The public sector reform process across the world started three decades ago, as a large number of member countries of the Organization for Economic Cooperation and Development (OECD) have made radical changes in their public sector.
The Asia-Pacific region (especially the countries which are called Asian Tigers such as: Malaysia, Singapore, Thailand, and Philippines) has also witnessed remarkable public sector reform initiatives in terms of changing the role of state and its impact on public sector management; state/private sector relationship; resource use and efficiency; and decentralized.
Since independence, the Malaysian public sector has been the main driving force of national development.
Although its contribution to gross domestic product has reduced over time, the public sector continues to define and play a significant role through policy formulation.
The continuing challenges posed by internal and external environments, coupled with fiscal challenges and the increasing demands for better quality and more responsive services, requires continuous engagement and improvement in service delivery.
Public sector management in Malaysia has undergone a series of reforms and transformation initiatives to respond to the rapidly changing environment and increasing demands.
Strong planning and budgeting processes have been at the forefront of these reforms. Monitoring activities track operational and results-based key performance indicators at different program levels.
The introduction of the outcome-based approach in the 10th Malaysia Plan (2011–2015), which supported by the implementation of outcome-based budgeting (OBB) in 2013.
OBB focuses on detailed planning with the requisite horizontal and vertical linkages that contribute to shared or common outcomes. It advocates a Whole-of-Government approach covering processes of complete cycle from planning to results, at both the national and ministry levels. The Budget is a central tool through which development results and priorities are realised.
