Advanced Public Sector Accounting

FACULTY OF ACCOUNTANCY
UNIVERSITI TEKNOLOGI MARA

SUBJECT DESCIPTION
COURSE : Bachelor of Accountancy (Hons)
SUBJECT : Advanced Public Sector Accounting (PSA 521/520)
CREDIT & CONTACT HOURS : 3 hrs/4 hrs (new syllabus) & 4 hrs/4 hrs
(old syllabus)
SUBJECT DESCRIPTION
This advanced paper on Public Sector Accounting will emphasis onthe various
government policies and regulations as laid down in the National Policies,
National Development Policies, National Development Policies, Administration
Development Circulars, Treasury Circulars/Intructions in order to understand
and appreciate the roles and functions of government agencies in their
administrative reforms and efficient economic management in the new
millennium. This paper will also introduce the government programmes and
efforts in enhancing government systems/works by adopting TQM & ISO 9000
for quality management and using IT & Multimedia Technologies towards
paperless civil service and Electronic Government.
SUBJ ECT OBJ ECTIVES
The objectives of this subject are:
To enable student to understand the major issues in the administration
and economic management in Public Sector including the government
policies on corporatisation and privatisation, national development
plans and any related current issues on globalised economy.
To enable student to have an insight knowledge on the various systems
adopted in the modernisation of government administration system
such as Total Quality Management & ISO 9000 and the innovative
applications of Information and Multimedia Technologies in
Multimedia Super Corridor and Electronic Government (EG).
To develop students understanding on the detailed rules and
procedures relating to procurement system in the government sector
as required by the Treasury Circulars and Instruction.
To enhance students understanding and appreciation on the roles and
functions of public sector agencies such as Statutory Bodies and Local
Authorities in their administration and financial management.
SYLLABUS
(JANUARY-DECEMBER 2004)
COURSE : Bachelor of Accountancy (Hons)
SUBJECT: Advanced Public Sector Accounting
CODE : PSA 521/520
CREDIT HOURS : 3 (New Syllabus) / 4 (Old
Syllabus)
CONTACT HOURS : 4
K Economy Master Plan
Mahathirs thoughts on Globalisation and K
Economy.
e. K- Economy
Industrial Master Plan and Second Industrial
Master Plan (1996-2005) and related articles.
d. Industrial Master Plan
Government documents on NEP, NDP, OPP2,
6
th
and 7
th
Msia Plan and related articles.
c. Long Term Plan
Mahathirs Vision-Vision 2020
Mahathirs policies on national unity: caring
society & meritocracy
Government documents on Vision 2020 and
relayed articles.
b. Vision 2020
Privatisation Master Plan and related
articles on corporatisation and privatisation
Economic Policies of Mahathirs premiership
on Privatisation and Industrialisation and
Malaysia Incorporated.
a. Corporation and Privatisation
1. GOVERNMENT POLICIES
5
REFERENCES COURSE TOPICS NO. WK
Mahathirs thoughts and policies on MSC
Articles and Seminar Papers on MSC
4. MULTIMEDIA SUPER
CORRIDOR (MSC)
1
Articles on related areas
Articles on related areas
3. INFORMATION
TECHNOLOGY (IT) IN
GOVERNMENT
a. The need for IT in government
b. IT Applications in government
1
Mahathirs thoughts on Nature of
Globalisation and Financial Policies
Other articles on related issues
c. Any related current issues eg :
Economic Crisis/Globalisation
2004 and 2003 Budget speech, Economic
Report 2004/2003 and other related articles
b. Annual Budget Speech
Development Administration Circulars 1/92
and 2/96 and related articles on TQM and ISO
9000 in Public Sector .
a. Total Quality Management and ISO
9000 (Version 2000) in Public Sector
2. ADMINISTRATION AND
FINANCIAL AMANAGEMENT
2
Local Government Act 1976. 8. LOCAL AUTHORITY 1
Statutory Bodies Act 240 and
Treasury Circular 15/94
7. PUBLIC ENTERPRISE-
STATUTORY BODIES
1
Treasury Circulars 5/94, 2/95, 4/95,
8/95, 6/98, 1/99, 2/99 and 2/2001
6. PROCUREMENTS & E
PROCUREMENTS
1
Mahathirs thoughts and policies on
E-Government
Articles and Seminar Papers on EG
5. ELECTRONIC GOVERNMENT
(EG)
1
Lecturers, tutorials and presentation of
project paper.
METHOD OF ASSESSMENT
100% Total marks
50% 2. FINAL EXAMINATION
50%
10% d) Individual E-Assignment / Quiz
10% c) One Group Assignment
One Group consists of 2-3
members only
15% b) One group Project Paper
15% a) One Test
1. CURRENT ASSESSMENT
MAIN READING TEXT
1. Kalsom Salleh (1992/2003), A Study
Guide For Advanced Public Sector
Accounting (PSA 520), Universiti
Teknologi MARA, Shah Alam.
2. Kalsom Salleh (1999/2003), A
Compilation Of Reading Materials For
Public Sector Accounting (PSA 520),
Universiti Teknologi MARA, Shah Alam
Volume One and Two.
REQUIRED REFERENCES
Mahathir Mohamad, the Malaysian System of Government, Kuala Lumpur: Government
of Malaysia, 1995
Malaysia Incorporated and Privatisation: Its Rationale and Purpose by Mahathir
Mohamad in Mohd. Nor Abd Ghani et, al (eds)
Malaysia Incorporated and Privatisation : Towards National Unity, Petaling J aya:
Pelanduk Publications, 1984.
Mahathir Mohamad, The Way Forward, London: Weidenfield and Nicolson, 1998
Mahathir Mohamad, The Challenge, Petaling J aya: Pelanduk Publications, 1986
The Malaysian Currency crisis-How and why it happened? By Mahathir Mohamad
(Pelanduk Publications)
Mahathir Mohamad, Currency Turmoil, Kuala Lumpur, Government of Malaysia, 1998
Managing the Malaysian Economy, selected speeches by Dr Mahathir Mohamad,
Pelanduk Publications, 2000
Regional Cooperation and the Digital Economy, selected speeches by Dr Mahathir
Mohamad, Pelanduk Publications, 2000
Globalisation, Smart Partnership and Government, selected by Dr Mahathir Mohamad,
Pelanduk Publications, 2000
Mahathir Mohamad, Multimedia Super Corridor, Subang J aya: Pelanduk Publications,
1998
Excerpts from the speeches of Mahathir Mohamad on the Multimedia Super corridor
(1998) (Pelanduk Publications)
OTHER RELEVANT REFERENCES
Privatisation Master Plan
Government documents and related articles on Vision 2020
Government documents and related articles on National
Economic Policy and National Development Policy
7
th
and 8
th
Malaysian Plan
Third & Second Outline Perspective Plan
Industrial Master Plan & Second Industrial Master Plan
2004 & 2003 Budget Speech
Economic Report 2002/2003 & 2003/2004
K-Economy Master Plan
Administration Development Circulars 1/92 and 2/96 and related
articles on Total Quality Management and ISO 9000 in Public
Sector.
Related articles and seminar papers on Multimedia Super
Corridor
Related articles and seminar papers on Electronic Government.
Treasury Circulars and Treasury Instructions on Procurement System
Statutory Bodies Act 240 and Treasury Circular 15/94
Local government Act 1976
Malaysias Vision 2020-Understanding the concepts, implications and
challenges by Tan Sri Dato Seri Ahmad Sarji Abdul Hamid (Pelanduk
Publications)
Civil Service Reforms towards Malaysias Vision 2020 by Tan Sri Dato
Seri Ahmad Sarji Abdul Hamid (Pelanduk Publications)
Strengthening the Malaysian Economy-Policy Changes and Reforms by
Ramon V. Navaratnam (Pelanduk Publications)
Multimedia Super Corridor-What The MSC is all about, how it benefits
Malaysians and the rest of the world-Ibrahim Ariff, Goh Chen Chuan
(1998) (Leeds Publications)
Electronic Government (Pelanduk Publications, J anuary 2003)
Reengineering in Public Service Leadership and Change in Electronic Age-
Muhamad Rais Abdul Karim (Pelanduk Publications)
Local Newspapers (New Strait Times, Star, etc), relevant local magazines
(Khidmat, Massa, Malaysia Business, etc) and Government Website
(internet/intranet)
ITM, SHAH ALAM
PUBLIC SECTOR ACCOUNTING
PSA 520
Bachelor of Accountancy (Hons) Program
Fulltime and Parttime Syllabus
Prepared by Puan Kalsom Bt Salleh
Edited by Dr Nafsiah Bt Mohamad
Malaysia Incorporated
Policy
Corporatisation
Corporatisation versus
Privatisation
Privatisation
Rational for Privatisation
Objectives of Privatisation
Methods of Privatisation
Privatisation Action Plan
National Development
Policy (NDP) (1991-2000)
National Economic Policy
(NEP) (1971-1990)
Msia Development Plan
6
th
Malaysia Plan (1991-1995)
7
th
Malaysia Plan (1996-2000)
Development Thrusts
New Dimensions
Emerging Challenges
Industrial Master Plan (IMP)
First IMP (1986-1995)
Second IMP (1996-2005)
Manufacturing ++ Concept
Cluster-based Industrial
Development
CHAPTER 1-GOVERNMENT POLICIES
CORPORATISATION
Definition
Rationale/Reasons
Objectives
Examples of Corporatisation
PRIVATISATION
Definition
Rationale/Reasons
Objectives
Methods of Privatisation
Sale of equity/assets
Lease of assets
Management contract
BOT/BOO
Privatisation Action Plan (PAP)
Major Components
Privatisation Grid (Diagram)
Drawbacks/problem of Privatised Projects
Examples of Privatisation
CORPORATISATION & PRIVATISATION
GOVERNMENT BUSINESS (ACTIVITIES & FUNCTION)
OVERVIEW MAP
PRIVATISATION OF GOVERNMENT DEPARTMENT OR
STATUTORY BODY
University Malaya
Lembaga Urusan Tabung Haji
Lembaga Hasil Dalam Negeri
TNB
TMB
KTMN
POS LAJU BHD
OVERVIEW MAP
COMMERCI ALI SATI ON
CORPORATISATION
DIVESTITURE
(PRI VATI SATI ON)
GOVERNMENT
DEPARTMENT
SELF-
ACCOUNTANCY
ENTITY
STATE OWNED
CORPORATI ON
PRI VATE SECTOR
COMPANY
A BODY CORPORATE
(company Acts 1965)
MALAYSIA INCORPORATED POLICY
A policy launched in 1993 by a government
The Malaysia Incorporated Policy represents a major
component of the new paradigm in the Civil Service today
Malaysia Incorporated means that the private sector forms the
commercial and economic arm of the national corporation,
while the government lays down the major policy framework
and directions, and the Civil Service provides the necessary
supporting and ancillary services. In other words, the Civil
Service becomes the service arm of the national corporation.
The approach therefore requires that both private and public
sectors see themselves as sharing the same fate and destiny as
partners, shareholders and workers within the same
corporation, that is the nation.
Thus, the Malaysia Incorporate Policy requires that the
economic and service arms of the nation work in full co-
operation, so that the nation as a whole can gain, in the way that
a well-run corporation prospers.
GOVERNMENT BUSINESS
Began with provision of utilities eg. Water, electricity,
telephone and roads
Later involved in purely economic activities
Companies were formed to carry out trading, mining,
shipping, transport, construction & manufacturing
Many of these companies did not perform well
Water Electricity
Telephone
Roads
CORPORATISATION
The process of converting a statutory body or a department
undertaking to a body corporate and registered under the
Companies Act 1965 with equity wholly owned by the government.
A process involves the transfer of government assets and liabilities
from govt. department or statutory body to a company still owned
by the government but operating on commercial lines with
commercial accounting and commercial performance objectives.
Reasons to be corporatised before privatised
To determine the true & fair value of assets & liabilities
Replacing bureaucratic administrarion with commercial
management
Replacing centralised production oriented decisions with
consumer and market driven decisions.
Management will be more efficient & flexible and quality of
work & staff productivity will also increase.
CORPORATISATION (COND)
Benefits of Corporatisation
Bureaucratic administration replaced by a more flexible
and speed-up decision making process
Greater administrative and financial autonomy
Enhance management and staff aspects-better resource
allocation and utilisation of assets to generate income and
better remuneration to motivate personnel for greater
efficiency.
Distancing from political influence
Facilitates introduction of clear financial operational
performance targets and commercial accounting
Production-oriented decision replaced by consumer and
market driven ones.
CORPORATIZATION
versus
PRIVATISATION
CORPORATION
Before privatise
No transfer of ownership
No issue of shares
Greater control
Revenue oriented
Less flexible
PRIVATISATION
After corporatized
Transfer of ownership
Issue of shares to public
Less control
Profit oriented
More flexible
PRIVATISATION
Initiated by government in 1983.
Implemented in 1985
More privatisation from 1988
DEFINITION
The transfer to the private sectors of the activities and
functions which have traditionally rested with the
public sector. In effecting such transfers, 3 essential
organisation related components are involved:
Management responsibility
Assets or rights to use assets
Personnel
A privatisation method must involved the transfer of
at least one of the components.
RATIONAL FOR PRIVATISATION
Government strategy for rapid economic growth.
Promote greater involvement of private sectors in the economic
and infrastructure development to overcome financial burdens
and to gain expertise and greater competition.
Minimum government involvement in commerce and industrial
business to create market competition and improve efficiency and
productivity of economic activities.
Government would gain through increased revenue from taxes
collected on the profit of the company.
Rapid economic growth brings about improved living standard
and better quality of life. This reduces social & economic
imbalances & disparities.
Government should confine to basic functions of keeping law and
order and leave commerce & industry to private sector.
OBJ ECTIVES OF PRIVATISATION
Relieving financial & administrative burden of
government.
Promoting competition, improved efficiency
and productivity.
Facilitate rapid economic growth.
Reduce the size & presence of the public sector
in the economy.
Contribute towards achieving national
economic policies eg. NEP & NDP
4 METHODS OF PRIVATISATION
1. Sale of equity-applies to sale of management responsibility, assets
& personnel. A sale of equity can either be partial or complete
OR
1. Sale of asset-not involve the transfer of all the three components.
Can apply to assets of any govt. organisation.
2. Lease of assets-the transfer of right to use assets for a specific
period in return for specified payments.
3. Management Contract (Contracting in)-management expertise
of private sector can be purchased for privatising of certain govt.
activities (transfer of management responsibility).
4. Build-operate-transfer involves the private sector constructing
the facility using its own fund, operates for a concession period
and transfer it to government. (north/south highway by PLUS)
OR
4. Build-operate-Own similar method to Build-Operate-transfer
but does not involve the transfer of facility to government (TV3)
PRIVATISATION PLAN
Privatisation Action Plan (PAP)-represents a more systematic & organised
manner of privatisation policy & objectives to be implemented. PAP
consists of a 2 year rolling plan which is reviewed at the end of each year
detailing the entities to be privatised and those to be prepared for
privatisation.
MAJOR COMPONENTS OR PAP:
Flagships-GOEs which are of national importance eg. TNB, TMB
Easily Privatizable Government majority-owned entities-profitable
govt. companies already operating in competitive commercial
environment.
Restructuring projects-non profitable government companies operating
in competitive commercial environment which require financial and
operational restructuring.
Services-not exposed to significant commercial competition eg. Training,
health, services, etc.
New projects-traditionally developed by the public sectors eg. Roads,
bridges, water supply.
Listed and minority holdings-low priority since involvement of private
sectors in these entities is substantial.
PRIVATISATION DECISION GRID
SELECTION FACTORS FOR PRIVATISATION
FEASIBILITY
Ease of privatisation to the private sector in respect of
restructuring and legal changes.
Attractiveness to the private sector in terms of
competitive market position, potential growth &
financial profile.
DESIRABILITY
The benefits the privatisation can bring about to
economic development and to meet the national
policies and objectives.
PRIVATISATION DECISION GRID
CONSIDER
FUTURE
BACK
BURNER
PRIORITY
RESTUCTURING
IMMEDIATE
PRIVATISATION
Low
Desirability
(economic
policy)
High
High
Feasibility
(Ease / attractive)
Low
PRIVATISATION DECISION GRID (CONTD)
IMMEDIATE PRIVATISATION
Ranking high in ease of privatisation and
attractiveness to the private sector (feasibility)
and also in terms of governments objective
priority.
PRIORITY RESTRUCTURING
Ranking in terms of the government objectives
but are either difficult to privatise or unattractive
to the private sector in their present structure.
Hence, some form of restructuring need to be
undertaken before privatised.
BACK BURNER
Government owned entity (GOE) or project
which is perfectly feasible to be privatised but
the benefits of privatisation are likely to be less
evident.
CONSIDER FUTURE
GOE or project which ranks poorly both in terms
of feasibility and desirability for privatisation. It
should be remained in the public sector for the
time being.
PRIVATISATION DECISION GRID (CONTD)
DRAWBACKS OF PRIVATISATION
Revision of related laws and regulations.
Valuation of assets and liabilities of government
agencies concerned
Difficulty in changing civil service (work culture) and
difficulty to carry out various programmes for
administrative reforms (organisational culture)
Resistance from employees and trade unions-threaten
job security and might lose government benefits.
Resistance from consumers-fear of increase in prices of
product/services.
Privatised company might abuse monopoly power-make
higher profits by restricting output for domestic use.
Lack of social responsibility by privatised company or
privatised monopoly to the community.
OBJ ECTIVES OF VISION 2020
Making Malaysia a truly united and
developed nation by increasing social
integration, improving economic
standards, social justice, political
stability, administrative system and the
quality of life of its people (social &
spiritual aspects)
OVERVIEW MAP
VI SI ON 2020
(2 OBJ ECTI VES A united and
fully developed country)
AND 9 CHALLENGES
A PROSPEROUS
SOCI ETY
A UNITED
NATI ON
A PSYCHOLOGICALLY
LIBERATED SECURED AND
DEVELOPED SOCIETY
A DEMOCRATIC
AND NATURE
SOCI ETY
A FULLY MORAL
AND ETHICAL
SOCI ETY
A MATURE
LI BERAL AND
TOLERANT
SOCI ETY
A SCIENTIFIC &
PROGRESSI VE
SOCI ETY
AN ECONOMICALLY
J UST SOCIETY
A FULLY CARING
SOCI ETY & CARI NG
CULTURE
9 CHALLENGES OF VISION 2020
1 The creation of a united
Malaysian nation with a sense of
common and shared destiny
(territorically & ethnically
integrated Bangsa Malaysia)
2 The creation of a psychologically
liberated, secure & developed
society (self-confident, robust in
facing adversity & pursuit of
excellence)
3 The fostering and creation of a
democratic and mature society
(cooperation & society
oriented)
4 The creation of a society with
good ethics and morality (strong
religious and spiritual values &
highest ethical standards)
5 The creation of a society which is
mature, liberal & tolerant (freedom to
practise cultural & religious beliefs)
6 The creation of a caring society and a
caring culture (a strong & resilient
family system)
7 Ensuring an economically just society
(full partnership in economic
progress & fair distribution of
wealth)
8 The creation of a scientific and
progressive society (innovative,
forward looking and a consumer &
competitive, science & technology)
9 The creation of a prosperous society
(living in harmony in a fully
competitive, dynamic, robust &
resilient economy)
OPP 2-SECOND OUTLINE PERPECTIVE PLAN (1991-2000)
The OPP 2 has been formulated based on a new policy
called National Development Policy (NDP). This new
policy will maintain the basic strategic of the National
Economic Policy (NEP) of eradicating poverty and
restructuring society so as to correct social and economic
imbalances and thereby contribute towards national unity.
National unity remains the ultimate goal of NDP because
a united society is essential to the promotion of social and
political stability and sustained economic development.
NDP will set the pace to enable Malaysia to become a
fully developed and truly united nation by the year 2020
in terms of rapid economic expansion, social justice,
moral and ethical values, political sophistication,
improved quality of life and the administrative efficiency
of the government.
NATIONAL DEVELOPMENT POLICY
(1991-2000)
Successor to New Economic Policy
introduced in 1991.
Objective
To attain balanced development in order
to create a more united and just society
which emphasis on economic growth with
equity to ensure social & political stability
and national unity.
NATIONAL DEVELOPMENT PLAN (OPP2)
OBJECTIVES
To strike an optimum balance between goals of economic growth
and equity distribution of wealth.
To ensure a balanced development in the major sectors of the
economy.
To reduce and ultimately eliminate social & economic inequalities
and imbalance (eradicate poverty & restructure society NEP)
To promote & strengthen national integration by reducing wide
disparities in economic development between states & urban and
rural areas.
To promote human resource development
To promote science and technological upgrading development.
To maintain and protect environment & ecology system.
NEW DIMENSION OF NDP
Anti poverty strategy to eradicate hardcore
poverty and reducing relative poverty.
Rapid development of an active Bumiputra
Commercial and Industrial Community (BCIC)
i.e. to increase permanent Bumiputra
participation in the economy.
Rely on the private sector involvement in the
restructuring process.
Human resource development with moral &
ethical values.
MALAYSIA DEVELOPMENT PLAN
1956 - 1960 1
st
5 yrs development plan
1961 - 1965 2
nd
5 yrs development plan
1966 - 1970 1
st
Msia Plan
1971 - 1975 2
nd
Msia Plan =NEP (OPP1)(1971-1990)
1976 - 1980 3
rd
Msia Plan
1981 - 1985 4
th
Msia Plan
1986 - 1990 5
th
Msia Plan =First IMP (1986-1995)
1991 - 1995 6
th
Msia Plan =NDP(OPP2)(1991-2000)
=VISION 2020 (1991-2020)
1996 - 2000 7
th
Msia Plan =Second IMP (1996-2005)
2000 - 2005 8
th
Msia Plan =NVP(OPP3)(2001-2010)
NEP - NATIONAL ECONOMIC POLICY
NDP - NATIONAL DEVELOPMENT POLICY
NVP - NATIONAL VISION POLICY
OPP1 & OPP2 & OPP3 - 1
st
& 2
nd
& 3
rd
OUTLINE PERSPECTIVE
PLAN
SIX MALAYSIA PLAN (1991-1995)
First half of OPP2
Main thrust is to manage and sustain growth
(economic & social) momentum in order to
achieve a more balanced development.
Rapid growth and longest sustained growth
was achieved within an environment of low
inflation (price stability) together with a
sound social & political environment.
7
TH
MALAYSIA PLAN (1996-2000)
Second half of OPP2
Greater strength (economic expansion &
social development) to meet future
challenges to accelerate the attainment of the
objective of balanced development as
envisaged under NDP with the overriding
objective of creating a more united and just
society (national unity)
7
TH
MALAYSIA PLAN (1996-2000)
DEVELOPMENT THRUSTS
Effect further structural transformation and maintain balanced
development in economic developments.
Enhance potential output growth (productivity-driven)
Prepare for a strong human resource base for long term economic
development and global competition.
Enhance competitiveness, technological development &
information technology.
Maintain rapid growth with stability (macroeconomics stability)
Emphasize social development and upgrade quality of life.
Strive for sustainable development (economic, social &
environment)
7
TH
MSIA PLAN NEW DIMENSIONS
Shift from input driven to productivity driven growth by
enhancing contribution of total factor productivity (TFP)
Enhance competitiveness by strengthening economic foundations,
expanding global marketing and reinforcing competitive industry
clusters.
Accelerate human resource development
Strengthen Science & Technology and Research & Development
and promote IT.
Generate new growth sectors
Indutriallisation strategy will target for global market, large
scale operations and capital, skill & technology-intensive
industries
Revamp agricultural sector.
Develop outward-oriented services sector.
OPP3-THIRD OUTLINE
PERSPECTIVE PLAN (2001-2010)
The OPP3 has been formulated based on a policy called
the National Vision Policy (NVP) with the central theme
of Building a Resilient and Competitive Nation NVP
aimed at establishing a progressive and prosperous
Bangsa Malaysia which lives in harmony and engages in
full and fair partnership in economic wealth.
Besides the usual projections of continued high growth
annually for the next 10 years, the OPP3 emphasised five
very human factors for the nation to reach its desired
destination in 2020. They are poverty eradication,
restructuring of equity ownership, human resource
development, knowledge economy and national unity.
NVP NATIONAL VISION POLICY
7 NEW POLICY DIMENSIONS
Developing Malaysia into a knowledge-based society.
Generating endogenously-driven growth through strengthening
domestic investment and developing indigenous capability while
continuing to attract FDI.
Increasing the dynamism of the agriculture, manufacturing and
services sectors through greater infusion of knowledge.
Addressing pockets of poverty in remote areas as well as
increasing the income and quality of life of those in the lowest 30%
income category.
Achieving effective Bumiputera participant as well as equity
ownership of at least 30% by 2010
Increasing the participant of Bumiputera in the leading sectors of
the economy.
Reorienting human resources development to support a
knowledge-based economy.
7 KEY DEVELOPMENT THRUSTS
Building a resilient nation by fostering unity, inculcating
the spirit of patriotism, nurturing political maturity,
cultivating a more tolerant and caring society with
positive values, raising the quality of life and increasing
economic resilience.
Promoting an equitable society by eradicating poverty
and reducing imbalances among and within ethnics
group as well as regions.
Sustaining high economic growth by strengthening the
sources of growth, the financial and corporate
institutions as well as macroeconomic management.
Enhancing competitiveness to meet the challenges of
globalisation and liberalisation.
7 KEY DEVELOPMENTS THRUSTS (CONTINUED)
Developing a knowledge-based economy as a
strategic move to raise the value added of all
economic sectors and optimising the brain
power of the nation.
Strengthening human resources development
to produce competent, productive and
knowledge workforce and
Pursuing environmentally-sustainable
development to reinforce long term.
EIGHTH MALAYSIAN PLAN (2001 2005)
DEVELOPMENT THRUST
Shift the growth strategy from input-driven
towards knowledge-driven
Accelerate structural transformation within
manufacturing and services.
Strengthen socio-economic stability through
equitable distribution of income and wealth.
Is primarily aimed at sustaining economic growth
and competitiveness in the face of growing
globalisation and liberalisation.
EIGHTH MALAYSIAN PLAN (2001-2005)
KEY STRATEGIES
Pursuing sound macroeconomic management, prudent fiscal and
monetary policies and knowledge-based economy.
Strengthening distributional programmes for balanced participant among
and within ethnic and income groups.
Enhancing productivity-driven growth through improvement in workers
knowledge and upgrading research & development.
Increasing competitiveness in key economic sectors.
Expanding the usage of information communications technology (ICT)
Strengthening human resource development (HRD) to ensure availability
of trained and creative manpower.
Adopting a holistic approach to attain balanced and sustainable
development
Enhancing the quality of life by making social services more accessible
Strengthening positive and ethical values including through the education
system.
INDUSTRIAL MASTER PLAN
3 BROAD OBJECTIVES
To ensure a continued rapid expansion of the
economy through the accelerated growth of the
manufacturing sector to meet the objectives of the
New Economic Policies & National Development
Policies.
To promote the optimum and efficient utilisation of
the nations natural resources through value added
manufacturing activities.
To lay the foundation for the development of
indigenous technological capabilities.
FIRST INDUSTRIAL MASTER PLAN ( 1986-1995)
It was introduced with a strong emphasis on the
continuation of the export-led industrialisation strategy
which focused on: -
Further diversification and deepening of resource-based
and non resource-based industries.
Preparing the workforce with technical and industrial
skills in product design and production technologies.
Dispersal of industries to areas outside the main growth
centre.
SECOND INDUSTRIAL MASTER PLAN
(1996-2005)
It was built to address issues and challenges which have been
identified upon the success of IMP 1 to sustain and enhance the
growth momentum of manufacturing sector. It encompasses: -
Improving economic foundation
To accelerate, deepen and diversity the manufacturing sub-
sectors.
To accelerate the development of indigenous technology and
capacity, international marketing and distribution capacity.
To strengthen economic linkages, both inter and intra-sectoral,
though further development and expansion of intermediate and
supporting industries as well as to reduce high imports of
intermediate and capital goods.
MANUFACTURING ++ CONCEPT
IMP 2 emphasises moving beyond manufacturing operations to include
various aspects of a value chain like R & D and design capacity,
development of integrated supporting industries, packaging, distribution
and marketing activities.
Manufacturing ++calls for a integration of manufacturing operations
though the value chain to enhance industrial linkages increase
productivity and competitiveness. This strategy requires building
concentrations if innovative firms served by quality and efficient
intermediate suppliers and services.
5 strategic thrusts of Manufacturing ++Orientation
Global Competition become world class & world manufacturer
Enhance Competitiveness industrial clusters development
Improving Economic Foundation Human Resource Development,
technology development, physical infrastructure, incentives &
services.
Malaysian Owned Manufacturing Companies.
Information Intensive & Knowledge Driven Processes adoption
of this in manufacturing and other related activities eg. Research &
Development product design, marketing in electronic commerce.
CLUSTER-BASED INDUSTRIAL DEVELOPMENT
IMP2 is based on a cluster based industrial development that will provide
the basis for a broad based, resilient and internationally competitive
industrial sectors.
Key objective is to provide higher value added goods and strengthen
industrial linkages at all levels of the value chain.
This approach also helps to address the following identified needs:
Issues of markets, linkages and networks which are central to the
competitiveness of industrial clusters.
Opportunities for domestics corporations (small & medium industries)
to achieve economies of scale.
The global market offers greater opportunities.
Development of new industrial areas.
Role of critical support industries & services.
3 categories of Industrial Clusters
Internationally linked clusters (electrical & electronics, textiles &
apparel)
Resource based clusters (wood, rubber, palm oil, petroleum)
Policy driven clusters (automotive & aerospace industry)
ELEMENTS OF CLUSTER-BASED
INDUSTRIAL DEVELOPMENT
1 CLUSTERS
A cluster is an agglomeration of inter-linked or related
activities comprising industries, suppliers, critical supporting
services, requisite infrastructure and institutions that are inter-
dependent.
Within cluster, firms from partnerships with supplier and
competitors to enhance value added activities.
Concentrate on common labour pool concept
2. VALUE ADDED AND VALUE-CHAIN
VALUE ADDED the value that an industry adds to its input
by using labour and capital.
VALUE CHAIN the range of activities undertaken by an
industry group within a region or country in the process of
bringing the product from its earliest conception to its final
sale.
ELEMENTS OF CLUSTER-BASED
INDUSTRIAL DEVELOPMENT (CONTD)
3 KEY SUPPLIERS
Strengthening suppliers sectors will improve the
performance of Malaysian Industry and contribute
towards cluster-based industrial development.
4. REQUISITE ECONOMIC FOUNDATION
The performance of industry clusters is driven by
the responsiveness of sources of factor inputs
which constitute the economic foundation.
These factor inputs are human resources,
technology, financing and physical infrastructure.
MALAYSIAN INDUSTRIAL CLUSTERS
(Manufacturing Sector)
1 TRANSPORTATION INDUSTRY GROUP
Automobiles, motorcycles, marines transportation
& aerospace.
2 ELECTRICAL & ELECTRONICS INDUSTRY
GROUP
Electrical and electronics
3 CHEMICALS INDUSTRY GROUP
Pharmaceuticals & petrochemicals
4 TEXTILES & APPAREL INDUSTRY GROUP
Textiles and apparel
MALAYSIAN INDUSTRIAL CLUSTERS
(Manufacturing Sector) Contd
5 MACHINERY & EQUIPMENT INDUSTRY
GROUP
Machinery and equipment
6 MATERIALS & ADVANCED MATERIALS
INDUSTRY
Composite, ceramics, polymers and metals
7 RESOURCE-BASED INDUSTRY GROUP
Wood based products, rubber based products, palm oil
based products, cocoa based products.
8 AGRO BASED & FOOD PRODUCTS
INDUSTRY
Fish & fish products, livestock & livestock products, fruits
& vegetables, floriculture.
K - ECONOMY
K Economy (knowledge based economy) is an umbrella term for
information technology (IT), basic research and associated sectors.
Bank Negara Malaysia termed the k-economy as the generation
and exploitation of knowledge to create new value in the economy.
Malaysia will adopt a national strategic plan by formulating a K-
Economy Mater Plan to launch Malaysia into the knowledge
driven economy. This will be a complete transformation from the
earlier Agri(A)-economy and Production(P)-economy.
K-Economy is Malaysias second step to leapfrog into the
Information Age. The first step was Vision 2020. The knowledge
economy is described by the K-Economy Master Plan as the
maximum application of knowledge to every Malaysian economic
and business endeavour. Several features such as investment in
education, brain gain and supply of information are needed for the
transition into the new economy.
K-ECONOMY MASTER PLAN
Knowledge is said to be driver of economic growth. An essential element
of the K-Economy is the possession of world class information and
telecommunication system that is accessible to all at competitive prices
which can provide the competitive advantage to each sector of the
economy.
The K-Economy Master Plan that is to be developed will be holistic in
approach and aimed at transforming Malaysia into a highly competitive
and resilient economy in an increasingly borderless world, in which those
in the forefront of knowledge and technological advancements such as in
information and communication technological have the cutting edge
Malaysia, must therefore, excel in acquiring, generating, communicating
and exploiting knowledge commercially in order to be a global player
and to be able to sustain long term economic growth. Malaysias K-
Economy master plan emphasised on the maximum application of
knowledge made in education, brain-gain and supply of information.
The signing ceremony of a Memorandum of Understanding for the
development of K-Economy Master Plan between Malaysian
Government and Institute of Strategic and International studies (ISIS)
was held on 27 March 2000.
SELF-TEST QUESTIONS
CHAPTER 1 GOVERNMENT POLICIES
1 Define the term Corporatisation and Privatisation
2 Identify the differences between Corporatisation and
Privatisation.
3 What are the benefits of Corporatisation?
4 What are the objectives of Privatisation?
5 List down the methods of privatisation in Malaysia
SELF-TEST QUESTIONS
6 What is the objective of formulated a Privatisation
Action Plan (PAP).
7 Show and explain briefly the diagram of the
Privatisation Grid as presented in the Privatisation
Master Plan
8 List the two objectives of Vision 2020
9 State the nine challenges to make Malaysia a truly united
and fully developed nation by the year 2020
SELF-TEST QUESTI ONS
10 List the two objectives of New Economic Policy (NEP)
11 List the six objectives of National Development Policy
(NDP)
12 Identify five development thrusts of Seventh Malaysia
Plan
13 List the objectives of Second Industrial Master Plan
14 What are the five strategic thrusts of Manufacturing ++
Concept in IMP2
15 Explain the following elements of Cluster-Based
Industrial Development
a) Value Added and Value Chain
b) Economic Foundation
16 What are the linkages between IMP2 and Vision 2020
GOVERNMENT POLCIES
OCTOBER 2000
The formulation of the Privatisation Action Plan has been guided by the
Privatisation Master Plan Study undertaken by private consultants who
received a large sample of Government-owned entities to determine both
their feasibility and desirability for privatisation.
a) List the objectives of privatisation.
(5 marks)
b) Explain the major components of the Privatisation Action Plan and give
one (1) example for each component.
(12 marks)
c) State the difference between sale of equity and sale of assets in
relation to privatisation in Malaysia.
(3 marks)
(Total: 20 marks)
CORPORATISATION AND PRIVATISATION
JUN 2000 (Summer Class)
In order to ensure that the privatisation effort is channelled to appropriate priority
areas so as to optimize the impact of the policy implementation in terms of the
achievement of the policy objectives, a Privatisation Action Plan (PAP) has been
formulated. The PAP thus represents a more systematic and organized manner of
policy implementation to be in consonance with the macro economies policies
and development strategy.
(Privatisation Master Plan, 1991)
a) One of the major components of the Privatisation Action Plan is Flagship.
What are they?
(4 marks)
b) List and explain the two (2) types of restructuring exercises to be undertaken
by the government for non-profitable companies operating in competitive
commercial sectors for the purpose of privatisation
(6 marks)
c) What is the purpose of a Privatisation Grid and list the maincategories in the
four quadrants
(6 marks)
d) State two (2) similarities and two (2) differences between Build-Operate-
Transfer (BOT) and Build-Operate (BO)
(4 marks)
(Total: 20 marks)
OCTOBER 1999
Privatisation will continue to be an important cornerstone of our national
development and national efficiency strategy. Its is aimed specifically at
enhancing competitiveness , efficiency and productivity in the economy, at
reducing the administrative and financial burdens on the governments and at
expediting the attainment of national distributional goals.
(The Way Forward by YAB Dato Seri Dr Mahathir Mohamad, 4 November 1997)
a) One of the objectives of privatisation is to relieve financial and
administrative burden of government. Discuss
(8 marks)
b) List the six (6) major components of Privatisation Action Plan (PAP)
(6 marks)
c) In the Privatisation Grid, priority restructuring ranks high in terms of
achieving government objectives but is less attractive to the private sector.
Why is it so?
(6 marks)
(Total: 20 marks)
APRIL 1999
The Privatisation Policy was first announced as a national policy
by the Government in 1983. This signalled the Governments
interest to reduce its presence in the economy, decrease both the
level and scope of public spending and to allow market forces to
govern economic activities.
a) Distinguish between corporatisation and privatisation.
(4 marks)
b) Explain the two (2) criteria adopted in the selection of
privatised projects under the Privatisation Action Plan.
(4 marks)
c) Elaborate the Privatisation Grid as illustrated in the diagram
presented in the Privatisation Master Plan.
(12 marks)
(Total: 20 marks)
MARCH 1998
Privatisation has saved the government RM7 billion
annually in management costs and nearly RM80 billion
in development costs since 1983. Over 416 projects and
government owned entities has been privatised to date,
(Encik Othman Ismail, Deputy Director of the Economic
Planning Unit (Privatisation Unit) 12 J uly 1997).
a) Define the term privatisation and corporatisation
(2 marks)
b) What are the objectives of privatisation?
(10 marks)
c) Explain the methods of privatisation in Malaysia
(8 marks)
(Total: 20 marks)
NOVEMBER 1996
In order to ensure that, the privatisation effort is channeled to
appropriate priority areas so as to optimise the impact of the policy
implementation in terms of the achievement of the policy
objectives, a Privatisation Action Plan (PAP) has been formulated.
The PAP thus represents a more systematic and organised manner
of policy implementation to be in consonance with the macro
economic policies and development strategy. Feasibility and
desirability of those Government Owned Entities (GOEs) are taken
into account in the preparation of PAP (Privatisation Master Plan,
1991)
In relation to the above, you are required to:
a) List and explain the major components of the Privatisation
Action Plan.
(8 marks)
b) The combination of the feasibility and the desirability criteria
can be explained through a Privatisation Grid as shown below:
Explain the privatisation grid.
(12 marks)
CONSIDER
FUTURE
BACK-
BURNER
PRIORITY
RESTUCTURING
IMMEDIATE
PRIVATISATION
High
High
Feasibility
(Ease / attractiveness)
Low
Desirability
(economic
policy)
Low
MAY 1996
The governments privatisation programme has acquired such
momentum that hardly any privatised agencies is exempt from
action and proposals. Evaluation of the programme must recognise
the diversity of the privatisation policies, and the tensions inherent
within their objectives. This has led to a view that it is impossible
to manage business efficiently with the public sector, the
constraints of which can only be escaped by setting the enterprise
free (sic).
(David Heald, Public Administration Vol.63, 1985)
a) In relation to the above, you are required to explain the possible
benefits and drawbacks of privatising certain government agencies.
(10 marks)
b) In your opinion, explain why we need government control on
the privatised agencies.
(10 marks)
(Total: 20 marks)
MAY 1995
In line with the government privatisation policy, the
cabinet has recently directed the Ministry of Education
to study the possibilities of corporatising all Higher
Learning Institutions including Institute Teknologi
Mara (ITM) by 1996.
a) Briefly distinguish the terms Corporatisation and
Privatisation
(5 marks)
b) Identify and explain the significant benefits for the
proposal to corporatise ITM in 1996
(15 marks)
(Total: 20 marks)
LONG TERM PLAN (VISION 2020, NEP, NDP, 7
th
Malaysian Plan & I MP)
APRIL 2020
Vision 2020 is a national comprehensive agenda that sets out specific goals and
objectives for long term development. To attain the fully developed nation status
by 2020, pursuit of economic agenda must be sustained. The private sector
should get together to consider how it can further enhance its role in the
privatisation policy and continue to be an important cornerstoneof the national
development and national efficiency strategy.
a) State and explain briefly the two (2) objectives of Vision 2020
(4 marks)
b) List any six (6) strategic challenges of Vision 2020
(6 marks)
c) Elaborate on the following two challenges of Vision 2020 that need to be
dealth with for the long term economic development and to achieve the status of
a fully developed country by the year 2020:
1. Ensuring an economically just society
2. The creation of a scientific and progressive society.
(10 marks)
(Total: 20 marks)
VISION 2020
OCTOBER 1998
The Ninth Challenges of Vision 2020 is establishing a prosperous
society with an economy that is fully competitive, dynamic and
resilient. In this respect, the Vision stated that Malaysian must
learn to be competitive through higher productivity and able to
withstand the full force of international competition. The Prime
Minister stated that we have to be more competitive and more able
to take on the world.
a) Apart from being a competitive and a dynamic society, what
other aspects of societal developments (any 4) are expected of the
society by year 2020.
(12 marks)
b) Discuss on the human resource development as one of the
thrusts of National Development Policy for the societal
developments in Vision 2020.
(8 marks)
(Total: 20 marks)
OCTOBER 1999
The government will continue to promote social and political
stability as well as efficient management of the economy in order to
provide a favourable environment for pursuing growth with equity
and to enhance the achievements of the objectives of National
Development Policies (NDP) and Vision 2020.
a) List six (6) objectives of National Development Policy (NDP)
(6 marks)
b) Elaborate on any two (2) of the objectives mentioned above
(8 marks)
c) Explain the meaning of economic growth with equity
(6 marks)
(Total: 20 marks)
LONG TERM PLAN (NEP, NDP& 7
th
Malaysia Plan
APRIL 1997
The Seventh Malaysia Plan, 1996-2000, covers the second phase
of the Second Outline Perspective Plan (OPP2), 1991-2000. The
Seventh Plan emphasizes that the thrusts of the development
policy would not only be on sustaining economic progress to
achieve the status of fully developed nation as envisaged under
Vision 2020 but also to attain the objectives of balanced
development as envisaged under National Development Policy
(NDP) with the overriding objective of creating a more united and
just society.
a) Identify and explain five development thrusts of Seventh
Malaysia Plan.
b) Explain briefly the new dimensions of Seventh Malaysia Plan
in achieving the objectives of the National Development Policy.
(20 marks)
NOVEMBER 1994
The Second Outline Perspective (OPP2) covering the period
1991-2000 has been formulated based on a new policy called the
National Development Policy (NDP). This new policy will
maintain the basic strategies of the New Economic Policy (NEP) of
eradicating poverty and restructuring society so as to correct social
and economic imbalances and thereby contribute towards national
unity.
(OPP2, 1991-2000, Malaysia Fact Sheet, Ministry Of Information)
a) In line with the above statement, trace the development of the
NDP
(5 marks)
b) Identify significant differences between NEP and NDP
(5 marks)
c) Specify the new dimensions of the NDP
(10 marks)
(Total: 20 marks)
NOVEMBER 1993
a) Explain what are the objectives of the National
Development Policy and the strategies taken to
ensure that the objectives can be achieved
(10 marks)
b) List and explain any five central strategic challenges
to make Malaysia a fully developed nation by the
year 2020
(10 marks)
(Total: 20 marks)
OCTOBER 2000
The Second Industrial Master Plan (1996-2005) emphasizes moving beyond
manufacturing operations to include Research and Development anddesign
capability, development of integrated supporting industries, packaging,
distribution and marketing activities.
a) List the components of economic foundation to be improved as laid
down under the Second Industrial Master Plan
(4 marks)
b) Explain any two (2) of five strategic thrusts of Manufacturing ++
Concept.
(10 marks)
c) Explain the importance of K-economy in achieving the Manufacturing
++Concept.
(4 marks)
d) What do you mean by indigenous technological capabilities?
(2 marks)
(Total: 20 marks)
INDUSTRIAL MASTER PLAN
The implementation of the Industrial Master Plan had
promoted the development of higher value-added
resource based industries i.e. processed and semi-
processed products in order to maximise export earnings
and socio-economic contributions to the country.
a) Identify the objectives of Industrial Master Plan
(6 marks)
b) Explain briefly the meaning improving economic
foundation
(4 marks)
c) Elaborate any two (2) strategic thrusts of the
Manufacturing ++ Concept
(10 marks)
(Total: 20 marks)
APRIL 2000
The Second Industrial Master Plan (IMP2) has been formulated
with a view to transform the manufacturing sector to be more
competitive globally. IMP2 calls for the development of an
integrated industry-wide vision, embracing both manufacturing
and business support services.
(IMP2 (1996-2005), New Straits Times, 29 November 1996)
a) Explain the meaning of Manufacturing ++ Concept in the
Second Industrial Master Plan (IMP2)
(4 marks)
b) List and explain the five (5) strategic thrusts of Manufacturing
++ Concept
(10 marks)
c) Establish the linkages between IMP2 and Vision 2020
(6 marks)
(Total: 20 marks)
JUNE 1999 (Summer Class)
Manufacturing sector output is projected to turn around to register
an increase of 0.8% in 1999 compared to a decline of 10.2% last
year. The main impetus to growth in the manufacturing sector
would emanate from the stronger expansion of 1.3% in output of
domestic-oriented industries.
(Bank Negara 1998 Annual Report)
a) List any four (4) Industry Groups that the government had
identified under the Second Industrial Master Plan.
(4 marks)
b) Explain any three (3) factors involved in improving economic
foundation
(6 marks)
c) Elaborate the meaning of Value Chain of Manufacturing
under the Cluster-based Industrial Development.
(10 marks)
(Total: 20 marks)
MAY 1998
While the First Industrial Master Plan 1986-1995 has laid down the
foundation for the rapid growth of the manufacturing sector, the
Second Industrial Master Plan 1996-2005 has been formulated
with a view to transform the manufacturing sector to be more
competitive globally.
(Datuk Seri Rafidah Aziz, Minister of International Trade and
Industry, November 1996)
a) What are the three objectives of Industrial Master Plan?
(6 marks)
b) Elaborate on the five strategic thrusts of the manufacturing ++
approach
(10 marks)
c) Explain briefly the meaning development of indigenous
technology and capacity
(4 marks)
(Total: 20 marks)
SEPTEMBER 1997
The launching of the Second Industrial Master Plan (IMP2) is a
testimony of the governments effort and commitment to propel
Malaysia to become a fully developed industrial nation by 2020. In
tandem with the New Development Policy, the Second Outline
Perspective Plan and the Seventh Malaysian Plan, the IMP2 is set
to boost the future contribution of the manufacturing sector on
economic growth and focusing on establishing an equitable
distribution of nations wealth.
a) Identify and explain 5 objectives of National Development
Policies.
(10 marks)
b) Discuss the 5 strategic thrusts of Manufacturing ++ Orientation
in Second Industrial Master Plan (1996-2005) to sustain and
enhance the growth momentum of manufacturing sector and thus,
to achieve the targeted economic growth of Vision 2020.
(10 marks)
(Total: 20 marks)
CHAPTER 2 ADMINISTRATION &
FINANCIAL MANAGEMENT
Total Quality Management
ISO 9000
Annual Budget Speech
Any Related Current Issues
ADMINISTRATION & FINANCIAL MANAGEMENT
ADMINISTRATION ADMINISTRATION
(QUALI TY CULTURE) (QUALI TY CULTURE)
FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT
TQM TQM
(D.A.1/ 92) (D.A.1/ 92)
ISO 9000 ISO 9000
(D.A.2/ 96) (D.A.2/ 96)
BUDGET BUDGET
SPEECH SPEECH
CURRENT CURRENT
ISSUES ISSUES
Quality System
Standard (ISO 9000)
provides quality
assurance
Continuos improvement
process to achieve
total quality in all
organisational operations
Budget 2002
Budget 2003
ECONOMIC
CRISIS
Currency
crisis
Financial
crisis
Current
Account
Deficit
TOTAL QUALITY MANAGEMENT
Total Quality Management (TQM) is a management
process aimed at bringing about excellence through the
continuous enhancement of quality in an organisation.
The basic philosophy of TQM is Doing the right thing
right the first time, on time, all the time, always striving
for improvement, and always satisfying the customers.
By implementing TQM, an organisation not only can
overcome the problem of wastefulness but also increase
its performance to the maximum. This can be achieved
by improving its performance and efficiency, innovation,
productivity, quality of the workplace and introducing
products or services which can fulfill or exceed the needs
of the customers.
TQM IN PUBLIC SERVICE (D.A.Circular 1/ 1992)
The purpose of the D.A.Circular 1/92 is to provide information
and guidance to the Heads of Departments in planning and
activating the process of improving quality in their departments.
The implementation of the management principles in the circular
will create an environment that is conducive for the inculcationof
an excellent work culture.
TQM Concept: -
TQM is a continuos process in creating a culture of excellence
for the whole organisation and is customer-driven
TQM aims to enable the organisation to achieve total quality
in all its operational aspects I.e. effectiveness of management,
efficiency of the operational systems and capability and
productivity of the employees.
PRINCIPLES OF TQM
These are several management principles of the quality culture should be
practised by government agencies: - (D.A.Circular 1/92)
1. FOCUS ON THE CUSTOMER
Every member in the organisation has to be inculcated with the practise and the
culture of pleasing their internal or external customers, especially the latter.
Government Agencies must know who their customer are and make aneffort to
provide products and services that satisfy their needs. They need to constantly
obtain feedback from their customers with regard to their performance.
2. QUALITY ASSURANCE FOCUS ON PREVENTION
This objective can be achieved by adhering to clearly laid quality standards for
products, work processes and input used. This has to be supported in turn by
quality inspection, tracing sources of flaws and taking remedial action.
3. STRATEGIC QUALITY PLANNING FOCUS ON CONTINOUS
IMPROVEMENT
Management should regularly plan and take appropriate measures to improve
the work processes to ensure that the quality of the final output is on the rise all
the time in line with the increasingly complex needs of customers.
4. TEAMWORK
Teamwork is effective in contributing creative and innovative ideas and in
implementing improvements successfully.
PRINCIPLES OF TQM (COND)
5. TRAINING AND RECOGNITION BUILDING A SENSE OF
OWNERSHIP AMONG WORKERS
This is to strengthen awareness, commitment as well as to instill a sense of
responsibility among workers in upgrading quality in their department. This
objective can be achieved by creating a sense of togetherness at the
workplace by improving communication between the workers and
management by involving the workers in the process of problem solving and
decision making and by providing training and granting recognition.
6. LEADERSHIP AND COMMITMENT BY TOP MANAGEMENT
Top management should be involved directly upgrading quality andensuring
that the objectives of the department are achieved.
7. MEASUREMENT OF PERFORMANCE
Management of quality requires support from an effective system of
performance appraisal. As such the departments should formulate a
comprehensive system of performance appraisal. For this purpose, the
government has released a book called A Guide To Formulating
Performance Indicators in Government Agencies.
OBJECTIVE
Satisfaction customer
Zero defect/error-free
Producing the output
right the first time
FOCUS
Processes and systems
Organisation culture
Customers
suppliers
STRATEGY
Continuous improvement
Total involvement of the organisation
Strategic actions
Orientation towards long term
objective
Control of quality costs
Preventive action
Emphasis on quality assurance
Systematic problem solving
IMPLEMENTOR
Top management (leaders)
Total participant of workers
Work teams
FEATURES OF QTM (D.A.Circular1/ 92)
I SO 9000
WHAT IS QUALITY?
Quality as defined by the ISO9000 Standard is
The totality of features and characteristics of a product or service
that bears on its ability to satisfy stated or implied needs
To achieve this, we need to understand, accept, continuously meet and
exceed the expectations and need of our customers
WHAT IS QUALITY ASSURANCE?
Quality assurance refers to all those planned and systematic actions
that are necessary to provide adequate confidence that a product or
service will satisfy given requirements for quality. It encompass all
personnel and activities within the organisation which affect the quality
of products or services. ISO 9000 series are quality system standards
against which a quality assurance system can be measured.
QUALITY SYSTEMS (ISO 9000) > QUALITY ASSURANCE
I SO 9000
WHAT IS ISO 9000?
ISO is the nickname for the International Organisation for
Standardisation, and international body based in Geneva, which
came out with the ISO 9000 series to represent standards for
quality assurance and management which are internationally
recognised and also to provide comprehensive guidelines for
developing and implementing quality management system.
Suppliers, manufacturers and service organisations can apply ISO
9000 standards to establish quality, systems for producing or
supplying goods and services. Customers and third party
organisations can use ISO 9000 as a standard to evaluate suppliers
quality assurance systems and their ability to produce quality
products or services. By using ISO 9000 organisations can
demonstrate quality assurance of products or services to their
customers.
ISO 9000 CONCEPT
Quality Manual
Procedure
Work Instructions
Responsibilities
Authorities
CUSTOMER
QUALITY ASSURANCE
QUALI TY SYSTEM
DOCUMENTATION
INPUT PROCESS OUTPUT
Need For Quality
Organisation
Based on ISO 9000 series
Control
Control Verify
STRUCTURE OF ISO 9000 SERIES
ISO 9000
Quality Management and Quality Assurance Standards Guidelines for
Selection & Use
ISO 9001
Quality Systems Model for Quality Assurance in Design/Development,
Production. Installation and Servicing
ISO 9002
Quality Systems Model for Quality Assurance in Production and Installation
ISO 9003
Quality Systems Model for Quality Assurance in Final Inspection and Test
ISO 9004
Quality Management and Quality System Elements Guidelines
Public Sector agencies are requires to refer to ISO 9000 and ISO 9004 as a
guide for understanding and selecting the elements for the quality management
system to be established. The other 3 standards namely ISO 9001, ISO 9002
and ISO 9003 will be used as quality system models for quality assurance on
the agencies core business processes.
ISO 9000 IN GOVERNMENT
There 7 steps for implementation ISO 9000 in Malaysian
Civil Service:
Carry out Quality Audit Step 7
Implement Quality System Step 6
Plan for implementation Step 5
Evaluate current quality system Step 4
Training Step 3
Establish ISO 9000 Team Step 2
Secure top management commitment Step 1
The success of the ISO 9000 exercise is monitored through comprehensive
quality audit at 3 levels:
International Quality Audit after 6 months of operations of the system to
evaluate its effectiveness
Second Party Quality Audit or Compliance Audit carried out by Mampu
before issuance Malaysian Civil Service ISO 9000 certificate
Third Party Auditing for purposes of registration with international linkages.
ISO 9000 IN GOVERNMENT(D.A.Circular 2/ 1996)
The main objective of implementing and obtaining the certificate is to
utilise ISO 9000 as a blue print for efforts to improve the quality system of
the organisation so as to enable it to achieve greater effectiveness and
efficiency and thus can enhance the quality of service delivery to customers.
This move would also help to develop a quality management systemwith
the following principles and features:
A philosophy of prevention rather than detection.
Continuos review of critical process points, corrective actions and
outcome.
Development of consistent work methods based on the principle of doing
it right first time and every time.
Basing of all works on policies and procedures that are documented.
Emphasis on maintenance of quality records as evidence of the
implementation of the necessary records.
The above principles and features will lead to competent management
decision-making control of process output, control of quality costs,
reduction in waste and an increase in productivity.
BENEFITSOF ADOPTING ISO 9000 IN THE GOVERNMENT
The ISO 9000 quality standards provide organisations with a cost effective
means of assuring quality of their products or services. However, potential
benefits depend on the nature of the organisation. Fully implemented, the
system may result the following benefits: -
Enhance competitive position
Improve customer satisfaction and confidence
Saving in time and resources (reduce wastage & work-over)
Improve the quality system & institutionalise the quality system with
greater clarity of business processes and activities. This will result in less
rework and inefficiency.
Greater organisational transparency
Less fire-fighting as it is based on advanced planning
Improve filing and data retrieval systems
Speedier learning process for the new entrants
Improved specification and tendering controls leading to improved
capability assessment and realistic delivery schedules
IMPLEMENTATION OF TQM AND ISO 9000 IN
GOVERNMENT
Quality Culture started with the launching of the Excellent Work Culture in 1989, a
movement where a change should first begin in the mindset of civil servants. Various quality
improvements programmes introduced in the civil service have been successful in improving
the capability of government agencies to achieve organisational excellence and to deliver
quality-service to customers. Among the more important ones are the Quality and
Productivity Management Programmes which includes the Total Quality Management
(TQM) Concept, Human Resource Management, Improvements to Systemand Procedures
and Information Technology.
These changes laid the foundation for establishing a quality management system in the civil
service and implementing the ISO 9000 Standard.
The various administrative reform efforts undertaken in the last few years in developing a
customer oriented public service have already laid the strong groundwork for the civil service
to adopt the ISO 9000 standard. These reform effort encompass initiatives such as the
preparation of Quality Manuals, Manual of Work Procedures, Desk File, Clients Charter,
Service Recovery System, Checklist, Quality Control Circles, Feedback Systems, and the
System of Recognition & Rewards.
The Guidelines (D.A.CIRCULAR 2/96) prepared by MAMPU for the implementation of the
MS ISO 9000 in the civil service was issued on 11 J uly 1996. MS ISO 9000 is the Malaysian
standard series issued by SIRIM containing the same elements with the internationally
accepted ISO 9000 which are relevant to the public service and is to be effected for adoption
in the civil service by the target date of year 2000.
1999 BUDGET
OBJECTIVES
Facilitate business activities and stimulate economic growth
with priority given to infrastructure development to pull the
country out of recession
To stimulate domestic demands.
BUDGET STRATEGIES
Revive economic activities and insulate the economy from the
contagion effects of the regional financial crisis to stabilise the
financial market and the value of the ringgit.
Strengthen the resilience and competitiveness of the nations
economy
Restructure the financial sector and improve governance in the
private and public sectors
Strengthen further the balance of payment and
Ensure the social well-being of the people.
2000 BUDGET
OBJECTIVE
Strengthening the foundations for the achievements of
economic growth and the well being of the people.
BUDGET STRATEGIES
Sustain recovery and accelerate growth
Strengthen resilience and competitiveness
Utilising the Service Sector to stimulate growth and
strengthening the Agriculture Sector
Human resources development especially skills and
knowledge
Continuing the Social Agenda and preserving the
environment.
2001 BUDGET
The budget entitled A New Malaysia from strategic
vision to strategic implementation captured the
governments new, robust but caring attitude in tacking
the countrys social and economic challenges. The new
21
st
century budget takes fully into account the issue of
globalisation and K-economy. Major implementations of
strategic plans towards accelerating economic growth,
enhancing competitiveness and improving the quality of
life (5 guiding principles for strong economic growth
competitiveness, innovation, transparency, social equity
and national unity) should be continued in our strive to
become a developed country by year 2020.
BUDGET 2001 - STRATEGIES
5 MAIN STRATEGIES
Stimulating the nations economic growth
Identifying new sectors of growth
Continuing fiscal & monetary policies to support growth.
Strengthening further the nations competitiveness.
Enhancing the quality of life of Malaysia people.
3 MAIN THRUSTS (DIMENSIONS)
Stimulating the nations economic growth (k-economy,
ICT, venture capital.)
Implementing strategic initiatives to enhance nations
competitiveness (strategic partnership & FDI, strengthening
financial system.corporate governance.
Continuing caring society agenda (increasing incomes of
the poor, public housing, upgrading health status.)
Strengthening the nations growth economic growth
through increased domestic expenditure, stimulating the
role of private sector and increasing competitiveness.
Diversifying sources of growth through trade and
domestic industrial activities without reducing the role of
foreign direct investment as well as ensuring the
continued expansion of the nations export and
Ensuring equitable distribution of wealth between urban
and rural areas, between high and low income groups and
between the more developed states.
Increasing domestic investment in all sector
with growth potential
Identifying and venturing into niche areas in
the services, agriculture and manufacturing
sectors.
Strengthening public sector finance and
enhancing efficiency of the civil service
Nurturing a progressive and harmonious
society with high moral values and ensuring
the well being of the people, especially in rural
areas.
Accelerating domestic private sector and
stimulating the service sector to spearhead
economic growth.
Implementing fiscal consolidation towards a
balanced budget in the near term.
Implementing monetary policy that can support
and harness private consumption and investment.
Enhancing the nations competitiveness to enable
Malaysia to become a truly trading nation.
Strengthening the social agenda and caring society
to enhance the quality of life and well being of
Malaysians.
CONTINUED ECONOMIC RECOVERY MAY 2003
Government has introduced the package of new
strategies towards stimulating the nations economic
growth to enable the private sector to resume its role as
the engine of growth.
The package focused on four main strategies:
Promoting private investment
Strengthening the nations competitiveness
Developing new sources of growth
Increasing the effectiveness of the delivery system.
The implementation of this package has achieved
economic performance with a growth target of 4.5 for the
whole year of 2003.
ECONOMIC CRISIS
The Malaysian economy seems to have hit by a financial crisis, the ringgit and
the stock market have fallen sharply and the momentum of the economic growth
has stalled.
CAUSES OF ECONOMIC CRISIS
FINANCIAL & CURRENCY CRISIS
The bouts of speculative attacks triggered by developments in Thailand since
May 1997 have led to volatility in the movement of the interest rates and
sharp depreciation of the local currency and share prices to theextent that the
value of ringgit and share prices no longer reflect underlying economic
fundamentals. The continuos slide in the ringgit value and shareprices could
lead to the erosion of investors confidence in financial markets and the
adverse contagion effects on the economy strength and stability of financial
system.
CURRENT ACCOUNT DEFICIT
This is largely due to higher imports of capital goods and services (shipping
& air freight, etc) which have moderately affected the merchandise account
surplus. The merchandise exports are expected to grow at a slow pace to
global decline in prices. This will lead to countrys current account deficit to
decline further.
ECONOMIC CRISIS CONTS
3 TYPES OF ECONOMIC CRISIS
Currency Crisis
Financial Crisis
Current Account Crisis
ECONOMI RECOVERY MEASURES
Financial stimulus package (fiscal discipline)
National Economic Recovery Plan by NEAC
Establishment of Economic Council
1. NEAC (MTEN) National Economic Action Council
2. NECC 2 (MAPEN 11) National Economic
Consultative Council 2
ECONOMIC RECOVERY MEASURES
1. FINANCIAL STIMULUS PACKAGE TO OVERCOME
ECONOMIC CRISIS
LOWER ECONOMIC GROWTH
- Downward revision of growth projection from 7% in 1998 budget
to between 4 5%
STRENGTHEN BALANCE OF PAYMENT
- To reduce the current account deficit from 4% of GNP in 1998 to
3% by taking the following measures:
Cutback in Federal Government expenditures by at least 18% in
1998.
A number of mega projects have been postponed
To intensify any effort to increase foreign exchange earnings
through promotion of exports and tourism
To promote utilisation of domestic products and high local
contents of input materials
National savings will be promoted.
FINANCIAL STIMULUS PACKAGE TO OVERCOME
ECONOMIC CRISIS (CONTD)
TO INCREASE QUALITY OF DOMESTIC ECONOMIC
MANAGEMENT
- Recapitalisation & consolidation of banking sectors (By Danaharta &
Danamodal)
- To promote good corporate governance, transparency, accountability
and high disclosure standard in the public and private sector
- Campaign to increase productivity & competition at home (high
quality of economic growth)
DEFENDING DIMINISHING CURRENCY
- Increase export and lower import.
- Build upon foreign exchange reserves
- To impose foreign exchange controls measures fixed exchange rate
and capital controls.
- Relax foreign ownership rules to attract foreign capital investment.
FINANCIAL STIMULUS PACKAGE TO
OVERCOME ECONOMIC CRISIS (CONTD)
NATIONAL UNITY AND POLITICAL UNITY
(PREREQUISITE CONDITION)
- To restore investors & public confidence in the
countrys economy
- To maintain the discipline and unity among the
different races in the country
TO WORK ON REFORMS OF THE
INTERNATIONAL FINANCIAL SYSTEM TO
MINIMISE EXCHANGE RATE VOLATILITY
AND CURTAIL CURRENCY SPECULATION
(INTERNATIONAL FORUM)
2. SIX OBJ ECTIVES OF NATIONAL
ECONOMIC RECOVERY PLAN BY NEAC
Stabilising the ringgit
Restoring market confidence
Maintaining financial market stability
Strengthening economic fundamentals
Continuing the equity and socio-economic
agenda
Revitalising affected sectors
NATIONAL ECONOMIC ACTION COUNCIL (NEAC)
It was established on J anuary 7, 1998 as a consultative body to
the government to deal with economic problems and to ensure
sustainable economic growth of the nation
Objectives of the NEAC
Restore public and investor confidence with regard to the
economy which is still fundamentally strong despite the
economic crisis.
Ensure that the country does not enter into an economic
recession as a result of the currency and financial crisis.
Revive the national economy and enhance its global
competitiveness
Strengthen the economic base of the country so as to achieve a
developed nation status through rapid and sustainable
economic growth.
NECC 2 OR MAPEN II
National Economic Consultative Council 2
(NECC 2) of Majlis Perundingan Ekonomi
Negara (MAPEN II) was launched by PM Dr.
Mahathir Mohamad on 4 August 1999.
NECC 2 comprises 155 members from a wide
spectrum of groups including political parties,
professional bodies, industry & trading
associations, NGO, minority groups, youth &
women will be part of the crucial process of
formulating Malaysias national development
policy for the new millennium.
NECC OR MAPEN II (CONTD)
Objectives of NECC 2
To spur a new paradigm shift by allowing society to come up
with new ideas and areas which are futuristic and relevant to
achieve national development goals in the context of
globalisation and to be a developed nation status by year 2020.
To evaluate the performance of the current National
Development Policy and to make recommendations for a new
policy which will steer national development beyond the year
2000 taking into account the objectives and challenges of
Vision 2020.
To look into the interest of all communities and to ensure that
none would feel left out in policies implemented in the future.
Thus this will boost the nations economy and maintain social
unity and prosperity.
CHAPTER 2 ADMI NI STRATI ON AND FI NANCI AL MANAGEMENT
1. Explain the concept of TQM and ISO 9000?
2. What is the objective of implementing ISO 9000
in the public sector?
3. List down the seven steps required in implementing
ISO 9000 in the government organisations
4. Identifying any two of the budget strategies
mentioned in the 1999 Budget Speech
CHAPTER 2 ADMI NI STRATI ON AND FI NANCI AL MANAGEMENT
5. What are the three types of economic crisis?
6. Describe briefly what do you understand by the
following crisis-currency crisis, financial crisis and
current account deficit
7. Suggest and list down any four measures to
overcome the economic crisis in Malaysia
OCTOBER 2000
The ISO 9000 family of standards represents an international consensus of good
management practices with the aim of ensuring that the organization can time and
time again deliver the product or services that meet the clients quality-
requirements.
a) The first step of the 7 steps in implementing ISO 9000 in Malaysian Civil Service
is secure top management commitment. Why is this factor given the top
priority?
(5 marks)
b) What are the three (3) levels of quality audit?
(3 marks)
c) List and explain any four (4) benefits of implementing ISO 9000 in the public
sector.
(8 marks)
d) Suggest two (2) reason why many government departments are still without the
ISO 9000 certificate despite the due date (31 December 2000) is approaching.
(4 marks)
(Total: 20 marks)
ADMINISTRATION AND FINANCIAL MANAGEMENT
TQM AND ISO 9000
The introduction of TQM and MS ISO 9000 programmes demand new skills
in terms of leadership and management operations and the utilization of
modern technology. Leaders in the civil service have to become more
visionary and less bureaucratic. They need to craft a strategic vision of
excellence to give their organisations direction.
a) Identify any three (3) principles of ISO 9000 for quality management system
(3 marks)
b) Explain the meaning improve the quality system of the organisation
(4 marks)
c) The success of the ISO 9000 is monitored through comprehensive quality audit
at three levels. Name them.
(3 marks)
d) List and explain five (5) benefits of implementing ISO 9000 in civil service
(10 marks)
(Total: 20 marks)
There is no reason why the civil service should not
pursue the ISO 9000. All this while the standards have
only been limited to the industries and I believe that the
civil service should move towards it.
(Dato Seri Dr Mahathir Mohamad, 1996)
a) Explain the 7 steps in implementing ISO 9000 in the
government
(14 marks)
b) Identify the three (3) levels of quality audit
(3 marks)
c) List three (3) benefits of adopting ISO 9000 in the
government
(3 marks)
(Total: 20 marks)
OCTOBER 1998
The government was proud to have a civil service which was responsive
to changes to improve efficiency, management and administration in the
public sector. Quality work culture, noble values and positive work ethics
were vital to achieve excellence. All government organisations should
think global and aim to improve their management system and provide
high quality products and services by adopting Total Quality Management
(TQM) and ISO 9000.
(Prime Minister, Datuk Seri Dr. Mahathir Mohamad, 1997)
a) What are the main objectives of adopting TQM and ISO 9000 in
government organisations
(4 marks)
b) List down the 7 (seven) steps required in the implementation of ISO 9000
in Malaysian Civil Service
(10 marks)
c) Discuss the specific problems (any 3) in implementing ISO 9000 in the
government organisations
(6 marks)
(Total: 20 marks)
MARCH 1998
The various administrative reforms undertaken in the last
few years in developing a customer oriented public service
have already laid the strong groundwork for the civil service
to adopt the ISO 9000 standard.
a) What is the main objective of implementing ISO 9000 in the
government sector?
(6 marks)
b) Identify three principles of ISO 9000 for quality
management system in government
(6 marks)
c) What are the benefits (any 5) of adopting ISO 9000 in
government?
(8 marks)
(Total: 20 marks)
APRIL 2000
Budget 2000, the first for the 21
st
Century, will take into account the external
economic environment and domestic circumstances to continue with its
pragmatic approach in strengthening the economy recovery. In fact, the new
establishment of the two national consultative economic councils by the
government would lead to the countrys economic revival and the nations
readiness in facing the new millennium.
a) Identify any four (4) strategies of Budget 2000
(4 marks)
b) Explain any two (2) of the above strategies
(8 marks)
c) Name the two (2) consultative bodies which were established by the
government to deal with economic crisis. State one (1) objective for the
formation of each consultative body
(8 marks)
(Total: 20 marks)
CURRENT ISSUES
OCTOBER 1999
The Economic Recovery Plan proposed by the National Economic Action
Council (NEAC) has six recommendations to strengthen the countrys
economic fundamentals. According to NEAC, it is important to ensure that
inefficiencies in the economy are removed and excessive credit expansion is
curbed to enable the economy to return to a sustainable growth path in 1999
and 2000
(NEAC, J uly 1998)
a) List down five (5) recommendations from National Economic ActionCouncil
(NEAC) with regard to economic recovery measures
(5 marks)
b) Explain any two (2) of other measures as identified by the government for
economic recovery
(10 marks)
c) What are the two (2) most important factors considered to be theprerequisite
conditions for Malaysia to overcome economic crisis
(5 marks)
(Total: 20 marks)
APRIL 1999
It became clear that the nations economic and financial problems were caused
by currency traders who manipulated to depreciate the Ringgit thereby
impoverishing both the nation and the people.
(Dato Seri Dr. Mahathir Mohamed, 1999 Budget Speech)
a) Identify any four (4) of the budget strategies mentioned in the 1999 Budget
Speech
(4 marks)
b) Describe the following types of crisis:
i) Currency crisis
ii) Financial Crisis
iii) Current Account Deficit
(6 marks)
c) Suggest four (4) measures to overcome the economic crisis in Malaysia
(10 marks)
(Total: 20 marks)
MAY 1998
The Malaysian economy seems to have been hit by a
financial cyclone, the ringgit and the stock market have
fallen sharply and the momentum of economic growth
has stalled. A comment made by the Prime Minister,
Datuk Seri Dr Mahathir Mohamed.
(Malaysian Business, October 16, 1997)
a) Identify 3 types of economic crisis
(6 marks)
b) Describe four measures identified by the government to
overcome this economic crisis?
(14 marks)
(Total: 20 marks)
CHAPTER 3 INFORMATION TECHNOLOGY (IT) IN
GOVERNMENT
The need for IT in government
IT Applications in government
INFORMATION TECHNOLOGY IN GOVERNMENT
INFORMATION TECHNOLOGY (IT) can be defined as the acquisition,
processing, storage and dissemination of pictorial, focal , textual or numerical
information using computers and telecommunications.
THE NEED FOR IT IN GOVERNMENT
The need to upgrade and to increase services and benefits to the diverse range
of users of government information.
Government Department or Public Sector are overloaded with an increasing
number of customers due to the problems of inefficiencies, bureaucracy, long
queues countless forms to be filled-limited branches and manual processes.
More efforts have to be continued to develop the IT infrastructure to facilitate
government agencies in communication network and access to information
resources (Public Services Network, Civil Service Link, Electronic Data
Interchange, etc)
Increased usage of computers to support counter service operations to provide
efficient and quality services to the public. Amongst the most important
infrastructure introduced is the PUBLIC SERVICES NETWORK (PSN) which
will enable government agencies to offer their counter services through the
computer network linking the post office eg Road Transport Department, and
Permodalan Nasional Berhad are using post office outlets to modernise their
counter services.
THE NEED FOR IT IN GOVERNMENT (CONTD)
The use of computer technology in government was not only
restricted to traditionally data processing areas carried out
independently, but now extended to several new IT areas
(communication & access to information resources) such as
ELECTRONIC DATA INTERCHANGE (EDI), OPEN SYSTEM,
GEOGRAPHICAL INFORMATION SYSTEMS (GIS), CIVIL
SERVICE LINK (CSL), GOVERNMENT INTEGRATED
TELECOMMUNICATIONS NETWORK (GITN), INTERNET
(JARING ILMU & TMNETS) AND MULTI MEDIA SUPER
CORRIDOR.
Developments in IT infrastructure and MSC project in the era of
information age will be the foundation for the creation of an
information rich society and knowledge based industries which could
contribute more economic and employment opportunities and bigger
incomes in the government efforts to become a fully industrialised
and developed nation by the year 2020.
IT APPLICATIONS IN GOVERNMENT
IT Applications
Functions
Benefits
IT Applications
Functions
Benefits
Open System
Open System
Public services
Network (PSN)
Public services
Network (PSN)
Civil Service Link (CSL)
Civil Service Link (CSL)
Government Integrated
Telecommunications
Network (GITN)
Government Integrated
Telecommunications
Network (GITN)
INTERNET
INTERNET
INTRANET
INTRANET
Geographical
Information
System (GIS)
Geographical
Information
System (GIS)
Electronic Data
Interchange (EDI)
Electronic Data
Interchange (EDI)
OPEN SYSTEM
FUNCTION
Definition integration of many information systems within
organisations so that they can operate with each other in a
network.
Transparent access to data anywhere with application
development for multiple platforms, enterprise wide
applications and consistent user interfaces.
BENEFITS
Users can easily adapt to any of computer systems when all
suppliers have to comply with certain standards guidelines in
integration and development adaptation.
Capability of performing more powerful computing task RISC
(reduced instruction set computing)
Vendors will have bigger market with the standards guidelines
used in the future new system thereby reduce market
competition and product price.
PUBLIC SERVICE NETWORK (PSN)
FUNCTION
Is a joint of Permodalan Nasional Berhad. Pos Malaysia
Berhad and MAMPU.
Enables government department and agencies to offer
their counter services on-line to the public using the
computer and network facilities of post offices.
It is to enhance the quality and productivity of the counter
services to the public and business community.
To assist the government and agencies in integrating their
business processes.
BENEFITS
The public and business community could have
alternative service outlets reduce service time and
traveling cost.
The government would not have to invest in setting up
more branches and could reduce congestion at the
counters.
CIVIL SERVICE LINK (CSL)
FUNCTION
To provide an on-line, one-stop resource center which
contained information repository on various aspects of public
sector administration.
An information kiosk available at strategic places for the
convenience of the public and private sector allowing on-line
public access to government database through one stop
resource centre housing the latest information on
government administration and management
Many other government agencies are developing databases
that are being made available to the private sector.
PALMOILIS Palm oil information on-line system
MASTIC Malaysia science and technology information
centre
SIRIMLINK sirimilmu.
Information contained in the CSL was now available in the
homepages of agencies in CSL HOMEPAGES in Internet.
GOVERNMENT INTEGRATED TELECOMMUNICATIONS
NETWORK (GITN)
FUNCTION
The capability to electronically link all levels of administration in the
government organisation
Is a telecommunications infrastructure that integrates the
government communication requirements for data, voice, image and
video.
A joint privatised project by Telekom Nasional Berhad. Permodalan
Nasional Berhad and GITN Sdn Bhd and monitored by MAMPU
Implemented phase by phase beginning with pilot project Chief
Secretary to Government, Treasury, EPU, MAMPU and Intan.
BENEFITS
To provide inter and intra agency communications in the public
sector
The establishment of the backbone of an efficient and effective
government machinery.
ELECTRONIC DATA INTERCHANGE (EDI)
FUNCTION
New technology in electronic commerce
To standardized and simplifying the generation, transmission, storage and
retrieval of documents resulting in substantial savings in time and resources.
Improve procedures and documentation for export and import trade.
Expedite processing of import and export license and permits
Facilitate import and export declarations
Several EDI projects are Port Kelang Community System, MITI Textiles
Export system. Veterinary Services Depts import and export
Successful implementation of EDI require that the government-carries,
transporters, brokers, freight forwarders , banks and all other parties involved
in trade must agree on a common goal I.e. simultancous EDI implementation
and one standard (UN/EDIFACT)
OBJCTIVE
Elimination or reduction of paper documents and reduction of data task
Facilitate J IT manufacturing and speeding up the turnaround time of orders
Reduces errors, shipping leadtime, clerical processing times.
GEOGRAPHICAL INFORMATION SYSTEM (GIS)
FUNCTION
New technology used in the areas such as land administration,
agriculture, forestry, town and country planning
Is a computer-based tool for mapping and analysing things that exist
and events that happen on earth.
GIS projects are Penang GIS (PEGIS), Terengganu (TEGIS),
Melaka (GIS) and Sabah Forestry Department and Sabah Land &
Survey Department, Putra J aya and Hydro Bakun
BENEFITS
GIS technology will give the power to create mapmaking and
geographical analysis, integrate information, visualize scenarios,
solve complicated problems like overpopulation, pollution,
deforestation, natural disaster and develop other effective solutions.
INTERNET
FUNCTION
The use of personal computers to make communication and
information sharing more sophisticated and efficient
The mechanism for information dissemination and a medium for
collaboration and interaction between individuals and their
computers without regards for geographical location
Mimos Berhad is the first internet service provider to provide J ARING
network and Telekom Nasional Berhad is the second one to provide
TMNET network
BENEFITS
Integrated data communication network
Transparent access to the global information superhighway at a
affordable cost
Creation of innovative and creative education, research and
commercial activities.
INTRANET
FUNCTION
Is the communication networks that are based on web
and internet technology to allow the internal users
(management and employees) to access the full
information and data resources available within the
organisation (internal communication system)
Sabahnet intranet and web service provide
information of state government, education, commerce
and community service in Sabah
BENEFITS
Inexpensive and easy to use without much training
Exchange information and keep information current
Information sharing data when working on
collaboration.
SELF-TEST QUESTIONS
CHAPTER 3-I NFORMATI ON TECHNOLOGY I N GOVERNMENT
1. List eight (8) of IT applications which are currently
adopted and implemented in the public sector.
2. Describe the background and objectives of any two (2)
IT applications which you have listed above.
CHAPTER 4 MULTIMEDIA SUPER
CORRIDOR
Background and the Zone of MSC
Objectives of the MSC
MSC Vision & 3 phases to 2020
7 Flagship Applications & Objectives
Role of MSC in Vision 2020 and leapfrog
into leadership in Information Age
Roles of MDC, MIMOS & NITC
VI SI ON 2020
A fully developed
country
A united nation
OBJ ECTIVES
Productivity led growth
Leadership in Information Age
Global bridge for mutual
enrichment
7 FLAGS APPLICATIONS
MULTIMEDIA DEVELOPMENT
Electronic Government
Multipurpose Card
Smart Schools
Telehealth (telemedicine)
MULTIMEDIA ENVIRONMENT
Research & Development Cluster
E-Business (Borderless Marketing
Centre & Worldwide Manufacturing Webs)
Technopreneur Development
I MPLEMENTATI ON
Phase 1
Phase 2
Phase 3
MULTIMEDIA
SUPER
CORRIDOR
C
H
A
L
L
E
N
G
E
S
S
U
C
C
E
S
S
WHAT IS MULTIMEDIA?
Multimedia is any combination of text, graphic art, sound, animation and video.
Simply, it means a variety of media delivering information to us by computer or
other electronic means. Hence, multimedia is a new information and communication
tool.
WHAT & WHERE IS THE MULTIMEDIA SUPER CORRIDOR?
The MSC is a 15 by 50 km zone that encompasses, Kuala Lumpur and four mega
infrastructure projects: Kuala Lumpur City Centre (KLCC), the administrative
centre in Putrajaya, the intelligent city Cybercity and the Kuala Lumpur
International Airport. The massive corridor which is larger thanSingapore will be
connected by a digital optical fibre backbone with an unprecedented 2.5 10
gigabits per second capacity.
World class multimedia corporations will be invited to locate their business units
and Research & Development facilities in this multimedia growth centre, which will
be a springboard to create distribute and serve the regional and world markets for
multimedia products and services.
Key features of the MSC will include a high capacity global telecommunications
and logistics infrastructure (high capacity links to international centres, competitive
telecommunications pricing and high speed switching enabling a rapid distribution
of products along modern land, air and sea links) and an attractive living
environment. World class physical infrastructure and next generation 2.5 10
gigabits multimedia network
Special cyberlaws policies and practices are tailored to enable residents to achieve
the full promise of multimedia environment.
OBJ ECTIVES OF MSC
To achieve the goals of Vision 2020 by catalysing
productivity led growth
To leapfrog Malaysia into leadership in the
Information Age by attracting and developing
world leading companies through smart
partnership between leading foreign and
Malaysian Firms
To build global bridges between Malaysia and
other intelligent cities for mutual enrichment.
Multimedia Development
Flagship Applications
ELECTRONIC
GOVERNMENT
MULTIPURPOSE CARD
SMART SCHOOLS
TELEHEALTH
Multimedia Environment
Flagship Applications
RESEARCH &
DEVELOPMENT
CLUSTERS
E BUSINESS
TECHNOPRENEUR
DEVELOPMENT
7 FLAGSHIP APPLICATIONS TO CATALYSE THE
MSCS GROWTH
OBJ ECTIVES OF FLAGSHIP APPLICATIONS
TO JUMP START DEVELOPMENT OF MSC
By providing business opportunities for companies
to participate in
TO MAKE MSC GLOBAL TEST BED FOR
INNOVATIVE SOLUTIONS
Hereby attracting web-shapers & service providers
TO INCREASE MALAYSIAN PRODUCTIVITY
AND COMPETITIVENESS
By creating the environment/infrastructure for E-
Business, E-Government/Education/Healthcare
Systems & Other key areas
TO REDUCE DIGITAL DIVIDE
ELECTRONIC GOVERNMENT (EG)
EG is the Malaysian Government initiative to reinvent itself to lead the
country into the Information Age. EG will improve both how the government
operates internally as well as how it delivers services to the people of
Malaysia. It seeks to improve the convenience, accessibility and quality of
interactions with citizens and businesses, simultaneously. It will improve
information flows and processes within government to improve thespeed and
quality of policy development. Coordination and enforcement. EG will play
an essential role in catalyzing the development of the MSC as well as
furthering political and economic development goals in Vision 2020.
The Vision of EG calls for both reinventing government (using information
technology to improve productivity) and creating a collaborate environment
for the ongoing development of Malaysias multimedia industry.
5 pilot applications (projects) have been identified:
Project monitoring system (PMS)
Human Resource Management Information System (HRMIS)
Generic Office Environment (GOE)
Electronic Procurement (EP)
Electronic Delivery Services (E-Services ++)
MULTIPURPOSE CARD
The national multipurpose card (MPC) seeks to provide a
single and common MPC that will enable the government and
private sectors as providers to implement smart card solutions
without duplications of investment. Initially 2 cards will be used
I.e. the Government Multipurpose Card (GMPC) and Payment
Multi-purpose card (PMPC) and eventually revert to a single
multipurpose card.
Examples of GMPC = national ID, driving license,
immigration, MEPS Cash, Health Information & public key
infrastructure.
Examples of PMPC = credit, debit, ATM & MEPS Cash
Objectives of MPC Flagship Application are:
To provide the government and payment applications and
other future applications on a single MPC
To provide enhanced service to customers and
To enhanced security and convenience of existing and new
applications delivered on the MPC.
SMART SCHOOL
The Malaysian Smart School applications is the governments
initiative to enhance learning institutions teaching-learning
process of curriculum, pedagogy, assessment and teaching-
learning materials which may enable students to practice self-
assessed and self-directed learning that focuses on individual
architecture of mind development. This flagship is driven by the
need for Malaysians transformation from an industrial to an
information based economy.
Objectives of Smart School Flagship Application are:
To produce a thinking and technology literate workforce
To develop opportunities to improve individual strengths and
abilities
To increase stakeholders involvement
To democratize education
TELEHEALTH
Telehealth is a process that focuses on the individual to provide greater access
and increased knowledge on healthcare. It empowers the individual to manage
his/her own personal health and integrates information to allow the smooth flow
of services and products throughout the healthcare system.
The objectives of Telehealth Flagship Application are:
Enhance the quality of medical services
Improve outreach in urban and in particular in rural areas
Reduce delivery time
Save costs
Become a regional centre of excellence in Telehealth development
Deliver leading edge health care products and services worldwide.
Four components of Telehealth
TELECONSULTATION (TC)
MASS CUSTOMISED/PERSONALISED HEALTH INFORMATION
AND EDUCATION (MCPHIE)
LIFETIME HEALTH PLAN (LHP)
CONTINUING MEDICAL EDUCATION (CME)
R & D CLUSTERS
R & D is a critical pillar of the knowledge based-economy in order to enhance
intellectual capital and to improve/sustain the countrys competitiveness. R & D
clusters emphasised on the creation of a world class corporate multimedia
activities and the development of a web of world class corporate multimedia
centers and universities collaborating to develop leading-edge multimedia products
and technologies by leveraging on the infrastructure provided by the MSC
Objectives of R & D Clusters are:
To encourage collaboration between key players to produce leading-edge products
and technologies
To promote multimedia technology transfer to Malaysia and encourage local high-
tech start-up innovations
To increase local R & D activities to improve Malaysias human capital and
competitiveness
To catalyze R & D activities in MSC, the following programs have been initiated:
MSC R & D Grant Scheme (MGS)
MSC Student Attachment Programs (SAP)
MSC Technology Forum Series
Exhibitions (local & overseas)
Collaborative R & D efforts between firms, universities & research institutes.
E - BUSINESS
The E Business cluster, driven with the
objectives of the MSC, aims to shape an
Electronic business to be more competitive with
the major economic powers. This cluster has an
enormous potential market that have the driving
force for future economic growth. It is
transforming the way in which business was
conducted it enable businesses to become more
responsive. The E Biz aims to provide more
efficient and better quality services to the
community and the business.
TECHNOPRENEUR DEVELOPMENT
Technopreneur Development Flagship (TDF) was launched on 6
th
November 2001 as the 8
th
MSC flagship aimed to generate a rich pool
of business and innovative technologically boost entrepreneurship in
Malaysia. The technology-based small and medium enterprise (SMEs)
would contribute to economic growth by creating new wealth and job
opportunities in the knowledge based economy. This flagship will
further drive the establishment of a highly competitive cluster of
Malaysian ICT/MM companies which will in time become world class.
Objectives of this flagship are:
To spawn a critical mass of SMEs and start-up companies involved
in the ICT/MM industries.
To facilitate the growth of potential Malaysian world-class
companies
To create the nuclei for the physical rollout of the MSC nationwide,
though the National Incubator Network
To spur the growth of the venture capital industry.
FLAGSHIP APPLICATIONS AND THE LEAD
AGENCIES
- Ministry of International Trade & Industry &
Multimedia Development Corporation
E-Business
Technopreneur
Development
- Ministry of Science, Technology &
environment
R & D Cluster
- Ministry of Health Telemedicine
- Ministry of Education Smart Schools
- Bank Negara & J . Pendaftaran Negara. Smart Card
- Malaysian Administrative Modernisation &
Management Unit (MAMPU)
Lead Agency Flagship Applications
MSC IN VISION 2020
The MSC is the centrepiece of Malaysias
multimedia and IT development for the
period to the year 2020 and therefore
plays the dual roles of guarantor and
accelerator for the ultimate goals of
Vision 2020.
MSC LEAPFROG INTO SUCCESS
IN INFORMATION AGE
GO GLOBAL AND LEAD REGIONAL
BY:
Create the ideal multimedia environment to
attract world-class companies to use as a hub
Enhance domestic productivity
Create value from Information Age businesses
Catalyze a highly competitive cluster of
Malaysian multimedia/IT companies that
become world-class overtime.
MSC VISION 3 PHASE TO 2020
PHASE 1
Successfully create the multimedia super corridor i.e (One Corridor, 50
worldclass companies, launch 7 flagships, put in place a world-leading
framework cyberlaws & establish Cyberjayaand Putrajayaas world - first
intelligent city)
PHASE 2
Link the MSC to other cybercities in Malaysia and worldwide i.e. ( a
web of corridors, a second cluster of world class companies (250 world
class companies), set global standards in flagship applications, champion
cyberlaws within the global society and establish a number of intelligent
globally - linked cities (4-5 intelligent cities linked to other global
cybercities)
PHASE 3
Transform Malaysia into a knowledge based society in Information
Age Era i.e. being a true global test bed for new multimedia and IT
applications and a record of high number of multimedia companies (a
cluster of intelligent cities linked to the global information super highway
and become the platform for the International Cybercourt of J ustice)
MULTI MEDI A DEVELOPMENT CORPORATI ON
A fully empowered one-stop super shop focused on ensuring the
unconditional success of the MSC and its companies by cutting through
red tape to expedite permit and license approvals, providing information
and advice on the MSC and introducing companies to potential local
partners and financiers. It will also market the corridor globally, shape
MSC laws and policies by advising the government and set standards for
the MSCs information infrastructure and urban developments. It is also
empowered to grant MSC status to qualified companies.
The MDC Sdn. Bhd was funded by the Federal Government initially but
will become self funding eventually by participating in value creation
activities in the MSC
As the minder of the MSC, MDCs priority is to address target
companies to locate in the MSC and to help local small and medium
enterprises prepare and develop their expertise to the standard and
become more competitive. The MDC will monitor technology transfer is
carried out to achieve national economic and social goals of MSC.
MULTIMEDIA DEVELOPMENT
CORPORATION (CONT)
MISSION
To ensure that the goals of the MSC are rapidly
and efficiently achieved
OBJECTIVES
To shape a world-leading environment
To attract and nurture leading-edge and world-
class companies
To facilitate knowledge transfer and wealth
creation
To build a well-mandated, value-based, highly-
effective institution.
ROLES OF MIMOS AND NITC
MIMOS (Malaysian Institute of
Microelectronic Systems)
The Institute is part of the
countrys long term strategy to
develop a reservoir of knowledge
and know how locally in
microelectronic as well as IT arena
Institute works hand in hand with
both the private and public sectors
in various aspects relating to
Research & Development
education & training and
technology development
Acts as an instrumental in
developing Malaysias MSC and
becomes Malaysias centre of
excellence in Microelectronics and
IT
NITC (NATIONAL
INFORMATION
TECHNOLOGY
COUNCIL)
To coordinate planning and
management of IT
development
To formulate a national
action plan to promote the
development of Malaysia
into an IT hub
To manage and promote
public awareness regarding
the importance of IT
Provide a world-class physical
and information infrastructure.
Allow unrestricted employment
of local and foreign knowledge
workers
Ensure freedom of ownership by
exempting companies with MSC
status from local ownership
requirements
Give the freedom to source
capital globally for MSC
infrastructure, and the right to
borrow fund globally
Provide competitive financial
incentives.
Become a regional leader in
intellectual property-protection
and cyber laws
Ensure no internet censorship
Provide globally competitive
telecommunications tariff
Tender key MSC infrastructure
contracts to leading companies
willing to use MSC as their
regional hub
Provide a high-powered
implementation agency to act as
an effective one stop super shop.
The government commits the following to
companies with MSC status:
BILL OF GUARANTEES
INCENTIVES
Besides the Bill of Guarantees, companies with MSC
status will enjoy:
Substantial financial incentives such as a 0 per cent
income tax for up to 10 years or a 100 per cent
investment tax allowance, and no duties on multimedia
equipment.
The sole right to tender for key implementation
contracts for flagship applications
Support from the MDCs one stop client centre that
will expedite visas, licencesand permits.
Direct access to Malaysias top leadership through
membership of the MSC International Advisory Panel
and the Founders Council.
SELF-TEST QUESTIONS
CHAPTER 4 MULTIMEDIA SUPER CORRIDOR
1. List the objectives of Multimedia Super Corridor
(MSC)
2. List the 7 flagship applications of MSC
MULTIMEDIA
ENVIRONMENT
MULTIMEDIA
DEVELOPMENT
3. Identify the government departments which is or are
involved as the lead agency in the flagship applications
given below:
2. ELECTRONIC GOVERNMENT
1. SMART SCHOOL
4. State any two factors that MSC would enable Malaysia to
leapfrog into success in information age.
OCTOBER 2000
The vision of the Multimedia Super Corridor or the MSC is to create the
ideal multimedia environment in Malaysia to attract world-class
companies to use as a hub. It is a long-term plan, fully supported by the
Malaysian Government, that has been realistically divided into three
phases, stretching from the year it was launched in 1996 until 2020.
a) Describe how MSC can transform Malaysia into a knowledge society by
2020.
(8 marks)
b) MSC can create value from Information Age business. Explain.
(3 marks)
c) Elaborate on the following Multimedia Environment Flagship
Applications:
(i). Research and Development Clusters;
(ii). World Wide Manufacturing Web; and
(iii). Borderless Marketing Centres.
(9 marks)
(Total: 20 marks)
MULTIMEDIA SUPER CORRIDOR
Malaysia has created the Multimedia Super Corridor (MSC) to help
companies of the world test the limits of technology, and prepare themselves
for the future. The MSC will also accelerate Malaysias entry into the
Information Age, and through it, help actualize Vision 2020.
a) State the four (4) factors that world leapfrog Malaysia into success in the
Information Age.
(4 marks)
b) Elaborate on any two (2) of the factors stated in (a) above
(6 marks)
c) Explain the following terms:
i) Smart Partnership
ii) Intelligent cities
iii) Borderless marketing
iv) Knowledge society
(10 marks)
(Total: 20 marks)
APRIL 2000
Multimedia Super Corridor (MSC) is a global facilitator of the Information
Age and a carefully constructed mechanism to enable mutual enrichment of
companies and countries using leading technologies and the borderless world.
The MSC is both a physical area and a new paradigm for creating value in the
Information Age.
Dato Seri Dr. Mahathir Mohamad Speech at the opening of Multimedia
Asia on MSC, 1 August 1996.
a) What are the three (3) objectives of MSC
(3 marks)
b) List the seven (7) flagship applications to catalyse the growth of MSC
(7 marks)
c) Describe the current phase of MSCs development
(5 marks)
d) State the role of Multimedia Development Corporation (MDC) as a one-stop
super shop. You are required to state any five (5)
(5 marks)
(Total: 20 marks)
OCTOBER 1999
Based on the premise that a thriving IT and multimedia industry will
bring new added value to our economy, besides fuelling productivity in
other economic sectors, the Multimedia Super Corridor is now regarded
as the next engine of growth to leapfrog Malaysia into the information
age.
(Datuk Seri Dr. Mahathir Mohamad NST 20
th
December 1998)
a) List the seven (7) flagship applications in Multimedia Super Corridor
(7 marks)
b) Explain any two (2) of the seven flagship applications mentionedabove
(10 marks)
c) Give three (3) examples of public and private organisations that have been
operating their business in the Multimedia Super Corridor
(3 marks)
(Total: 20 marks)
To initiate multimedia-based activities in the Multimedia Super
Corridor (MSC) project, the government has identified a group
of seven applications which utilise the technology as the main
output. They represent key multimedia usage that are aimed at
spearheading the creation of a multimedia industry in the
country.
(Dr. Mohamad Arif Nun, MDC, 1997)
a) List the seven (7) flagship applications in MSC
(7 marks)
b) Identify the three (3) objectives of MSC
(3 marks)
c) Describe under Phase 1 how would Malaysia successfully create
the MSC
(10 marks)
(Total: 20 marks)
MAY 1998
The government is fully committed to the success of the
Multimedia Super Corridor (MSC). To realise this, we are now
implementing a unique package to attract for pioneering
multimedia applications and the seven flagship application will
push technology to new limits which will change our future life.
(Datuk Seri Dr. Mahathir Mohamad, April 1998)
a) Where is the MSC located?
(5 marks)
b) List down the seven flagship applications to catalyze the MSC
growth.
(7 marks)
c) How can MSC transform Malaysia into a knowledge society in
the Information Age?
(8 marks)
(Total: 20 marks)
APRIL 1997
The Multimedia Development Corporation is a fully
empowered one-stop super shop focused on ensuring the
unconditional success of the Multimedia Super Corridor
(MSC) and its companies by cutting through red tape to
expedite permit and licence approvals, providing
information and advice on the MSC and introducing
companies to potential local partners and financiers.
(News Sunday Times, J anuary 12, 1997)
a) Explain the seven flagship applications which have been
targeted for development by the year 2000 to catalyze the
MSCs growth.
b) Establish the linkage between MSC and Vision 2020.
(20 marks)
SEPTEMBER 1997
The Multimedia Super Corridor (MSC) will enable Malaysia to
leapfrog into the Information Age by employing the tools of the
information and multimedia technologies. The development of
the MSC will have a significant impact on Malaysia as it
promoting a new way life to her people.
(Dato Professor Zainuddin bin Muhamed, 25 J uly 1997)
a) Identify the 3 objectives and the 3 phases of MSC
(12 marks)
b) Explain the 4 factors that would leapfrog Malaysia into success
in the Information Age.
(8 marks)
(Total: 20 marks)
CHAPTER 5 ELECTRONIC GOVERNMENT
The need for Information Technology in
Government.
Introduction of Electronic Government
Vision of Electronic Government
Objectives of Electronic Government
Key elements of Electronic Government
Approach & Pilot Application
Benefits & Changes Required in Electronic
Government
REINVENTING GOVERNMENT A RICH PICTURE
VISION 2020 Industrial & fully develop
NITA MSC
E -GOVT
Smart school
Smart card
Telehealth
R & D Clusters
E Business
Technopreneur Development
Improve Internal
Government
Mechanism
Effective
Service
Delivery
INTRA - GOVT INTRA-MINISTRY
CITIZEN
TO - GOVT
BUSINESS
TO - GOVT
EFFECTIVE USE OF MULTIMEDIA & INFORMATION TECHNOLOGY
ELECTRONIC GOVERNMENT
MSC
7 FLAGSHIPS
EG
REINVENTING GOVERNMENT THROUGH CONNECTIVITY
To catalyze MSC rapid
development
INTRAGOVERNMENT GOVT + CITIZEN GOVT + BUSINESS
Improved internal operations/communications
Improved information flow
Reengineering process
Superior communication network
Empowered employees
Service quality and effective delivery to
customers
-Reliable, transparent and fast turnaround cycle
-Using multiple delivery channels, info kiosk
one-stop service window, internet etc.
2 OBJECTIVES
USING MULTIMEDIA AND INFORMATION TECHNOLOGY
One of the seven MSC Flagship Applications with
aspiration of employing multimedia technologies to
reinvent government operations towards a paperless Civil
Service
Involves 3 key elements intra government, business to
government and citizen to government which will:
Offer efficient and high quality administrative services
to citizens and businesses
Streamline governments internal processes to
improve quality of service, reduce costs and strengthen
data security and protect privacy.
Play an essential role in catalysing the MSCs
development
VISION OF ELECTRONIC GOVERNMENT
To see the people in government, business and citizenry working
together for the benefit of all Malaysians in our overall effort to
become a fully developed nation by 2020 and beyond.
The vision calls for:
Reinventing government using multimedia/IT to improve
productivity
Creating a collaborate environment that fosters the ongoing
development of Malaysians multimedia industry.
The vision focuses on:
Effectively & efficiently delivering services from government to
people (citizen & business) of Malaysia.
Become more responsive to the needs of citizen
Built close link & develop collaborative approach in problem
solving.
OBJ ECTIVES OF ELECTRONIC
GOVERNMENT
Reinventing the concept of government though connectivity
EG will redefine the relationships of government to citizens to business
and to itself. To citizens, the new relationship will mean to have greater
access to more convenient, more responsive, higher quality, less
expensive and direct delivery of government services via paperless
information exchange and on-line transactions eg. Through kiosks and
internet. To business and industry, EG will mean improved relationships
and greater responsiveness to applications and approvals. Within
government, the new relationship means improved information flows,
superior communications between the components of government and
improvements in the coordination of government resources.
Catalysing the MSCs rapid development
EG will spearhead the conversion to paperless throughout the country.
By doing this, the productivity of the public sector will stimulate
increased productivity in the private sector. The combined effect would
be to sustain Malaysias rapid economic growth.
KEY ELEMENTS OF ELECTRONIC
GOVERNMENT
CITIZEN TO GOVERNMENT
Use smart card to access govt. service
Registrations (birth, marriage etc)
Drivers Licence
Tax and social security
Pension payments
Personal health data
Public information services, databases
Electronic voting
BUSINESS TO GOVERNMENT
EDI-based govt. procurement
Corporate online services registrations,
licensing, corporate tax filing
Online access to economic-business, policy,
legal information
Electronic patent, copy right, trademark
PM-CEO videoconferences.
INTRA GOVERNMENT
PMs Department
Intra-ministry and cross ministry
intranet
Collaborative office environment
across ministries
High presence video conferencing
Multimedia mobile office
Digital signature
Document filing and shared
databases.
MINISTRY SPECIFIC
APPLICATIONS
SIMILAR AND COMPATIBLE
APPLICATIONS WITHIN AND
ACROSS ALL OTHER MINISTRIES
APPROACH TO ELECTRONIC
GOVERNMENT
Reengineered processes, new system, better
structures & training programmes to develop new
skills and foster shared values.
Prioritising and then implementing pilot
applications based on their potential impact and
feasibility
Five pilot applications have been prioritised by
Concept Request For Proposals (CRFPs) which
described the requirements and flexibility given to
innovate and deliver the best solution.
5 PILOT APPLICATIONS
Electronic Delivery of Driver and Vehicle
Registration, Licensing and Summons Services,
Utility Payments and Ministry of Heath On - Line
Information
Electronic Procurement
Prime Ministers Office Generic Office
Environment
Human Resource Management Information
System
Project Monitoring System
ELECTRONI C GOVERNMENT 5 PI LOT
APPLI CATI ONS
Licencing and Related
Vehicles Services and
Utility Payment
Electronic Procurement
Prime Ministers Office
Generic Office
Environment
Project Monitoring
System
Human Resource
Management Information
System
5 PILOT
APPLICATIONS
LICENCING AND RELATED VEHICLES SERVICES AND
UTILITY PAYMENT
BACKGROUND
This application will enable the public to
transact more easily with government and
utility companies. With the one-stop service
window provided by Electronic
government, it will be possible to go to a
kiosk in a shopping mall or use the PC at
home to renew driver licences and pay
electricity bills.
SCOPE
Four major services under this pilot
applications
Driver & Vehicle Registration, Licensing &
Summons
Payments of Tenaga Nasional Berhad
Electricity Bills
Payment of Telekom Msia Berhad Bills
Ministry of Health Information
OBJECTIVES
To enhance service access to the public
MULTIPLE DELIVERY
CHANNELS
ONE-STOP SERVICE WINDOW
MULTILINGUAL CAPABILITIES
EQUALITY OF ACCESS
To improve service quality to the public
SPEED
RELIABILITY
TRANSPARENCY
SECURITY
ELECTRONIC PROCUREMENT
BACKGROUND & SCOPE
This application aims to reengineer,
automate and transform the current
procurement system. The system will
deliver cost savings and faster
turnaround times by enabling
government to become a smart buyer
Suppliers, large and small, will also
benefit from the transparency created in
this new system and will receive faster
and more accurate payment
Electronic Procurement will allow
government agencies to electronically
select items to be procured from the
desktop, initiate an electronic approval
process, to create, submit and receive
purchase orders, delivery orders and
other related documents & information
electronically.
OBJECTIVES
To ensure best value for
money for electronic
procurement
To ensure accountability and
transparency in line with the
established procedures
To contribute towards
achieving government policy
objectives through
procurement
To ensure orderly efficient
and effective management of
stores and materials.
PRIME MINISTERS OFFICE GENERIC OFFICE
ENVIRONMENT
BACKGROUND
This pilot application will provide a fully
integrated, distributed, manageable and
scalable paperless office environment for
the Prime Ministers Office by deploying
multimedia & information technology
SCOPE
GOE is capable of being customised to
suit the business needs of other departments
within the government as well as capable to
support future business needs
GOE consists of 3 modules
Enterprise wide Information Mgt
System
Enterprise wide Communication Mgt
System
Enterprise wide Collaboration Mgt
System
OBJECTIVES
Central management of computing
resources
Reduced cost of ownership
Easier application and data
integration
Central control of policies and
guidelines.
HUMAN RESOURCE MANAGEMENT
INFORMATION SYSTEM (HRMIS)
BACKGROUND
HRMIS will provide a single
interface for government
employees to perform human
resource management function
effectively and efficiently in an
integrated environment
SCOPE
HRMIS will cover areas such as
recruitment & selection of
personnel establishment of
posts, design of organisational
structures, performance
appraisal and training.
OBJECTIVES
To achieve effective staffing and
rightsizing through better availability
of HRM information
To automate HRM operational
processes which are currently done
manually
To build up-to-date consolidated
HRM information for effective HRM
planning among agencies
To improve paperless HRM
capabilities among agencies
To achieve better communication,
horizontal integration and to achieve
a richer collaborative system
environment among agencies.
PROJ ECT MONITORING SYSTEM (PMS)
BACKGROUND
PMS is designed to provide a
mechanism for monitoring the
implementation of
government projects eg.
Electronic Government, 5
th
year development plan & etc.
The service will provide a
platform for exchanging ideas
and demonstrating best
practices models in
information management and
communication services.
OBJECTIVES
To establish a richer collaborative
systems environment among agencies
to maximise the efficiency and
effectiveness of project monitoring
and communication process
To provide an open and flexible
system which will fulfill and improve
information needs of operational and
managerial processes at different
levels of agencies.
To provide paperless project
monitoring capabilities among
agencies involved in the project
monitoring.
BENEFITS OF EG FOR MALAYSIA
(REINVENTING GOVERNMENT)
Improving
Government Services
Better access
Higher Quality
Expanded Spectrum
Better tailored to
individual need
Improving effectiveness
and efficiency of
Government
Improves processes
Better Systems
Empowered Employees.
REINVENTING GOVERNMENT REQUIRE
CHANGES
EG PARADIGMS
Open and citizen centered
Transparency
Accountability for results
More analytical policy making
PROCESSES
Improved information flow
Higher productivity
Shorter cycle times
Better quality monitoring
PEOPLE
Enhanced skills
Higher motivation
TECHNOLOGIES/SYSTEMS
Interconnectivity and
integration
Better security and privacy
protection
Knowledge Economy (K-Economy)
Knowledge is becoming more important and has always been central to
economic growth and development. An essential element of the knowledge
based economy is the possession of a world class information and
telecommunications system that is accessible to all at competitive prices which
can provide the competitive advantage ton each sector of the economy.
Malaysias K-Economy master plan emphasised on the maximum application of
knowledge to every Malaysia economy and business activities by investment
made in education, brain-gain and supply of information.
Knowledge Society (K-Society)
Is a learning society where people have to learn how to learn with the help of
information and communication tools. It requires a life-long and a discipline of
continous learning.
Electronic learning (K-Learning)
The creation, delivery and management of learning and training via CD-ROM,
an organisations intranet and internet. It allows an organisations to take full
advantage of their existing desktop/portable PC and their network technologies
to deliver directly to learner or trainers as when and where it is convenient and
the facilitator can easily track learner progress.
Impacts of MSC & CIT Developments
SELF-TEST QUESTIONS
CHAPTER 5 ELECTRONIC GOVERNMENT
1. State the two objectives of Electronic Government
2. What are the three key elements of Electronic
Government
3. List the five pilot applications in implementing Electronic
Government
4. Explain briefly the background and objectives of
electronic procurement.
OCTOBER 2000
The Electronic Government project in Malaysia is widely believedto be the first
such project in the world undertaken on a nationwide scale. It will reinvent how
the Government works, thus resulting in dramatic improvements inevery aspect
of Malaysian life, from straightforward services to top security information
flow.
a) Reinventing government requires changes. What are these changes?
(8 marks)
b) List the three (3) key elements of Electronic Government.
(3 marks)
c) State and explain two (2) benefits of Electronic Government
(4 marks)
d) Explain the meaning of the term Generic Office Environment in relation to
the pilot application of the Prime Ministers Office in Putra J aya.
(5 marks)
(Total: 20 marks)
J UNE 2000 (Summer Class)
Malaysias Multimedia Super Corridor project will change the way
citizens view the Government and likewise the way the Government
views its interaction with the citizens. The Electronic Government
initiative is aimed at making it easier for citizens to lead their daily
lives and find a wide range of services and information from the
Government through a single window
a) Explain the meaning reinventing the concept of government
through connectivity
(6 marks)
b) Identify and explain the four (4) factors involved in reinventing
government
(8 marks)
c) List any three (3) of the Pilot Applications in Electronic government
and elaborate on one of them.
(6 marks)
(Total: 20 marks)
APRIL 2000
The vision of Electronic Government (EG) sees the people, government
and business sector working together for the benefit of all Malaysian. The
vision calls for both reinventing government (using multimedia or
information technology to dramatically improve productivity) and
creating a collaborative environment that fosters the on-going
development of Malaysias multimedia industry.
Datuk Seri Dr. Mahathir Mohamad, 1998
a) What are the three (3) key elements involved in Electronic Government
(EG). Give two (2) examples of electronic services for each of the key
elements
(9 marks)
b) What are the benefits of reinventing government through EG
(6 marks)
c) Define the term Electronic Procurement
(5 marks)
(Total: 20 marks)
OCTOBER 1999
Electronic Government (EG) will not be simply a transplanting of
government departments from their current quarters to Putrajaya and
putting computers on everybodys desk but more of reconceptualising
how each of the core services are provided using IT and Multimedia as
enabling tools to dramatically enhance performance.
(By Dato Prof Anuar Maarof, Deputy Director General of MAMPU)
REQUIRED:
a) State three (3) reasons for the need of Information Technology (IT)
Applications in government.
(3 marks)
b) List the five (5) pilot applications in Electronic Government
(5 marks)
c) Select and describe one of the five pilot applications above
(12 marks)
(Total: 20 marks)
APRIL 1999
Electronic Government provides a rare opportunity to reinvent the
government of Malaysia. It will redefine the relationships of
government to citizens, to business and among its components. By
enabling improved connectivity and communications between all
parties. Electronic Government will facilitate Malaysia becoming
fully developed in line with Vision 2020.
(Dato Prof Anuar Maarof, 1998)
a) Explain the two (2) objectives of Electronic Government
(4 marks)
b) Identify and explain the four (4) factors involved in reinventing
government.
(12 marks)
c) List any four (4) benefits of intra-government concept in
(4 marks)
(Total: 20 marks)
OCTOBER 1998
Over the last three decades, Information Technology (IT) has been used as an
enabler towards better government through grasping the opportunities presented
by new technologies, and more effective, less costly government through
improved information management policies and practices. This is where
Electronic Government flagship fits in as a full fledged, concerted effort
which calls for people in government, business and citizenry working together
in a collaborative environment for the benfit of Malaysia.
(Dato Dr Muhammad Rais Abdul Karim, Ketua Pengarah MAMPU, 18
December 1997)
a) List 5 (five) pilot applications for Electronic Government which have been
prioritised by Concept Request For Proposals (CRFP) and discuss any 2 (two)
of them
(13 marks)
b) State 3 (three) benefits of any 2 (two) IT Applications currently adopted in the
government sector
(7 marks)
(Total: 20 marks)
MARCH 1998
The vision of Electronic Government sees the people in
government, business and citizenry working together for the
benefit of all Malaysians. The vision calls for both reinventing
government (using multimedia/information technology to
dramatically improved productivity) and creating a collaborative
environment that fosters the ongoing development of Malaysias
multimedia industry.
a) What are the objectives of Electronic Government?
(2 marks)
b) In relation to the above, explain the three elements of Electronic
Government
(12 marks)
c) State and explain two benefits of Electronic Government in
relation to the three elements above.
(6 marks)
(Total: 20 marks)
CHAPTER 6 - PROCUREMENTS
Objectives of Government Procurement
Procurement Classification supplies,
services & works
Procurement Methods purchase, quotation
& tender
Rules & Procedures TC 5/94, 2/95, 8/95,
1/99, 2/99 & 2/2001 and TC 4/95
PROCUREMENTS
RULES & PROCEDURES
TC5/94 (TI 166-200), TC
2/95, TC 8/95, TC 1/99,
TC2/99 & 2/2001 and TC 4/95
TC 4/95
(Preferences given to
Bumiputra Contractor)
CLASSFICATION (3) TC 5/94
Supplies
Services (T1185)
Works (T1179)
1) Definition of Bumiputra Co
& Bumiputra Status Co.
2) Pricing priority for supplies
& Services
3) Pricing Priority for Works
METHODS-TC5/94, TC2/99 & TC 2/2001
Purchases for supplies & services (<RM50,000)
Quotation for supplies & services (>RM50,000<RM200,000)
Purchases for Works (<RM20,000)
Requisition for Works (<RM100,000:Schedule of Rates/Pricing List)
Quotation for Works (>RM20,000<RM200,000)
Tender (>RM200,000) & Tendering process (T1168-200)
Decentralised
(procurement
separately
handled by the
related
Ministry of
Govt.
Agencies.
O
B
J E
C
T
IV
E
S
(7
)
P
R
O
C
U
R
E
M
E
N
T
S
Y
S
T
E
M
Centralised (T1178)
(Central Contract)
- common use items)
OBJ ECTIVES OF GOVERNMENT
PROCUREMENT
To support Malaysias industrial development and policy to ensure the
achievement of Vision 2020.
As a tool or means to achieve government policies/principles
To get the best value for money spent in terms if price, quantity and
quality of the goods, delivery time, after service and time to complete a
contract.
To create a healthy competitive market
To encourage the development of local industries and to maximise the
use of local sources, items and materials.
To encourage the bumiputra participant in commerce & industry
To upgrade the institution and local capability through technology and
technical transfers
To encourage the development and the application of local service
sectors especially in transportation and insurance.
PROCUREMENT SYSTEMS
1 CENTRALISED PROCUREMENTS
The goods that are in the same use are handled and centralised by
Ministry Of Finance (MOF). The objectives are to get the best
acceptable price and a perfect logistic supply. Central contract in
procurement process is based on specification and approximate
estimation from various government departments and agencies and
verified by MOF. Purchase of common use items must be made
from treasury circulars in force on such central bulk purchase
contract.
2 DECENTRALISED PROCUREMENT
It is personally handled by the related ministries, statutory bodies,
local authorities. Treasury only involved at Board of Tender stage
to coordinate, supervise and verify that the basic principle of
procurement is followed.
PROCUREMENTS IN PUBLIC SECTOR
TC5/ 94
Procurement Classification 3 Types:
Supplies goods supplied to carry out certain activities of
government programmes I.e. the input for the work processing and
services. Examples are materials for repair & maintenance works,
furnitures clothes etc.
Services manpower or technical expertise obtained to complete a
specified work/job. It can be categorized into consultant and non-
consultant services.
Works or constructions involved in construction and civil &
electrical engineering work such as building, road, water dam &
irrigation. This includes minor/small works (eg. No changes in the
original structures of building construction)
TC2/ 2001
Procurement methods for SUPPLIES and SERVICES
Direct purchase (<RM10,000) involving an annual aggregate expenditure of
not more than RM10,000 in respect of one item or class of related items.
Procurement made by placing orders directly from any interested suppliers at a
reasonable price.
Direct Purchase (>RM10,000<RM50,000) involving an annual aggregate
expenditure of more than RM10,000 but not more than RM20,000 in respect of
one item or class of related items. Procurement made by direct purchase from
registered Bumiputra suppliers known for consistently dealing at reasonable
price.
Quotation (>RM50,000<RM200,000) involving an annual aggregate
expenditure of more than RM50,000 but not more than RM200,000 in respect
of one item or class of related items. Procurement of >RM50,000<RM100,000
have to be made by obtaining quotations from at least 5 registered Bumiputra
suppliers only. However, procurement quotation from at least 5 of any
registered suppliers. (registered suppliers with Ministry of Finance).
Tender (>RM200,000) involving an annual aggregate expenditure of more
than RM200,000 in respect of one item or class of related items. Procurements
made by invitation for tenders (open tenders)
TC 2/ 2001
Procurements method for WORKS or CONSTRUCTIONS
Direct Purchase (<RM20,000) involving an annual aggregate expenditure of not
more than RM20,000 in respect of one item or class of related items. Procurement
made by appointing and purchasing directly from any eligible contractors of class
F and had by registered with the Contractor Service Center or PKK.
Quotation (>RM20,000<RM200,000) or Requisition of small works & repairs
(>RM20,000<RM100,000). Any type of maintenance/upgrading works which do
not change the original plan of building structure involving an annual aggregate
expenditure of more than RM20,000 but not more than RM200,000. Requisition of
small works & repairs (>RM20,000<RM100,000) must use the approved
schedules of pricing rates prepared by Civil Engineering Department and offered
to contractor appointed by rotation/balloting to all qualified Contractors of class
F who had registered with PKK (Pusat Khidmat Kontraktor). However,
Quotation (>RM20,000<RM200,000) must be invited from at least 5 qualified
contractors who had registered with PKK or Lembaga Pembangunan Industri
Pembinaan (CIDB)
Tender (>RM200,000) involving an annual aggregate expenditure of more than
RM200,000 in respect of major works/construction. Procurements made by
invitation for tenders (open tender).
TC 5/ 94 & 2/ 99
TI 173 PURCHASING (RM50,000)
a) Direct purchase involving an annual aggregate
expenditure of not more than RM50,000 for Supplies
or Services or RM20,000 for Works in respect of one
item or class of related items may be made by the Head
of Department by placing orders directly from selected
firms known for consistently dealing at reasonable
price in accordance with TC 2/99 procedures.
b) Emergency purchases are in such cases where delay
in purchase would be detrimental to the public service.
Purchase is to be limited to the quantity of stores
sufficient to cope with the particular emergency and a
report is to be submitted to the controlling officer for
transmission to Secretary General to Treasury or State
Financial Officer.
TC 5/ 94, TC 2/ 99 & TC 2/ 2001
TC 170 QUOTATION (>RM50,000<RM200,000)
Quotation is required for purchases in respect of any one item or
class of related items involving an aggregate annual expenditureof
more than RM20,000 but nor exceeding RM200,000 for works or
more than RM50,000 but not exceeding RM200,000 for supplies or
services.
A quotation using borang Q should be sent to at least 5 suppliers to
ensure unbiased and fair decision can be made.
Uniform and standard criteria for quotation must be notified by
hand or registered mail.
Proper public notification and period for the quotation should be at
least 7 days.
Results of the Quotation committee should be based on the lowest
acceptable price with good quality.
The quotation should be submitted, received, opened and prepared
schedules following instructions as per tender procedures in TI
195, 196, & 197.
TI 171 TENDER (TC 5/ 94, 2/ 99 & 2/ 2001)
An open tender will be invited for supplies and services or works
with value of more than RM200,000 for one item or class of related
items for an annual aggregate expenditure.
TENDERING PROCESS AND PROCEDURES (STEP BY STEP PROCESS)
Sanction for procurement (TI 168)
Preparation or Specifications (TI 174)
Preparation for Tender Documents.
Tender Advertisement (TI 172) & Tender Notice (TI 195)
Contractor Registration & Tender Deposit (TI 184 & 175)
Contractor Registration & Tender Deposit (TI 184 & 175)
Opening of Tender (TI 196 & 197)
Tender Evaluation Analysis & Ranking (TI 197(3))
Preparation of Tender Briefs (TI 192 & TI 193)
Approval of Tender and Contract Signing (TI 198 & TI 200)
Monitoring
TENDERING PROCESS FOR WORKSOR SUPPLIES/ SERVICES
TC 5/ 94, TC 2/ 2001 (DETAILED EXPLANATIONS)
TI 166 Central Authority for government procurement
TI 181 Works >RM200,000
TI 185 Services >RM200,000
TI 168 Sanction for procurement (eg. Adequate budge
provision)
TI 169 Market Survey and Tender planning
TI 174 Specification and condition of tender & tender
document.
- Fullest specification to be provided so that the firm will
have a clear identification of government requirement
TI 172 Publicity/Advertisement at least one malay newspaper
for local tender and two newspaper in Malay & English
for international tender.
TI 195 Public notice at work place, civil service link, Dewan
Perniagaan & Perusahaan Melayu.
TENDER SPECIFICATION
(T.I 174 & T.I 174.2)
Fullest specification should be provided so that the
tenderer would be able to identify the government
requirements before they can reply. There should be no
specific trade or brand name used in tender
specification. All government departments are required
to use the general conditions of tender as defined and
issued by Secretary General to Treasury. For Supplies
or Services tender, technical committee is required
for preparation of technical specifications for every
capital goods required. For work tender,
specifications have to be prepared by Department of
Engineering or Consultant appointed.
TENDER DOCUMENT
Upon agreement with the Technical and User
Department/Ministries, the responsible department who
calls for the tender has to prepare tender document
consist of the following procedures:
Conditions of general contract
Special provisions to the contract conditions
Tender form consists of time period, price and
condition of tender to be awarded by the tenderer.
All necessary drawings, specifications, bills of
quantities including their references to standards
Plan of architecture or engineering works
Other relevant requirements.
Tender documents have to be charged accordingly.
TI 184 - Contractor Registration
- Works contractors (civil & electrical) who registered with the Contractor
Service Center (PKK) in requisite classes of registration and supplies &
services contractors who registered with Ministry Of Finance as central
registration are eligible to tender.
TI 175 - Tender Deposit
- Deposit is exempted for local tender and deposit for international tender
are charged accordingly. All deposits must in the form Bank guarantee or
Bank draft.
TI 196 - Tender box
- Tenders should be deposited unopened immediately on receipt in a
locked tender deposit on which shall be marked the date and time at
which it is to be opened.
TI 197 - Tender Opening Committee
- The committee of at least 2 officers should open the tender infront of at
least 2 officers at a specified time. Each tender shall be opened
and numbered serially and the name of tenderer, the amount tendered,
completion/delivery date shall be entered in a schedule form and each
member of the committee must have signed the form.
-Tender acceptance & contract signing
Tender approval & acceptance limit (eg. Federal Ministry/Dept RM30
million for tender for work & RM15 million for supplies & services).
Contract Management include signing the contract, performance bond
and insurance before work commencement and duration of defect
liability period & amount of retention money.
TI 198 & 200
-Tender Board Appointment & Meeting
The tender board consists of members appointed by the Ministry of
Finance in respect of Federal Contract and by the Chief Minister in
respect of State Contract. At least 3 person should be appointed in the
tender board and there must be one representative from Treasury (refer
details on page 3 & 4 of TI 2/99)
TI 191 & 192
-Evaluation Of Tender (TI 197.3 & TI 197.4)
It is the duty of the department who managed the tender to analyse the
tender received and to make recommendation to Procurement Division
whichever appropriate. Tender Brief submitted shall consist of tender
status, financing, means, budget, estimated cost, date of completed
tender, date of advertising, background of tender, summary of technical
evaluation report and legal consultant report.
TI 197
FUNCTION OF TENDER BOARD
To consider the recommendation of the Head of Department and
advise the appropriate authority as to the most advantageous
purchase (price, quality, fit to purpose of use)
Check the advertisement calling for tenders, the specification,
the schedule of tender prepared by tender opening committee
and technical report
To check the financial status and performance capability &
experience of tenderer
If the tender board is satisfied that the procedure has not been
followed or any suspected irregularities, it can reply for
retendering or other methods of procurement
They have to accept tender within a limited value/budget
provision which has been approved.
There should be no conflict of interest. They withdrawn from
attending meeting if they have any personal interest or vested
power in that tender.
BUMIPUTRA PARTICIPANT TC 4/ 95
Treasury Circular No 4/95 containing
policies and special preferences for
Bumiputra Companies are established to
encourage bumiputra participant in
government procurement and to increase
the quota of Bumiputra participant in
commercial and industrial sector.
BUMIPUTRA PARTICIPANT TC 4/ 95
BUMIPUTRA COMPANIES
- Majority shareholders (51%) are Bumiputra and they
are members of the board of directors
- 51% of the workers are also Bumiputra
- The administration and financial management are
controlled by the Bumiputra management
OTHER BUMIPUTRA STATUS COMPANIES
- Government owned companies
- Any trust companies of government
- Sole Bumiputra importer/exporter
Note: Bumiputra status is conferred by Ministry of
Finance.
BUMIPUTRA PARTICIPANT
SPECIAL PREFERENCE GIVEN TO BUMIPUTRA CONTRACTOR
1. Contract for Supply and Services
a) For procurement of goods and services contract value of RM100,000
below, 100% preference are given to Bumiputra I.e. invitation to
bumiputra tenderers only
b) For procurement of goods and services with contract value above
RM100,000, certain percentage of preference cost (pricing priority)
as stated in the table below are given to Bumiputra tenderers.
10%
7%
5%
3%
2.5%
>RM100,000<RM500,000
>RM500,000<RM1,500,000
>RM1,500,000<5,000,000
>RM5,000,000<10,000,000
>RM10,000,000<15,000,000
% TO PREFERENCE COST TENDER VALUE
NOTE NOTE: Preference Cost is based on the lowest tender value offered byNon Bumiputra
tenderer.
BUMIPUTRA PARTICIPATION (CONT)
SPECIAL PREFERENCE GIVEN TO BUMIPUTRA CONTRACTOR
2. Contract for Works
Small value of works of less than RM50,000 are given
to bumiputra contractors only by using the schedule of
rates.
30% from the annual value of works/constructions
(aggregate annual expenditures excluded 2(a) above)
must be first allocated to Bumiputra Contractors and
the remaining balance can be offered to the lowest
tender value offered by the Non Bumiputra or
Bumiputra Contractors.
SELF-TEST QUESTIONS
CHAPTER 8 - PROCUREMENT
1. State the 3 types of procurement classification
2. List the 3 methods of government procurement
3. List down the tendering process for government
procurement as required by Treasury Circular 15/94.
4. Explain briefly the special preference given to
Bumiputra Contractors as laid down in Treasury Circular
4/95 for procurement of supply and services.
OCTOBER 2000
It is incumbent on every officer authorizing or recommending a
purchase to ensure after making reasonable inquiries that the item to be
purchased is one which it would be must advantageous to purchase
taking into account price, quality, the use to which the item is to be put
and other relevant factors
a) Explain the four (4) objectives of government procurement
(4 marks)
b) Explain the following two (2) methods of government procurement as
required by Treasury Circular 2/99:
i) Purchase
ii) Quotation
(10 marks)
c) Describe the following tendering procedures:
i) Tender Specification and
ii) Tender Document
(6 marks)
(Total: 20 marks)
PROCUREMENTS
JUNE (Summer Class)
Central contract in procurement process is based on
specification and approximate estimation from various
government departments and agencies and verified by
Ministry of Finance. Purchase of common items must be
made from Treasury Circulars.
a) Explain the three (3) types of procurement classification
(6 marks)
b) Identify the differences with regard to direct purchase and
quotation between the procurement methods for supplies
and services and the procurement methods for works or
constructions.
(10 marks)
c) List any two (2) functions of Tender Board
(4 marks)
(Total: 20 marks)
APRIL 2000
The treasury instructions are issued to serve as a guide to public
officers in respect of financial procedures of procurement system.
Treasury Circular No: 2/99 was issued to upgrade the existing
procurement procedures and Treasury Circular No: 4/95 was issued
to encourage Bumiputra participation in government procurement.
a) List any four (4) objectives of government procurement
(4 marks)
b) What are the three (3) types of procurement classification
(3 marks)
c) Describe the procurement methods for Supplies and Services
under Treasury
(8 marks)
d) Under what criteria can a company be classified as a Bumiputra
Company under Treasury Circular 4/95
(5 marks)
(Total: 20 marks)
OCTOBER 1999
Procurements in the Public Sector comprised of three types of
classification: supplies, services and works/constructions. Treasury
Circular No: 5/94 and 2/99 were issued to Government Agencies onthe
procurement procedures and Treasury Circular No: 4/95 was issuedfor
Bumiputra participation in government procurement.
a) List the three (3) methods of government procurement
(3 marks)
b) Describe the procurement method for Works or Constructions under
Treasury Circular No: 2/99
(9 marks)
c) What are the two (2) objectives of Treasury Circular No: 4/95 in
relation to Bumiputra participation in government procurement
(2 marks)
d) Explain briefly the special preference given to Bumiputra Contractors
as laid down in Treasury Circular No: 4/95 for procurement of Works
or Constructions
(6 marks)
(Total: 20 marks)
The Electronic Procurement aims to reengineer, automate, and
transform the current procurement system. The system will
deliver cost savings and faster turnaround times by enabling
government to become a Smart Buyer.
a) Explain the methods of procurements practiced in government
departments
(6 marks)
b) List 4 objectives of government procurement
(4 marks)
c) Explain briefly the following:
1. Market Survey
2. Tender Specification
3. Publicity
4. Tender Notice.
(10 marks)
(Total: 20 marks)
APRIL 1999
Electronic Procurement is one of the pilot applications for
Electronic Government. The pilot agencies to be involved in
Electronic Procurement are the Government Procurement
Management Division and the Administrative Division of the
Finance Ministry and the Administration Division of MAMPU.
a) Describe the three (3) types of Procurement Classification
(6 marks)
b) Explain the following two (2) methods of government
procurement as required by Treasury Circular 5/94:
i) Purchase
ii) Quotation
(10 marks)
c) Determine the benefits of adopting electronic procurement in the
tendering process
(4 marks)
(Total: 20 marks)
OCTOBER 1998
Government procurement policies and procedures are in line with
the objectives and aspirations of the National Policy and Vision
2020. The policies are formulated to stimulate the growth of local
industries and to encourage the involvement of the bumiputra
(indigenous) entrepreneurs. The procurement policies and
procedures are based on the principles of public accountability,
transparency, value for money, and open and fair competition.
a) Describe 3 (three) methods of government procurements
(6 marks)
b) Discuss the similarity and the different procedures in the prices of
receiving, opening and evaluation of quotation and tender
(10 marks)
c) Identify the benefits of adopting ISO 9000 in the tendering
process
(4 marks)
(Total: 20 marks)
MAY 1998
The objective of government procurement is to support
Malaysias industrial development policy and national
economic policy to ensure the achievement of Vision 2020.
Apart from that it is to get the best value for money spent
(price, quality and purpose of use) and to ensure that a fair
decision can be made.
a) What are the three types if procurement classification?
(6 marks)
b) Explain the procurement procedures for quotations under
Treasury Circular 5/94
(11 marks)
c) List down the criteria for companies to be classified as
Bumiputra Companies as stated in Treasury Circular 4/95
(3 marks)
(Total: 20 marks)
MARCH 1998
Write short notes on any four of the following
tendering process and procedures:
a) Publicity
b) Tender Specification and Tender Document.
c) Tender Opening
d) Tender Board
e) Bumiputra Participation
(20 marks)
SEPTEMBER 1997
Government spending through government procurement
continues to be a primary lever of economic policy. Handling
and managing contracts are thus an important government
responsibility to support NEP and NDP objectives and
Malaysias industrial development.
In order to facilitate this, Treasury Circular No: 5/94 was
issued to government agencies on the systems and
procedures for procurements.
a) Explain the 4 objectives of government procurement.
(8 marks)
b) Discuss the requirements of Treasury Circular No: 5/94 on
the tendering process and procedures for government
agencies. Support your answer with the relevant Treasury
Instructions.
(12 marks)
(Total: 20 marks)
NOVEMBER 1996
Procurements in the Public Sector comprised of three elements
I.e. supplies, services and works/constructions. Methods of
procurements consist of Purchase, Quotation and Tender.
Treasury Circular No: 5/94 was issued to Government Agencies
on the systems and procedures for procurements.
The introduction of 0.25% levy on projects worth more than
RM500,000 starting 1 J uly 1996 to be collected by the
Construction Industry Development Board (CIDB) is to upgrade
and bring professionalism in the construction industry. The
CIDB acts as the custodian of the construction industry and is a
self-financing body, said Datuk Abdul Rahman Abdullah,
Chief Executive CIDB. (News Straits Times, J une 15, 1996)
In relation to the above, you are required to explain the
requirements of the Treasury Circular 5/94 on the tendering
process for works. (Quote the relevant para in T.I 5/94)
(20 marks)
NOVEMBER 1993
Leaving approvals, formalities and technicalities aside,
we cannot understand the necessity to buy as many as
twenty-two Volvos in addition to the fleet of Pajeros
bought just two years earlier. commented by a reader
relating to the purchase of Volvo cars by the City Hall.
(News Straits Times, August 26, 1992)
In relation to the above, describe in detail the tendering
process and procedures which should be followed by a
government agency to ensure compliance with the
government rules and procedures. Support your answer
by quoting relevant Treasury Instructions and Treasury
Circulars.
(20 marks)
NOVEMBER 1992
Government contracts for goods and services should be
awarded through public tenders wherever possible and
practicable said by Auditor General Tan Sri Ishak
Tadin. He added this is in line with the basic economic
principle of making the utmost use of competition
among potential suppliers
(News Straits Times, May 11, 1992)
In relation to the above, explain the requirements of the
Treasury Instructions on the tendering process and
procedures for government agencies. Support your
answer with the relevant Treasury Instructions.
(20 marks)
MAY 1992
..Controlling Officers should bear in mind
that they should whenever possible, invite
suppliers to tender rather than to quote for the
supply of the stores concerned.
(Treasury Instructions 174 (a))
In relation to the Purchasing Procedure of the
government, explain the distinguishing features
and procedures of Tender and quotation.
Support your answer with the relevant Treasury
Instructions and Circulars.
(20 marks)
MAY 1991
Write short notes on the following which
involve procurement of stores by the
government departments: -
a) A quotation
b) A tender
c) A casual purchase
d) Central contract
(20 marks)
CHAPTER 7 PUBLIC ENTERPRISES
STATUTORY BODIES.
Definitions, Types and
Formation
Objectives and Functions
Statutory Bodies Act 240
Treasury Circular 15/94 (Part
1, 2 & 3)
PUBLIC SECTOR AGENCIES.
Defined as all government organisations which are not privately
owned and operated and will exhibit a variety of social, economic,
political and legal characteristics. They have different objectives,
functions and activities which are financed in different ways and
also have different organisational structures. Public Sector
Agencies included LOCAL AUTHORITIES and PUBLIC
ENTERPRISES (Statutory Bodies and Non Statutory Bodies)
PUBLIC ENTERPRISES
are those organisations formed by the government for the purposes
of
Socio economic development
Creating a bumiputra industrial and commercial community
Private sector cannot deliver goods and services adequately and
cheaply to the public at large in greater geographical areas.
Accelerating economic growth.
PUBLIC ENTERPRISES
STATUTORY BODIES
Services and revenue oriented
A statutory corporation
established under Act of
Parliament
Funded from government and
revenues generated activities.
Examples are MARA, SEDC,
ITM, LUTH, PORLA, RISDA,
LPN, etc.
NON STATUTORY
BODIES
Commercial and profit
oriented
A body corporate formed
under Companies Act 1965
Self-financing (share capital
& loan)
Examples are BERNAS,
PNB etc.
STATUTORY BODIES
-Formation
-Objectives
-Functions
Regulatory Guidelines
Annual Report and Financial Statements
ACT 240 (1980)
Accounts & Annual Reports
Objectives
Sect 5 6 months to Auditor General
Sect 7 1 month to Ministry
Sect 8 Ministry submits to Parliament
Sect 9 extension of 3 months
Sect 11 power of Ministry
TC 15/94 Guidelines for preparation
and presentation of Annual Report and
Financial Statements
Objectives
Part 1 Annual Report (Content)
Part 2 Forms and standards of Financial
Statements
Part 3 Schedules (Activities and Dates)
STATUTORY BODIES
Established by statute and subject to provisions
prescribed in such relevant act
A body corporate
Perpetual succession and common seal
A public authority or government agency but does not
include a local authority & a body incorporated under
Companies Act (Section 2, ACT 240) egs. MARA,
UDA, FAMA, SEDC.
Fully autonomous
Wholly owned by government (public
authority/government agency)
Managed by a Board consisting of Chairman &
representative from public sector
Board formulate policies activities & proper instructions.
STATUTORY BODIES ACT & GUIDELINES
Act 240 Statutory Bodies (Accounts & Annual Reports)
Act 1980 on accountability & proper financial management and
control.
Treasury Circular 15/1994 (Guidelines for the preparation and
presentation of the Annual Reports and Financial Statements of
Statutory Bodies). There are three parts if minimum
disclosure requirements by each Statutory Body to the
responsible Minister are
PART 1 Guidelines in Annual Report Preparation
PART 2 Form and Standard of Financial Statements
PART 3 Schedules (dates & activities) for the
preparation and presentation of Annual Report &
ACT 240 STATUTORY BODIES (ACCOUNTS &
ANNUAL REPORTS) ACT 1980
Applicable to all statutory bodies
Section 5 annual statement of accounts for the preceding
financial year should be submitted for audit within 6 months or as
extended within 3 months under section 9
Section 7 audited account to be submitted to Minister within one
month
Section 8 The Minister shall table the audited statements of
accounts, Auditor Generals report & activities report in
Parliament
Section 9 Minister may grant an extension of time of the
statement of account for audit not exceeding 3 months with the
approval of Minister of Finance.
Section 11 Minister may make rules for statutory bodies
(power, functions, duties & responsibilities of Board of
Management, officers & servants and accounts & other operations
record.)
TC 15/ 1994 GUIDELINES FOR ANNUAL REPORTS AND
FINANCIAL STATEMENTS OF STATUTORY BODIES
OBJECTIVES
To further enhance public accountability by proper and timely
preparation of Annual Reports and Financial Statements within the
specified timeframe
To facilitate understanding of statutory Body, its objectives,
functions, operational activities, projects undertaken during the
year.
Establish uniform accounting standard for all statutory bodies
To standardise the application of accounting principles & practise
To provide clear & complete figures of financial position to meet
the information demands from various users.
To further enhance the accounting standard & preparation of
Financial Statements.
PART 1 GUIDELINES ON ANNUAL
REPORT PREPARATION (TC 15/ 1994)
Contents Of Annual Report
Corporate Information
Background Of Statutory Body objectives, functions, operational
programmes, etc
Chairmans Statements achievements, targets & benefits of
programmes
Report on Government Assistance/Contributions
Summary of Financial Statistic
Performance Report (see Lampiran A)
Audited Financial Statement should include income & Expenditure
Statements, Balance Sheet, Notes to accounts. Cash flow Statements,
other supporting supplementary statements. Auditor General Report,
Financial Declaration by Chairman or anyone of Directors and Financial
Declaration by Officer responsible for financial management.
Other information as necessary any information apart from above
which one considered important and where its omission may affect the
readers understanding of the statutory body and its performance.
OBJ ECTIVES OF ANNUAL REPORT
To facilitate understanding of statutory bodies, its
objectives, functions and operational programmes
during the year.
To provide information on the intended targets
and benefits of programmes/project
To indicate the extent of the governments
assistance or contribution
To provide overall picture of financial position
To provide information of achievements/success
in its social economic developments/progresses.
AUDITED FINANCIAL STATEMENTS
AUDITED FINANCIAL STATEMENTS should include the
following documents
Balance sheet
Profit and loss statement or income and expenditure statement
Statement of changes in financial position or cash flow statement
Notes to the accounts
Any other relevant statements that have been prepared according
to any treasury circulars and are duly audited as other supporting
supplementary statements
Auditor general report
Financial declaration by chairman or any one of the directors
Financial declaration by the officer primarily responsible for the
financial management of statutory body.
REPORT ON GOVERNMENTS ASSISTANCE
AND CONTRIBUTION
3 TYPES OF GOVERNMENTS ASSISTANCE
AND CONTRIBUTION
Grants operating grants, development grants, specific
grants and capital asset gifted.
Loans
Guarantees
DISCLOSURE REQUIREMENTS
It is important to provide feedback on the extent of
financial assistance received from the Federal/State
government and the application of such assistance.
Figures for the current and the preceding year should be
provided to enable comparison to be made. Information
on the following should be disclosed:
DISCLOSURE REQUIREMENT (CONTD)
GRANTS
Operating grants amount receive and the application of such grants
Developments grants amount received and the application of such grants.
Specific grants purpose of the grant and the amount received
Capital assets gifted the description, estimated value, useful life and the
usage of such assets and
Grants approved but not yet received type or purpose of grant, amount
and date receivable)
LOANS
Loans purpose and conditions of the loan, amount received, amount repaid
and the balance
Loans approved but not received purpose and conditions of the loans,
amount and date receivable and
Arrears on loans repayment amount and age of the arrears.
GUARANTEES
Guarantees on loans purpose and amount guaranteed and
Guarantees currently sought purpose of each guarantee being sought,
amount and date guarantees expected to be given.
PART 2 FORM & STANDARD OF
FINANCIAL STATEMENTS (TC 15/ 1994)
Financial Statements Balance Sheet/income & Expenditure/cash Flow
Statement or SAFS/notes to Account/certificates/other Statements& Materials
GAAP & Accounting Policies
Conform to general disclosure requirements
Revenues, expenses, transfers, assets & liabilities.
For subsidiary corporation
Valuation of assets to include bad debts & investments
Valuation & Presentation Of Liabilities to include interest accrued & secured
or not
Reserves & Provisions
Resources Provided Free of Charge
Flowchart on Financial Documents
SAGA (Standard Accounting System For Government
Agencies)SOFTWARE
Aims to produce daily, monthly & yearly financial reports to help management
in detecting weaknesses & signs of poor financial position by providing
reliable & timely information.
PART 2, TREASURY CIRCULAR 15/ 1994
VALUATION TREATMENT
ASSET
All known bad debts written off and adequate provisions made for doubtful
debts
Any known current assets shown at an amount that exceed replacement cost
need adequate provision to show the expected realisable value.
Quoted investment at market value and unquoted investment at Directors
Valuation to be disclosed in Notes to the Accounts.
LIABILITIES
Amount shown in the Financial Statement is at nominal value inclusive of
accruals
In respect of secured liabilities or contingent liabilities, details of the
security need to be disclosed.
RESERVES AND PROVISIONS
Reserves shall not be used for any amount written off or retained by way of
providing for depreciation, renewal or diminution in asset values, etc.
Where provisions are made for the depreciation, diminution in value, etc
there shall be shown separately by way of note or otherwise.
PART 2, TREASURY CIRCULAR 15/ 94
VALUATION TREATMENT (CONTD)
CONTRIBUTION (GRANTS)
Grant received from Federal & State Govt. for the operations and
maintenance of Statutory Bodies activities shall be treated as income
Where money is given for specific purpose eg. Revolving Fund for
vehicle loan, the grant received should not be treated as incomebut
long term liability
For development or investment, the grant received should be credited
to the Development Fund.
RESOURCES PROVIDED FREE OF CHARGE
If Fixed Asset or current Asset (cash) is a significant/material item
Value of support must be disclosed in the Accounts of the recipients
and donors, either in the form of notes of supplementary statements
If resources are gifted (assets), disclosed at assessed realisable value
If resources are gifted (services), the actual or estimated amount
received to be disclosed.
PART 3 SCHEDULES FOR PREPARATION & PRESENTATION OF
ANNUAL REPORTS AND FINANCIAL STATEMENTS (TC 15/ 1994)
Preparation of Draft Activity Report not later than 31
J anuary
Submit the Financial Statements to Auditor General
not later than 30 August
Preparation of Audited Financial Statements to Board
of Directors not later 15 September
Submit Audited Financial Statement and Annual
Report to Cabinet not later than 31 October
Presentation Of Annual Report & Audited Financial
Statement to Parliament not later than 31 December
PART 3 SCHEDULES (ACTIVITIES & DATES)
Prepare Draft Activity Report
Submit Financial Statements to
Auditor-General
Issue audit certificate by
Auditor-general
Submit Audited Financial
Statements and Annual
Report to Cabinet
Present Audited Financial
Statements and Annual
Report to Parliament
Submit Audited Financial
Statements to Board of Directors
Not later than 31 J anuary
Not later than 30 April
Not later than 30 August
Not later than 15 September
Not later than 31 October
Not later than 31 December
SELF-TEST QUESTIONS
CHAPTER 9 STATUTORY BODIES
1. Name the two guidelines used by all Statutory Bodies in
Preparing and submitting their performance and financial
reports.
2. List down the three parts of Treasury Circular 15/94 on
the reporting requirements to be complied with by all
statutory bodies.
3. Identify the types of financial assistance that a Statutory
Body shall receive from the government.
4. State the contents of the Annual Reports of Statutory
Bodies as required by Part 1 of Treasury Circular 15/94.
5. What are the accounting treatments on such grants and
resources provided free of charge received by Statutory
Body as required by the Treasury Circular No: 15/94
OCTOBER 2000
The purpose of Act 240 (Statutory Bodies [Accounts and Annual Reports]
Act 1980) and Treasury Circular 15/94 is to provide for certain time limits in
relation to the preparation and submission of the statements of accounts for
audit of all statutory bodies incorporated pursuant to the provisions of federal
law.
a) List down four (4) objectives of Treasury Circular 15/94.
(4 marks)
b) State the contents (any three [3]) of the Annual Report of Statutory Bodies as
laid down in the circular above.
(3 marks)
c) State the time limit imposed by Act 240 in relation to the preparation and
submission of the financial statements and annual reports.
(10 marks)
d) Identify any three (3) types of financial assistance provided by the
government to Statutory Bodies.
(3 marks)
(Total: 20 marks)
STATUTORY BODIES
The purpose of Treasury Circular 15/94 is to provide guidelines
for the preparation and presentation of the Annual Reports and
Financial Statements of Statutory Bodies.
a) List any four (4) objectives of Treasury Circular 15/94
(4 marks)
b) Describe any four (4) items disclosed in the Chairmans
Statements as published in the Annual Report of Statutory
Bodies .
(4 marks)
c) Describe the timeframe in the preparation and submission of
financial statements of the Statutory Bodies as required by Part
3 of Treasury Circular 15/94
(12 marks)
(Total: 20 marks)
APRIL 2000
A Statutory Body is a corporation established under its relevant Act of
Parliament. This activities and functions differ from one statutory body
to another and the information to be presented and disclosed in the
annual reports and accounts of each statutory body may also vary.
However, annual reports and accounts of each statutory body must be
properly and timely prepared and presented to Parliament as laiddown
by the legal requirements and treasury guidelines.
a) Name the two (2) guidelines used by all Statutory Bodies in the
preparation and submission of their annual reports and accounts.
(4 marks)
b) State and explain the legal requirements which all Statutory Bodies
have to comply with in order to enhance public accountability and
proper financial management and controls.
(10 marks)
c) Identify three (3) types of grants that Statutory Body shall receive as
required by the treasury guideline
(3 marks)
(Total: 20 marks)
OCTOBER 1999
One of the objectives of Treasury Circular 15/94 is to further
enhance public accountability by proper and timely preparation
of Annual Report and Financial Statements of Statutory Bodies
within the specified timeframe.
a) List the three (3) parts of Treasury Circular 15/94 on minimum
disclosure requirements for the annual report of Statutory
Bodies.
(3 marks)
b) Describe the timeframe in the preparation and submission of
financial statements of the Statutory Bodies as required by Part 3
of TC 15/94
(12 marks)
c) Identify any five (5) types of financial assistance provided by the
government to Statutory Bodies.
(5 marks)
(Total: 20 marks)
The purpose of the Treasury Circular 15/94 is to provide
guidelines for the preparation and presentation of the Annual
Reports and Financial Statements of Statutory Bodies. The
intention is to standardise and harmonise the differing
provisions provided in the various incorporating Acts of Federal
Statutory Bodies.
a) Identify any four (4) objectives of Treasury Circular 15/94
(4 marks)
b) State any three (3) reporting information by the Chairman in the
Annual Report of any Statutory Body as required by the
circular.
(6 marks)
c) Explain in accordance to Part 11 of the Circular, the accounting
treatment for Grants
(10 marks)
(Total: 20 marks)
APRIL 1999
The purpose of the statutory bodies is to implement specific objective of
government that is to achieve a fair distribution of wealth of the economy
and to undertake a multiplicity of functions mainly to accelerate the
growth of national development. Statutory bodies have to comply with
certain rules and regulations to comply with, in the presentation and
preparation of their annual financial statement.
a) State the two (2) regulatory documents used in the administration of
Statutory Bodies
(2 marks)
b) Elaborate on the timeframe in the preparation and submission of the
accounts of the Statutory Bodies as required by the above two (2)
regulatory documents.
(14 marks)
c) State the contents (any four [4]) of the Annual Report of Statutory Bodies
(4 marks)
(Total: 20 marks)
OCTOBER 1998
The annual report of each Statutory Body should include a report on
the governments assistance/contributions. It is important for the
Statutory Body to provide feedback on the extent of financial
assistance received from the government and the application of such
assistance.
a) Identify the types of assistance that a Statutory Body shall receive
from the government
(3 marks)
b) Explain the reporting requirement on this financial assistance as
required by Part 1 of treasury Circular 15/94
(6 marks)
c) Explain the accounting treatments under Treasury Circular 15/94 on
the following items:-
i) Grants
(6 marks)
ii) Resources provided free of charge.
(5 marks)
(Total: 20 marks)
MAY 1998
On August 1, 1997 the Chief Secretary to the Government Tan
Sri Abdul Halim Mohd Ali reported that until the end of 1996,
148 financial statements dating back to 1987, had not been
submitted by the State Statutory Bodies.
(News Straits Times, August 1, 1997)
a) Name the legal requirement and the guideline which all Statutory
Bodies have to comply with in order to establish uniform
accounting standards.
(2 marks)
b) Describe the reporting requirements of Statutory Bodies as laid
down under Part 3 of the above guideline
(12 marks)
c) Relate 2(b) above to legal provisions on similar reporting
requirements.
(6 marks)
(Total: 20 marks)
MARCH 1998
Annual reports of Statutory Bodies need to be
presented to Parliament and as such the annual
reports should be informative, meaningful and of
certain standards.
a) State the contents (any 5) of such reports as required
by the Treasury Circular 15/94
(10 marks)
b) What are the required documents that should be
included in the audited Financial Statements for
tabling in Parliament.
(10 marks)
(Total: 20 marks)
SEPTEMBER 1997
Statutory Bodies (Accounts and Annual Reports) Act 240 and
Treasury Circular No: 15/94 require that all Statutory Bodies to
adopt and implement specific provisions and guidelines on the
preparation of their financial statements and annual reports.
a) Explain 6 main objectives of Treasury Circular No: 15/94
(6 marks)
b) State the time limits imposed by the above provisions and
guidelines (Act 240 and TC 15/94) in relation to the preparation
and submission of the financial statements and annual reports.
(10 marks)
c) Suggest 2 measures currently undertaken by the government to
ensure that the production of the Statutory Bodies Accounts are
timely.
(4 marks)
(Total: 20 marks)
APRIL 1997
a) What are the powers given to Ministers as provided in the
Statutory Bodies (Accounts and Annual Reports) Act 1980?
(support your answer with the relevant sections)
b) The Treasury Circular 15/94 provides information regarding
the treatments on
I. Assets
II. Liabilities
III. Contributions for development and operations
IV. Resources provided free of charge
Explain the treatments as required by the Treasury Circular
15/94
(20 marks)
MAY 1996
a) Statutory Bodies are required to use the document
flowchart as per TC 15/94 as a guideline for the
preparation of the financial statement. You are required to
explain the requirements of the documents flowchart.
(10 marks)
b) TC 15/94 specifies the important dates for the submission
of the Annual Report and Financial Statement for
Statutory Bodies. This is to ensure proper presentation and
up-to-date submission. You are required to list the
important dates and their activities for the preparation and
presentation of the Annual Report and Financial Statement
of the Statutory Bodies.
(10 marks)
(Total: 20 marks)
MAY 1995
Dato Mohamed Khalid, the Auditor General of
Malaysia mentioned that many State Statutory Bodies
are showing minus or deficit when it comes to
submitting their annual financial reports on time.
Besides that they are slow in preparing their financial
reports.
a) Explain the main reporting requirements of Statutory
Bodies as required by the Act 240 and TC 15/94
(10 marks)
b) Identify the reasons for the delay in submission of the
reports and ways to overcome the problems.
(10 marks)
(Total: 20 marks)
CHAPTER 8 LOCAL AUTHORITY
Functions and Objectives of Local
Authorities
Definition & types of Local Authority
Formation and Administration
National Council For Local Authority
Sources of Finance
Resource Allocation
Accounts and Audit.
LOCAL AUTHORI TY (LA)
LOCAL GOVERNMENT ACT 1976 (ACT 171)
ADMINISTRATION PROVISIONS
FINANCIAL PROVISIONS
SECT 2 Definition & types of LA
SECT 3 Determination of status of LA
areas
SECT 4 change of name, status &
alteration of Boundaries
SECT 5 Merger of two or more LA
SECT 8 Administration of LA areas
SECT 9 Power of State Authority to issue
directions
SECT 10 COUNCILLORS
SECT 13 LA to be corporations.
SOURCES OF FUNDS
SECT 39 Revenues
SECT 41 Loans
SECT 46 Loans for specific purpose
SECT 47 Loans by Government
SECT 49 Advances by Overdraft
ANNUAL BUDGET/ESTIMATES
SECT 55 Annual Estimates
SECT 56 Supplementary Estimates
SECT 57 Unapproved Expenditures
SECT 58 Virement
SECT 59 Forms of Estimates.
ACCOUNTS & AUDITS
SECT 53 Accounts to be kept
SECT 54 Financial Year & Final Accounts
SECT 60 Audit of Accounts.
Formation
Objectives
Functions
FUNCTIONS AND OBJ ECTIVES OF LOCAL
AUTHORITY
Local Authorities comprise City Hall, Municipalities and District
Councils. These Local Authorities have many functions. These
include cleanliness, maintaining public health, planning,
landscaping and beautification of public places, collection of taxes,
and issuance of permit & licences.
The main objective is to be an efficient and productive Local
Authority in providing quality urban or rural services and a
balanced provision of social amenities, recreational facilities and
economic opportunities. In the modernisation process of the Local
Authorities. Their new role as agents for change and development,
involves not only providing services and basic amenities but also to
develop the area as an agent for development by providing proper
system of housing, infrastructure facilities & other amenities to
eradicate poverty and to upgrade the quality of life of people at the
local level.
DEFINITION & TYPES OF LOCAL AUTHORITY
Local Authority is definedin Section 2 of the Local Government Act 1976 (Act
171) as any City Council, Municipal Council or District of the states in relation
to the Federal Territory means the Commissioner of the City of Kuala Lumpur
appointed under section 3 of the Federal Capital Act, 1960.
All Local Authorities in Peninsula Malaysia are under the purview of the
Ministry Of Housing and Local Government except City Hall of Kuala Lumpur
which is under the Prime Ministers Department
Local Authority is the administration Corporate Body which is given by the law
the authority and responsibilities to administer the affairs of areas called Local
Authority areas. The Local Authority areas is determined by the State Authority
(Rules in Council or Governor in council and includes Y.P. Besar N.
Sembilan, Ruling Chief or Minister (Federal Territory)
In view of the rapid socio economic development, there are proposals to
upgrade the status of district council to municipalities to answer the calls for
better service to the public (5 city halls, 21 municipalities & 118 district
councils reported by Housing & Local Govt. Minister in Sunday Mail 11/6/96
& he also reported that to upgrade into a municipality, a district council must
have a min. population of 100,000 and an annual revenue of RM 5 million.)
Refer to section 3, 4 & 5 of the Local Govt. Act on declaration, determination,
change of name, status & boundaries and merger of two local authorities.
FORMATION AND ADMINISTRATION
Each Local Authority has a defined area, a population, an
organisation and the authority to undertake and power to carry out
their functions
Section 13 every local authority shall be a body corporate, have
perpetual succession and a common seal. They have a separate legal
entity which means they may sue and be sued and can enter
contract.
Section 8 The affairs of every local authority area shall be
administered by a local authority established by and in accordance
with this Act.
Section 9 The power of State Authority/Minister (F.Territory) to
issue directions & not inconsistent with this ACT provisions. To
submit returns, accounts & other information as required by State
Authority from time to time.
Section 10 elaborate on the appointment, terms of office & other
related information of Councillors (Local Authority Council) which
consist of Mayor/President & >8 & <24 other Councillors.
NATIONAL COUNCIL FOR LOCAL AUTHORITY
Under Articles 95A of Federal Constitution requires the
formation of a Council to control LA
Duties to formulate national policy for the promotion,
development and control of LA after consulting Federal
& State Government.
NCLG acts as an agency to ensure uniformity on policies
& law matters
NCLG comprise of:
Minister of Housing & Local Govt. as Chairman
Representative from State (1 each)
Maximum of 10 from Federal Govt.
SECTION 10 APPOINTMENT, TERM OF OFFICE AND OTHER
RELATED INFORMATION OF COUNCILLORS
Councillors shall be appointed where majority are persons
ordinarilly residents in the local area who:
Have wide experience in local government affairs
Have achieved distinction in any profession, commerce or
industry
Capable of representing the interests of their communities in
the local authority area.
Term of office shall not exceed 3 years and eligible for
reappointment upon the expires of his term of office.
The seat of a Councillors may be vacant due to
Resignation
Disqualified under section 34 (7)
Appointment is revoked by State Authority.
State Authority must be informed immediately when a
vacancy occurs
If the mayor or president does not agree with the other
councillors, he shall refer the matter to the Menteri
Besar or Chief Minister for final decision.
The mayor or president may grant leave of absence to
the Councillors in accordance with State Authoritys
term and condition
Each councillors shall be paid such salaries or
allowances as the State Authority may determine.
SECTION 10 APPOINTMENT, TERM OF OFFICE AND OTHER
RELATED INFORMATION OF COUNCILLORS (CONTD)
SOURCES OF FINANCE
Section 39 The Revenue Of Local Authority
consists of:
All taxes, rates, rents, licence fees, dues and other
charges payable to the Local Authority
Profit arising from any trade, service or undertakings
carried on by the Local Authority
All interests on any monies invested & all income
arising from/out of the property
Grants (Federal Govt. Launching Grant, Annual
Grant, Infrastructure Grant), contributions,
Endowments & others accruing from Federal/State
Government & Statutory Authorities.
SOURCE OF FINANCE
Section 41 Power of LA to raise loan
LA may raise loan with the consent of the State Authority for any of the
following purposes
For the acquisition of land, construction of buildings &
renewal/replacement of plants or vehicles
To pay off existing loans provided that the loan shall not make the total
indebtness of LA to exceed 5 times the annual value as contained in the
current valuation list and the maximum repayment period is 60 years
To borrow by issuing mortgages or debentures stock under Sect. 42
Section 46 Borrowings Powers for special purposes
In addition to Section 41, raise loan from any person with the approval of state
authority for the purpose of carrying out any development for residential,
commercial & industrial undertakings. Loan is secured by a 1
st
mortgages or
charge or by debentures upon assets or revenues from assets in respect of which
the money is borrowed.
Section 47 Loans from Federal & State Government
Section 48 Loans to be first charge on revenue and assets
Every loan granted under section 41 & 47 subject to any prior charge, be a first
charge upon the revenues and assets of the LA
Section 49 advances by way of overdraft.
LOCAL AUTHORITY FUND
Section 40 All moneys received by the Local
Authority by virtue of this Act or any written law shall
constitute a fund known as the Local Authority Fund
which becomes vested in and under the direction and
control of the local authority. All moneys received by
the local authority for Local Authority Fund shall be
kept on current or deposit account with one or more
banks licenced under Banking Act 1973 & may be
invested in any securities in which Trustees are
empowered to invest or other manner as authorized by
shall be signed by two officers authorized in writing
by local authority.
RESOURCE ALLOCATION
Section 55 Annual Estimates
Not later than 10
th
day of November of each year pass
detailed estimates of revenue & expenditures for next
financial year.
Form of draft estimates deliver to each Councillor not
later than 7 days before the meeting.
The local authority council may pass, modify, reject
or add in such draft estimates
Forwarded to State Authority not later than 20
th
November and be considered by State Authority not
later than 31
st
December. State Authority may reduce
or reject any item therein.
Budget summary shall be published in the Gazette.
RESOURCE ALLOCATION
Section 56 Supplementary Estimates
Additional financial provision may from time to time pass
supplementary estimates by applying Section 55 provisions
State Authority shall consider not later than six weeks after
the date of receipt.
Section 57 No Local Authority shall incur any not include in
the approved estimates except with the sanction of State
Authority
Section 58 Virement
Local Authority may transfer all or part of the monies
assigned to one item of annual recurrent expenditure to
another item of annual recurrent expenditure under the same
head of expenditure. The approved budget summary shall be
published in the gazette.
Section 59 Annual & Supplementary estimates and
summaries shall be prepared in such form as required by State
Authority.
ACCOUNTS AND AUDIT
Section 53 Books & Accounts shall be kept and open to
inspection of any councillor with prior concern of the
Mayor/President
Section 54 The financial year shall be 12 months ending on 31
December of each year. The accounts shall, as soon as may be, be
balanced for the preceding financial & annual statement shall be
prepared. Such annual statement signed by Mayor/President shall
be laid before the Local Authority not later than its First
Ordinary Meeting in the month of May following or at any
time thereafter as followed by the Local Authority. Annual
statement shall be prepared in such form and shall contain
information as required by the State Authority. The Accounts
contain annual statement of Revenue & Expenditure (P & La/c),
Balance Sheet & other supporting supplementary statements.
AUDIT OF ACCOUNTS SECTION 60
Audit will be undertaken by the Auditor General or
other auditor appointed by the State Authority on the
recommendation of Auditor General
It is the duty of the auditor to submit to local
Authority on or before 31
st
October in each year in
respect of the preceding financial year of an annual
observation on account and to certify: -
The accounts were in order
Separate accounts of all commercial undertakings
had been kept
The account presented a true and fair view of the
financial position of LA and commercial
undertakings.
AUDIT OF ACCOUNTS SECTION 60 (CONTD)
Provisions made for redemption and repayment of
all monies borrowed by Local Authority
The amount set aside for deprecation & renewal of
all assets were adequate.
All the requirements of the auditor had been
complied with
The audited accounts & auditors observations shall
be laid before the LA and be published in the Gazette
A copy of the statements & accounts shall be
forwarded to State Authority to be laid & tabled to
State Legislative Assembly & House of
Representative.
SELF-TEST QUESTIONS
CHAPTER 10 LOCAL AUTHORITIES
1. State the main functions of Local Authorities.
2. What are the powers of State Authority in the
determination of local authority area?
3. Identify the powers of Councillors in relation to the
financial matters of a Local Authority.
4. List down the sources of revenue for Local Authority under
section 39 of the Local Government Act 1976 (Act 171)
5. Explain the borrowings powers of Local Authority under
Section 41 and Section 46 of the Local Government Act
1976.
6. State the procedures under the relevant sections in the Local
Government Act 1976 for the approval of annual estimates,
supplementary estimates and virement.
OCTOBER 2000
According to section 57 of the Local Government Act 1976. No
local authority shall incur any expenditure which has not been
include in the approved estimates except with the sanction of the
State Authority.
a) Explain the financial provisions for the budgetary procedures of
Local Authorities under section 55 and section 56 of the Local
Government Act 1976.
(12 marks)
b) Distinguish the differences between the supplementary estimates
and virement.
(4 marks)
c) Describe the meaning of the Local Authority Fund under section
40 of the Local Government Act 1976.
(4 marks)
(Total: 20 marks)
LOCAL AUTHORITIES
According to Section 10 of the Local Government Act 1976,
Councillors of the local authority shall be appointed from amongst
persons the majority of whom shall be persons ordinarily resident in
the local area..
a) What are the other factors required for a person to be eligible for
appointment as a Councillor
(6 marks)
b) Under what circumstances may the seat of a Councillor be vacant
(4 marks)
c) Explain the borrowing powers of Local Authorities under Section
41 and Section 46 of the Local Government Act 1976.
(10 marks)
(Total: 20 marks)
APRIL 2000
Local Authority is the administrative corporate body which is
given by the Local Government Act 1976 (Act 171) the authority
and responsibility to administer the affairs of local authority areas
as determined by the Federal or State Government. There are 144
local authorities in the peninsula of Malaysia.
(New Straits Times, 1997)
a) Identify three (3) types of Local Authorities in Peninsula
Malaysia. Support your answer with one (1) relevant example for
each of the respective Local Authorities.
(6 marks)
b) List the sources of revenue for Local Authority under section 39
of the Local Government Act 1976.
(8 marks)
c) State and explain any three (3) powers of State Authority in
relation to the financial matters of local Authority.
(6 marks)
(Total: 20 marks)
OCTOBER 1999
Forty of the ninety-six local authorities in the peninsula are facing annual financial
deficits which have affected their performance. Many of the small district councils are the
ones facing this financial constraints as they have limited revenue resources. The Housing
and Local Government Ministry would look into details including expenditure,
management and sources of income before remedies could be recommended.
(Datuk Dr. Ting Chew Peh, Minister of Housing and Local Government, NST 12
th
J une
1999)
a) Explain how the councillors of Local Authority may be appointed under the Local
(4 marks)
b) Describe the budgetary procedures of Local Authority as laid down by section 55, 56 &
(10 marks)
c) Identify the procedures/course of actions to be taken by the Controlling Officer of local
Authority when the following situations/events occur.
1. Development expenditure incurred by the District Council was not included in the
approved annual budget.
2. One item of the annual recurrent expenditures of the Municipal Council had been
overspent.
Support your answer with relevant sections under Local Government Act 1976.
(6 marks)
(Total: 20 marks)
The purpose of the Local Government Act 1976 (Act
171) is to ensure uniformity of law and policy to make
law with respect to local government
a) Explain the financial provisions on the submission and
approval of annual estimates of Local Authorities as
stated in Section 55 of the Act.
(12 marks)
b) Section 39 of the Local Government Act 1976 states
four (4) types of revenue allowed to be collected by
local authorities. What are they?
(8 marks)
(Total: 20 marks)
APRIL 1999
Local Authority is the administrative Corporate Body which is
given by the law the authority and responsibilities to administer
the affairs of areas called Local Authority Areas. The Local
Authority areas are determined by the state and federal
Government. Local Authorities comprise of City Hall,
Municipalities and District Councils. Local Authorities require
sufficient funds in order to be efficient and productive in
providing quality urban and rural services.
a) Local Authority are is determined by the State Authority. List
down the four (4) changes that State Authority can make in the
administration affairs of Local Authorities.
(4 marks)
b) Elaborate on the sources of funding of Local Authorities in
accordance with Local Government Act 1976. Support your
answer with relevant sections.
(16 marks)
(Total: 20 marks)
OCTOBER 1998
The Local Government Act 1976 (Act 171) provides
exceptionally detailed financial and accounting requirements to
be followed by local Authorities for a better control and
management of Local Authority Fund
a) Define the meaning of Local Authority as laid down in section
2 of the Local Government Act 1976 and list down 4 (four) main
functions of Local Authority.
(6 marks)
b) Explain the financial provisions on the submission and approval
of the annual financial statements of Local Authority
(6 marks)
c) Discuss the financial provisions on the audit of the Local
Authority as stated in section 60 of the Act.
(8 marks)
(Total: 20 marks)
MAY 1998
In accordance to the Local Government Act 1976 (Act 171),
Local Authorities are required to prepare their annual estimates
for revenue and expenditure to be approved by the State
Authority.
a) Discuss the relevant sections in the Local Government Act 1976
for the approval of annual estimates, supplementary estimates
and virement.
(12 marks)
b) Identify the powers of the Councillors on the annual and
supplementary budget.
(4 marks)
c) List one similarity and one different procedures on the approval
of estimates between annual estimates and supplementary
estimates.
(4 marks)
(Total: 20 marks)
MARCH 1998
Local authorities require financial assistance in order to
be efficient and productive in providing quality urban
or rural services and a balanced provision on social
economic development and economic opportunities.
a) Explain the borrowing powers of Local Authorities
under Section 41 and Section 46 of the Local
(12 marks)
b) You are required to explain the Local Authority Fund
as legally laid down under Section 40 of the Local
(8 marks)
(Total: 20 marks)
SEPTEMBER 1997
According to Section 10 of the Local Government Act
1976. The Local Authority shall consist of the Mayor
or President and not less than eight and not more than
twenty four other Councillors to be appointed by the
State Authority.
a) Elaborate further on other issues discussed under this
Section
(12 marks)
b) What are the powers of Councillors in relation to the
accounts and financial matters of a Local Authority?
Support your answer with relevant sections of the Act.
(8 marks)
(Total: 20 marks)
APRIL 1997
According to the Local Government Act 1976,
the sources of finance for Local Authorities
include money received from revenue and
from loans.
Elaborate further on these two sources of
finance and support your answer with the
relevant sections
(20 marks)
NOVEMBER 1996
The main thrusts of Local Government is to promote, develop and assist
the Local Authorities in providing quality urban services and a balanced
provision of social amenities, recreational, facilities and economic
opportunities. All local authorities in Peninsula Malaysia are under the
purview of the Ministry of Housing and local Government except City
Hall of Kuala Lumpur which under the Prime Ministers Department to
achieve the objective of creating efficient and productive Local
Authorities, the Federal Government provides financial assistance in the
form of annual grant, project grants and loans.
(Malaysia Official Year Book, 1993)
In accordance to the local government Act, 1976 (Act 171), local
authorities are required to prepared their annual estimates for approval
by the State Authority.
You are required to explain the relevant sections in the Local
Government Act 1976 for the approval of annual estimates including the
supplementary estimates, virement and form of estimates.
(15 marks)
MAY 1996
Housing and local government Minister, Datuk Dr. Ting Chew
Peh said that five to ten councils would be upgrade to
municipalities and city halls status in five years time. To be
upgraded into a municipalities, a district council must have
achieved a minimum population of 100,000 and an annual
revenue of RM5 million.
(Sunday Mail, J une 11, 1995)
a) In relation to the above, you are required to explain the various
ways that have been implemented by the district councils in
order to achieve a maximum level of revenue.
(12 marks)
b) Give suggestions on other approaches that district councils can
implement in order to increase its revenue
(8 marks)
(Total: 20 marks)
COURSE : ADVANCED PUBLIC SECTOR
ACCOUNTING
COURSE DATE : PSA 520
DATE : 26 SEPTEMBER 2002
TIME : 3 HOURS (9.00 A.M. 12.00 P.M.)
FACULTY : Accountancy
SEMESTER : May October 2002
PROGRAMME/CODE : Bachelor of Accountancy (Hons)
/AC220
FINAL EXAMINATION
AC/ SEP 2002/ PSA520
INSTRUCTIONS TO CANDIDATES
1. Answer ONE (1) question in Section A and FOUR (4)
questions in Section B
2. Start each answer on a new page.
3. Do not bring any material into the examination room
unless permission is given by the invigilator.
4. Please check to make sure that this examination pack
consists of:
i) the Question paper included
ii) an Answer Booklet provided by
the Faculty.
SECTION A
Answer one (1) question only.
Question 1
The accelerated privatization programme generated domestic
investment, particularly in the utilities, transportation and social
services. The privatization programme will continue to serve as a vehicle
to increase the proportion and scope of private sector participation in the
economy.
(The Third Outline Perspective Plan 2001-2010)
Required:
a) Define the terms Privatization and Privatization Master Plan.
(4 marks)
b) Explain any five (5) of the major components of the Privatization Action
Plan.
(10 marks)
c) Describe the methods of privatization that do not involve the transfer of
ownership.
(6 marks)
(Total: 20 marks)
Question 2
In supporting the development of Malaysias competitive cluster
industries, as envisaged under the Second Industrial Master Plan
(IMP2), the government will continue to ensure adequate
provision of quality infrastructure and other support facilities to
facilities their development.
(Dato Seri Dr. Mahathir Mohamad, 1996)
Required:
a) Identify the objectives of the Industrial Master Plan
(6 marks)
b) Elaborate on the five (5) strategic thrusts of the Manufacturing
++ Concept
(10 marks)
c) Why is the success of IMP2 important in relation to Vision
2020?
(4 marks)
(Total: 20 marks)
SECTION B
Answer four (4) questions only.
Question 1
The establishment of the Multimedia Super Corridor (MSC) offers
innovative multimedia developers and users a unique opportunity
to help shape tomorrows world through intelligent use of
multimedia technology.
Required:
a) Where is the MSC located?
(3 marks)
b) Describe the three (3) phases of MSC.
(12 marks)
c) Elaborate on Technopreneur Development which was the latest
Flagship Application introduced in November 2001.
(5 marks)
(Total: 20 marks)
Question 2
The concept of Electronic Government can bring about
fundamental changes in the fabric society and be an important
contribution in Malaysias overall effort to become a fully
developed nation.
Required:
a) What are the key elements of Electronic Government?
(3 marks)
b) Identify and explain the four (4) factors that require changes in
reinventing government.
(12 marks)
c) Describe any one (1) of the Pilot Applications of Electronic
Government
(5 marks)
(Total: 20 marks)
Question 3
Continued reform efforts throughout 1996 have brought above
encouraging progress within the Civil Service. Among major
improvement programmes are the implementation of MS ISO
9000 and efforts towards the development of a paperless Civil
Service.
Requires:
a) What is the main objective of implementing ISO 9000 in the
Malaysian Civil Service?
(4 marks)
b) Explain five (5) benefits of implementing ISO 9000 in the
Malaysian Civil Service.
(10 marks)
c) Why is top management commitment very important in ensuring
the success implementation of ISO 9000?
(6 marks)
(Total: 20 marks)
Question 4
The vision of the Local Authority in Shah Alam is to transform Shah
Alam into a smart city, beautiful and progressive and in harmony with
its environment towards the creation of civil community with emphasis
on sustainable development.
Required:
a) Identify the three (3) types of Local Authorities in West Malaysia.
(3 marks)
b) Explain the financial provisions on the submission and approval of
annual estimates of Local Authorities as stated in Section 55 of the
Local Government Act 1976.
(12 marks)
c) Give two (2) suggestions on how Local Authorities could improve the
quality of service delivery to the public.
(5 marks)
(Total: 20 marks)
Question 5
The 2002 Budget provides the biggest ever allocation of 5.34
billion ringgit to further increase the facilities and amenities in
the rural areas.
Requires:
a) Identify three (3) types if facilities and amenities that were
include in the 2002 Budget allocation above.
(6 marks)
b) Describe how the government intends to strengthen the nations
economic growth as mentioned in the 2002 Budget Speech.
(10 marks)
c) List down four(4) issues normally discussed under the social
agenda strategy at the budget.
(4 marks)
(Total: 20 marks)
Question 6
Statutory Bodies are required to prepare their financial statements and
Annual Reports in accordance to the Act 240: Statutory Bodies (Accounts
and Annual Reports) Act 1980 and Treasury Circular 15/94 (Guidelines
for the Preparation and Presentation of the Annual Report and Financial
Statements of Statutory Body).
Required:
a) Act 240 was established in 1980. Explain the purpose of the Act.
(4 marks)
b) Describe the time frame in the preparation and submission of Annual
Reports as required by Act 240.
(8 marks)
c) Identify three (3) objectives of preparing Annual Reports as stated in
Treasury Circular 15/94. Give two (2) examples of items found in the
Annual Report of a Statutory Body.
(8 marks)
(Total: 20 marks)
Question 7
The primary objectives of government procurement are to
support Malaysias industrial development and to encourage
Bumiputra participation in commerce and industry.
Required:
a) Under what criteria can a company be classified as a Bumiputra
company as stated in the Treasury Circular 4/95?
(4 marks)
b) Explain the procurement methods for supplies and services under
Treasury Circular 2/99.
(8 marks)
c) Explain briefly the special preferences given to Bumiputra
companies for procurement of supply and services as laid down
in the Treasury Circular 4/95.
(8 marks)
(Total: 20 marks)
ACCOUNTING
DATE : 24 MARCH 2002
TIME : 3 HOURS (9.00 A.M. 12.00 NOON)
SEMESTER : November 2001 - April 2002
/AC220
FINAL EXAMINATION
AC/ MAR 2002/ PSA520
INSTRUCTIONS TO CANDIDATES:
1. Answer 1 (ONE) question in Section A and 4
(FOUR) questions in Section B.
unless permission is given by the invigilator.
SECTION A
Question 1
The Privatisation Policy was initiated and launched in 1983 as aNational
Development Policy as to publicly announce the government interest to
reduce its presence in the economy and to allow the market forces to
govern the economic activities.
Required:
a) Define the term Corporatisation and Privatisation
(4 marks)
b) List and explain the four (4) methods of privatisation in Malaysia as
described under the Privatisation Master Plan. Giver one (1) relevant
examples is privatised entity or development project for each method of
the privatisation adopted.
(10 marks)
c) Privatisation is the primary engine of the economic growth. Explain the
linkages between Privatisation and Vision 2020
(6 marks)
(Total: 20 marks)
Question 2
Vision 2020 is a national comprehensive agenda that sets out specific goals and
objectives for long term development. The Third Outline Perspective Plan (OPP3)
(2001-2010), marks the second phase of the nations journey to realiseVision 2020 that
we embarked upon in 1991. The OPP3 has been formulated based on a policy called
the National Vision Policy (NVP) with the central theme of Building a Resilient and
Compatitive Nation.
Required:
a) State the two (2) objectives of Vision 2020
(2 marks)
b) Establish the linkages between Vision 2020 and OPP3
(5 marks)
c) List any five (5) strategic challenges of Vision 2020 other thancreation of a scientific
and progressive society, and creation of an economically just society
(5 marks)
d) Elaborate on the following two challenges of Vision 2020 that have to be addressed for
the achievement of long term economic development and the status of a fully
developed country by the year 2020:
1. The creation of a scientific and progressive society
2. The creation of an economically just society
(8 marks)
(Total: 20 marks)
SECTION B
Question 1
Treasury Circular No: 2/99 and 5/94 were issued to Government Agencies
on the procurement procedures and Treasury Circular No:4/95 was issued
for Bumiputra participation in government procurement. Those treasury
circulars serve as the guidelines to government officers in respect of the
financial procedures in the government procurement system.
Required:
a) State the four (4) objectives of government procurement
(4 marks)
b) Describe the tendering procedures (step by step process) for government
procurement as required by Treasury Circular No:5/94
(12 marks)
c) Identify the different procedures for quotation method between
supplies/services and works/constructions as laid down in Treasury
Circular No:2/99
(4 marks)
(Total: 20 marks)
Question 2
The 2002 Budget is focused on three strategies in light of the difficult
global economic outlook and challenges and to address domestic issues.
The generous, comprehensive and caring Budget 2002, with incentives for
virtually all sectors and society, is also focused on driving domestic
spending amid an ailing world economy.
Required:
a) Identify any two (2) strategies of Budget 2002
(4 marks)
b) Elaborate further on any one (1) of the strategies in (a) above
(4 marks)
c) What is K-Economy and explain what do you understand by K-Economy
(6 marks)
d) State any two (2) challenges to be addressed by Malaysia in its
transformation efforts towards K-Economy
(6 marks)
(Total: 20 marks)
Question 3
Electronic Government (EG) is identified as one of the seven (7) flagship
applications to catalyse the growth of Multimedia Super Corridor. The Vision of
Electronic Government calls for both reinventing government using multimedia
and information technologies to become a paperless administrative office and
creating a collaborative environment to foster the ongoing development of
Malaysias multimedia industry.
Required:
a) What are the two (2) objectives of Electronic Government
(4 marks)
b) Identify any two (2) Information Technology Applications currently adopted in the
government sector
(2 marks)
c) List down the five (5) Pilot Applications of Electronic Government
(4 marks)
d) State and explain two (2) benefits of reinventing government through Electronic
Government.
(4 marks)
e) Explain briefly how Electronic Government will facilitate Malaysia to become a
fully developed country in line with Vision 2020.
(5 marks)
(Total: 20 marks)
Question 4
The Multimedia Super Corridor (MSC) is right on track to create a multimedia
environment that will transform Malaysia into a world-class information technology hub.
The MSC is a real success story that should be told not only in the country or region but
the whole world. The Malaysian government has put in place the necessary infrastructure
to ensure the success of this project.
(Members of the MSC International Advisory Panel, NST, Friday 7 September 2001)
Required:
(3 marks)
b) Elaborate on the following Multimedia Development Flagship Applications:
i) Smart Schools
ii) Telemedicine
iii) Smartcard.
(9 marks)
c) Describe how Malaysia can successfully create Multimedia Super Corridor
(4 marks)
d) Explain the roles played by MSC in achieving the ultimate goals of Vision 2020
(4 marks)
(Total: 20 marks)
Question 5
The Local Authority is the administrative corporate body which is governed by the Local
Government Act 1976 (Act 171). Part V of the Local Government Act 1976 provides the
general financial provisions or local authorities.
Required:
a) Define the meaning of Local Authority as laid down in Section 2 of Local Government
Act 1976 and state three (3) main functions of Local Authoritiesin Peninsular Malaysia.
(6 marks)
b) Explain the powers and purposes of Local Authority to raise loans under the following
financial provisions of Local Government Act 1976:
i) Section 41
ii) Section 46
iii) Section 47
(6 marks)
c) Identify the power of state Authority in relation to the borrowing powers of a local
Authority.
(2 marks)
d) What are the duties of External Auditor in relation to the accounts and financial matters of
a Local Authority? Support your answer with relevant sections of the Local Government
Act 1976.
(6 marks)
(Total: 20 marks)
Question 6
Annual Reports and Accounts of each Statutory Body must be properly and
timely prepared and presented to Parliament as required by the legal
requirements and treasury guidelines.
Required:
a) Define the meaning of a Statutory Body and give any two (2) examples of
Statutory Bodies
(4 marks)
b) What are the two (2) regulatory guidelines which are issued and used by all
Statutory Bodies in preparing and submitting their Annual Report and
(4 marks)
c) Describe the time limit imposed by the treasury guidelines in relation to the
preparation and submission of the Annual Report and Financial Statements of
Statutory Bodies.
(6 marks)
d) List down the contents (any six (6)) of Annual Report of Statutory Bodies as
required by the treasury guidelines
(6 marks)
(Total: 20 marks)
Question 7
Treasury Instructions (TI) have been prepared and upgraded
from time to time by the Treasury in respect if financial and
accounting procedures for the revenue collection and payment
system of the Federal and State Government.
Required:
Explain the requirement of the Treasury Instructions on the
following procedures:
a) Revenue Collection System The Counter Service (TI60-70)
(10 marks)
b) Payment System The bulk Bill Payment (TI92-107)
(10 marks)
(Total: 20 marks)
ACCOUNTING
DATE : 29 SEPTEMBER 2001
TIME : 3 HOURS (2.15 5.15 P.M.)
SEMESTER : May October 2001
/AC220
FINAL EXAMINATION
AC/ SEPT 2001/ PSA520
1. Answer ONE (1) question in Section A and
FOUR (4) questions in Section B
2. Start each answer on a new age
3. Do not bring any material into the examination
room unless permission is given by the
invigilator
SECTION A
Answer one (1) question only
Question 1
The privatisation programme will continue to be implemented during the Eighth
Malaysia Plan period as it has contributed to increase efficiency and productivity of
privatised entities or projects. Emphasis will be given to viable projects that have high
multiplier effects and, at the same time; meet social objectives.
Required:
a) Define the term Privatisation
(2 marks)
b) State any four (4) objectives of privatisation
(4 marks)
c) Identify and explain the two (2) criteria adopted in the selection of government owned
entities (GOE) for privatisation programme.
(4 marks)
d) List the privatisation decision categories as illustrated by the four quadrants in the
diagram of Privatisation Decision Grid. Explain any two of them.
(6 marks)
e) Discuss any two (2) reasons why the government needs to control the privatised
entities or projects.
(4 marks)
(Total: 20 marks)
Question 2
The Third Outline Perspective Plan (OPP3)(2001-2010), marks the second
phase of the nations journey to realise Vision 2020 that we embarked upon in
1991. Besides the usual projections of continued high economic growth, the
OPP3 has emphasised on poverty eradication, restructuring of society, the
development of human resources, knowledge economy and national unity.
The Eighth Malaysia Plan (2001-2005), is the first phase in the
implementation of the OPP3 which presented strategies and programmes
aimed at putting the nation towards becoming a united and fully developed
country in our own mould by the year 2020.
Required:
a) State the main difference between OPP2 and OPP3.
(4 marks)
b) What is the primary objective of the Eighth Malaysia Plan.
(4 marks)
c) List any six (6) key strategies of the Eighth Malaysian Plan.
(6 marks)
d) Explain any two (2) of the above key strategies.
(6 marks)
(Total: 20 marks)
SECTION B
Question 1
Treasury Circular No:2/99 and 5/94 were issued to serve as a guide to
government officers in respect of the financial procedures in the government
procurement system.
Required:
a) What are the two (2) procurement systems practised in government sector.
(2 marks)
b) List the three (3) methods of governments procurement.
(3 marks)
c) Describe the procurement methods for Works or Constructions under Treasury
Circular No:2/99.
(9 marks)
d) Identify one different procedure between Quotation and Requisition method in
the Procurement procedures for Works or Constructions.
(6 marks)
(Total: 20 marks)
Question 2
The government has always made serious efforts to improve the quality of
public services by adopting and implementing TQM and ISO 9000. A quality
public service organisation will be capable of carrying out its responsibility
effectively, besides providing excellent services to the public.
Required:
a) Explain the concept of Total Quality Management (TQM) and ISO 9000.
(4 marks)
b) In relation to the implementation of ISO 9000, explain briefly the meaning of
the following terms:
1. Quality
2. Quality Assurance
(4 marks)
c) List down the seven (7) steps required in the implementation of ISO 9000 in
government sector.
(10 marks)
d) Name any two (2) Local Authorities that have been awarded with the ISO
9000 certificate.
(2 marks)
(Total: 20 marks)
Question 3
The implementation of Electronic Government (EG) is intended to bring to
the public sector the benefits of multimedia and the IT revolution that are
leading to new paradigms of performance improvements globally and are
moving towards a creative public service.
Required:
a) What are the objectives of Electronic Government.
(4 marks)
b) What are the three (3) key elements involved in Electronic Government.
(3 marks)
c) List down the five (5) Pilot Applications of Electronic Government and
describe briefly any one (1) of them.
(8 marks)
d) Define the tem E-Services and list any two (2) E-Services that are currently
provided by the government to its customers.
(5 marks)
(Total: 20 marks)
Question 4
The development of the Multimedia Super Corridor (MSC) will have a
significant impact on Malaysia as it enables the country to reach the target of
Vision 2020 through productivity driven and knowledge based economy as
well as promoting a new way of life to its people.
Required:
(3 marks)
b) List the seven (7) flagship applications in MSC
(7 marks)
c) Describe any one (1) of the seven flagship applications as mentioned above.
(3 marks)
d) Describe the first phase of MSCs development from 1996 to year 2003
(4 marks)
e) Explain the roles played by MSC as the guarantor and accelerator for the
ultimate goals of Vision 2020.
(3 marks)
(Total: 20 marks)
Question 5
Local Authority is the administrative corporate body which is governed by the
Local Government Act 1976 (Act 171). All local Authorities comprise of City
Council, Municipal Council and District Council are required to prepared their
annual budget for revenues and expenditures to be approved by the Federal or
State Authorities.
Required:
a) Explain the appointment criteria and the term of office for the Councillors of
Local Authority under Section 10 of Local Government Act 1976.
(6 marks)
b) Describe the procedures for the approval of annual estimates and
supplementary estimates under the relevant sections in the Local Government
Act 1976.
(10 marks)
c) Identify the powers of State Authority in relation to the budgeting procedures
of a Local Authority.
(4 marks)
(Total: 20 marks)
Question 6
To enhance public accountability, the annual report and financial statement of
each statutory body must be properly and timely prepared and presented to
Parliament as laid down by the legal requirements and treasury guidelines.
Required:
a) Give any two (2) examples of Statutory Bodies.
(2 marks)
b) What are the two (2) regulatory guidelines which are issued and used by all
(4 marks)
c) Explain the legal reporting requirements of Statutory Bodies in relation to the
preparation and submission of the Annual report and Financial Statements.
(8 marks)
d) What are the relevant documents that should be included in the audited
Financial Statements of a Statutory Body as required by the Treasury
Guideline.
(6 marks)
(Total: 20 marks)
Question 7
Treasury Instructions (TI) are the written instructions issued by the
Treasury for the financial and accounting procedures in the
payment system of the Federal and State Government.
Required:
a) What are the two types of payment system.
(2 marks)
b) Explain the requirements of the Treasury Instructions on the
payment system using payment vouchers (TI 92-107).
(10 marks)
c) Explain the meaning of non-voucher type of payment system.
(4 marks)
d) Describe two (2) benefits of using non-voucher type of payment
system.
(4 marks)
(Total: 20 marks)
ACCOUNTING
DATE : 9 APRIL 2001
TIME : 3 HOURS (2.15 5.15 P.M.)
SEMESTER : November 2000 - May 2001
/AC220
FINAL EXAMINATION
AC/ APR 2001/ PSA520
INSTRUCTIONS TO CANDIDATES:
1. Answer 1 (one) question in Section A and 4 (four)
questions in Section B.
2. Start each answer on a new Page.
unless the invigilator gives you permission to do so.
SECTION A
Answer 1 (one) question only
Question 1
The purpose of privatisation is to promote greater involvement
of private sector in the economy and minimum government
involvement in commerce and industry.
a) List down the main objectives of privatisation.
(5 marks)
b) Elaborate on the Privatisation Grid in the Privatisation Master
Plan.
(10 marks)
c) Explain the meaning corporatisation and flagships.
(5 marks)
(Total: 20 marks)
Question 2
Industrial Master Plan 2 is based on a cluster based industrial
development that will provide the basis for a broad, resilient and
internationally competitive industrial sector.
a) List down the objectives of industrial Master Plan
(6 marks)
b) Explain any 3 (three) factors involved in improving economic
foundation.
(6 marks)
c) Elaborate the meaning value chain and value added under
the cluster based industrial development.
(6 marks)
d) What is the impact of K-economy on the industrial sector?
(2 marks)
(Total: 20 marks)
SECTION B
Answer 4 (four) questions only.
Question 1
In 1997, the Government announced that all government departments and
government agencies, had until the year 2000 to quality for the ISO 9000.
However, only 25% succeeded in achieving the target.
a) What is ISO 9000?
(3 marks)
b) What is the main objective of ISO 9000 in the government?
(4 marks)
c) List and explain any 4 (four) principles underlying the development of ISO
9000.
(10 marks)
d) State 3 (three) reasons for the delay in achieving the ISO 9000 certificate
by most government departments and government agencies.
(3 marks)
(Total: 20 marks)
Question 2
Malaysians can benefit directly from MSC in many ways. It allows
the nation to learn new skills and expertise brought in by
companies and countries setting up in MSC. The MSC will also
push Malaysia one step forward from the manufacturing industry to
being the regions key player in the information age.
a) What is MSC?
(2 marks)
b) What are the objectives of MSC?
(6 marks)
c) Describe the development of MSC from 1996 to year 2020.
(10 marks)
d) Why is the multimedia development corporation (MDC) called
one-stop super shop?
(2 marks)
(Total: 20 marks)
Question 3
Electronic Government will play an essential role in catalyzing the
development of the MSC, as well as furthering the political and
economic development goals in Vision 2020. Electronic
Government will improve both how the government operates
internally as well as how it delivers services to the people of
Malaysia.
a) Explain the meaning reinventing the concept of government
through connectivity.
(4 marks)
b) List down the 5 (five) Pilot Applications of Electronic Government
and describe any 2 (two) of them
(9 marks)
c) Describe 2 (two) benefits of Electronic Government.
(4 marks)
d) Identify the key elements of Electronic Government.
(3 marks)
(Total: 20 marks)
Question 4
Section 8 of the Local Government Act 1976 states that the affair of
every local authority area shall be administered by a local authority
established by and in accordance with the Act.
a) Identify the 3 (three) types of Local Authorities found in the states.
(3 marks)
b) List down 3 (three) sources of funding of a Local Authority as stated in
the Local Government Act 1976. Support your answer with the relevant
sections of the Act.
(6 marks)
c) Under what conditions can a person be appointed as a Councillor?
(6 marks)
d) Describe any 2 (two) types of expenditure allowed under Section 41 of
the Local Government Act 1976.
(5 marks)
(Total: 20 marks)
Question 5
Statutory Bodies are established under the Act of Parliament and
are governed by Act 240 and Treasury Circular 15/94. They are
managed by a Board consisting of a Chairman and representatives
from the public sector.
a) What is the purpose of Act 240 and Treasury Circular 15/94?
(6 marks)
b) Elaborate on the time frame in the preparation and submission of
final accounts by Statutory Bodies as required by Act 240 and
Treasury Circular 15/94. Support your answer with relevant
sections from the above documents.
(10 marks)
c) Suggest 2 (two) measures that could be undertaken by the
government to ensure that the final accounts are produced on time.
(4 marks)
(Total: 20 marks)
Question 6
Treasury Circular 4/95 contained policies and special preferences
for Bumiputra Companies. This is to encourage Bumiputra
participation in government procurement and to increase the quota
of Bumiputra participation in commercial and industrial sector.
a) State any 4 (four) objectives of government procurement.
(4 marks)
b) Explain the classification of Bumiputra Companies and Bumiputra
Status Companies.
(6 marks)
c) Explain the special preferences given to Bumiputra Contractors
with regard to Supply and Services as stated in Treasury Circular
4/95.
(6 marks)
d) Explain the meaning Tender Specification.
(4 marks)
(Total: 20 marks)
Question 7
The purpose of Bulk Payment System is to speed up the
payments of bills especially utility bills by government
departments and government agencies.
a) Describe the Bulk Payment System.
(8 marks)
b) State 3 (three) differences between the Bulk Payment System
and the Ordinary Payment System.
(6 marks)
c) Who are the authorized payment officers stated in the relevant
Treasury Instructions.
(3 marks)
d) List down any 3 (three) examples of improper payment.
(3 marks)
(Total: 20 marks)
PSA 520 ADVANCED PUBLIC SECTOR ACCOUNTING
Related articles from seminar papers, local newspapers (NST, STAR, Business
Times, etc), relevant Magazines (Khidmat, Malaysia Business, etc), Books and
Websight (Internet/Intranet) on the following topics:
Corporatisation & Privatisation
Vision 2020
6
th
and 7
th
Malaysian Plan
Second Industrial Master Plan
2000, 1999, 1998 & 1997 Budget Speech
Economic Report 1998/99 & 1999/2000
Malaysias Vision 2020 understanding the concepts, implications and
challenges by Tan Sri Dato Seri Ahmad Sarji Abdul Hamid
Administrative Reforms by Civil Services identified & written by Tan Sri
Dato Seri Ahmad Sarji Abdul Hamid
TQM & ISO 9000 in Government
Multimedia Super Corridor
Economic Crisis & Economic Recovery Measures
SOURCES AND ACKNOWLEDGEMENTS
Government documents and related articles on Government Policies
National Economic Policy
National Development Policies
Second Outline Perspective Plan
Malaysia Incorporated.
Development Admin. Circulars Total Quality Management and ISO 9000
Treasury Instructions Revenue Collection & Payments
Treasury Circulars 5/94, 2/95, 4/95, 8/95, 6/98, 1 & 2/99 Procurements
Statutory Bodies Act 240 (1980) & Treasury Circular 15/94
Local Government Act 1976
Past Years Examination Questions Advanced Public Sector Accounting
(PSA 520), Faculty of Accountancy, Universiti Teknologi Mara, Shah Alam.
ACCOUNTING
COURSE DATE : PSA 521/520
DATE : 2 May 2003
TIME : 3 HOURS (8.30 11.30 a.m)
SEMESTER : December 2002 May 2003
/AC220
FINAL EXAMINATION
AC/ APR 2003/ PSA521/ 520
3. Do not bring any material into the examination room unless
permission is given by the invigilator.
4. Please check to make sure that this examination pack consists
of:
i. The Question Paper
ii. An answer Booklet provided by the Faculty.
SECTION A
Answer ONE (1) question only
Question 1
The successful implementation of the Second Industrial Master Plan (IMP
2) will be one of the important variables required in the transformation
into a fully developed industrialized nation as envisaged under Vision
2020.
Required:
a) State any three (3) of the identified issues and challenges to be addressed
by IMP2 to enhance the growth momentum of the manufacturing sector.
(6 marks)
b) Elaborate on the importance of the Manufacturing ++Concept
(5 marks)
c) List the five (5) strategic thrusts of Manufacturing ++Concept
(5 marks)
d) Explain the meaning to accelerate, deepen and diversity the
manufacturing sub-sectors.
(4 marks)
(Total: 20 marks)
Question 2
Hopefully the Malaysian who is born today and in the years to
come will be the last generation of our citizens who will be living
in a country that is called developing. The ultimate objective
that we should aim for is a Malaysia that is a fully developed
country by the year 2020.
(Dato Seri Dr. Mahathir Mohamad, 1991)
Required:
a) Explain the meaning a fully developed country in the context of
Vision 2020.
(5 marks)
b) List down any six (6) strategic challenges of Vision 2020.
(6 marks)
c) Elaborate any three (3) of the strategic challenges mentioned in
(b). Support your answer with examples.
(9 marks)
(Total: 20 marks)
SECTION B
Answer FOUR (4) questions only.
Question 1
One of the objectives of the Multimedia Super Corridor (MSC) is to
leapfrog Malaysia into leadership in the Information Age by attracting
and developing world-leading companies through smart partnership.
Required:
a) List and explain any two (2) factors that would leapfrog Malaysia into
success in the Information Age.
(6 marks)
b) Explain the meaning smart partnership.
(3 marks)
c) Explain the other two (2) objectives of MSC.
(4 marks)
d) List down the current seven (7) Flagship Applications in MSC.
(7 marks)
(Total: 20 marks)
Question 2
Achieving the vision of Electronic Government requires major changes
fundamentally changing how government operates and implying a new set of
responsibilities for civil servants, businesses and citizens. Thus, the objectives
of the Electronic Delivery of Driver and Vehicle Registration, Licensing and
Summons Services, Utility Payments and Ministry of Health On-Line
Information (eServices) are: to enhance service access; and to improve service
quality to the public.
Required:
a) Elaborate on two objectives of eServices application as mentioned above.
(8 marks)
b) Explain the objectives of Electronic Government.
(4 marks)
c) List the four (4) changes required in reinventing government towards
Electronic Government Concept.
(4 marks)
d) Explain any two (2) of the changes mentioned in (c) . Support your answer
with examples.
(4 marks)
(Total: 20 marks)
Question 3
Statutory Bodies are government agencies that are fully autonomous,
managed by Board of Directors consisting of Chairman and
representatives from the public sector. The Annual Reports and Accounts
of Statutory Bodies must be timely prepared and presented to Parliament
as required by legal requirements and Treasury guidelines.
Required:
a) Describe the three (3) types of governments assistance and contribution
disclosed in the Annual Reports of Statutory Bodies.
(9 marks)
b) Identify two (2) users of the Annual Reports of Statutory Bodies and
explain how the Annual Reports are important to them.
(6 marks)
c) List five (5) items included in the audited financial statementsof Statutory
Bodies as stated in Treasury Circular 15/94.
(5 marks)
(Total: 20 marks)
Question 4
According to Section 10 of the Local Government Act 1976, a
Local Authority should comprise not less than 9 and not more than
25 Councillors including the Mayor or President.
Required:
a) What are the criteria required for a person to be eligible for
appointment as a Councillor under Section 10 of the Local
(4 marks)
b) What are the powers of Councillors in relation to the accounts and
financial matters of a Local Authority?
(8 marks)
c) Explain the sources of revenue for Local Authorities under Section
(8 marks)
(Total: 20 marks)
Question 5
ISO 9000 is sweeping the world. It is rapidly becoming the most
important quality standard. Thousands of companies in over 100
countries have already adopted it, and many more are in the process of
doing so.
Required:
a) Explain any three (3) principles of ISO 9000 for quality management
system in government.
(6 marks)
b) Elaborate on any three (3) benefits of adopting ISO 9000 in
government.
(6 marks)
c) State two (2) differences between ISO 9000:1994 and ISO 9000:2000
(4 marks)
d) Explain the terms Quality Assurance and Total Quality
Management.
(4 marks)
(Total: 20 marks)
Question 6
The 2003 Budget adopts an innovative approach to the challenges of
globalisation and technological advancements which are pervading
economies the world over. One of the steps taken to achieve the 2003
Budget strategy is to develop human resources for the new economy.
Required:
a) List down any two (2) of the strategies stated in the 2003 Budget.
(4 marks)
b) Elaborate on one (1) of the strategies mentioned in (a).
(4 marks)
c) Explain any four (4) reasons why Malaysia should undertake the
development of a Knowledge-based economy.
(8 marks)
d) Explain the meaning infrastructure as one of the critical factors to the
development of a Knowledge-based economy.
(4 marks)
(Total: 20 marks)
Question 7
One of the objectives of government procurement is to get the
best value for money spent in terms of price, quantity and quality
of the goods, delivery time, after sales service and time to
complete a contract.
Required:
a) List any other four (4) objectives of government procurement.
(4 marks)
b) Explain the three (3) types of procurement classification.
(6 marks)
c) Explain briefly the following terms of tendering procedures.
i) Tender Document
ii) Tender Specification
iii)Tender Advertisement
iv)Tender Board
(10 marks)
(Total: 20 marks)
SECTION A
Question 1
Privatisation will continue to be an important cornerstone of Malaysias national
development and national efficiency strategy. The privatisation programme will
continue to be implemented during the Eighth Malaysia Plan period as it has
contributed to increase efficiency and productivity of privatised entities or projects.
Required:
a) Define the term Privatisation
(2 marks)
b) State any four (4) objectives of privatisation
(4 marks)
c) Identify and explain the two (2) criteria adopted in the selection of government owned
entities (GOE) for privatisation programme.
(4 marks)
d) List and explain the privatisation decision categories as illustrated by the diagram of
Privatisation Decision Grid in the Privatisation Master Plan.
(8 marks)
e) State any two (2) problems that the government needs to be awared of in implementing
privatisation policy.
(2 marks)
(Total: 20 marks)
Question 2
The Third Outline Perspective Plan (OPP3) (2001-2010), marks the second
phase of the nations journey to realise Vision 2020 that the country embarked
upon in 1991. The Eighth Malaysia Plan (2001-2005), is the first phase in the
implementation of the OPP3 which presented strategies and programmes
aimed towards achieving a new formulated policy called National Vision
Policy(NVP).
Required:
a) State the two (2) objectives of Vision 2020.
(2 marks)
b) NVP has been formulated based on the central theme called Building a
resilient and competitive nation. Explain the meaning of the theme.
(4 marks)
c) What is the primary objective of the Eighth Malaysia Plan
(4 marks)
d) List any four (4) key strategies of the Eighth Malaysia Plan
(4 marks)
e) Explain any two (2) of the above key strategies.
(6 marks)
(Total: 20 marks)
SECTION B
Question 1
Treasury Circular No: 2/2001 was issued to serve as an additional
guide to government officers in respect to the financial
procedures in the government procurement system.
Required:
a) List and explain the three (3) types of procurement classification
(6 marks)
b) Describe the procurement methods for Works or Constructions
under Treasury Circular No:2/2001
(8 marks)
c) Define the term electronic procurement and describe two (2)
objectives of using this new system.
(6 marks)
(Total: 20 marks)
Question 2
ISO 9001 applies to all types of organizations. It can help both product and service
oriented organizations achieve standards of quality that are recognized and respected
throughout the world. A quality public service organisation will be capable of
carrying out its responsibility effectively besides providing excellent services to the
public. ISO 9001 (2000) has replaced the old ISO 9001 (1994) standard. In addition.
ISO 9002 (1994) and ISO 9003 (1994) quality standards have been discontinued.
Required:
a) State the main objective of implementing ISO 9000 in the government sector
(4 marks)
b) List and explain any three (3) benefits of adopting ISO 9000 for quality management
system in government organizations
(6 marks)
c) In relation to the implementation of quality culture, explain briefly the meaning of
the following terms:
1. TQM
2. ISO 9000
(4 marks)
c) List down the six (6) steps required in the implementation of ISO 9000:2000 standard
in government sector.
(6 marks)
(Total: 20 marks)
Question 3
Government can and should, be at the leading edge of the information
revolution, a model user of new technologies to improve services to its
citizens, J ean Chretien, Prime Minister of Canada.
Required:
a) What is the Vision of Electronic Government in Malaysia
(3 marks)
b) State and explain two (2) benefits of Electronic Government in Malaysia.
(4 marks)
c) List down the five (5) Pilot Applications of Electronic Government in
Malaysia and describe briefly any one (1) of them.
(8 marks)
d) Define the term E-Services and list any two (2) E-Services that are
currently provided by the Malaysian Government websites to its
customers.
(5 marks)
(Total: 20 marks)
Question 4
The creation and development of the Multimedia Super Corridor (MSC) will
have a significant impact on Malaysia as it enables the country to achieve the
objectives of vision 2020 through productivity-driven and knowledge-based
economy as well as promoting a new way of life to its people.
Required:
(3 marks)
b) List the seven (7) flagship applications in MSC
(7 marks)
c) Describe the following flagship applications to catalyse the growth momentum
of MSC
1. E-Business
2. Technopreneur Development
(6 marks)
d) Globalisation makes people realized that computer literacy is important.
Discuss how the government has encouraged computer literacy to ensure that
all citizens benefit from Information, Communication and Technology (ICT)
system.
(4 marks)
(Total: 20 marks)
Question 5
Local Authority is the administrative corporate body which is the closest
government department to peoples heart. Councilors and officers are
appointed in order to ensure the smooth running of the organization. All
Local Authorities comprise of City Council, Municipal Council and
District Council are required to prepare their annual budget for revenues
and expenditures to be approved by the Federal or State Authorities.
Required:
a) State the main functions of Local Authority
(4 marks)
b) Explain the appointment criteria and the term of office for the Councillors
of Local Authority under section 10 of Local Government Act 1976.
(6 marks)
c) Describe the procedures for the approval of annual estimates and
supplementary estimates under the relevant sections in the Local
(10 marks)
(Total: 20 marks)
Question 6
The annual report and financial statement of each statutory body must be
properly and timely prepared and presented to Parliament as laid down by
the legal requirements and treasury guidelines in order to enhance public
accountability and corporate governance.
Required:
a) What are the two (2) regulatory guidelines which are issued and used by all
(4 marks)
b) All statutory bodies are required to produce annual reports. How does the
treasury guidelines emphasized on the timely preparation and submission of
annual reports?
(12 marks)
c) Statutory bodies received several types of grants. List and briefly explain the
types of grants that the statutory bodies receive.
(4 marks)
(Total: 20 marks)
Question 7
Prime Minister and Finance Minister Datuk Seri Dr. Mahathir Mohamed
announced in the 2003 Budget speech that the services sector is expected
to be largest contributor to the increase in Malaysias Gross Domestic
Production (GDP) while the manufacturing is expected to record the
highest growth.
Required:
a) State any two (2) strategies of Budget 2003 and explain further on any
one (1) of them
(8 marks)
b) What is K-Economy and define the meaning of K-Economy as described
by K-Economy Master Plan
(6 marks)
c) K-Economy is Malaysias second step to leapfrog into the Information
Age. Identify the three (3) features required for the transitioninto the new
economy.
(6 marks)
(Total: 20 marks)
ACCOUNTING
DATE : 1 MARCH 2004
TIME : 3 HOURS (2.15 5.15 p.m)
SEMESTER : November 2003 March 2004
/AC220
FINAL EXAMINATION
AC/ MAR 2004/ PSA521/ 520
of:
SECTION A
Question 1
The successfully implementation of the Second Industrial Master Plan (IMP2)
will be one of the important variables required in the transformation of
Malaysia into a fully developed industrialised nation as envisaged under
Vision 2020.
Required:
a) State the three (3) objectives of Second Industrial Master Plan (IMP2).
(3 marks)
b) Elaborate the meaning of Manufacturing ++and Cluster-Based Development
concepts under the second Industrial Master Plan.
(6 marks)
c) List the five (5) strategic thrusts of Manufacturing ++Concept.
(5 marks)
d) Knowledge-Based Economy (K-Economy) is Malaysias second step to
leapfrog Malaysia to become a fully developed nation in the digital economic
era. Establish the linkages between IMP2 and K-Economy.
(6 marks)
(Total: 20 marks)
Question 2
Vision 2020 was first unveiled by Tun Dr. Mahathir Mohamad at the inaugural
meeting of the Malaysian Business Council on February 28, 1991. Vision 2020
makes it perfectly clear that we must be a developed country in our own mould.
Required:
a) State the two (2) objectives of Vision 2020.
(2 marks)
b) Elaborate on the following three (3) challenges of Vision 2020 that emphasized on
sustaining a resilient and competitive economic growth in order to achieve the
status of a fully developed nation.
1. The creation of an economically just society
2. The creation of a scientific and progressive society
3. The creation of a prosperous society.
(12 marks)
c) We must be a developed country in our own mould, said by Tun Dr. Mahathir
Mohamad, in his speech on Vision 2020. Discuss on the idealistic belief of our Ex-
Prime Minister, the man who brought Malaysia to its current state of balanced
development.
(6 marks)
(Total: 20 marks)
SECTION B
Question 1
The thrust of the 2004 Budget will continue with policies and strategies to
stimulate and accelerate domestic economic activities with greater participation
of Malaysians in economic growth.
Required:
a) State any two (2) strategies of Budget 2004 and explain further on any one (1) of
them.
(8 marks)
b) Describe how the 2004 Budget Strategies can help the government to strengthen
and build a resilient and competitive nation as envisaged by National Vision
Policy (NVP).
(6 marks)
c) Knowledge is said to be the driver of economic growth. Define the meaning of
Knowledge-Based Economy (K-Economy) as mentioned in the K-Economy
Master Plan
(6 marks)
(Total: 20 marks)
Question 2
Local Authority or Local Government is one of the government agencies which
is governed by the Local Government Act 1976 (Act 171). Part V of the Local
Government Act 1976 provides the general financial provisions of Local
Authority.
Required:
a) Identify three (3) types of Local Authorities in West Malaysia. Give three (3)
names of Local Authorities that had been upgraded from their status of
Municipal councils to city councils.
(6 marks)
b) Explain the role of Local Authority as an agent for change and development.
(4 marks)
c) Explain the financial provisions of Local Government Act 1976 on the
preparation and approval of annual financial statements of all local authorities.
(6 marks)
d) State any two (2) powers of Councillors in relation to the accounts and financial
statements of a Local Authority.
(4 marks)
(Total: 20 marks)
Question 3
The establishment of Statutory Bodies is to assist Federal and State
Government in undertaking social economic functions with specific
objectives mainly to accelerate the growth of national development and to
achieve a fair distribution of economic wealth. Statutory Bodies are
required to comply with certain rules and guidelines in the preparation and
presentation of their annual report and financial statements.
Required:
a) State the two (2) reporting guidelines which are issued and used by all
(4 marks)
b) Describe the reporting requirements for all Statutory Bodies as laid down
under the legal provisions.
(10 marks)
c) State the contents of the Annual Report of Statutory Bodies as required by
the treasury guideline.
(6 marks)
(Total: 20 marks)
Question 4
Development Administrative Circulars: D.A. 1/92 and D.A. 2/96 inrespect to
Total Quality Management (TQM) and Quality System Standards (ISO 9000
series) were issued to serve as guidelines to all government organisations in
their efforts of administrative reforms towards developing a customer oriented
public service.
Required:
a) State the reasons of adopting TQM concept, and implementing ISO 9000 in
the government sector.
(4 marks)
b) In relation to the above question, explain briefly the main difference between
TQM and ISO 9000.
(4 marks)
c) List and explain any three (3) benefits of adopting ISO 9000 for Quality
management system in government organizations.
(6 marks)
d) In the implementation process of ISO 9000, state any two (2) differences
between ISO 9000 (1994 standard) and ISO 9000 (2000 standard).
(6 marks)
(Total: 20 marks)
Question 5
The Electronic Government (E-Government) initiative is aimed at
making it easier for citizens and business communities to find a wide
range of services and information available from the government
organisations through a single window.
Required:
a) List and explain the three (3) key elements of Electronic Government.
(6 marks)
b) State and explain two (2) benefits of Electronic Government.
(4 marks)
c) List down the five (5) Pilot Applications of Electronic Government.
(5 marks)
d) Name and explain any two (2) E-Government initiatives that are currently
provided by the Malaysian government to its external customers.
(5 marks)
(Total: 20 marks)
Question 6
The Multimedia Super Corridor (MSC) was established as a strategy for
Malaysia to leapfrog into the Information Age by providing intellectual and
strategic leadership. The seven Flagship Applications have been identified and
implemented to accelerate for the ultimate goals of Vision 2020.
Required:
a) What are the three (3) objectives of MSC?
(3 marks)
b) List the seven (7) Flagship Applications in MSC.
(7 marks)
c) State any two (2) factors on how MSC can transform Malaysia intosuccess in
the Information Age.
(6 marks)
d) MSC is now regarded as the engine of economic growth to leapfrog Malaysia
into the Information Age, as commented by Tun Dr. Mahathir Mohamad in
New Straits Times (NST), 20
th
December 1998. Explain the roles played by
MSC in achieving the ultimate goals of Vision 2020.
(4 marks)
(Total: 20 marks)
Question 7
The procurement policies and procedures in the public
sector are designed to achieve the principles of public
accountability, transparency and value for money.
Required:
a) List any three (3) types of procurement classification.
(3 marks)
b) State any three (3) methods of government procurement.
(3 marks)
c) Describe the procurement methods for Supplies and
Services under Treasury Circular No: 2/2001.
(8 marks)
d) Define the term and explain the benefits of using Electronic
Procurement System.
(6 marks)
(Total: 20 marks)
ACCOUNTING
DATE : 5 OCTOBER 2004
TIME : 3 HOURS (9.00 a.m. 12.00 p.m)
SEMESTER : June 2004 October 2005
/AC220
FINAL EXAMINATION
AC/ OCT 2004/ PSA521/ 520
of:
SECTION A
Question 1
The Privatisation Policy was launched as a national development policy as to
announce the government interest to reduce its presence in the economy,
decrease both the level and scope of public spending and to allow the market
forces to govern the economic activities.
Required:
a) Define the meaning of the terms Corporatisation and Privatisation.
(4 marks)
b) State four (4) objectives of privatisation policy.
(4 marks)
c) Describe the four (4) methods of privatisation adopted by Malaysian government
and state one (1) relevant example for each method.
(4 marks)
d) List the four (4) decision factors in implement privatisation policy as illustrated
by the Privatisation Decision Grid. Explain the two (2) decision factors which
would benefit the government in terms of economic growth.
(8 marks)
(Total: 20 marks)
Question 2
The National Vision Policy (NVP) will build upon the efforts
initiated under the past development plans and strengthen the
basis of transforming Malaysia into a fully developed nation as
envisaged under Vision 2020.
Required:
a) Define the primary objective of NVP.
(4 marks)
b) Explain the meaning of building a resilient and competitive
nation as emphasised by NVP.
(4 marks)
c) State and elaborate any three (3) development thrusts of NVP.
(6 marks)
d) Establish the linkages between NVP and Vision 2020.
(6 marks)
(Total: 20 marks)
SECTION B
Question 1
We must now make a paradigm shift from a production-based economy (P-
economy) to a K-Based economy. This is in line with the Governments efforts
to intensify the development of high technology industries as well as make IT
the catalyst for growth in the 21
st
century.
(Tun Daim Zainuddin, 2000 Supply Bill in Parliament on 25 February, 2000).
Required:
a) State any two (2) strategies of Budget 2004 and explain further on any one (1)
of them.
(8 marks)
b) What is K-Economy and define the meaning of K-Economy as mentioned in the
K-Economy Master Plan?
(6 marks)
c) K-Economy is Malaysias second step to leapfrog Malaysia to become a fully
developed nation in the digital economic era. Describe how the 2004 Budget
Strategies can help the government to strengthen and build K-Economy.
(6 marks)
(Total: 20 marks)
Question 2
Local Authority is governed by the Local Government Act
1976 (Act 171). This Act provides the general administration
and financial provisions of Local Authority.
Required:
a) What are the criteria required for a person to be eligible for
the appointment as a councillor?
(6 marks)
b) Describe the budgetary procedures of Local Authority as
required by the financial provisions of Local Government Act
1976 (Act 171).
(10 marks)
c) What are the powers of Councillors in relation to the
budgeting procedures of Local Authority?
(4 marks)
(Total: 20 marks)
Question 3
Statutory Bodies are required to comply with certain rules and
guidelines as provided by Act 240 (1980) and Treasury Circular
15/94 in the preparation and presentation of their annual report
and financial statements.
Required:
a) Define the purpose for the establishment of Statutory Bodies.
(4 marks)
b) State and explain any two (2) objectives of Treasury Circular
15/94.
(4 marks)
c) Identify three (3) types of disclosure requirements as laid downin
Treasury Circular 15/94.
(6 marks)
d) State the contents of the Annual Report of Statutory Bodies as
required by the treasury guideline.
(6 marks)
(Total: 20 marks)
Question 4
Globalisation is about breaking down national boundaries as barriers to the
flow of capital and goods to where the most profit can be made (Mahathir
Mohamed, 2000). In order to ensure the perfect global climate for multimedia,
the government has designated specific areas for MSC. Information,
communication and technology (ICT) efforts in Malaysia are channeled
through the Multimedia Super Corridor (MSC).
Required:
a) What is the purpose of creating the Multimedia Super Corridor?
(3 marks)
b) Describe the current phase of the Multimedia Super Corridor.
(4 marks)
c) How does the nation benefit from the following two (2) Flagship
Applications?
1. Telehealth
2. Technopreneur Development
(8 marks)
d) The MSC is the next engine of economic growth. Explain the idealistic
belief of our former Prime Minister on the rationale of this statement.
(5 marks)
(Total: 20 marks)
Question 5
Electronic Government (EG) is a multimedia networked
paperless administration linking government agencies within
Putrajaya with government centers around the country to
facilitate a collaborative government and efficient service to
businesses and citizens.
Required:
a) State the two (2) objectives of EG and explain one (1) of them.
(4 marks)
b) Describe two (2) of the pilot applications of EG.
(8 marks)
c) Explain four (4) benefits of EG in improving government
services to customers.
(8 marks)
(Total: 20 marks)
Questions 6
Every year the government has to spend substantial amount on
procurement of supplies, services and works or construction.
Since the private and public sectors are working in cooperation
for the development of this country, it is vital for these
employees to familiarize themselves with the government
procurement procedures.
Required:
a) List four (4) objectives of procurement.
(4 marks)
b) Explain the criteria of quotation method for procurement of
supplies and services.
(6 marks)
c) Describe the tendering procedures of government procurement.
(10 marks)
(Total: 20 marks)
Question 7
It is envisaged that as Malaysia moves into the Second Millennium,
every Malaysian government agency should have one core business
process to one of the ISO 9000 Quality Management System models.
(Director General of MAMPU at the 9
th
Asean conference on Civil
Service on 30 J une until 4 J uly 1997 in Singapore).
Required:
a) What is the objective of implementing ISO 9000 in the government
sector?
(4 marks)
b) What is meant by the term Quality Assurance as mentioned in ISO
9000?
(4 marks)
c) Describe three (3) benefits of adopting ISO 9000?
(6 marks)
d) What are the strengths of MS ISO 9000:2000 as compared to MS ISO
9000:1994?
(6 marks)
(Total: 20 marks)

Advanced Public Sector Accounting

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Advanced Public Sector Accounting

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FACULTY OF ACCOUNTANCY

UNIVERSITI TEKNOLOGI MARA

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