-S3t 0-78.8_ - - - 83.0 w-00.2 w 3OS.0 w-70.4 _ _ _ _

er-87.2 or-88.4 -

TWnIl o-72.8 o.75.7 e-74.4_ - - - - - -_ 75 w-32.2 ww62.0 w-65.9

or-85.9 or-89.2 -

EnlIsh 65.0 69.1 63.3 53.2 72.8 05.0 09.4 72.7 50.8 51.5 57.1 02.9

tmatIcs 60.0 68.5 75.4 57.8 809. 91.3 92.3 e9.4 60.0 05.3 07.7 47.9

8en: Exemeton Syndicate&f do 1997 tst was emnbstwed to 805 ehwols;W a - oomWrwenlon w * writing; or a oralrmaing;gJ remit. shown hwe are for tudent rated 'A 1exo. * (good) and *C- Istfatory);

/ begmnn In 1990. the teat admInistered In BM and English wet differnt for th ntl IMesypeWngl and th netionsl - typeIChins or ToAhl) prIary schools.

Too2.2: Student Pformanoe IPese Rot") at the *Low.r Certificate of Eduatin ISRPI thew 'Malalv oefcat of Edution" ISPNI. ande *Maladv Hioher Cei lo Education" ISTPM 1987.1990 On %)

RANS_ OF PASS RATES AUG40 STATES

1987 1988 1980 1990______________ Lowest HighetH LOeWt Highest Low st Highest Lowet Highest

SRP 02.6 70.98IJil 00.4 74.2 00.8 70.1 02.2 78.0

Pend-h

MLaysl 00.9 07.8 09.0 09.3

59.4 79.0 58.7 98.5 04.7 82.8 58.8 80.3

Malara _ -

72.6 72.0 70.7 71.5

Pers_kolaha 42.4 79.7 80.6 91.0 47.5 90.0 50.5 80.1Vokseon II

60.1 70.4 82.7 80.3- - - - - i,

Perselahen 00.8 92.5 80.4 95.1 88.0 90.2 80.0 91.2

(PrinalpalIlevel pas es .-__ _ _ _ _ _ __ _ _ _ _ _ _ _

Mlaymsa 9S7 2.7 93.3 80.8

80u: Exaninstion Synate

: Of th four nedonel examintions: (a) %JJln Pnpalan Skoish Rsnah PSA). at the end of Grud VI, Is. tocWomlly speakIngan _smsnt It Is not used as a solecon tool (al sdets are promoted to Form 11. ilb Hnd Poruh Plaran ISAP) at thend of Form 11. Is botha *elotfon and a otlficatIon - midon howwr, as of 1990. promotion to Form IV wIA bome automoaft.

as aflrot te towerd un iwver g uppe sondary _edution; (a) I Paeran Maoyi (ISMI IO" level owAvalont. at th endof Form VI. bedo to etfiftion * well o seoloton to Form VI (prewnvsty lvwl); d) 8lilU m%ll Pekolh-n Malaysi I(8PM)rA lv sq*vmnt. at the end of Form VII Is lso both a seleon - well a cedfication tool. Soolb assesment Is amnaor fhtr of the K8SR nd KSSM Inplmrnettion. Ewn _nti end _sm nts are entially nor_.rfend.

40- ANN 3Page 1 of 8

THIRD PRIAR AND aEODAYEDUCATION SECTOR PROJCT

PAST TRENS AND UTUR OPIONS =O EDUCATION EXPENDITURE

I. Edugation Exjpndiue 1986-92

1. Over the past decade, the Malaysian Government has allocated significantresources to the educational system. In most years these have been equal tobetween 5.8 and 6.2 percent of GNP. As a share of total Government expenditure,allocations to education have increased In nine out of the past eleven years.The annual rates of growth of recurrent and total expenditures on education since1987 are shown in Table 1. Since 1989 recurrent expenditures have increased byan annual average of 14.9 percent. An a result of capital exprnditures in 1991and 1992 being below those of the previous year, total education expenditureshave 'only' grown by between 10 and 11 percent a year.

Table 1. Annual Rates of Growth of Educational Expenditure 1987-92

ExpendLture 1987 1988 1989 1990 1991 1992

Recurrent 3.1 6.8 7.1 12.6 17.7 14.3

Total -2.2 6.6 13.4 16.8 10.8 10.7

2. Over the past two decades the Malaysian economy has been extremely buoyantwith the rate of growth of GDP averaging 6.7 percent a year. Since 1988 the averagerate has been 9.0 percent. This success has allowed Government recurrentexpendltures to increase at an average rate of 11.0 percent a year. Even with theselarge overall increases, however, education has been allocated over the average ineach of the last four years. The result has been to increase education's expenditureshares as Table 2 demonstrates. They are now at historically high levels.Subtracting debt and other transfer payments from the recurrent budget to leavedepartmental expenditures, education's share has increased from 29 to 33 percent.

IBhl L: Education's Share of Government Recurrent and Total Expenditure 1989-1992

Expenditure 1989 1990 1991 1992

Recurrent 17.7 18.3 18.9 19.6

Total 17.4 17.5 17.8 18.0

3. The data above reflect the Government's normal classification of educationprograms. There is, however, a significant additional item of expenditure whichneeds to be consldered. This is scholarships, the most important of which areprovided by NARA and the Public Services Department. Together in 1991, the allocationwas 1*678 million, equivalent to 11.6 of the recurrent education budget. For 1992

- 41 -AI,R=E 3

Page 2 of 8

the allocation is M$623 million. Adding scholarships to the education recurrentallocation takes its share of total recurrent expenditure to 21.4 for 1992.

4. Since 1986, recurrent extienditures in educstion have increased by over tenpercent a ye&r. Enrollments have increased by much less. Between 1986 and 1990 theyincreased anraually by (percent):

primary 2.3 post secondary 2.4lower secondary 0.2 university 6.7upper secondary 1.9

Increased expenditures partly reflect higher rates of enrollment increase at the moreexpensive levels of education and partly reflect increases in the average annualexpenditure per child at each level of education - the unit costs.

II. Unit Costs and Their Determinants

1. The basic set of unit recurrent cost estimations by level in Table 3 is for1990 - the latest year for which enrollment data exist (apart for the universitieswhere the latest are for 1989). These estimations require some qualifications andelaborations.

(a) The figure for secondary general covers both regular and fullyresidential schools. The latter are few but much more expensive. AnEPRD report for 1983 estimated that they we-re ovker five times asexpensive per pupil;

(b) For all post secondary education there is an additional charge onGovernment of scholarships. In 1991, the value of all scholarships wasequivalent to 89 percent of the allocation to all ten universities; and

(c) The estimations are of recurreut costs only. Capital costs differsubstantially between tertiary and pre-tertiary education. Roughestimates of costs per place are M$26,000 polytechnic, M$3,500 secondaryand M$1,900 primary.

Tabte 3: Unit Recurrent Costs by Level of EdLcation 1990

Unit Cost (14) Unit Cost (Primary * 1)Levet

Prfmary 770 1.0

Secondary general 1,294 1.7

Secondary vocatfonal 2,916 3.8

Polytechnic 2,083 2.7

Teacher trainfng 7.829 10.2

KAR Institutes 7.642 9.9

TAR College 1,436 1.9

Universitfes 10.360 13.5

Note: IV The Pro-University unft cost is an average weighted by enrollmentsfor ARA Instftutes nd the TAR College.

W The overalt ratio for post-secondary fs a weighted average based onenrollments and the weighted unit cost ia NS8.240.

- 42 3Page 3 of 8

2. Another way of presenting the unit recurrent costs is to compare them to tielevel of per capita income. This enables comparisons to be made between countrieswithout having to use exchange rates and allows for differences in standards ofliving between countries. Table 4 presents the results of such calculations forMalaysia and for comparator sets of countries for the mid 1980s, as well asconverting the 1990 unit cost figures from table 3.

table 4: Unit Costs as a Percentage of GNP Per Capita: Malaysia and ComparatorRegions Mid 1980s and 1990

I East Asia Latin America Malaysia Malaysia1980s 1990s 1980s 19908

Primary 11 9 14 12.5

Secondary 20 26 21 21

University 118 88 190 168

Source: Malaysia mid 1980s. Tan end NIngat (1989) East Asfa,South Asia nd Latin American 1980, Ningat and Tan(1986).

Note : ) Malaysfan GNP per capita 1990 was USS2,277.bJ Between 1990 and 1992. unit costs for primary

and secondary education, expressed as a X of GNP,increased to 13.9° and 24.5X, respectfvely.

3. Unit costs in Malaysia as a percentage of per capita income tended to behigher thar. in comparable regions of the world in the mid 1980s in both primary anduniversity education. By 1990 the unit cost measures in Malaysia had fallen a littleas teacher salaries failed to keep pace with increases in per capita incomes. Thisis also likely to have been the case in many other countries.

4. Since 1990 allocations to the education sector have increased significantlyas described in para.l above. Rough calculations using the 1992 budget estimatesand Ministryenrollment projections suggest that the unit cost of primary education in 1992 willbe M$1,030. Given current projections of per capita income, primary unit costs willbe equal to 14 percent - back to the situation in the mid 1980s. For secondaryschooling, the 1992 unit costs are estimated to have risen to M$1,806, equivalentto 24.5 percent of per capita income,up from 21 percent in 1990. A lack of enrollment data since 1989 for theuniversities precludes a similar update being made for that level of education. Itwould appear that the large increases in education expenditure in recent years - wellbeyond any increases in enrollments - have resulted in Malaysia's unit costs againdiverging from regional patterns following, perhaps, a brief period of convergence.

5. The major determinant of unit costs at primary and secondary levels is thesalary cost per student. This depends upon the level of salary and the number ofpupils per teacher. In Malaysia in the mid-1980s pRimarv teacher salaries as amultiple of per capita income were slightly belo the regional average. Therelatively high unit costs, therefore, at that level of schooling were not the resultof high salaries. They were the result of low pupil:teacher ratios. Across allprimary schools the ratio in 1990 was 20:1. This compares to an average across:

15 Asian countries of 334 Southeast Asian countries of 29

33 lower middle income countries of 2926 upper middle income countries of 30

- 43 -

ANNEX 3Page 4 of 8

The unit c-i measure for reoular secondary schools in Malaysia appears to be morein line wit .ther comparable countries. Again teacher salaries appear to have beenrelatively low in the mid-1980s. Pupils per teacher in 1990, however, were 19:1compared to a regional average of 23:1 (in the vocational schools they were 9.2:1and in the MARA junior science schools 9.0:1). It is the low pupil:teacher ratiosin Malaysia which result in the relatively high unit costs.

III. prolections and Plans

1. The Sixth Plan contains projections of enrollments for each level ofeducation. Some of these reflect past trends and some reflect changes to policy.In addition, there are a number of other policy changes which while not leading toincreased enrollments are aimed at quality improvements and will involve additionalcosts. Given the already high share of educational expenditure in the tctalrecurrent budget, the implications and feasibility of the planned changes requireanalysis.

2. Recapping from section I, operating expenditures in education over the pastthree years have increased by 54 percent compared to an increase of 37 percent inoverall operating expenditures. As a result, the share has increased from 17.7 to19.6 percent: or from 29 to 33 percent of total departmental expenditures. Thelarge increases have been allowed due to a growth in Government revenues of 15.2percent a year over the past three ,e.rs. However, in 1992 revenues are forecastto increase by just 5.7 percent, and over the following three years by around 7.0percent. Unless education's share of total expenditures continues to risesignificantly, or revenues are substantially above those forecast, the rate of growthof allocations seen in the recent past will not be sustainable.

3. Much of the increase in the past two years or so has resulted from salaryincreases arising from changes to the salary structure of teachers and of the publicservice as a whole plus across-the-board increases. There have, however, also beensubstantial increases in the number of teachers, well beyond enrollment increases.Between 1988 and 1990, primaryteachers increased by 10.0 percent and secondary teachers by 11.7 percent. In 1992there are further planned increases of around 8,500 teachers.

4. Utilizing the enrollment projections for 1995 from the Sixth Plan togetherwith the unit costs for 1990 inflated by the (roughly) one third increase which hasoccurred between 1990 and 1992 for primary and secondary schooling and a quarter forpost secondary education to reflect the lower share of salaries in total costa atthis level, total expenditures will roughly be 70 percent higher in. 1995 than in1990. Much of this increase has already taken place and been accommodated throughthe 1991 and 1992 allocations but the implied annual average increase of around 14percent for the whole 1990-95 period suggests that significant increases will besought for the sector over the next few years.

5. The comments above relate to the education sector as a whole. Of addedimportance for the provision of primary and secondary schooling is the faster rateof enrollment expansion planned for tertiary and higher education. Over the 1990-95period, enrollment projections in the Sixth Plan imply growth of 15, 31 and 57percent for primary, secondary and post secondary education respectively. The shareof the total recurrent budget allocated to post secondary education will increase,adding to any pressures already being placed on primary and secondary schooling.

-44 ANNEX 3Page 5 of 8

This trend is likely to continue into the future as the Government attemp% to expandaccess to tertiary education from the currently relatively low level tt one morecomparable to countries with similar economic structures and ambitions. One pointerto this is the pattern of increases in capital expenditures in the Sixth Plan overthose in the Fifth Plan - primary 34 percent, secondary 29 percent, tertiary 55percent and training programs over 100 percent. The recurrent cost implications willbegin to accrue from the middle of the decade.

6. The projections and discussion above relate only to enrollment expansion.There are also several initiatives which have been accepted in principle or are beingcurrently considered in attempts to increase the quality of schooling. Among theseare:

(a) the development of vocational wings in upper secondary schools;(b) the creation of a secondary school teacher cadre consisting only of

university graduates; and(c) fast and slow tracks within primary schools.

In addition,the pace of planned increases in the transition rate from secondary FormIII to IV appears not to have been finally determined. There are also, apparently,pressures to increase the number of special function teachers in primary schools.Each of these measures would have significant recurrent cost implications.

6. The pressures to expand and develop the education system are strong. Someare inevitable and in-built and some still depend on decisions being made. Giventhe analysis of education financing in this paper it will be important to ensure thatthe recurrent cost implications of any proposed policy changes are calculated indetail early on in the decision making process. Even without any additional sourcesof increased expenditures, the planned expansion pnth may have difficulties inoperating within the current (relatively high) share ox education in total Governmentrecurrent expenditure. Much depends on the ability to maintain increases inGovernment revenues.

IV. Options

1. If financial pressures do develop, one set of options would be to slow downcurrent plans to increase the access to schooling and/or postpone interventions forquality improvements. As both are regarded as undesirable, expenditure growth wouldneed to be curtailed in other ways. These might include:

(a) a significant increase in the level of cost-recovery in post-secondaryeducation and training plus further encouragement of privateinstitutions; and/or

(b) an identification and introduction of measures to reduce the averageannual cost per student at each level of education.

While some attention is currently being given to (a), less attention is being givento (b). In the remainder of this paper, a number of possible interventions toconstrain the unit costs of primary and secondary schooling are provided with, insome instances, some indicative illustrations of the implications.

2. Primary. Currently there are 2532 small (underenrolled) schools whichrepresent 37 percent of all primary schools. Enrollments in these represent 8.5percent of the total. The average number of students per class is 15.5 and perteacher is 12. The average school has an enrollment of 82, has 6.85 teachers and

-45 - ANNEX3Page 6 of 8

just over five classes. (Alternate year entry schools may have three classes).Changes in the organization of teaching, particularly larger multigrade classes,could lead to a reduction in the number of teachers. At present, Circular 3/67allows teachers according to the number of classes. For instance, schools withenrollments between 71 and 95 are allowed n + 1 (where n - number of classes) andbetween 96 and 120, n + 3. With more multigrade teaching, the number of classes couldbe reduced, and hence the number of teachers, without sny change ogf lgislation (orthe norms).

3. If the 'average' underenrolled school decreased its teaching staff from 6.85to 5.0 (a pupil:teacher ratio of 16.4, still low) this would lead to a requirementof 12,660 teachers instead of the current 17,354. Emoluments would be reduced byaround 4 percent of the primary total. Alternatively, the teachers might beredeployed to reduce overcrowded schools. Currently there are 8456 classes withenrollments of 46 or more. Using the current teacher:class ratio norm of 1.5, theredeployed teachers could support 3129 classes. Obviously it would only be feasibleto introduce additional teachers to reduce class sizes in large schools where thereare several classes at each form level, but the indicative figures, of savings orredeployment, give some idea of what might be achieved.

4. In the regular primary schools there are 60,164 classes. The overallstudent:teacher ratio is 20.5. Altering the teacher:class ratio would change thestudent:teacher ratio and the number of required teachers in the following (rough)way.

Teacher:Class Student:Teacher Ratio Required TeachersRatio

1.8 20.6 109,000

1.6 23.3 96,000

1.4 26.6 84,000

The average student:teacher ratio for five Southeast Asian countries includingSingapore is 28.6 and for middle income countries as a whole is 29. For Malaysiato move to a ratio of 24:1 in the regular schools would reduce the required numberof teachers by around 16,000 out of a total of 120,000. Emoluments for these teachersare around M$180 million, or 12 percent of total primary school emoluments.

5. In regular secondary schools, the student:teacher ratio is closer to theregional average (19 and 23 respectively). The main avenues to reduce the unit costsof overall secondary schooling would be via the vocational, fully residential andjunior science schools. These can be up to four to five times as expensive as theregular schools. At the very least some systematic efforts could be made to examinethe additional benefits which emanate from these schools.

V. Concluding Remarks.

1. (a) Over the past few years Government expenditures have been increasing atunprecedented high rates. However, education expenditures haveincreased at an even higher ratis resulting in greater and greatershares of the total being allocated to it;

- 46-Page 7 of 8

(b) Government projections of revenues from 1992 onwards indicate lowergrowth rates than over the last five years or so;

(c) Unit costs tend to be significantly higher than in other comparatorcountries when expressed as percentages of per capita income. This isparticularly the case at primary school. The reason for this is lowpupil:teacher ratios;

(d) In the near future, constraints on the expansion of educationexpenditures may grow as the share goes beyond 20 percent (and 35percent of total departmental expenditure);

(e) The relatively low level of post secondary enrollments in Malaysia andthe desire to increase these may lead to greater shares of the educationbudget being focused on this sub sector; and

(f) In such circumstances and if existing programs to increase access and.quality are to be maintained, and others introduced, in the primary andsecondary schools it appears to be appropriate to begin to consideralternatives for restructuring expenditures in ways which will have theleast effect on education outcomes. This Annex has suggested somedirections to follow toward that end. More work is required to providefurther details of the costs and outcomes of these alternatives, andothers. It would be preferable if the Ministry of Education was to bethe leader in any such exercise rather than the EPU or Ministry ofFinance.

Ffnancial Otl (1981-9221. EmwIf tures

Table 1: EdLcationaL Expenditures 1981 - 1M

Year Recurrent Growth Denelotnt Total Growth(MM) X (W) (NSa) X

1981 2,7A6 - 791 3,517 -

1982 2,991 10.0 1,082 4,073 15.8

1983 2.915 -2.5 988 3,903 -4.2

1984 3.183 9.2 1,009 4,192 7.4

1985 3,473 9.1 8n 4,345 3.6

1986 3,743 7.8 1,064 4,80? 10.6

1987 3,862 3.1 610 4,672 -2.2

1988 4,115 6.8 865 4,980 6.6

1989 4,407 7.1 1,242 5649 13.4

1990 4,962 12.6 1,634 6,596 16.8

1991 5.840 17.7 1,472 7.312 10.8

1992 6.674 14.3 1U423 86097 10.7

owure:s Nfnistry of Financo Econowmc Raport various years.Note s a 1981 - 1990 are actuatl 1991 estimted nd 1992 allocated

expenditures.w These totals also cevr aducatfonal program in minietrieother than Educati.n.

- 47 ANNEI 3Page 8 of 8

Tabl N& : Minstry of Education lxsndDurea 1985 - 1992 (OMa)

Year Recurrent increase Primry a noreas Rec. Ed. Exp. as X TotalTotal (X) Secondary (M) Re. Exo.

1988 4,044 2,727 18.5

1989 4,332 7.1 2,890 6.0 17.4

1990 4,945 11.8 3,291 13.9 17.0

1991 5,701 17.7 3,809 15.7 18.5

1992 6.672 17.1 4,435 16.4 19.6

Note: 1988 - 1990 are actual, 1989 nestited and 1992 allocated expenditure.The allocations to priwary and secondary do not lnclude hotels, food, scholarships, textbook loansor the cost of central Ninistry operations, mch of Aihch Is directed to primary and secondarvschooling.

Table 3 Educational Expenditures as Shares of Total GovernmentExpenditures and GNP

Year Education as Z of Total Education as X of Totat Total Total as a X ofRec. Exo. Dev. ExD. GNP

1981 17.3 7.0 13.0 6.3

1982 17.9 9.4 14.5 6.8

1983 15.9 10.2 13.9 6.0

1984 16.1 12.0 14.9 5.7

1985 17.3 17.2 16.0 6.0

1986 18.6 14.1 17.4 7.2

1987 19.1 17.1 18.7 6.3

1988 18.9 16.5 18.4 5.8

1989 17.7 16.1 17.4 5.9

1990 18.3 15.3 17.5 5.4

1991 18.9 14.2 17.8 5.9

1992 19.6 12.9 18.0 5.9

Note: W The relatively high share in 1987 was combined with a decrease in the absolute anoumnt.W 1981 - 1990 represent actual expenditures *nd OUP, 1991 estimated nd 192, allocated

expenditure nd forecast GNP.

TdbLe 4: Increases in tht Growth Rate of Operating Expenditures, 1987-91

Recurrent Expenditure Total Education Expenditure Per(NillIon N Ringgit) X Incrrse Enrollments (Ntilion N Student

Year linusWt) (NS Rfnoupt)

1986 3,743 3,655 1,024

1987 3,835 2.2

1988 4,044 5.4 3,802 1,063

1989 4,332 T.1

1990 4,845 11.2 3,927 1,234

1991 5,850 20.7

Note: 1986 to 1990 recurrent xpenditures are actual whilt the 1991 figure is the budgeted one plusa recent request for suplementation.

mm-

- 48 -ANNEX 4

Page 1 of 2

MALAYSIA

THIRD PRIMARY AND SECONDARY EDUCATION SECTOR PROJECT

Table 1: F'fth and Sixth Plan Sectoral Allocations. 1986-95(NS mittion)

5NP 6HP

Prograwm Allocation Expenditure Allocation

EDUCATION 5,457 5,382 7,724

Pre-school 0 0 0

Primary Education 760 76 1,020Government and Government-aided Schools 760 760 1,020

secondary Education 1,558 1,543 2,003Government and Goverment-a.ded Schools 1,041 1,026 1,472PARA Junfor Science Colleges 65 65 51Technical and Vocational Schools 452 452 480

Higher Education 1,739 1,727 2,591Polytechnics 234 228 296KoleJ Tunku Abdul Rahman 2 2 20Institut Teknologi KARA 161 155 300Universiti Halaya 80 80 326Universiti Sains Malaysia 183 183 255Universiti Kebangsaan Malaysia 53 53 325Universiti Pertanfan Malaysia 82 82 276Universiti Teknologi talaysia 372 372 324Universitf Islm Antarabangsa 62 62 325Universitf Utaro Malaysia 511 511 144

Teacher Education 144 144 334

Other Educational Support Programmes 1,257 1,208 1,636

TRAINING 355 318 777

Industrial Training 330 299 580Industrial Trafning Institutes 104 87 112KARA Vocatfonal InstItutes 15, 152 266Youth Training Centres 54 44 27Pusat Oiat MARK 16 16 45TVEIT (C/) Development 0 0 30Attitujdfnal Change 0 0 100

Non Formal Education and Traininog 0 0 30Commercial Training 7 7 27NARA Commercial Institutes 7 7 21Youth Entrepreneurship Institute 0 0 6

Management Training 18 13 140NatIonal Institute of Pubilc Administration 12 7 130Institut Dminuddin eaki 6 5 10

Total 5,812 5,700 8,501

Note: W/ Technical and Vocational Education and Industrial Training.

- 49 -

ANNEX 4Page 2 of 2

Tabte 2: The Core IMveotmmnt Proerm

Sixth Plan Core (Phase 1) Potentlally Core (Phase I) Non/Core (d)(a) (b) (c)

Pre schootInsEarly childhoodexprimentation/chilLdmonitoring

Prlmarv educatlon£ 12000 ctassroomsfequipment 4,400 clasmrooms- library endouments x- other learning mmterials x

Secondbrv peneraL educatlon-alU 8100 CLarooms/equlpment 3,100 classrooms- 4 PARA Junior Scfence Colleges x- Vocational wings on general xsecondary schools

- Sports Schools x- Special Education Training strategy-

forilatton, experlientation- Fully residential x

Teacher Trainina- 6 TTCs 3 equIvalent

Resource Ceters10 State RCs Developent of a model

abtl 3: Sunmarv of Plan. Core IrMetmmnt Prearm. and Prolect (Phase 1)

NS million

* 6th 'evelopment PlanEdecation + training allocation S5S00of dhfch:

* EducatIon only 7,700of ehdch:

* Primary + Secondary Educatfon (nel. Teacher Training) 2A800of uhich:

* Core Investment Progrm 2,100

* Total Cost Phase I (Inct. contingencies) 872of which:

* Phase I baselfne costs 794

* Phase I Foreign Exchane (Loan * oumt) 360Note: Ammots have een rounded.

R_ gaEC

- 50- ANNEX 5

MINISTRY OF EDUCATION MALAYSIA. Page 1 of 9LEVEL 7. BLOCK J.DAMANSARA TOWN CEbkT.RE50604 KUALA LUMPUR Telephone, K.L. 25569(

DirectCable: MINISTED

Your ref:

Our ref KP(BPPP)S 02/.

Dae 2/D/1 JLD.IlI( Date: X May 1992

Vice PresidentEast Asia and Pacific Regional OfficeWorld BankWashington D.C.U.S.A.

Dear Sir,

HAXAYSIA- THIRD PRLMARY AND BZCONDARY EDUCATION SECTOR

Statement of Policy and Plan of Action for

Primary and Secondary Education DeveloDment

1. With reference to the proposed World Bank loan for the

development of primary and secondary education subsector, we

are pleased to inform the Bank of our Statement of Policy

(Attachment 1), Plan of Action (Attachment 2) and Performance

Indicators (Attachment 3) regarding the Primary and Secondary

Education Development for the next five years (1992-96).

This proposed programme is an integral part of a broader

policy to improve the quality and managerial efficiency of

the education system while providing increased access to

education and thereby ensuring that wider national objectives

are met.

2. The Government of Malaysia recognizes education as

integral to the promotion of national identity, unity and

-1 ANNEX 5Page 2 of 9

integration, socio-economic development and the eradication

of poverty. The Second Outline Perspective Plan (1991-2000)

and the Sixth Five-Year Development Plan (1991-1995) reaffirm

the central role played by education and training in

accelerating sustainable growth while further improving

equity. The project would support a substantial proportion

of the Government's education programme covering curricula,

teacher training, educational resources, staff development

and school facilities.

3. An elaboration of our objective5 and proposed plan of

action in those areas are outlined in Attachments 1 ,2 and 3.

4. We are pleased that we have reached agreement with the

World Bank on our programme. We are looking forward to your

cooperation through the annual joint reviews to ensure the

success of the project.

Sincerely yours,

Name : DATO' NOHD. NOORDIN BIN HASSAN,

Title : Secretary-General,

Ministry of Education Malaysia.

A. An C

1.

2

3.

4.

- 53- AM= Page 4 of 9

System. This system will link inputs, costs and learning outcomestowards guiding decision-making and classroom practices, and promotingresponsiveness and accountability.

B. Ouality ImRrovement

5. In recent years, Malaysia has taken steps to improve the quality andrelevance of primary and secondary education as well as reduce the urban-rural disparities in student achievement. The new primary educationcurricula (KBSR) and the new secondary education curricula (KBSM) wereintroduced in 1983 and 1989 respectively. Both aim at the overall growthof the individual. Essential elements of the new curricula includesubject integration, active pedagogic approaches, teacher-producedmaterials, remedial programmes, school-based assessments and extra-curricular activities. To facilitate the effective implementation ofthese new curricula, among others, efforts were stepped up in teachertraining, the ratio of ordinary teachers per class and special functionteachers per school were increased. Further, schools were supplied withadequate reading materials through a Textbook Loan Scheme (TLS), video,TV equipment and programmes.

6. To further enhance the effective implementation of the new curricula,greater efforts will have to be made in terms of teacher trainingprogrammes, the suitability of textbooks, utilization of teaching-learning materials and monitoring achievement in several subjects namely,Science, Mathematics and English. Steps will also have to be taken toovercome the problem of shortage of adequate facilities, oversizedclasses in urban areas and double-shifting, particularly in secondaryeducation.

7. To address problems related to quality improvement, the Goverumentintends to take the following steps:

(i) Curriculum Implementation. Every effort will be made to improvethe effectiveness of the implementation of KBSR. These include:revising the syllabus and other curricular materials; testingvarious approaches ln the teaching of KBSR and strengtheningremedial programmes in primary schools. As for secondaryeducation, similar actions will be taken to improve the effectiveimplementation of KBSM. Integration of the teaching of thinkingskills and process-writing will be explored to improve learning.School-based assessments, as well as centrally administeredexaminations will continue to be strengthened. This will includethe introduction of Standard III criterion - referencedmathematics test in a representative sample of schools.

(il) Teachers,(a) A new strategy in teacher training which involves the

cooperation between the Teacher Training Colleges (TTCw) anduniversities will soon be implemented. The introduction oftwinning arrangements with local and foreign universitieswill be part of this strategy and will complement the on-going post-graduate diploma of education (PGD8). TITCexpansion will be designed to meet expected teacher demnmd

-54-Page 5 of 9

in the future. It will also take Into account theIncreasing role played by in-service training by state,district and school resource centers, the Introduction ofnew training technologies, and the need to streamlineadmission and designate colleges to cater for specificnational needs. Concurrently, the required expansion ofuniversity level (PGDE and graduate) programmes has beenplanned and will be implemented during the proposed ThirdSector Project.

b) At TTC level, the quality of progrdames will be enhancedthrough stricter admissions screening, the expansion oftraining opportunities for trainers, and the upgrading orintroduction of disciplines or techniques deemed criticalfor the successful implementation of KBSR. Special emphasiswill be given to the teaching of Mathematics, Man and theEnvironment, multi-grade teaching for under-enrolledschools, as well as the use of textbooks and other pedagogicmaterials. For KBSM, the emphasis will be on Mathematicsand Science, Living Skills, Computer literacy and languageskills. The duration of the practicum for the basic 2 1/2year course will remain unchanged but will be spread outover two semesters.

c) In-service training will also be conducted at the StateEducational Resource Centers, Teachers' Centers (PKG) andSchool Resource Centers. It will be organized around localneeds and projects involving clusters of schools. Thesemicro-projects will address specific classroom practiceproblems while strengthening teacher support networks, aswell as improving the management and team building skills ofheadmasters. Follow-up actions at school-level and parentalinvolvement will also be given due importance.Reinforcement will be provided through the provision ofimproved teaching materials and self-instructional modules.

(ill) Teaching and Learning Materials. In implementing thecurriculum, the Ministry of Education (MOE) will continue touse a variety of teaching and learning resources, rangingfrom textbooks to relatively sophisticated technologies.Given the large investments involved and the mixedexperiences of the past, the Ministry's strategy is toconsolidate the quality, utilization and maintenance of thematerials, equipment and technologies already in use, and totest the most effective combination of conventional andalternate delivery modes before expanding or launching nowapproaches.

(a) fzftbooks.In line with feedback on implementation of the KBSR andDBSM, steps are being taken to improve textbooks andteachers' guides. These will be more self-contained whilethe workbooks will be simplified. Appropriate measures willbe taken to improve the distribution of textbooks and the

- 55 - ANNEX_5Page 6 of 9

management of the Textbook Loan Scheme (TLS) at school-level.

(b) The Resource Centre Network.The Resource Centre Network comprising of the StateEducational Resource Centers (PSPN), Teachers' Centers(PKG), and School Resource Centers (although requiringmanagerial improvements) have proved promising, and will beexpanded. However, the development of the network will begradual so a a to incorporate lessons learnt from pastexperience. New centers will be opened when adequateoperating budgetary resources are made available, especiallyfor maintenanice. Steps will be taken to ensure greaterefficiency in operations, a more demand-driven, operationalresearch orientation, tighter linkages with schools, andfeedback to pre-service programmes.

(c) Use of the Media.There will be continued effort to upgrade existingprovisions for the production, dissemination and utilizationof educational medial towards enhancing teaching andlearning. Towards this end, the development of educationalradio, television and audio-visual learning packages will bebased on the following guidelines, namely:

- a concern for the relevance of programmes to teachers andstudents based on needs assessment;

- improvement in quality of programmes and resourcematerials through internal and external quality control,as well as staff development to improve production andtechnical skills; and

- impact monitoring of the effectiveness of programmes, thestrengthening of management capabilities, and theimprovement of logistics which support a greaterintegration of educational media into the process ofteaching.

Programmes will take into consideration the needs of the remote rural schools as wellas the needs of KBSR and KBSM. At the same time, the MOE will look into thepossibility of increasing new learning modes, and introduce new technologies aimedat providing the best pedagogic support to the isolated and less experienced ruralteachers.

(iv) Research and Innovation. The focus of MOE's research programme onpractical problems and operational results will be strengthened.Research projects will be increasingly local-based. They will featurvmore systematic participation by headmasters and teachers. Researchprogramme into areas such as problems in the learning of Mathematics andScience as well as special education will be carried out. Theintegration of research, monitoring and evaluation, teacher training andadministration will be reinforced, and other considerations to bringabout effectiveness will be taken into account.

- 56 -Page 7 of 9

(v) Mathematics and Science. One key element of the Government'sdevelopment strategy is the expansion of its knowledge-based industrialand services sector. In support of this objective, measures are beingtaken to stimulate interest in Mathematics and Science among childrenfrom an early age, and to promote excellence, healthy competition,innovation in the ways these disciplines are taught or applied topractical everyday life problems. These include the introduction ofcomputers in the classroom, identification of the most promisingapproaches to the teaching of Mathematics and Science, and theutilization of materials and laboratories.

C. Equitable Access to Ouality Education.

8. A large scale school construction programme has enabled Malaysia to reachUniversal Primary Education (UPE) and 83% lower secondary educationenrollment ratio. Nevertheless, severe capacity constraints exist. Inmany districts, particularly, in urban areas, e.rollment growth has.outpaced the provision of facilities. This has resulted in a highpercentage of double shifting schools, overcrowded classrooms as well assub-standard schools which may affect instructional quality.

9. The Government's objective of promoting a caring society which caters tothe needs of disadvantaged groups, has resulted in the need foradditional facility requirements. In this respect, we plan to improveand expand special education for handicapped students. As the Sixth Plancivil works programme may not be able to accomplish all the targeted andestimated needs, we have established priorities as follows:

(i) Eauitable Access to Ouality Education: Resources will beallocated with priority to under-served/under-equipped districts,as determined by the proportion of double-shifting, sub-standardand overage classrooms, along with many other criteria which havebeen in practice.

(ii) Universal Primary and Lower Secondary Education: TheGovernment'r ultimate objective is to extend universal schoolingto 11 years IF the meantime, the maintenance of UPE and progresstowards universaal lower secondary education (ULSE) will be thepriorities. To accelerate attainment of ULSE, studies will beundertaken to determine the causes of drop-out trends and the lowtransition rates from primary to lower secondary in somedistricts, especially where SES indicators are favorable.

(iii) Increasing Upper Secondary Enrollments: As recommended bythe Cabinet Report (1979), it is the intention of the governmentto gradually provide increased accessibility to upper secondaryeducation. However, the implementation will take intoconsideration the availability of facilities, budgetary allocationand staff requirements. The demand/supply equilibrium and qualityconditions to ensure the success of the measure will be closelystudied to guide investments.

(iv) Special Education: In the effort to give more opportunityand to provide better education to the handicapped and those withlearning difficulties, measures will be taken to increase

57 - AMEX 5Page 8 of 9

appropriate education facilities and opportunities for enrollment.The Government's approach will initially focus on training, thefinelization of a strategy, and operations research on remedial-education, so as; to make appropriate decisions on physicalinveitment.

(v) Bo4rding and Staff Housing: Boarding for rural primarystudents, where this is the only alternative to provide qualityUPE and to enable secondary students from underprivilegedbackgrounds to remain in school,will continue to be provided.Staff housing, especially, to rural teachers, will be provided toslow down teacher turnover and improve commitment and efficiency.IN all three cases eligibility for boarding/housing will besubject to more stringent criteria.

D. Efficiency of Educational Management

10. Malaysia already allocates one of the highest proportions of GNP toeducation (6%) across industrializing countries. To ensure that the pastand proposed efforts generate commensurate quantitative and qualitativedevelopment and are sustainable, cost-efficiency will receive increasedemphasis. Some existing programmes which have not yielded the expectedresults will be reviewed and reoriented. New measures will be introducedand a m-'chanism will be put in place t monitor the educational andfinancial impact of key policies. Even though educational expenditureswill continue to increase to accommodate the population growth, theoverall objective will be to improve access and quality at a loweraverage unit cost.

11. Staff Development Prorramme: This programme, aimed at upgrading theskills of central, state and district level professional staff, will bedirectly linked to team projects with a specific operational objective.The following three areas will receive priority: i) the planning,financing, management, organization, monitoring and evaluation of theeducation sector; ii) the design of pedagogic materials; and iii)educational research, including testing and assessment. The StaffDevelopment Programme will be carried out by way of a proposal outliningselected criteria, as well as monitorable indicators of follow-up andprogress. Candidates will be bonded upon completion of training.

12. Management of Educational Resources. Unit costs have gradually risenacross all levels of the education system, as a result of the dynamicnature of the system. As such, attention will be given to efforts tocontain these costs and, where possible, to reduce them whilesimultaneously increasing the impact of overall expenditures. INaddition, the Ministry will undertake to increase the cost-efficiency ofprimary and secondary education during the Plan period through a varietyof measures, including but not necessarily limited to the following:

(i) Staffing.

(a) strengthening multigrade teaching in under-enrolled primaryschools which practice it, and

(b) studying staffing ratios of under-enrolled schools.

-58 - 5Page 9 of 9

(li) Facilities,Efforts to consolidate very small schools (with 20-70 students)into more economic units have been successful. The number ofthese schools has stabilized to around 800. Therefore, theprocess of intensifying the utilization of facilities will relymore on the introduction of multigrade teaching techniques, asindicated above. The reduction of double shifting, at all levels,will be carried out as and when conditions permit.

(iii) Operational Budgets.By FY1995, all facilities in the school system will receivwadequate budgetary provisions for maintenance and non-salaryexpenditures. This process will begin immediately for newfacilities and equipment, and will be spread over two fiscal yearsfor existing ones.

13. Financing of Education.In order to reduce the burden of educational development on the publicbudget, the Government will study alternative financing scenarios forsecondary and tertiary education.

14. Monitoring and Evaluation.

A basic organizational structure has been agreed upon to oversee theimplementation of the proposed Third Sector Project. As in the previoustwo Sector Projects, this structure will involve MOE's DevelopmentCommittee; a joint secretariat comprising the Educational Planning andResearch Division (EPRD) for the policy and qualitative aspects and theDevelopment and Supply Division (DSD) for the physical aspects, withappropriate liaisons with the Economic Planning Unit (EPU), and theImplementation and Coordination Unit (ICU) in the Prime Ministers'Department. Responsibility for implementation coordination will remainwith the DSD. Both EPRD and DSD will be strengthened to ensure efficientmonitoring and evaluation activities.

15. In order to measure the intended efficiency gains, and to facilitate theappraisal of the next time-slice by the Bank around end-1994, MOE willbe equipped with the tools to monitor project performance on the basisof agreed criteria, targets and indicators. The existing ManagementInformation System (MIS) will be upgraded to link educational statistics,outputs in terms of learning achievements, budgets and expenditures.

E. SnglIsaaL2n

16. Joint in-depth reviews of project and sector progress will be held oncea year on the basis of an implementation report prepared by the DSD. Theproject's resource allocation, sub-project selection and efficiencycriteria have been set so as to achieve an adequate balance betweenequity and efficiency considerations on one hand, and between hardwareand software aspects on the other. Therefore, implementation plans andperformance indicators, as far as possible, will remain with the 10*range by objective and within objectives, by programme.

FG~ _rA"u

T01RD PRI#ARY AND SECgNDARY EDUCATION PROJECTAction Plen and Performance Indicators

IMPLEMENTATION SCHEDULE PERFORMANCE INDICATORSOSJECTIVE RESPONSIBILITY ACTIONS/INPUTS/PROCESSES 1992 1993 1994 1995 INPUT PROCESS OUTPUTIOUTCONE

WlL I rTY1ELLCE

A. Curricu,um Imdementati n CDC KBSR

a. Revie syltabus and x x x xother curriculum materials

b. Continue to upgrade the x x x x Number ofskills and professionalsm headuastersof headmasters and teachers and teacherstrained

c. Implement Integrated Primery x x x I. Number ofLiving Skills In primary implementingschools for form I through V the subJectyearly

if. Numer ofteacherstrained

ES d. Carry out and analyze criterion x x x x Report ofreference test In Standard 3 nalpylsMathematics in a astle of schoolsCDC e. Try out on pilot basis various x Inber setnline dteIirnovative appeoaches to the studHef m onitoring ofteaching wnd learning of KISR proJects achieve.entsl

candwcted oncosts.CDC/FIS f. Monitor the impletentatfon of KMSS x x x x Reports Of Nonftor chieve-(to be c d irted by CDC ond the Implem.otation mintsState Curricult Comeittee)

CDC a. Complete introductfon of all KBSM x Number ofsubJects at Form I through V subJectsIntrodced

b. Complete training of resouree x NU&er ofpersontel for all subJects at resourceForm I through V persornel andother participantsinvolved

ox1 .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1

{: ~ ~i!l;' ii.ff

|~ 11 ii ;; I X ' II Ifi

THlDPIN ^* M" -cJArsu^l PROJECTACtImi Ptln mg Perfo Ittndicators

I"P U EXrarlom sesow" PERFoNUSACE raDsiATomsoBeJ iEcr RESPN3f BLUlliT AT W ZN PUrS111IMSES£ t99Qe 1993 1M19 IP7POCES ouTpurJTDuToK

b. Str thn caurss. in x x x x Xumber ofNsthemthics. Scimnce. miti- teacher traInedgrudb teaching, tfputer in eachLiter ay nd ue of netechostogy in alt TTCs

c. Restrueture the 19-eak x x x APractics into 9 eeks in_mtter rIII and 10 week

in semester VItS/TED d. Training of pwrsa tel to x x x x JuOterof Lfst ofdevetoped selfinstructifnal -staf pitot projectssodets for in-sere teachr trained developdtraining (in 1)CDC e. Trainng of ps rsomteswel x a x xes develement of sodAes for

pro-ervice teher training

f. Uporde teache trainer x x a x Naber adqu,ifficstion . of teahetrainrw withsa) let degb) N.A.

C.

1. Dte EOActien Rm a. Centime to mm inoa mmnts X X a x List ofsn Lasrig an studl nd facilities flities

b. Contimn to train fprtin x x a a 1ber ofstaff staff ntfor training

c. fenti,w. to keep an ineitotor X X X Xof equipment

d. Centlm N & E syste(lm c a a ahoos to manitor ue; form to mnitor cr_Wehenn of ii

Pico 0

THIRD AIMUT " SECOWARY gmC^I PROJECTActlo Ptan VWd Perrorzen1ce Inatcators

iMPLEMETATION SOHEDULE _ PERFORNANCE INDICATORSOBJECTIVVE RESbOUSIUILITY ACTIONS/11PUTSIPROCESSES 19°92 1993 1994 199 INPUT PROCESS OUTPUT/OUTCOME

a. Ensure adequate maintenane xen operation budpet wid

ETD/TED/CDC f. Review the utilization of the x umbear and Number of In-present *ultimedfa kits and types of service coursespackeges, nd initiate mltl-media conckcted topreduetion of new ones as packages disei Inateneeded supplied utiltiztlon ofpw.a

SD/ETD g. Detelp mid distribute on x UPSR results taCpleptlot baIs self-learning basis) coq red with:packes for ppils In a. natfonal wer aesiltigrade scools b. ultlgrad adwoolswithout elf-learning

2. eseuroe Centres F/OVU a. open budget line for each x x x x Yearly SERCResource Centre (including operationaladequate staffing opersting budget allocatednd mintwwno rssources)

ETD b. Monitor:- State Resource Centre x x x s T1ho tken I. SAbor and tWp IeenstrucRti.n/aqc ant for co_truc- of trainfog course* Attendanc tin of MEC fr SEItC staff and

nWd saiwy Of tacher

Ii. mer of teahrbro fing meaterialsfrom SC

ifi. 11h1br of tachersattending courses at SC

S. Library nd ETD a. Arrmno for prouemroent wnd s xuhr of Nuaer of boksTeaching rd distribution of library books books sopplied in chcot libraryLearning Stterfeis to new primary md secondary schoots to chools(nan-book ate ale)

b. Provide teaching-tearning x x x x Nuhber and Nudear mid tnpematerials (transp rency types Of of disseminetionmaker, VCR. OP. SW screen materials oeurses an Oh usemetc) to Mc, SERC, and supplied use of materials 0Educatonal Technology inits sppliedIn ETD & WEO

0. MrPMrD/ I tipI. ERIETD a. Appoint coordinator for each x oExflleee ndRemerch of the 4 subrprogram_

TIIIRD PI=U AM AEDR EWtIOR POECTActin Plan ag PerforMnce IndlCatJrs

IUEI%WITALItIUEiEPERPORNANCE INDICATORSeUJfllVE RESMIIILIT CTIOISIINIPUTSE S I SCNEDULE INPUT PROCESS UTPUTM/UTCOKE

b. Ensure adente PIER x X at rescrehprating funding fwid utilizedfor PIER projects

c. Specify tM pres ard x I_r resecriteria for the selectiGn casletdof prtosals, the fudri_mant NM*chni,

likaaul with IIS, finltize

d. Detern the necessay xoaf ction

*. DImnation of findinp x A Xat state nd distriet lewt

A. Soaclt EdwalAn Scho *. Opeatioal tw x xaA. ~Ji.LI~Ea1i~ Division

b. TrIning to 14rova teache x x ll r ofepertisf In th field of Participants byspetClized sere type of coursesc. DSaln and initiate x x x uSber of studies/experiment ndwr PIER projects conducted on

trial basisd. Construction of 11 new x x

prmary and seconderypecial education shools

e Finalyzetion of strategy xB. Primarv and Secondarv DSDJEPID/JKR a. Acquire land; X actual/ x x x x X ectual/pLannedpshog planned for Pninsutar, area eaquiredSabah and Sarawak by resion

b. Prepare pltnsfdesigns xfor urban schools

rc. Seminar on mnintenence and x npractfee

0

.5.

Pag~e6 of

3I ICIt St C I

iti

A= Owrd ormm In et

PERfOult INDICATOESOUdCI1E 2fE ISZIuLJTr AXTIotl uSsES 199Z 1993 1994 19ff it PROCESS GJTPUr/TE

b.Ftpr* a full IOE ets x x A1 c Of

remuialta) WUnb) PEc) -d) 13

c. Sltenr a mua atlV O s a A

-d. Sltor project _dr PVI x x x

0. Irsln tN a"f l ived In a x a xInciter rach ud flminan

f. ntuuthn th. a.fty Of x a x xof int inoltud In policyresearch onmlysis

C. EwttM nPI a. Crat5 cat ceOiftinw x Cst of 0I) prietryDivilen cmt mlysls hfnetlum sntlefn (I seiryeackastion

b. LII* ffronciat defta iots 53 N N

* nyacs fort m~~~~~~~~* s Ztaf i 1X

_p atiq hI*ts

NI/In~pm~M b. mlus bindinsrwaP. "Nt VW Illorf cm" s x a

by M, 111

flu. pavru.mn 'Veve

c. o delomnt of verridear x*t s for sit lewis (Pm I1

through gid" tlltor Edtlon at Curriculum n,ll Centre Tnse te_r -.rsalal Adil 0_1liUM Uicattaml Plmnning ad 1e-ad Division in Edaatilni Tedmotog Diislon D Pirms DivisonOOS cwlo-t 0d awly Divisimi ES Eamintl, Suilcate NOF Nlnistry of FnnS school Divlisin CSD Seri ce Division UK State Etatfion aws CentreTo leacw Eftatien Diviseon IS hdl Irptora of Sdhools SC Sdwol Resore. CutrotC Teher' Centra

- 66 -e4M 6

Page 9 of 10

Interim And lecro Indicators

Objective/lndfcetors Resp. Bas | 1992 1993 1994 1995Value

A. qLlITYIEXCUELLCE *

1. Coarer and nalyze UPSM results (atfonat averag vs a EPRD/sample of schools): Schools To be determined prior* national average Division to beginning of School* underenrolled schools with wstigrade cleaecs and trained Exm Year 93. The ENIS and PIER

teachers Syndlc. teamn wltl construct the* reguler schools with sIngle-grade elasses nd untraIned Local U. sample and experlments to

teachers monitor these frdfcators^ underenrolled schools with tiltigrad etles

with/without self learning materfals for p ts115* doubte-sesson schools* afternoon schools* schools with god-fatherlng system

2. Introdce Year 3 ath criterion-referenced EPRD/Exmtests In a sample of schools. Synd cate To be determfned by SY 93

3. Improve avalf abtlty of Key nputs in a s* ple of remote EPRD/schools SEDS

* nu*er of books/student* muaber of pages used To be determined by SY 93.* number of hours spent on m_ths The ENIS and PIER teaws

m nuer of school days wfil construct the sample* nuber of classes tauoht/day and experiments to monitor

d nsaber of classes taught/year these fndicators* 'ier of books in school lfbrary

time spent by teachers in providing remedial edection

4. improve balance between teacher suplpy nd denad by lenl EPRD/TED b/ b/and by ubJect:

* Primary - -8130 -20959* Lower and Upper Secondary: Nath +2387 + 612

scenc -1332 - 1925Engilsh -827 - 343ON -4107 - 999

5. ncrease the:X of teacher borroing materals from state EPRD/ETD/ 20 20

RCa School 20 20X of teacher attending courses at state ts Dvisions

B. CCESS/E-QUITY

1. Nonitor separately for Peninsula/Sat h/Saraak, nd by D5D 43level the nisber of:

* now clsroom built* average classroom replaced To follow standai* clmsroon sbove 46 students format* cilsses in doubte *sin/afternoon sson

2. Rede the differene in tranition rates beten the ENDnational veraoe nd the 20 lowest districts 19.6* Primry to lowr secondry 19.6* Lowr to usmer secndarv

3. Redue the differen in pa rate acrss districts EP/ To be* USP Emm provided* SWP S fdc. by lst* uP _ _ ReviIc

- 67 -

Page 9 of 10

objective/lndIcators Rasp. ase 1 9931 1994 19Valwe

C. EFFICIENCY

1. leiplement In service trafning by level, subject matter, TED and a/type of progrx (including IAB & open learnig): SOP Unit To follow standard* Teachers (by level) format* Principals* Specific functfon teachers (one-year)* RC staff* AdninIstratorsand professIonal staff

2. Inprove the design and mantenance of schootl facilittes DSD/JKRI 750Average classroom size In primary schools Finance sq.ft.

* Preventive buildirg and equipment mintenance budget to DivisIonbe determined on the basis of a study.Prmary schools

- Secondery Schools t

3. Irprove the classroom:class ratio (plaivutilfty) EPRDISD-Primary 85- Secondarv 69

4 Freeze or reduce the ru. ,r of underenrolled school EPRDI 2,400

S Increase the students/teacher ratio In udrerolled EPRM 12schoots - __.__

Bring the growth rates of educational recurrent ipenditure NOF wd ERE-(ERE) more in line with that of total reurrent expenditures NOE's 20.9X b/(TRE)* Finance (91 -92) 20.2X

Dlvision TRF-15% 16.8kP.O.

=__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (90-92) -

a/ in Project Filebi Govemrmnt figures

RbrNm INTWCAxO

-68- NEPagel IOf

MALAYSATHIRD PRINARY AND SECONDARY EDUCATION SECTOR PROnECT

Act f n Pion and Pertrnc I ndfcolorsKey Inclicator,F of Ou-tcanz

[ . . . . . lwowl~~~~~~~~~~~~190Vaueobjective Level of Indfcator Doesred Change

Education

A. Daueli riarA. Quatt Primary - Survival rates (by sex) 94.9 Mafntafn or Incrose

-USPR pass rates (by sex nd by mediu Increaesof instruction)- Naths 68/92- English 57/69* 3h 33/85

*Cognitive achievements in 3rd graeb To be Inereasmaths (by sex in a s tplo school(s) deter-

ofmied Increse-Transition rates to Form I (by sex) 86.7 Increse

Lower Secondary - Survival rates (by sex) 93.0 Maintafn or Incroese- SRP pass rates (by sex) 69.3 Incroese- Transition rates to uwppr secondary (by 67.2 Maintain

sex)

Upper Secondary - Survival rates (by sex) 98.4 Increse- SPN pass rates (by sex) 71.5 Mafntain or Increa- in scientific/stream (by sex) 24.3 Increas

Teachers Nusmber of graduates from:- TTCs 11 200 Maintain or Reduce- Universities 2.300 Increse

(broken down by sex and subJect)

- X of secondary teachers with University Incroasedegrees (by sex)

- lower secondary 9- LuPer secondary so 8

Primary - Enrotlments 2,450,000 Incrase-Femalo particfpation.(U) 49 Mafntain or Inceas

Lower Secondary - Enrollments 943.000 Incres- Female participation (U) 50 MaintaIn

Upper Secondary - Enroltments 423.000 Increas+ Form VI - Female participatfon (U) 51 Maintain

Primry - Unit costs (NS) 770 Maintafn or Reime- Students/teacher ratio (by district) 20 Increas

Secxndary -Unit costs (NS) 1,294 NMintaIn or Reduce- Studets/teacher ratio 19 Increas

Vocational - Unit costs (MS) 3.162 N':ntaIn or Reduce- Students/teacher ratfo I Increase

Polytechnic - Unit costs (MS) 2297 MaintaIn or Redcme- Students/teacher ratio 14.6 Incre se

Pre-Univerelty - Unit costs (NS) 6 533 Maintain or Reduce- Stuiehts/teacher ratio H.8 Increas

Teacher training -Unit cost (NS) 7,829 Maintain or Reduce- Trainees/Trainor Ratio in TTCs 6.8 Incrase- Number of districts with teacher/clss 42 Reduce

ratio aboev the 1.5:1 norm (pricmryeducation)

Sector -U of NOE in total recurrent budget 19.6 Pafnt&In or Incr ea-X of NOE recurrent budget allocated to 11.6 MNantafn or Inceese

non-sealary operating costsPer capita grants as a X of NMOE prilry see Maintain In realand secondary expenditures Auiex 12 term

u -

THIRD PRIR AN D SECARY EDUt0TION SECTOR PROJECT

Teacher Resirem.nts for Pr mrw and Secondarv Edat ion

Pik my 1931 1992 1998 1994 1995 1996 1997

1. OWL ovmtait 2*129.0 2.001,700 2.678,100 2.73,7700 2,00 280,600 2*54.00

2. _VU,UDI TTSdw 120.616 132,140 137A00 143 149.5n2 152,259 155.001

8 _SwiuilTed_ 19is" 19.09 19.39 19.07 1.73 18.92 19.06

4. _nmnt T.l 107.125 110.2M9 115,242 11t9 127.2 132,88 143.604

3. 3mau_oar.w 23.1 230 2.19 2292 215 21.77 20.57. TC aiusm 77 .W1 773 l1i0ma a6.2 0,470 0.470

7. TIC _m 1_u 1174 1932 17,4 22.19 10 *00 12.9403a TIC PNmuM 23.66 23003- _ _ __ ____

b.udy 1331 13t2 __ I"$ low_ lit 17s1. am% nIw ,233 1,233.20 1.49.06 1.566.60 1.57.2 1,63431 1.723.200

2. _ Too 90 1 394 121 SUN 01

4.U A4Mb _W 15.3 I.'m *3 2.12

Told Tb 1,233 1.7_ 24 0 2.61S.66 313

7.NoT__w N106 0.731 7403 "An S666 63.22 SIaN" 37o460

NMw Tuuo"

L 1 Tm 2.759 8.025" .1 4611 4,6n 4.61 5.041*. 0 rwda amam M2m AM am am10. T_ am fad. 6_120 5.377 6,719 7.205 SAM 6,723 8 ,9

11. T_O A b 9_.770IoUh 47* 101 bzkw

fK uV"M VWn 75.3 70.450 04.154 96.37 100,619 ¶Oo,469

bma C.dl 51. 4.59 4451 46.115 4150 4.632 .2.21 .622Uv~ immnm9 -w nm ammo

- 70 -

THIRD PRIMARY AND SECONDARY EDUCATION CTOR PROJECT

Dfstanc Education

Kft/packaea Discfpline Taroet Growt Nurbers

A. KIJ ON, Engisdh, Maths DOU 1,000

0. KIt #2 Pro-school Rural Schools 250

C. Packg #16 TED) KBSR 9 KBSN in-service training of teachers 10 modules, 10 copies each to 125

dfstlets RCs

D. ePckaso in(wlth TED) Teaching skills 20,000 untrafned teachers under 5 modules, 10 copies each to all

certification courses TTC and State/Districts RCs

e. PacajDivision,with USn) Core dsciplines Pupils in Prfmry, iuLtfgraded 250

Rural Schools

F Pa kahe A4 Naths (3), Osography (3). Lower Secondary Students 10 copies to each of 350 PKGsExmin tfon skills (3),

_________ CitizenshiP (1) _ _ _

- 71 -

MAXIIA

THIRD PRIMA AND SECONDARY ED 1A0

Program to SuN=ort Innovation. EXcelle

1. The Program to Support InnovatLon. ftcellengaims: (a) to assist policy makers, school managers ancand (b) find cost-effective strategies for the delivehas 4 subprograms: (i) math and science - minigrantsscience learning; (ii) programs for distant unler-Sarawak and Pahang; (iii) distance education sub-proof Interactive radio and other communications technolo(iv) a school based operational research sub-programtext of the SAR. More specific details are glven bel

Pror_ to tumort Innovatfon. Exel lnce and 11

lptmntfng Agecies EvelusN_ onftorinh

SIBPROORAN 01: Schools Divfsion. EPMD, stateINNOVATIOS IN SCIENCE Schools nd Resource DepsrtbntsAIM ATNETICS Centers

S UPROSN U.2: Schools Division, EPRDDEPRIVED UNDERENRROLLED Ecwxtf on DepartamntsSCHOOLS In three States: Sabah,

Sarauak and Pahano

SWUNPfWhR 53: ETD EPD, InqpecDISTAMCE EDUCATION Internmtfon

Instftutfon

SU8PROGRUN : EMD, Universftis snd EPRD wfth In,EDUCATIOAUL RESEARCH Tear Edwcation Institutlon

Dfvfsion

SUBPROGRAM #1: INNOVATION SCI

Ninigrants for Schools and Resource Centirs (RCs%.

2. The purpose is to stimulate innovation irscience, to increase student learning and to motivate smaths related careers.

3. Hinigrants will be made available to schools

Ninigrants to Schools.

4. The schools will be encouraged to presentproposal is for two years and includes:

(a) staff development activities: seminars, into national conferences, etc;

- 72 -

Page 2 of 9

(b) student activitlo: In-school science fairs, competitions, visits toIndustries, museum or special geographical places, student sciencecamps, *tc;

(c) indicators of achievement: methods the school will use to show thatthere has been improvemnt In the student's scence and mathematicsabilities and attitudes: for example, percent passing the nationalexaminations, percent selecting science related careers, examinationscores; and

(d) costs of the proposed activities and financing plan: how much will therohool contribute, how auch will the project pay and possiblecontributions from local industry and local agencies.

Minigrants to RC's.

5. The State RCu. will present proposals to the National Governsrent toimprova the science and m*thematic activities In their districts. Proposals willinclude:

(a) organization of district level science fairs;

(b) organization of district level sclnce camps (two or three weeks in thesummer dedicated to science actvities);

(c) district olympiads: In mathematics and science s-ibjects;

Each proposal will also indcate:

(d) parameters for measurlg the Improvements: I.e. expected increases ascience test score s* ni.bers of students who pass national examinations;and

(e) costs and financing plan.

valuation of P o .

6. The school proposals will be evaluated by the State RC's based on thefollowing criteria:

(a) feasibility: are proposed actiWities feasible?

(b) costs: are the costs reasonable?

(c) benefits: are the indcators for measuring improvement clear and wellldentifled?

7. The Science and athmaties Assoclations will be invited to participateIn the evaluation of proposals.

- 73 -ANEX 9

Page 3 of 9

SUBPROGRAM #2: SMALL UNDERENROLLED RURAL SCHOQLS

8. The purpose is to experiment with new ways of improving learning andretention in the small schools. Sabah, Sarawak and Penang will present proposalswhich will include:

(a) introduction of interactive radio - development of programs andmaterials and monitoring of results. Initially, the programs could beadapted from the LEARN TECH Project. Some initial support could beprovided by this entity;

(b) evaluation of multigrade schools in Sabah and development of specifictechniques to train teachers and to assist them in carrying out amultigrade approach;

(c) godfathering systems for isolated schools in Sarawak with very specificand measurable indicators and monitoring of results; and

(d) development and piloting of specialized materials for children who areweak in either mathematics or language, special training of teachers touse the materials and systematic evaluation of the results.

9. These proposals will be prepared by the Education Departments in eachparticipating States and will be evaluated by EPRD and presented to the annualseminars. Implementation will be the responsibility of the State EducationDepartment. Findings will be discussed with the World Bank team, at each annualreview with a view to subsequent expansion if conclusive.

SUBPROGRAM #3: DISTANCE EDUCATION AND OgEN LEARNING

10. To encourage innovation in the integration of communicationstechnologies with distance education and open learning methodologies; to increaseaccess to educational opportunities, improve the quality of learning experiences andpromote equity in the provision of teaching and learning, particularly fordisadvantaged schools.

11. This subprogram has close links with Subprograms 2 and 4 in whichalternate methods of delivery are being proposed:

2(a) experimenting with interactive ratio to improve the quality of learningand retention in small under-enrolled schools;

2(d) development of specialized materials in key subject areas for childrenin under-enrolled schools;

4.2 experimenting with different approaches to the teachinb; of the KBSR andKBSM;

4.3 new approaches to teacher in-service training.

- 74 -ANNEX 9

Page 4 of 9

12. Initially, ETD will prepare a feasibility proposal for the use ofInteractive Radio for the teaching of Mathematics, English and Bahasa, and for therevision of the Radio programs currently transmitted to primary schools. Other MOEUnits, including the Schools Division, the Teacher education division and theCurriculum division will be invited to submit proposals for the use of media inaccomplishing their objectives, Following is a list of the research topics that canbe proposed for funding.

Research Topics:

13. All sectors of the MOE will be encouraged to submit proposals forfunding under this subprogram. The following activities have already beenidentified as possible research topics.

(a) the use of HF radios to allow teachers in extremely remote schools(especially in Sabah, Sarawak and Pahang) to communicate with colleaguesor resource persons and to participate more regularly in inserviceprograms. Recent trials have alreedy indicated the suitability of thislow cost, reliable technology for data transfer and fax communicationsto remote areas;

(b) the radios would also enable students to interact with specialistteachers giving support to self-learning print materials;

(c) the use of solar or battery-powered satellite earth stations for directbroadcasting of live TV and radio programs or for video programdownloading (accelerating thu dissemination and reducing the cost ofcopying video programs);

(d) this pilot project would equip a designated number of very remoteschools with satellite earth stations powered by either solar powergenerators or batteries enabling them to receive the same television andradio broadcasts as the majority of schools. It also has the potentialto deliver live lessons from a central studio or classroom to the remotestudents;

(e) this technology would also increase the effectiveness of AV materialsdistribution, by downloading video and audio programs from thecommunications satellite to earth stations in both remote schools andPKGs;

(f) video-conferencing: two-way, interactive, compressed video provides thepotential for a high level of participation. As the cost of thetechnology falls, it is gaining wider consideration as a viable form ofeducational delivery;

(g) telekom Malaysia have an in-house network of six sites designed mainlyfor formal business meeting, seminars and small conferences. It isproposed that the MOE trial a range of activities to determine thecapability of video-conferencing. These might include presentations oflectures, cutorials and seminars for teacher inservice training andother staff development activities in addition to possibleadministrative uses;

(h) interactive computing: the feasibility of using computers linked bydata bridge to deliver computer-based instruction to rural schools needsto be investigated in addition to current schools computing projects.

- 75 -

ANNEX, 9Page 5 of 9

This would make use of another technology to more equitably shareavailable expertise across the country;

(i) selected schools could be linked on a network for the pilot projectwhich would also trial a range of hardware and software. In addition,the use of satellite communications for distribution of computer-basedlearning materials could also be investigated.

Evaluation of Proposals:

14. Similar criteria to those suggested in Subprogram #1 would be appliedto proposals submitted for funding under this Subprogram:

- The feasibility of the proposal- The cost of the proposed trial- the potential benefits of the application- The appropriateness of the application to the educational environment- Policy considerations

SUBPROGRAM #4: EDUCATIONAL RESEARCH

15. This subprogram will be coordinated by EPRD and carried out by theTeacher Education Division, Malaysian Universities and Research Institutions withthe collaboration of well known international research institutes. Following aresamples of the kinds of research topics to be included.

(a) Development of curriculum based assessment in Remedial Education;

(b) Models for delivering education to pupils with special needs;

(c) Development and try-out of self learning modules for in-service and pre-service training of teachers;

(d) School-based research. Qualitative methodologies to identify, describeteaching methods and propose alternatives;

(e) New strategies for teaching mathematics in rural schools;

(f) Improving methods for teaching mathematics in lower-secondary schools;

(g) Home and community based pre-school programs.

Program Pregaration Seminars

16. A series of seminars will be organized for the development of proposals,monitoring of the programs and dissemination of results. At least one seminar willbe organized every year for these purposes. The Twin Institution will participate.

17. The first seminar will take place following the negotiations of theproject and will have the following objectives:

(a) Presenting proposals that Universities, Research Institutes andEducation Bureaus would submit for financing and discussing them withthe evaluation panels;

- 76 -ANNEX 9

Page 6 of 9

(b) Presenting results of similar programs being carried out in othercountries to stimulate the presentation of proposals for the second yearof the program. Well known international researchers would be invitedto summarize the international experiences with (a) math and sciencelearning, (b) improving learning in small schools, (c) distanceeducation and new technologies and (d) education research with empbasison cost-effective practices and efficiancy analysis; and

(c) Promoting interaction and exchange of ideas between Malaysian andinternational researchers.

18. Seminar Organization and Agenda. The seminar will be organized by EPRDwith University Sains Malaysia. EPRD will prepare a list of participants fromMalaysia (approximately 30) and a list of 4 to 5 International Experts to beinvited to participate and present a summary of programs that are being carried outin the rest of the world. (IIEP and the Bank can provide assistance in identifyingthe experts.

19. A possible agenda:

First Day: Introduction of Participants.Presentation of Malaysia's Research Programs. (EPRD)Presentation of Bank Financed Program and Subprogramsin other countries.Four groups: Presentation of Subprograms/Proposals.

Second Day: In four groups: Presentation and Discussion cf Proposalsto be financed by the Project. (Each group will discussone of the four subprograms)

Third Day: Presentation of International Experiences.

Fourth Day: Meeting of the evaluation Panels for each of the foursubprograms to agree on proposals to be financed.

Fifth Day: Summary and Conclusions.

20. Budget and Financing. A specific Budget for the seminars will beprepared by EPRD. The seminars will be financed by the Project and the firstseminar will be financed with funds available under the retroactive financingscheme.

Page j,EM, mwIES an nWs

PRtE l FOR IWIWATIU, E O1W M13 NiESEe

FRSXaUUllE PROWECTStACTIY1TIES WO-ORDINATOR INPLEINTIMG AGENCIES EVALAtATING AND ESTIMATED COSTSN.SOITOhIG AGENCIES |_r

1. SUB-PROG E 1 $choots SD schoo District Eduration Offices, S1'000 00(Unit Science and Math) State Education Departments and

EPRDInnovations in 1) Minirdgres for Staff $3,000 - $5,000Science and Dewelopment activities: per schoolMathmoatics

- seminar- in-school workshops

a attendance to mtionalcenferences etc.

if) Ninigrants for Studentsactivities:

- in-school sciencefairs

- competitions- visits to industries,

LAnaDm on specialgeographicaL places,students sclencecaps.

Resource Centres - PKGs ETDState Resource Centre District Education Offices, UC= 10,000 per

0) Minigrants for State Education Departments and Sl 000000organization of EPROD with Malaysiandistrict levtl science Mathematies Associationfairs.

ii) Ninigrqnts forwranfiuatlon ofdistrict levels scienceeps.

iii) Ninigrants for districtolypopada: InMathemtics and Science

subJects. £750,000including staff

iv) Prodcction of Ketatan Resource Centre Kelantan Education Departmnt, trainingEductianl MWedia ETD and EPRM. awmnting toMaterials: Production $125,000 ndof Teaching Materiats consultancefor teachers under fees saowttingIntegrated Approach for S75 000 athe Subject hNan and S5500400his Enviro,uent.m

v) Proposed graded Kedah Resource Centre ETD, EPRO with lnternational $700,000Mathema tics instution.

Materials ProJect World BankCosts $3.2a

Page a of 9Rusm AM STUDIES AiM iNUITS

PROGRE FOR IWMATIE, CGELLB9CE AM REARCU (cent.)

PROGRAINE PROJECTSIACTIVITIES CO-ORDINATOR INPLEMENTING EVALUATING AND ESTIMATED COSTSAGENCIES WONITORING AGENCIES2. SUB-PROGRAIUNE 2 SD

ODprived I) Development of self- Sabah State Eduntation Schools Division wnd EPRD, S786490 lncludingsmall Rural instructional modeles Department Inspectorate staff training viz;Schools wnd poor for kultigrade Schoole i) EducationalUrban Schools In Sahab. visit to NewZealand S75,000.

ff) Paha*ng Saruaak ff) Training of 20proposas tachdws813.830.

" i) Studi visit toRECV S5.525. S9,135

3. SUW-PRaUMUE 3 ETD ETD, Edue tfon Departments EPD, ETD Inspectorate 10.5 .ftlionof Sabab, Sarawk anDistanc E iAcation Pd'wh . CDC

4. SU-PROG PE 4 EPRo Schools Division with U3 EIPR with international 120B.040f) Interactive Radio in t CDC instftution.Edueatf on Research of underenrolledschools. Delop entof curriculum baseasse"ssmnt (CBA) inRenedial Eduecatin.

Schools Division with tEM. EPMD with international S 29.200if) A study of Different institution.Models of servicedeliveries nddifferent models ofIntegration for specialneeds PupitlsStudents. EPRD with international $1,483.200

Teacher Education Division. fnstitution, RECSAM. lncluding:111) Development of *.lf-taught Nodule in 1) trafning of keyMathmatics for pre- persoem -service trainee S133S600teachers and in-serviceteacher. .

ap~

FMM, suaIS Am mwnPFR EM FOR IUWATIOU EXLUE 0M EihMCU (cont.)

OCUM - PROJECTS/ACTIVITIES | c-DmiNATO i INPLENETING | EVALUATING AND | ESTINATEDAGENCIES MONITORING AGENCIES

it) corulttancy-S164,000. Si,1es,600

rv) Leocty basd actien School, PPD. PP State S 30.000research. EdzatienDepuubt.

v) Strategies in the Pahang Resource ETD. ED with SS01000teachfng of Centre internationalNathemeties in rural institvtionprimry schools.

vi) I cwoing the Quality Terengganu Resource ETD, EPD with S621.000of Teaching and Centre internationalLearning Nathemetics institutionin Rural LowerSecon"dry Schools inPeregu.

vii) Nome and commauity- SD SD, U1N SD, EPRM with S 29.964bused Pre-sehool internationrlProgra_m. institutional

viii) Third GradeMathematicsAssessments.

PALAYSIA

THIRD PISIARY AND SECOMDAY EBUCATIO SECTOR PRCJECT

T bts 1: Prolections of Enroloients and Clasaromn Reuuirements

Student P' es hi Teacher Needs SI- ~ ~~ "4iev of ClassrDoas---

PriodV (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)LOel of EdM. Eqpmisn eRidtlan Reduction Replacetent Total Nt uer of New Qulity Total Scenario ScenrIoof double et..46 Cl_as t iqx v. o1 * 2

_ _ _ _ ___ #ses0u _ __ __ __ _ _

prim"urf 12,235 S,167 n.s. n.s. 17,395 n.a . 646.224S _edo 8,5 S.97 n.s. n.s. 17.81 n.a. ._Z.6Total Needs 2.067 fC4.14C 35.211 1.269.78-

Primry 9,640 1,070 1,070 11,780 13,859 420,500 92,283 S12,783 21,204 15,245Sseco,ry 4.050 1!51t 506 2.024 lI.? 99.5 119.512 3°9.024 14.5 3i..Total Ptan 690 1518 r 1,576 3,094 25,595 f60,012 291,795 911,807 35.780 29,821 c

00

t1992-95)Primary 3,536 n84 4,420 5,200 141,440 35,360 9,360Secondary 1.566 1.6 3 534i244 53.24 Z&L

Total Phase I 5,102 2,450 7,552 9,739 194,684 88,604 17,530

pgc: Goven nt and ission eatf ntes

W Based on the preseont tlssroot:css ratios of 85X ond 6W respectively for prfmry and secondary educ tion.i Based on primery and mcsc clry students:cls ratios of 07:1 (regutlr schools) snd 34:1 respectively.aI Scenario fIfs based on the present primary and secondary teachermclass ratios of 1.8:1 for both levels. Scenario J2 Illustrates the potentialfor officiency gains with a teaKtewr:cles ratio of 1.3:1 at the prfimry letel.

Fitlm: construc.e

- 81 -

=E 1 1Page 1 of 4

MALAYSIA

THIRD PRIMARY AND SECONDARY EDUCATION PROJECT

Staff DeveloRment Program (SDP). Specialist Services. StudiesDevelopment of the Twinning Arrangements

1. Rationale. It is proposed to group project software activities (staffdevelopment, specialist services, and studies) under a limited number of "umbrella'Twinning Arrangements in order to: (a) maximize the internal cohere?;ce and synergyof these activities towards project objectives; (b) facilitate their management; and(c) achieve economies of scale.

2. Partners. The Twinning Arrangements would be contractual arrangementsbetween (a) MOE, through its Central Staff Development Unit and (b) one, or aconsortium of, reputable international Uriversity(ies) or Institutions, inassociation with (c) Malaysian universities.

3. Coverage. The Twinning Arrangements would cover: (a) long and short-term fellowships overseas; (b) specially organized courses abroad; (c) in-countrycourses; (d) short or medium-term specialist services in the form of attachments,or punctual visits for specific operational tasks (e.g., an "expert panel"); (e)studies, operational visits, and seminars.

4. Criteria for Selection. Like in the engagement of consultants,competitive bidding is not an effective method to select the twinning institutions.'The dominant factors in choosing twinning institutions are their competence andexperience and the staff assigned, the quality of the proposal and the relationshipbetween MOE and the twinning organizations.

5. Areas of Concentration. The Twinning Arrangements would be limited tostate-of-the-art, cutting-edge areas and disciplines which are relatively new toMalaysia, or for which training at the desired level is not yet available, or whichpresent particular practical problems of a technical, logistical, or financialnature. Given these criteria and the project objectives, it is proposed that thetraining, specialized services and studies be organized around three "thematicclusters": (a) pedagogy (about 40% of the costs of this sub-component) and (b)educational cost/ financing/ efficiency (about 40%); and (c) other specializedareas, such as early childhood development and special education (20%). Table 1shows a tentative breakdown by discipline.

6. Kev steps. Malaysia already has extensive links with a network ofworld-class universities and institutes, and is already familiar with the steps tobe taken to develop a full Twinning Arrangement. In broad-outline, these wouldinclude:

(a) designating a small task force, headed by a high level coordinator, tolead the process; this task force, as is, or restructured withinvolvement of the twinning partners, would be subsequently in chargeof managing implementation of the Twinning Arrangements. It should benoted that the proposed EPRD Staff Development Central Unit, althoughnot formally created, already operates under the Chairmanship of MOE's

- 82- ANNEX 11Page 2 of 4

Deputy Director-General I. Formal establishment of theUnit would be an implementation criterion for the SDP, toensure that full-time staff is available to manage theprogram;

(b) preparing Terms of Reference for the Twin Institutions, including: (i)tasks and functions to be performed; (ii) responsibilities inassisting MOE with: the final design of the twinning programs,identifying qualified specialists, ensuring the timeliness and qualityof services performed, M&E, progress reporting, activity and impactmonitoring; (iii) budget and an outline of the financing and accountingmechanisms (revolving fund, SOEs, etc...), auditing; (v) a tentativeschedule of implementation (end-August, 1992);

(c) shortlisting 3 to 6 potential Twin Institutions for each of theTwinning Arrangements envisaged (end-September, 1992);

(d) sending a Letter of Invitation to the shortlisted Jnstitutions andinviting them to submit a proposal (end-October, 1992);

(e) for each Twinning Arrangement envisaged, evaluating the proposalssubmitted and obtaining detailed information from the top twoinstitutions selected through field visits (end-December, 1992); and

(f) selecting the Twin Institutions, negotiating and signing the TwinningAgreements and proceeding with implementation (end-February, 1993).

7. Timing. Given that the above can be a relative'y lengthy process, itis proposed:

(a) that it be conducted on the basis of a plan, covering the above steps,which was reviewed at negotiations (the draft Letter of Invitation wasprepared for negotiations as part of this plan) and monitored duringsubsequent Annual Reviews; and

(b) that interim arrangements be made, for instance with prospective TwinInstitutions, or with existing sources of services, to ensure smoothinitiation of key project components (e.g., upfront training of MOEstaff in advanced analytical and quantitative techniques for the EMIS,detailed design/initiation of the PIER/research component), as long asprovisions are made to ensure continuity between these, and the finalarrangements.

Because the early start of the PIER and the EMIS components is critical to thesuccess of the project and because these two components involve approaches which arerelatively new, the contracts would have to be signed by March 1, 1993.Finalization of the other Twinning Arrangements may take somewhat longer, althoughit would be highly desirable for the entire program of training, specialist servicesand studies to start as early as possible.

3b IYEAI

NA AYSIA

THIRD PRIMART AND SECONALRT EDUCATION SECTOR PROJECT

The Staff Develoment Proorma tSOP): Trainina. Ssecialist Services and Studies

Specially In-Country Local, Govt.- StudyArehlObjective (X of SDP Cost) Specialist Services PH.D N.A. Designed Special Finmced Studies* Tours___ _ _ _ _ _ _ _ __ Course Courses .

A. PAGOGY (40S) (6 to 12 (6 to 12weeks) weeks)

1. Curriculue and methodology 6 months 1 3 40 staff 125 staff IAB, Japan- New tewchng methods (Cuttigrade) Universities, Korea- Path nd sciene RCs Singapore- School nagemen skills Colobia

2. Edocational Research 12 months 2 2 25 staff 75 staff Local USA- Design of PIER Universities, Canada- limpementation RCs- ,raining- Dissemination

3. Testing end Assessment 6 months 1 2 25 staff 75 staff UK, USA- Training- Design and iapleentation of grade 3 & 4

assessment- Introduction of criteria in UPSR co

12 months 2 3 35 staff 75 staff USm Australia4. Educational Technology Bolivia- Training in instructional design Canada-Developmant of Radio, TV, audio programs, kits Hong Konoand packages

- Development of H & E forms- Interactive radio- Coputers in education

Open learning- Research on technology 125 staff 350 staff

Sub-Total 3 staff year splitbetween Peninsula,Sabah and Sarawak

S. COST, FINANCING AND MAGEMENT OF EDUCATION (40N)

1. Planming and maagent 18 months 2 3 100 staff 150 staff IAB Chile- O & M France- Norms UlK, USA

- Efficiency analysis- Decentralization

A)2. Advanced policy analysis & quantitative techniques 18 months 2 3 5 staff 50 staff Chile m- Cost and financing (upfront) France ;- Investment scenarios 20 staff UK, USA- MIS mengement and use o- GIS- Costing techniqes

Sub-Total 3 staff year split 125 staff 200 staffbetween Peninsula,

I Sabah and Sereak I_I_II

Specially | In-Country Local, Govt.- StudyArea/ojective ({ of SDP Cost) Specialist Services PH.D N.A. es,ed special Financed Studies* Tours

______________________________________________ ________________Couirse Courses ____________

C. SPECIALIZED AREAS (202

1. Early chiI ciood 6 months . 2 France- Review of on-going progra ard option Chile- Prepare and implement school-readiness Korea- Design profile and implementation of India USA

complimentary pragrems

2. Special education 6 months . 2- l.aining To be- Experiments deter-- Strategy mined

Sub-Total _ _I 50 staff 100 staff I

Total 7 staff year 10 20 300 650 staff 19,Q00 staff

Note: *Studies (priorities to be agreed at each review mission)

A. ULITY

(a) Clinical skills of teachers and ilpact on remedial instruction;(b) Teachers decision-making and use of inputs in the classroom;(c) Correlation between teachers education and teaching practices;(d) Self-studies by TTCs and teacher training models in developed countries;(e) Impact evaluation of radio and TV programs; 00(f) Teachers time allocation and students, time on task; 4(g) Comparative study of maths/science teaching/achievements in single and double shift, multigrade and afternoon schools; I(h) Impediments to maths/science achievements in primary schools;(i) Staffing and use of per capita grants in maths/science achievements;(j) Child status and school readiness profiles;(k) Sumnmary analysis of research findings in Malaysia: destination Ml school leavers; determinants of achievements; the operation of smalt schools; impacts

of specific initiatives;(l) The economics of input mixes in s&WIl schools;(m) Comparison of "value-added" achievements betwpen pupils in regular, fully residential and Jr science schools.

B. ACCESS/EQUITY

(a) Patterns of female education and achievements in Malaysia;(b) Study of States with opposite poverty/achievement variables.

C. EFFICIEN f

(a) Educational Resource allocation and expenditures in Malaysia 1987-92: levels, patterns and efficiency;(b) Financing scenarios for developing education during the Sixth Plan and Study of justification for increasing WOE's recurrent budget beyond the present

19.6%;(c) School maintenance practices in Malaysia;<d) Scope for improving the quality and durability of gotong-royong construction;(e) Study of personuel: staffing patterns, skills and training needs, incentives;C() Scope for greater decentralization in educatiorna management in Malaysia.

Filememe: SDPSS.A11 S

NLUAYITHIRD PRIPARY AND SE"ARY EUCATION SECTOR PROJECT

Edckation Manasement Informntlon Svst_

Issue Obiective/Activities Responsibilty Timing Indicator CommentsA.a PDat lig of 1. Inmrove horifont ipteoration: _: Mars - Jure COi fiance Twiming institution to be

- Integrate InanciaL (budgetary, EPRO/Computers 1993 wit NMOE lwoLved from the outset forcosts, and expenditure) date into Dfv./Fin. Div. data use this entire cosponent (design1. be k harizental ENis MfE: Ptan (cf C and iapt;nentati" pase)integration - review codbooks Budget Division below)leading to ack - determine uhich data bseQs shouldof access to be tilned on a permeibntly/ad hocexisting data or basis (corceptul frmwork)dupLica ton in prepre Coeputer programs todata collecting ggregte and merge data etsefforts. di d nsseiate nformation tout the

intagrated data bais to relevantNHE division

2. Utilization of 2. Streofthen th use o data for E: Nars - Jun List, Inl. To be reviewed at 1st reviewERIS dota ftf jon meklns om: EPUDIFin. Div./ 1993 respn1bi- mission; special attention to befocusigoan -nop n of cross- TED/CDCfSchools lities paid to peer reviewing ndsystea diisional special studies *round Divis10nr dissednation mechoman;description, research or evalution qustions EXJ Syndcate Cocpl1ince monitorfns to take plce everytrend coabining dta already available Tech/Voc. with NME year.idantification, with aditional dat coll cted on Inhstr..of data useproJect a sope bsis at a deegragated F1roIt . Pltn -Ex:monitoring, leel (scdho or below) Bud9et Diision GIS, Bridgesprojections us new m ltsis, lntwrpretation Ps9in for*d presenta ton tedmiqua for: FY94due ation p4lnming/statisticsstudbnt performance; castingnuu;F bud t preparation;enpenditure eontrol/ ecosmtird

3. Nad for 3. t ind.catom nd Sam as abo Prior to 93 Set of The set of Indicators need nrtindicators of an mt calm tee Anmal indicators be different fram those proposedeffetivnass and sury nformation needs of weiew in the Apprastl Report.efficiency dfcSion- aketr In NME nd HOFrelevant to OE's - review r portin reupyremnts ofnd MOfPs HOF or other ministries

conoern - iduitffy crfVteal tst ofindicators to allow omrLydetection of diarerpanes/problems

B. Need to Sag= tb 1. Strenethen the udbet creoerationF1nance iistrv s process

S establish nd maintain a cost W Finranc Prior to 93 First Report First Report to focus on cycLe£ff1sfev snd saccountinganalysis function in Division/ e Arutl by 92 fitaL unit costs and corpcnents;the Finonce Divfsifn Schools Div.I Review Review agenda for subsequent work to beIbnaoeUR!1 Service Div. discussed-Redvw norin and standards Every year As per Anrex Trend should be towards Q(personnel, mterials, areas, at ArniaL 6 maximizing outputbudget) NOE: Review (effectiveness) for a givenEPRM/Finence LeveL of inputs (cost) or o -Div others minimizing costs for the same"OIF: levei of outlouts

_blective/Actfvities Resoowibilitv Timfn_ Indicator CamintsC. t1. Preomir m-wide at" for t use

a aoint high-ltel coordinatsor EM (PaticyI Prlor to 93 Coordinator impte enttion of Ptan to befor: coord7nating lntegratior of Research Div. Anml available to nonitoreri at Amal Reviewsfor Decision-Nakirn data bese; develcpingj qal. mnting or Computers Reiew guide post-Yti-poicies to isprove data access; Div.) ppraisaLpreparing data use plan d sslaIn

- clarify llnso ofauthoritylrespasibhilfty for: Plan to bemonitoring aa bas _ od reviewed at

accssing WOE dota; initiating/ 93 Amualcoadacting/disseminating policy Reviewresesrch, evwau.tion andmonitorng r sults

- udpt data collection plan todetermine data to be collteted onn Wenuel basis, cenwwa basis, or

spcial tudy bfi

2. TrainUM awf- study Visits of ether DIUS NMEIfhP 1993/l94 Nubr to be Total not to *xescd a staff-

dbterined: m*nthsUSjMeuicoIEvatu tion

- sbort tom training of EPU staff PID Isdi*te uNorb/in policy nd statistica I tnlyuis Training Respectivety 6, 3 nd 4 staffand in advanod analytical cespteted months over a 3 year-periodt eniqaos (GSI)- lone-ture training for EPD staff EIR Bogin 1993 6 staffin data and plicy analysfi 30 staff-years (Phs)- traininf wrkshosd on policy EIRD lgin 1992 9 wee&s overl picatlom of We indicators 3 yeas

tralnd3. £rIMarLindLu...NW Vmi

- UnresI th r rPaLICoqAaters 1993 To becosputer Ilfnk to the mInfram Di'rifonf detwin dFirnce wth TwinDfvision Inetitutioni- increase the nuer of micro S microeoputers r valable for MIS Use conputwr

- incr eas the avalabIlity of micro Softwarcoquter basud data mergomcnt *d avaltableanalisf oftwar ,

Ff Ir 1011C.1118

NALASIA

TN113 PRINM AiM SECOSMY muTcyim SECT= PJECT

Use of the EI0 for DecisioAn-kie

Eiih r I ftalnaTWINU~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

iX~~~~~~~~~~~~~~~~~~~~~~~~~~~~~C

gv Etlon PlnioStatistics * size of the system, future growth, etc., In tew of users, facilities, physical i,puts, snd process mesueent

i $fijrPlalmFin# ne. _ sesmnt system to mesuro the learningl performnce ot students s£/~~~~~~~ * unit costs and their constituent et qionents; linked to cost anatvsis

# Fwr onel Mbf"anaont* calculation of replacement and additional .taSf °°e/ ~~~~~~~* links Ca), (c). and Cd) given goals set in (a) and (bt) ts Am* shwing E the we of it. resources

Flename: NIS.A12 _

- 88 -

AM12i 'm NOMSAI2 Page 4 of 4

THIRD PRIMAIY Am UoDR EDUCATIi PROJECT

-- ~~~~~~xs in MinSctra Nr ---

1990 1993 1994 199f 1996

PrimrPedaoalcal inmuts

- StaffingTeacher: class ratio 1.5 1.48/1.7Specfal teachers:school 5Non-teaching staff 3/13

- Starting teacher salary (NS) 545 545S- Textbook Loan Scheme llocatfon 1.3x 1.33X

as X of primary allocation

* School grants per 500 puipls (NS)General recurrent 7.250 7,250Library 1.830 1,830

Welfare servlees

- Student-teacher anul stipend (NS) 4,140 4,140- Hostel suct (NS)

Boardins (p.a./student) 60 60Food (p.d./student) 2.60/2.90 2.60/2.90

Other

- Area per 40 student clasroom (sq.ft) 750 750- laintenance per classroom (NS) I

Pedaaoeleal InrJus

- StafffngTeacher: class ratio 1.5 1.52/1.78Special teacher: school 9/15Non-teaching staff: school 1/15 6.83

iborotory personnel 8/

- Starting teacher salarie (NS)University-trained 1,170 1,170Non-University trained 5S 545

- Textbook Loan Scheme allocationas Z of secondary allocatfons 2.3 2.37X

- School grants (per 500 puptls) (NS)General recurrent 11.225 11,225Library 3,450 3,450

welfare seryfeis

- Student-teacher anul stipnd (NS) 6,000 6,000Hostels subsfdies (NS)

Doarding (p.a./student) 60 60Food (pdl./student) 2.4 2.90

- Physceal norms (sq. ft.) 750 750- Maintenanc per classrow ) (S

fan: Circuler No. 3/67( ); Finane Divslon; itilc works Dartmentj ormActuat, to be coepleted at the tim of first wAl revieto be provided by MOE/MOF

^ to be determined by OE/MF by FY94

- 89- ANNEX 13page 1 of 3

MAYSIA3rd Prfimry and Secondiry Edue tfon Sector Project

Phes 1: 1993-1996Project Cost Summary

Ns US S Totat.............................. ........................... Foreign ae"Locat Foreign Total Locat Foreign Total Exchange Costs

.............................. ........................... ................. ........................ ......................................A . Promtinr tty

1. Teacher Prof. Dev. Prog. 37.9 32.2 70.2 15.1 12.9 28.0 4S.9 6.82. Edscational Reources 17.3 24.3 41.6 6.9 9.7 16.6 58.4 5.23. Educatfon Reserch 4.5 3.0 7.5 1.6 1.2 3.0 39.9 0.9.............................. ........................... ................. ........................ ......................................

Sib-Total 59.7 59.5 119.3 23.6 23.8 4t.5 49.9 14.9S . Acess wnd Equity1. Prlmry School Expulsfon 181.8 104.2 286.0 72.3 41.6 114.0 36.4 35.82. Second. School Expansfon 191.2 119.5 310.6 76.1 47.7 123.8 38.5 38.93. T.Housfng and St.Bordine 33.3 17.5 50.7 13.2 7.0 20.2 34.4 6.4

..... i ....... ii .... ........................... ....................Sub-Total 406.3 241.1 647.4 161.7 96.3 257.9 37.2 61.1C . Iproving Nanagerial Eff.

1. Staff Develop ent 7.6 16.6 24.2 3.0 6.6 9.6 68.8 3.02. Monit.Evnl.& Policy Anal. 1.2 S.1 6.3 O.S 2.0 2.5 80.6 0.83. ProJect Management * Ach. 0.8 0.5 1.3 0.3 0.2 0.5 39.9 0.2........... ....... ........... ........................... ....................

Sub-Total 9 6 22.3 31.8 3.8 8.9 12.? 69.9 4.0Total SASELIKE COSTS 475.6 322.9 798.5 189.2 128.9 318.1 40.5 100.0Physfcal Contirgeniees 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Prfe Contingencies 36.6 36.7 73.3 11.7 12.2 23.9 50.9 7.5

............................... ........................... ...................Total PROJECTS COSTS 512.2 359.6 871.8 200.9 141.1 342.0 41.2 107.5,....................................................................................................................

Values Scaled by 1000000.0 - 10/15/1992 12:15

AAYSIA3rd Prim_ry and Secondary Educatfon Sector ProJect

Phase 1: 1993-1996NS

Project Components by Year

Base Costs TotUl............................................

1993 1994 1995 1996 MS USS

A. Proaotno Quality1. Teacher Prof. Dev. Prog. 6.4 12.3 34.9 16.5 70.2 28.02. EducationaL Resources 10.0 14.2 14.2 3.2 41.6 16.63. Education Rese rch 1.8 2.0 2.0 1.6 7.5 3.0

.................................. ........................................... ....

Sub-totaL 18.2 28.6 51.1 21.3 119.3 47.5B. Access and Equfty1. Prfm_ry School Expwnsion 78.9 110.6 87.3 9.3 286.0 114.02. Second. School Expansion 65.1 90.2 90.2 65.1 310.6 123.63. T.Nowing and St.Boarding 14.6 28.1 8.0 0.0 50.7 20.2.............. ..............................

Sub-total 158.6 226.9 185.5 74.4 64T.4 257.9C. Iqwoving Maonaerial Eff.1. Steff Development 6.0 7.8 7.2 3.1 24.2 9.62. Mnit.Eval.& Policy Anl. 1.9 1.9 1.7 0.8 6.3 2.53. Project MNagem ent & Ad. 0.3 0.3 0.3 0.3 1.3 0.5................................... __

Sub-totat 8.3 10.0 9.2 4.3 31.8 12.7

Total USALIKE COSTS 185.1 267.5 245.8 100.0 796.5 318.1Physfcal Continencies 0.0 0.0 0.0 0.0 0.0 0.0Price Contive ncies 6.6 20.1 26.8 17.9 73.3 23.9

Total PROJECT COSTS 191.1 287.6 274.6 117.9 871.8 342.0

Taxes 4.6 6.7 6.4 2.6 20.2 7.9Forefgn Exchanus 74.8 119.3 11S.S 50.1 359.6 141.1

Values Scaled by 1000000.0 10'1S/1992 12:15

-89 - ANNEX 13page 1 of 3

3rd Prb uYy nd ScodryS 4coion $"ctor ProjectPhase It IM9-1996Project Cost S&ory

USS X Total................. ..... ................. ... - -. .- ..... - Fxrorgn soaLocal Foreign Total Local Foroign Total Exchanqe Costs

A . Prootfng QulAity1. Teacher Prof. 0ev. Prog. 37.9 32.2 70.2 15.1 12.9 28.0 45.9 8.82. ducationel Resources 17.3 24.3 41.6 6.9 9.? 16.6 5#.4 5.23. Educatfon R"earch 4.5 3.0 7.5 1.8 1.2 3.0 39.9 0.9. ............................. ........................... ....................

sub-Total 59.7 59.5 119.3 23.8 23.8 47.5 49.9 14.9* . Aces nd Equlty1. Primay School Expnosion 181.8 104.2 286.0 72.3 41.6 114.0 36.4 35.82. Second. School Expwufon 191.2 119.5 310.6 7.1 47.7 123.8 38.5 38.93. T.ousing nd St.Soarding 33.3 17.5 50.7 13.2 r,o 20.2 34.4 6.4...... ~:...... i. ...... ; .... . ..... ;;. ..................................... ;;vv**e^s=*w ........ .......Sub-Total 406.3 241.1 647.4 161.7 96.3 257.9 37.2 81.1C . tIpoving Nmnsriatl Eff.1. Staff O tvelop. nt 7.6 16.6 24.2 3.0 6.6 9.6 66.6 3.02. whnit.Evn .& Policy Anat. 1.2 S.1 6.3 0.5 2.0 2.5 80.6 0.83. ProJect Nanagnemnt & Ac. 0.8 0.5 1.3 0.3 0.a 0.5 39.9 0.2

Sub-Total 9.6 22.3 31.8 3.8 8.9 12.7 69.9 4.C........... .................. ........................... ....................Totol PSELINE COSTS 475.6 322.9 79".5 189.2 128.9 318.1 40.5 100.0P I¶fcl Continaancf*e 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0PF r Con intf.cies 36.6 36.7 73.3 11.7 12.2 23.9 50.9 7.5

.... ...... o ...... ; ....................... ........................... .................. ..Total PRECTS COSTS 512.2 359.6 871.8 200.9 141.1 342.0 41.2 107.5

Valuet Scaled by 10000W0.O 10/15/1992 12:15

kJALASIA3rd Prifmry Wnd Secondary Educatfen Sector ProJect

Phase 1s1993-1996mg

Project Coionmnts by Year

Bee costs Total....... .......................

1993 1994 199S 1996 NS USM

A. prmotirn Qualfty1. Teacher Prof. Dev. Rrog. 6.4 12.3 34.9 16.5 70.2 28.02. Educ tionel Resocvres 10.0 14.Z 14.2 3.2 41.6 16.63. Eucamtfon Research 1.8 2.0 2.0 1.6 7.s 3.0

............................................

Sub-total 18.2 28.6 S1.1 21.3 119.3 47.5S. AcceUs and Equity1. Primary Sehool Expuf onn 78.9 110.6 87.3 9.3 286.0 114.02. Second. School EpaWnsain 65.1 90.2 90.2 65.1 310.6 123.83. T.Wousing and St.Boarding 14.6 26.1 6.0 0.0 50.7 20.2

.. 4......... ;T w ........................

Sub-totat 18.6 228.9 185.5 74.4 647.4 257.9C. Ilqroving ManageiaW l Eff.1. Staff Deloprnt 6.0 7.8 7.2 3.1 24.2 9.62. Naft.Evel.& Pollcy nal. 1.9 1.9 1.7 0.8 6.3 2.53. Project Nwp"mg nt & AIse. 0.3 0.3 0.3 0.3 1.3 0.5

....... ........................ .......

Sub-totat 8.3 10.0 9.2 4.3 31.8 12TTotal BASELINE COSTS 18S.1 267.5 245.8 100.0 796.S 316.1

Physicat Contfngencies 0.0 0.0 0.0 0.0 0.0 0.0Price Contine ncies 6.6 20.1 28.8 17.9 73.3 23.9

.........................................

Total PROJECT COSTS 191.7 287.6 274.6 117.9 871.8 342.0

Tome 4.6 6.7 6.4 2.6 20.2 7.9foreign Eaxdtag 74.8 119.3 115.5 50.1 359.6 141.1

.... V Scaledby .......0 10/15/1992 12:15t ugs Scldb 10010000.0 10/15/1992 12:15

- 90 ANNEX 13page 2 of 3

IALAYSIA3rd Primry and Seondary EducatIon Sector Project

Pha se IM1931996Projects C'wonents by Year

Totaels Including Contingenfes Totals Including Contingenies

.................................... ......................................................... ..................

1993 1994 199S 1996 Total 1993 1994 1995 1996 Total

A. Prosting Quality1. Teacher Prof. Dev. Prog. 6.8 13.6 39.2 19.8 79.4 2.7 5.3 15.3 7.7 31.02. Edcactional Resources 10.9 15.7 16.5 4.5 47.5 4.3 6.P 6.4 1.7 18.73. Education Research 1.9 2.2 2.2 1.9 0.1 0.7 0.8 0.9 0.7 3.2

....... ............... ............ ....................................Sub-To.l 19.6 31.4 58.0 26.1 135.1 7.8 12.3 22.6 10.2 52.9

I. Access nd Equity1. Priary School Expwnion 81.3 118.4 96.9 11.2 307.9 32.3 46.4 37.9 4.3 120.92. Seco n. School Expanslon 67.2 96.8 100.5 75.6 340.2 26.7 38.0 39.3 29.4 133.33. T.Nousin ad St.Eoarding 15.0 30.0 8.9 0.0 53.9 6.0 11.8 3.5 0.0 21.2

.................... ; ... i ... ; .... i; ........... .......................... ....................................

Sub-Tottl 16.6 245.3 206.3 86.8 702.0 64.9 96.2 80.6 33.8 275.5

C. Improving Managerial Eff.1. Staff Development 6.2 8.5 8.0 3.7 26.4 2.5 3.3 3.1 1.4 10.42. NonIt.Eval.& Pollcy Anl. 2.0 2.0 1.9 0.9 6.9 0.6 0.8 0.8 0.4 2.73. Project Nanagement & Ad. 0.3 0.4 0.4 0.4 1.4 0.1 0.1 0.1 0.1 0.6

................... ........... .................................Suh-Totel 8.6 10.9 10.4 S.0 34.7 3.4 4.3 4.0 1.9 13.6

.................... iii................ ....................................Total PkOJECTS COSTS 191.7 287.6 274.6 117.9 871.8 76.1 112.8 107.3 45.9 342.0

Values Scaled by 1000000.0 10/1S/1992 12:15

MALAYSIA3rd Prinery and Secondary Eckcatfon Sector Project

Phase 1: 1993-1996Ns

Summary Accouts by Year

Base Costs Foreign Exchange................................................... ............................................................................

1993 1994 1995 1996 Total X Amunmt

1. IVISTMENT COSTS.......... ...................

A. Civil Works 127.1 193.4 177.1 60.5 558.1 34.9 194.8B. Equipment 10.3 24.4 23.1 9.0 66.8 90.0 60.1C. Furniture 17.4 25.S 22.1 12.3 77.3 24.9 19.30. Books and Materials 15.3 8.1 8.1 8.1 39.6 24.9 9.9E. Specialist Service 0.7 0.8 0.6 0.1 2.2 64.9 1.4F. Staff Trainfng

1. Local Fellowships i Trg 2.6 2.8 2.6 1.4 9.4 29.9 2.82. Overseas Feltows * Trg 8.2 9.6 9.4 6.1 33.2 90.0 29.8

Sub-totat 10.7 12.4 11.9 7.5 42.6 76.6 32.70. Research,Studies 4 Grants 3.2 2.6 2.6 2.2 10.7 39.9 4.3H. Manogement and Adfnfetr 0.3 0.3 0.3 0.3 1.3 39.9 0.5

................................................... .................................................................. .........

Total BASELINE COSTS 185.1 267.5 24S.8 100.0 796.5 40.4 322.9Physical Contingencies 0.0 0.0 0.0 0.0 0.0 0.0 0.0Price Contingencies 6.6 20.1 28.8 17.9 73.3 50.1 36.7

................................................... .................................................................. .........

Total PROJECT COSTS 191.7 287.6 274.6 117.9 871.8 41.3 359.6

Taxes 4.6 6.7 6.4 2.6 20.2 0.0 0.0Foreign Exchange 74.8 119.3 115 50.1 359.6 100.0 359.6

Values.Scaled.by.1000000................................................................................t ugs Sc I db OOO.0 10/15/1992 12slS

ANNEX 13- 91- page 3 of 3

MALAYSIA3rd PrImary and Secondary Educatfon Sector Project

Phase 1: 1993-1996Suamary Accoaunts by Yaar

Totals Including Contingencies Totals Including Contingencies

.. ........... ....................... , ........................................... ...................

1993 1994 1995 1996 Total 1993 1994 1995 1996 Total

1. INVESTNENT COSTS....................

A. Civtl works 130.8 206.6 195.7 69.3 602.4 51.9 81.0 76.5 26.9 236.3B. Equipment 10.7 26.5 26.1 10.6 73.9 4.2 10.4 10.2 4.1 29.0C. FurnIture 17.9 27.1 24.4 13.9 83.3 7.1 10.6 9.5 5.4 32.7D. Books and Materials 16.8 9.9 1.0 12.3 50.0 6.7 3.9 4.3 4.8 19.7E. Specialist Services 0.7 0.9 0.7 0.1 2.4 0.3 0.3 0.3 0.0 0.9F. Staff Training

1. Local Fellowships & Trg 2.7 3.0 2.8 1.6 10.2 1.1 1.2 1.1 0.6 4.02. Overseus Fellows & Trg 8.4 10.4 10.6 7.2 36.6 3.4 4.1 4.1 2.8 1V.4

............ :...... ....... ;....... ... ....................................................... ....................

Sub-Total 11.1 13.4 13.4 8.8 46.8 4.4 5.3 5.3 3.4 18.3

G. Research,Studiea & Grants 3.3 2.8 2.9 2.5 11.5 1.3 1.1 1.1 1.0 4.5H. Management and Adhinistr 0.3 0.4 0.4 0.4 1.4 0.1 0.1 0.1 0.1 0.6

Total PROJECT COSTS 191.7 287.6 274.6 117.9 871.8 76.1 112.8 107.3 45.9 342.0

._._........................................... ............................................................

Values Scaled by 1000000.0 10/15/1992 12:15

NALAYSIA3rd Primry and Secondary Education Sector Project

Phae 1: 1993-1996Suamary Account by Project Coamonent

Teaher Educatio Primry Second. T.HousIn Monit.Ev ProJectProf. nol Edusetio School School 9 and Staff al.& Manage..Oev. Resource n Expamio Expensio St.Board Develp.m Policy nt &Pro. a Research n n lag ant Anal. Adm.

1. IUVESTNIIT COSTS

A. Civil W"orks 41.1 4.8 0.0 238.5 225.5 48.2 0.0 0.0 0.0B. Equi unt 2.1 20.4 0.0 14.0 30.0 0.0 0.0 0.3 0.0C. Furniture 2.1 0.0 0.0 27.6 45.1 2.5 0.0 0.0 0.00. Books and Moterfals 8.3 15.2 0.0 6.0 10.0 0.0 0.0 0.0 0.0Ei Specfolist Services 0.0 0.0 0.0 0.0 0.0 0.0 1.4 0.8 0.0F Staff Training1. Local Fellowhips & Tug 2.3 0.0 0.0 0.0 0.0 0.0 6.5 0.6 0.02. 0 #rsss Fellows 8 Trg 14.0 0.0 0.0 0.0 0.0 0.0 14.5 4.6 0.0

........................ ............................................................sb-total 16.4 0.0 0.0 0.0 0.0 0.0 21.0 5.2 0.00. R.serch.Studies & Grants 0.3 1.2 7.5 0.0 0.0 0.0 1.7 0.0 0.011. _ummt Wd Adhnistr 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.3

............... _ _ _ _..

Total BASELINE COSTS 70.2 41.6 7.5 286.0 310.6 50.7 24.2 6.3 1.3Physical Contingoeneis 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Price Continsencies 9.2 5.9 0.6 21.8 29.6 3.2 2.2 0.6 0.1

.4....i:..... _W . ...._9 ....... 14

Total CT COSTS 79.4 47.5 8.1 30r.9 30.2 53.9 26.4 6.9 1.4

Tom 1.6 0.6 0.0 8.0 8.4 1.5 0.0 0.0 0.0Foien EgxcaW 37.0 27.8 3.3 114.3 133.7 18.9 18.3 5.6 0.6

Values S-led by 10000010.0 10/15/1992 12:15

-92 - ANL 14

THIH lINET AnI UECOIAR EDUCTn 5ECTI P ECT

to t mm tho EdUetlon SIee 199 510w

19W t9@O 1000 1MO M 199S 199 199Inroll- unit Cost otal Total Cost Enroll- Unit Total

111 No Cost 1 Iwnt Cost Cost1.000 ,,, , , 1.000 Ns NS

Primry 2448 770 l.81 2.808 1.024 2,873Lowr Scondary 943 1.294 1.220 1.126 1.721 1.938Upper Secor8aryNorml 331 1 294 428Vocatioal 31 3.162 96 477 1,721 821

52 4.205 219Sixth For* 62 1,294 SO 69 1,721 119Tacher 23 7.829 160 27 9.786 264Training

Polytechnic 9 2.29 21 18 2.871 52

DpLom 2S 6.533 163 4 S166 359

UniversIty 53 10.360 549 90 12.950 1,165Other 206 49Total 4,855 6.674 8 261Ave.Annual . ------19.5- - --- 7.9 .------------Incree

As a X TotalGovt.R cExP. 17.9 19.7 19.9

Source md Notes:

J 1990 enrolmnts from EPM, Educatlonal Statistics of Nalaysia 199U-1995 enrollments from Sixth Malaysia Plan1991-95 Table S. Unit Costs for 1990 calcuated on basis of actual expenditure. Unit Costs for 1995calculated on bati- of 199M budget allotations. These sho roughly a on third IncreQ8 in unit costs. Forpost s y re enrollments ar not avilaoble, unit cost Increases are estloated at 25S to reflect lowersalary shares. it i assu d that 1992 unit costs will stay constant throughout the period.

e nt Cot IinlicatIaeu of Prolect CPhm 1)

Enrollment unit TotalIte_ Exp nsion Cost Cost

Primary 116.700 1.030 120

eeontry 53.244 1800 96oarding 20.000 9fS 19T ch rarSinin 3.600 9.860 35Total m

g Covemsnt recurrent expenditures ae assmd to incras by 7 percent a yr to the ed of the Projectperiod. In 192 thw (allocated) 1.925.. if Ninistry of Edcation expenditures increas at the samerate as veremnt expenditure by 1996. the Project incremental Sexeditures mill be equal to 270/8748 .3.1percent of total education rerrent expeniture.

mum m_aq

93 ANNEX l-Page 1 of 5

EPQLSE] THIlRD PRIMARY AND SECONDARY EDUCATI Qt PROJEGT

UGneral and Specific Implementation Criteria and Guidelines

I. INTRODUCTION

1. The Third Project would include: (a) investment elements to be allocatedat the national level (EMIS, Project management), some to be subsequentlydistributed to the States (educational resources and library endowments); (b)discrete elements to be geographically determined (TTC or university-based teachertraining places, State RCs); and (c) elements to be broadly distributedgeographically, and for which demand is expected to exceed available funding(schools, staff housing, boarding facilities, Staff Development Program/SDP, audProgram for Innovation, Excellence and Research/ PIER). Substitution will bepossible among (b) and (c) types of investments, and within (c), some selection willbe required.

2. General and specific criteria are proposed to flexibly guide theimplementation, substitution and, where needed, selection of sub-projects. Thegeneral criteria apply to (sub) project implementation as specified. As for thespecific criteria, they serve three purposes: (a) where the allocation exercise isessentially completed (as for the schools construction program), they areimplementation and substitution criteria; (b) in other cases, such as the teachertraining capacity and the RCs, they are meant to ensure that certain managementimprovements requested by Malaysian practitioners are adopted upfront (hence theterm "qualifying criteria"); and (c) finally, they were designed to act as ascreening device for the select-ion of research projects under the PIER and oftrainees under the SDP.

II. GENERAL CRITERIA

1. All (sub) projects comply with the following conditions:

(a) Relevance: the (sub) project must have been identified as part of: (i)the Core Investment Program (CIP) which covers: teacher training;educational resources (distance education and open learning equipmentand materials, library endowments); State and District RCs; primary andsecondary schools, staff housing, boarding facilities; staffdevelopment; or of (li) one of the project's software components(pedagogic research, innovation, and pilot operations in math/science,small rural schools, communications technology; early childhood andspecial education; EMIS and project management).

(b) Economic and financial feasibility: for all facilities, there shouldbe evidence that adequate provision have been made for (i) capitaloutlays in the Sixth Plan; and (ii) recurrent budget allocations,notably for operating and maintenance expenditures, including spareparts and consumables and, for schools, regularly adjusted per capitagrants; and

(c) Effliciena: to monitor efficiency and effectiveness, key baseline data(enrollment, agreed norms for staffing, area and construction,

* 94-Page 2 of 5

recurrent budget, unit costs) should be available for the TTCs (orequivalent), the RCs, schcols, staff housing and boarding facilities.

III. SPECIFIc CRITERIA

A. CiLvl NwOr 2rogrA anroi ets

1. This category includes primary and secondary schools, staff housing,boarding facilities, teacher-training capac ty (TTC or University-based), and StateRCs.

2. All Schools. For extension, replacement or new construction of bothprimary and secondary schools, their furnishing and equipm'nt:

(a) the (sub) project should (l) comply with the principles and criteriafollowed to determine allocations by State (based on enrollmentprojections and classroom:class ratios, with poverty indicators used asa complementary criterion), and subsequently by district; and (ii)remain within said allocations (Appendix 1);

(b) the (sub) project should comply with sound principles of school mappingregarding: (i) deconcentration of schools over 1,200 pupils at theprimary, and 1,600 at the secondary level; (ii) consolidation ofunderenrolled schools; (iII) the need to reach a utilization factor of80%, requiring flexible design standards, notably in secondary schools;(iv) utilization of multigrade teaching or bi-annual intake inunderenrolled primary schools; and (v) commuting distance (3 milesunder safe conditions); and

(c) alternative design features/technical norms should have been consideredto maximize cost-effectiveness.

3. Me schools.

(a) for the construction of new schools, priority would be given: (i) tomaintaining the stock of schools prior to expanding it; (ii) to primaryover pre-school classrooms to ensure that UPE is maintained; and (iii)to lower over upper secondary classrooms; and

(b) in low density areas, only schools practicing multigrade or bi-annualintake would be eligible.

4. Rgld ita14* tion. Priority would be given:

(a) in reducing the incidence of double shifting, to (i) secondary ovorprimary schools to maintain a high level of achievements, especially insecondary math/science; and to (ii) afternoon schools over doublesession; and

(b) in reducing the Incidence of oversized classes, to: (1) primary oversecondary schools; and (il) eliminating classes over 46 students priorto reducing the number of classes over 40.

95 ANNEX 15Page 3 of 5

5. Staff housing. Housing units would be provided only for schools beyondcommuting distance from a city, taking into account the development of publictransportation (3 miles by foot, 10 by bus).

6. Boarding facilities.

(a) boarding facilities: (i) could be located in urban areas due tocatchment consideration, but (ii) would only admit children from ruralarea or from poor urban families; and

(b) admission would be subjoct to the comuting distance criterion definedunder para.5; and

(c) nationwide, the proportion of boarders should be kept to a minimum atthe primary level, and around no more than 158 for the secondary level.

7. Teacher training caDacity (TTC or Universniy-based).

(a) as a aualifying criterion, any capacity extension in teacher trainingshould be based on a TTAC-approved Plan satisfactory to the Bank,specifying teacher requirements, their locus of trair.ing (TTC vsUniversity) by discipline, and costs; and

(b) all new facilities would adopt stronger programs in math, science,ZEnglish, multigrade and use of TV/radio in the classroom.

8. Resource Centers. As a aualifying criterion, NOE would submit asatisfactcry 0 & N assessment.

B. Educational Programs and 2rolects

9. Pre-schooling and snecial education. Under the Third Project (Phase I),funding for pre-schooling and special education would be limited to softwareprograms covering training, operations research, specialist services and limitedamounts of specialized equipment (no civil works).

10. Distance educatin and 2opn-learning resources. As a lcrLteri, MOE would have (a) completed the inventory and technical audit of thepool of radio, TV, VCR equipment; and (b) strengthened its M&E system to monitorutilization and assess program quality and lmpact.

11. Lirar endowmnts. Whenever needed, as determined by an inventory, thelibrary endovmerts would be supplied together with adequate filing and shelvingequipment.

C. Cotetitive Rrograms/urojects

12. PE&. Sub-projects under the PIER would be rated and screened at thedistrict and State level and selected by SPRD on the basis of the followingcriteria:

(a) link to project objectives of quality, equity or efficiency (strong: 15points; sufficient: 10; weak: 0 point);

-96 -5Page of 4 of 5

(b) feasibility in institutional and technical terms (high: 15 points;reasonable: 10 points;low: 0 point);

(c) benefits expressed in measurable terms such as applicability to a largenumber of schools, or reduction in costs (substantial: 15 polnts;moderate: 10 points; limited: 0 points); and

(d) cost and financing (low cost or large private contribution: 15 points;reasonable and affordable: 10 points; costly/limited financing: 0points).

13. Staff Development Program (SDJV. For SDP (sub) projects (includingspecialist services):

(a) as qualifying criteria: (i) the twinning arrangements, linking shortand long term, in-country and abroad training should be finalized; and(ii) EPRD's Central SDR Unit should be formally established;

(b) all applications for training or specialized assistance should fallunder one of the three clusters (pedagory, cost/financing, specializedareas); vocational training would not be supported under the project;

(c) all applications should include a draft contract between MOE and theapplicant putting the training proposal in the broader context ofproject goals with a related, concrete objective; this linkage, as wellas the benefits, feasibility and costs would be rated as for theresearch proposals (para. 12 above); the draft contract would includea bonding clause, a follow-up plan, and indicators of impact;

(d) applications for training abroad would be eligible (i) only for thosefields not available (or not at the desired level) in Malaysia (notavailable: 15 points; available at a lower level: 10 points; locallyavailable: 0 points); (ii) for qualified candidates with adequatelanguage proficiency (second degree owner: 15 points; first degreeowner: 10 points; no-degree: 0 points); (iii) as a priority, forpromoting vertical and horizontal team and network-building, providedno two staff from the same unit are sent abroad simultaneously; and

(e) applications for local training would be eligible (i) only fordisciplines directly relevant to the present or next assignment of thetrainee (direct link: 15 points; moderate link: 10; weak link: 0point); (ii) as a priority, for staff not qualifying for trainingabroad (no degree: 15 points; first degree owner: 10 points; seconddegree owner: 0 point); (iii) on the basis of at least one person perdistrict, with an effort to build teams by sending two staff.

14. On the basis of the above criteria: (a) PIER proposals would be ratedon a scale of 60 (best proposals) to 0 points; and (b) SDP applications would berated on a scale of 90 (best applications) to 0 points.

Fr_ EAU

TIPIE PENNAN AND u.caM*a.ICT TUEJT

7.4or 5 ot

Kltedahe of4 SIt lnsSiolCuto r . b

Ktelntte 6.6 5.6

klittr Ltwur (W. Pordksmn) 5.6 5.5

NeLsak 1.6 3.1

llrl 3Sb tan 5.4 4.1

Pdhn4 7.2 6.9

Peak 4.0 6.0

Pa rtis 1.9 1.9

Pulau Pinwg 3.7 3.6

S bh 11.3 15.3

Serlak 11.9 7.1

agoc 16.6 17.3

T.re,um 6.8 6.3

Fltnnm: ALL15.APX

- 98 -ANNEX lfi

THIRD PRIMARY AND SECQNDARY EDUCATION SECTOR PROJECT

Guidelines for the Allgcation of Loan Proceeds

1. General. Loan funds would be used:

(a) to support activities included in the Primary and Secondary EducationCore Investment Program of the Sixth Malaysia Plan with a view topromoting quality, expanding access and improving managerialefficiency; and

(b) to finance part or all of expenditures made under the above CIP for(a) civil works; (b) furniture; (c) equipment; (d) books andeducational materials- (e) specialist services and training; (f)research and studies; and (g) operation and administration, globallyequivalent to about 41% of the total of said expenditures.

The programs and Projects to be supported by the Loan would be selectedand implemented on the basis of the criteria described in Annex 15.

3. Allocation by Obiective/Comnonent. Overall respective allocations wouldnot exceed US$26. million (19% of total Loan funds) for improving quality, US$104.7million (74%) for expanding access, and US$9.6 million (7%) for promoting managerialefficiency. It should be noted that this underestimates the quality allocation andoverestimates the access allocation in that about US$28.2 million (20%) of the Loanwould rebuild existing classrooms where unacceptably low physical standardsjeopordize quality and therefore would not translate into an increase inenrollments.

4. Allocation by type of exRenditure. Allocations would be about: US$44.9million (32%) for primary schools'; US$52.4 million (37%) for secondary schools';US$14.5 million (10%) for teacher training'; US$7.4 million (5%) for boardingfacilities and staff housing; US$10.9 million (8%) for educational resources;US$14.8 (10%) million for training and specialist services; and US$2.0 million (1%)for research, studies, pilot operations, operation and administration.

5. Regiomal DLstributioL . Allocations would be about: 10% of Loan futdsfor the Federal District; about 65% for the rest of Peninsular Malaysia; about 10%and 15%, respectively, for Sabah and Sarawak.

6. Overall balance. In order to maintain an appropriate balance betweenobjectives, geographical concentration and types of investments (hardware/software), it has been agreed that (a) the Project would not depart from theguidelines belcw by more than 10% In financial terms by objective, State andcategory of expenditure; and (b) the amounts allocated to hardware components couldonly be revised downwards, and those allocated to softwnre components could only berevised upwards.

'I including buildings, equipment and furniture

-99- 17YlL2Page 1 of 3

THIRD PRIMARY AND SECONDARY ZDUCATION SECTOR PROJECI

Project Manwezent and Im2lementation

A. Project pMag,ement at the NA^ional Level

The proposed project will be implemented along a similar management structureas in the two previous education sector loans (Ln. 2685-MA & Ln. 2987-MA):

1. The MQE's Development Committee (MDC), chaired by the Secretary-Generalof the Ministry was establlshed to oversee the implementation of allongoing development projects. A Secretariat assists the MDC in its

* tasks.

2. The MDC Segrt,ariat brings together the senior staff from the Developmentd Supply Division (DSD), responsible for implementation together with

*aff from the Education Planning and Research Division (EPRD) toordin ze project activities. Its main functions are to provide expert

advics b.d vecommen4ltions to the Project Management Team (see item 3cbelow) in tl. implementation of policy measures, review and cc'jment onthe anv.al ekrenditure pl.ens, oversee the progress and quality of projectimplementation, raise issues needing attention and recommend solutions.Subordinate to che Secretariat are a number of Technical Subcommittees,which provide &iidance ard support in specialized fields. In carryingout its tasks, '-he Secretariat works closely with the Economic PlanningUnit (EPU) of t.c Frime Ninlster's Devartment, the Ministry of Financeand the Public Wor'a Department (PWD). It also collaborates with theImplementation Coordination Unit (ICU) of the Prime Minister'sDepartment, which is nationally responsible for overseeing theimplementation of federally funded projects.

3. The Prolect Management Team (PMT), has the overall responsibility tomange and implement the Project. The EMT is headed by a full-timeProject Director (head of the Foreign Loan Unit in DSD) who reportsdirectly to the Secretary of the DSD and to the MDC. The PMT bringstogether at the working level, the policy and technical sides of MOE viaEPRD (in turn receiving inputs from the various MOE Divisions) and viaDSD.

n- PNT is responsible for:

a. the preparation of annual implementation plan and budget;

b. the coordination of Central and State project implementationactivities and providing guidance and support to State EducationDepartments (SED) involved in project planning, implementation andadministration;

c. the administration of the project, including preparation of periodicreports to the EPU, HDC Secretariat and the lank;

- 100 -

~Z17Page 2 of 3

d. cooperating with EPRD on the pedagogical aspects of the project, inparticular the implementation of the MIS, Special Services andStudies components;

e. cooperating with the JKR, on the design and planning, bidding andconstruction, and supervision of civil works components financed bythe Project;

f. procurement of goods and services thru LCB and ICB procedures; thisinvolve preparation of bidding documents, technical specifications(in collaboration with EPRD), evaluation of bids, contract awards,delivery and installation;

g. in cooperation with EPRD, administration of overseas and localtraining fellowship programs and consulting services;

h. arranging centrally organized seminars, workshops and trainingsessions; and,

I. loan administration, including liaison with the Bank and maintenanceand supply of all records and reports as required under the LoanAgreement, including: withdrawing proceeds of the loan from theBank, maintaining the SOE accounts and arranging for timely auditsof project accounts.

B. ProJect Management at the State and District Levels

1. In each of the 13 States State Steering Committee&. (SSC) have beenestablished with the purpose of overseeing state level developmentprograms and monitoring their efficient implementation. The SSC8 arechaired, ex officio, by the respective State Chief Ministers and membersinclude representatives from state and federal agencies involved withState and District level projects, including the State Planning Unit.At the district level similar committees are set up to supervise projectsin their localities. They are headed by the respective DistrictOfficers. SSC's maintain contact with and receive advice from the MDCSecretariat.

2. Actual management and implementation of education projects at the Stateand District levels are assigned to staff at the State EducationDepartment (SED) on a part time basis with the assistance of staff in theDistrict Education Office (DEO) in concerned districts. Responsibilityfor civil works, including designs and site supervision is with the StatePublic Works Department (SPWD), except in the states of Sabah andKelantan, where the Federal Government has established since January 1991the Federal Development Office (JPP) to plan, implement and coordinateall federally funded projects with the assistance of private consultants.In this respect, unlike in the ongoing education sector loans, JPP incoordination with the SEDs, will be responsible for the implementationof the Bank supported education projects in Sabah and Kelantan. As theJPP is a newly established federal agency within the two states andrather unfamiliar with the implementation of Bank projects, the Bankstresses the need for the central PMT to provide increased assistance toJPP in discharging its tasks, especially in Sabah, where the ongoing

- 101 -

Page 3 of 3

education projects have experienced significant implementation delays inthe past.

3. The SEDs implementation responsibilities include the following:

a. preparation of the State annual implementation plan for approval byDSD/PMT and coordination with the annual central implementation &expenditure plans and District plans, If any;

b. coordination of all project activitie. in the State and provisionof support to Districts inmolved in project implementation;

c. in collaboration with the State JKR (in Sabah and Kelantan, theJPP), planning, bidding, constructing and supervising civil workscomponents;

d. in coordination with DSD/PN4T, procurement of goods and materialsunder LCB procedures, involving standard local bidding documents,specifications, evaluation of bids, contracting, delivery andpossibly lnstallation;

e. administration of local consulting services;

f. coordination and administration of local training and fellowsiipsschemes, local meetings, seminars and workshops;

g. State implementation of monitoring and evaluation procedures inaccordance with guidelines established by the 1IS component;

h. preparation of periodLc reports to DSD/PMT and to the State SteorLigCommittee and State Planning Unit on the progress and quality ofimplem_ntation;

i. maintenance Lid provision of all project related records and reportsas required by the Loan Agreement; and

J. liaison with the State Planning Unlt office in all matters relatingto project administration.

1_ rTML

_IJ->::l; '. \ J. ., |il* l 6(i_ :.; z .. ;_; ; ; ......I |" .4 - ..... ....__..

+ ~ 33" J~ * 3 1auw ,

... ... ... ... . . ....... R . .....

t 3 " x ~.. .. _....t _* , V ~~~~~~~..... in vp _ g 2 i

F _ - . 40 . ...... tX!o w

_* p Z > ~~~. .\ ...... .... _ z. t w * 5 lNN3 _ ;;iji4| " ; ; ; ; ; ; ; ;. g _ _~~~~~~~I

- 103 -

lHRD bTh= ANID SECONDJORY EDUCATION SECTOR PROJEC

Superyviion Plan

1. Under tho first two Sector Projects, Goverrment and the Bank nave putin plaoe a solid Annual Implementation Review system. The Project would build onthis system. Introducing only minor changes designed to take into account newelement introduced In the Third Project (distance education, research, and EKIS).

raviw |Tialng Focs Tools '°Ants

A. amL Pw end-April - Policy frewrk, snrollmnts, Prepratory report Tfoing wouldSifj each Wr finarce, badge, physical (by March 5) enure

bqlrMalln 1h Mparfwince, _wasmint IEIIIF, .Action Plan ovailailityl1e9Sing i E) ~fomsnce, managmarfit (EMIl Interim an outem of od_tional

fndicators statistics forthe prelvuiyear wnparuwter forpreparation ofnext budget

B. Jneud By eonFeIr - Narrow focus on on or two - _amn sbove plus - sminar to3i _ each vyer, pedagogc es{ , such as$ a sefnea take ple

beglnin In small rural schools, teac_er - prearatory rport/ outside1993 traininr, rerch and pop by mid- Kualo Ltpr

lInowatlen, science d October (e.g. ah/thnology, educational Sarak fordacentraligation, to be agreed small shools,jointly at th previous reiew. USN on ST,

te.

C. Prolmt Fwbury 19 Ob jective is for all key actors - UN - ParticipatfoniiiiR to unsmtand the variou - Irlfifg papers of EPU, NOF,

Eii-M ports of the project prepar by Univorsity nd(redactionsl, physiecl, relevant NOE loal off1-finencial WAd naerial Divisions cliat een-objectives) d their linkages - Plnary seian thaI

lterting withsmatl groepdiscussons

D. d n19nd - To datemain. dther status of - s as eudc A, Report to be(poicy as well as pwlesl) plus spcal rort prepared by

I~~IiI iq4emnfot -tfaton requires IndPIePI nt_________ _ reorietatiot n _ _i_ _t_ _n_ source

_ oAen tor_

sI au se"ao - 104 - AEM

TNID Pain"MM "lECtOMiM-EUCATIaN 8 CT PCoJECT

Prolaet Pro InrrPdt ull_ tation Idiajila

-t= i ettitun nd VLORD

Project El m nt Project Tear Total Pa _nt am rk

19ng I194^ 199"M9 tg"96

gBord P-ssntationSigningllffectivene o/Closing

CfXWl oks A/hor Trining capacity (2) 2.6 12.4 2.7 17.7 IC e

EFC Rehabilitation (4) 0.8 0.9 0.4 2.1 LCS

Priery Schoolt q/ 2.1 30.9 31.5 2.9 100.3 LCU

Secondary Schools St 19.2 27.6 28.4 20.9 96.1 LCU

Staff Houaing & Student Boarding 5.7 11.2 3.3 20.2 Lc S/

oEoul nt & F1.Mitur n t.8 1.8

SRC end Learning leacurc s 4.1 5.2 5.5 1.2 16.0 ICh/AC

Prfiry schools 4.6 6.9 5.6 0.5 17.6 ICM/AW

Secondary Schools 6.4 9.2 9.6 7.1 32.1 ICR/ACB

Staff Houaing & StudEnt oarding 0.3 0.6 0.2 1.0 furnftur OntyLO

Monitoring & Evaluation (NIS) 0.1 0.1Int#enatioal

Shoping

-lOosk £ Edctitonal Materials A/TYC's | 0.9 1.0 1.1 1.2 4.3

1CW/L=Primry Schools 0.7 0.7 0.8 0.9 3.1

ICBACWsecondary Schoote 1.1 1.2 1.3 1.5 5.1

ICB/LCB

Sreilist Servlees - Cmnaulttucles 0.3 0.3 0.3 0.1 0.9 dI

gStaf }y v, w m PreerOverseas Training 3.4 4.1 4.1 2.8 14.4 2y

Local TraIning 1.1 1.2 1.1 0.6 4.0TTC (7.1)

Studies. Research rnd SEl c al_SurtTTC's 0.1 0.1

ERC's CETO Reserch) 0.1 0.1 0.1 0.1 0.4

Progrem for Imnnvatfon, Excelttwe 0.7 0.8 0.9 0.7 3.2md Resarch (PIER)

Niscallntmous StudIes 0.3 0.3 0.3 0.2 1.1

oeration nid adnaltration 0.1 0.1 0.1 0.1 0.5

Totals 76.1 112.8 107.5 43.6 342.0(Sank Fn nc d) (31.4) (46.5) (".30 (18.8) (141.0)

Motes Figures *sy not dd up dU to reding.* Conti n_ bvond project clolno dpto uncdr a posIble Phase 11.

Contract for Tcs aesti d at USS5.0 lilon each.Snctlng pVe fpoj t neta c tie a o t MS0 Miion.

g lection of fllou using enisting CovnWant adeinistrativo porcedurw.

- 105 -ANNEX 2

THIRD PRIMARY AND SECONDARY EDUCATION SECTOR PROJECT

Selected Documents and Data Available in the Project File

I. Macro Economic Background

A. The Second Outline Perspective Plan (1991-2000), Government of MalaysiaB. Sixth Malaysia Plan (1991-1995), Government of MalaysiaC. Crowth, Poverty Alleviation and Improved Income Distribution in

Malaysia: Changing Focus of Government Policy Intervention (January1991). The World Bank

D. Malaysia - Fiscal Reform for Stable Growth (Draft, January 1992), TheWorld Bank

II. Working Papers

A. Preparation Document #1, Third Sector Loan, World Bank (Primary andSecondary Educational Development Project, June 1991), Ministry ofEducation, Malaysia

B. Preparation Document #2, Third Sector Loan, World Bank (Primary andSecondary Educational Development Project, November 1991), Ministry ofEducation, Malaysia

C. Projections for Elementary and Secondary School Teachers and the Demandfor Polytechnic Lecturers from 1990 to the Year 2000, Education Planningand Research Division, Ministry of Education, Malaysia, July 1991

D. Project Brief - State Education Resource Centres in 6th Malaysia Plan(December 1991), Ministry of Education, Malaysia

E. Studies on State Education Resource Centres (Educational TechnologyDivision, Ministry of Education, Malaysia), Ministry of Education,Malaysia

F. Educational Development in Malaysia in the Era of the Sixth Five YearDevelopment Plan, Working Paper #1 (Keith Hinchliffe)

C. Distance Education Component, Working Paper #2 (John Kirk, September1991)

H. Development of the Management Information System within the ThirdPrimary and Secondary Education Sector Project, Working Paper #3 (D.Chapman, January 28, 1992)

I. Clarifying the Government's Plan for teacher training capacityexpansion -Ministry of Education, August 1992.

jr2t

MALAYSIATHIRD PRIMARY AND SECONDARY EDUCATION SECTOR PROJECT

Structure of the Educatlon System1992

PRIMARY ' LDWER SECONDARY UPPER POS ' UPM

, , , {0{+ ~~~~~~~~~~~~~~~~~~~~~Degree', . g CerUlX~~~cauti Lowr Higer Diploa:a

1 2 . 3{ i&Tehncal Teacher

Diptoma a in Edu'ato UM

UPMUKMUPSR SRP Academki SPM STp

LVI =LowerFormVI Vocatonal SPMV ercae Dipblma HigherDiploma UKM

SmV = S aI ats wn MasUIAoaloa

TA =TMaftty S YoU .aand Cportes Porienhetr USMsPUV = Pre-UNIo rs iy 'Col

R =Re.moFe(iansyn)bs

UPSR = Ullan P e cplnSka Rendah:__:::SC = SnIoole1s2 AgriculArral ls

SPM = S et of1No1th Pe ninsb lertalateySPMV =S Petea aaMaybokasbna ::

SRF. =n Redhelra STP = SI SC Tlngg Traoran CenterTAR =T b Abdul Rahman Odig C,MrlnrCenterUVI = N ratnal UnWs U:e:yUKM = Upper Fonn VI UM = UriversHy of Maloya: _ _::

UPM = Urdvefsfly of AgriculAur . 1_2|)So MARA Trainirng IrmfhtkasWM = Urdvw*tl> of Norh Peninsular Malaysia. _ :UIA = frdenaiioinal Warnic UnhfersKy:UrM = UWniersity of TechnoloyUSM = Unversiy Sience M=aysla : I a-n Itite

. 1 2- } , Industral Trlning nstrws

8 7 8 9 10 11 12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24I I I I I I I I I I I I I I I1 I II

Age

asds~520n

MALAYSIATHIRD PRIMARY AND SECONDARY EDUCATION SECTOR PROJECT

Ministry of EducatonOrganizadon Chart

1992

mi I

MTr I IEtaft h

_ ~ Dq_o Imt

too Gfe,,1 UI,I r- -T- To WI

Edu* NOW Wm* so S&O* Exwbw Edx& Cvbl- rm Fffoo lnetop amw Zww EM&- 6ftW- tha\w

amm udm Elf Do Wm& n 8*Dv fd&=.Mtk mfm emuad Dywon D"- $00* ut Wok Meb Dw~~~~~~~~~~~~~~~~ Bo= DvW DiMm DVWM ff4 aviion %*m SK&M~~~~~~~~~~~~~~~~~~

1tttte5::Xt Sftm f %va4e Rmead bw DvW~~m Cm vo s

=rHads H565d

MALAYSIAMINISTRY OF EDUCATION

EDUCATIONAL PLANNING AND RESEARCH DIVISIONOrganIzatIon Chart

1992

D" DraftIIPtf Uni Pdbl Ui PesudhUd E WUrd Etf DO Ud

19191 tXFe ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~o83*~ ~~~~~b Pd d ^-Fa m PW fbEAbEWbSaf acDt IT wpbyv ld $P Adm~6 " m n n r of of &m* KCU)

sadsXw52656d

MALAYSIATHIRD PRIMARY AND SECONDARY EDUCATION SECTOR PROJECT

State Education Department (SED)Organization Chart

| StEtte DIrector

IDepuyDrco I | euy Director 11 Dnug| DLsctfDivislon |Educ lionD udries | S Preve Uaon E ducatond a

PAD PAD PAD PAD PAD PAD PAD PAD PAD PAD PAD

Curdculum Eckwaica of Evamaio & ocurrm IslamcSevice T Stdent 2 P&la g Uaison & S Pmay

L ~~~Teholog Exmrtor Edua1o Wefr 2S vel - 5 q

PAD = Pndpal Assistant Director Notes: 1 Includes Finance & accoutsADIS = Assistant DirectorSupervisor 2 Includes hostels, healt & dsciplneCS = Clercal Staff

Source: Ministry of Education

MALAYSIATHIRD PRIMARY AND SECONDARY EDUCATION SECTOR PROJECT

District Education OfficeOrganization Chart 1991

Dlasc EducaSon Ofie

(Assistant DisictEducation Assistant District EducationOfr - Secondary Schools Officer - Primary Schools

Supervisors SupervisorsSecondary Schools Primary Schools

Educational Clerical Officer

ZIZE~~~IZSuporn Staff 'gn'eraLaborer

Source: Ministry of Educatbon. sads\w52656a(ekw51O2SW)

MALAYSIATHIRD PRIMARY AND SECONDARY

EDUCATION SECTOR PROJECTProject Management Operational Chart

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Development and Supply DivisionMinistry of Education, Malaysia

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THIRD PRIMARY AND SECONDARYEDUCATION SECTOR PROJECT

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THIRD PRIMARY AND SECONDARYEDUCAMON SECTOR PROJECT

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