1.

Introduction

Good financial management as a result of prudent and efficient spending management

will enable an organization to operate and operate perfectly and excelently. But

sometimes the budget that was made in the early years had to go through various

problems and issues throughout the planning year. This in turn will lead to the need to

obtain additional allocations in the organization's expenditure, especially operating

expenses.

Operating expenses are usually related to the administration and operation of an

organization. Changes, enhancements and expansion of unplanned activities or programs

from the original planning will result in increased operating expenses. Sometimes the

change is inevitable. This will cause the department to apply for additional provisions to

cover such expenditure. However, such additional provisions need to be sought by the

organization as well as having to comply with some of the procedures set out for this

purpose.

Various control instruments have been introduced and introduced to the organization to

be a guide and compliance in managing expenses to avoid the application for additional

allocation in the operating expense. To further strengthen this effort, various guidelines

have been issued by the Treasury of Malaysia either in the form of circular letters or

treasury instructions that can be used in assisting the department in achieving good

financial management.

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The Malaysian Armed Forces (ATM) is a national defense fortress that is responsible for

ensuring Malaysia avoids all external threats from land, sea and air while assisting public

authorities in addressing internal threats. To determine that responsibility is always

guaranteed primarily from the threat of violence. ATMs should always be in standby at

all times. ATMs will continue to ensure the security and security of the state are assured

in particular to determine the country's political, economic and social sustainability to

bring Malayasia towards a developed and secure country.

As an organization that has existed since independence, the ATM has undergone various

development in terms of human development, organizational structure and even defense

equipment and equipment in line with the concepts outlined. ATMs are always aware of

the current development in terms of current equipment and technology, thus ATM

development is inevitable in tandem with current technological advances. ATMs are in

the process of transformation towards modernization not only in terms of operational and

warfare concepts, but also encompassing various aspects of defense technology and

technology integration with humans.

This transformation is thought to be necessary to be organized, balanced, consistent and

sustainable. In designing to add ATM assets, it will directly pertain to the huge expense

to ensure success in the success of the planned business. At the budget made in 2017, the

Ministry of Defense Malaysia has allocated 82 million Ringgit in ensuring the well-being

of its military personnel.

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 In this assignment, as a human resource officer will discuss some of the saving measures

to be taken to ensure long-term governance in the long run and the effect of

implementing these measures on the civil service by taking samples of agencies such as

the Malaysian Armed Forces.

2. Effective Shopping Steps

The planning of organizational spending depends largely on the current state of the

economy. This atmosphere influenced by political, social, economic and technological

development will have an impact on the way in which an organization operates. For

example, if the economic situation is so encouraging, organizations are forced to compete

in the context of wage rates while maintaining the well-being of military personnel. The

description of this chapter will focus more on the current economic turmoil and this will

affect human resource planning more realistically. Some steps can be taken to adopt safe

policies such as:

2.1 Effective use of human resources

This effective use involves, among other things, the transfer of human resources

to units, departments or other branches that are also experiencing a shortage of

workers due to the economic downturn. In addition internally internally

employees to do various work with affordable wage rates are also seen as an

effective measure.

2.2 Deduction of overhead expenses

Reduction in spending involves the management of human resources and the

means of communication with staff. Examples of convergence of energy

consumption are devoted only to critical areas such as production requiring

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 machines. This reduction also occurs when the employee is only allowed to meet

the panel doctor or its equivalent only, otherwise the payment of external medical

expenses claims will not be entertained except in cases of emergency involving a

hospital due to a critical and serious case.

This has also reduced the number of fraudulent elements during the economic

boom. The discipline element has also been successfully applied to human

resources. For executive-level human resources, they are also not encouraged to

travel far and beyond when it involves matters that are only important. Otherwise,

they are encouraged to use communications equipment such as telephone and

office automation such as faxes including latest technologies such as e-mails that

are more economical to convey information. If seen today, it is rare that human

resources are either from management, executive, supervisory, support and

general levels that are not familiar with Information Technology. By itself human

resources can improve the quality of their knowledge in line with the

government's will.

2.3 Concentration of internal training by their own staff

If there are new technologies or methods to be introduced, the human resource

management personnel themselves will arrange internships for their employees.

Such internal exercises are more effective as workers know their trainers and are

not shy about any positive or negative feedback to take action.

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2.4 Recruitment of contractual and part-time human resources.

This technique has its own advantages and disadvantages. Among the advantages

are increased flexibility and productivity in work, reducing cost of recruitment,

raising existing resources on key activities and reducing skilled and existing staff

dismissal. Among the weaknesses identified among them are costs even though

contracting human resources can result in short-term savings, but it is able to

change into a higher long-term cost compared to regular hiring. In addition

quality is also part of the weaknesses in which it is difficult to monitor the

standards and safety of contract workers. In addition, the difficulty in identifying

the real capabilities of an agency is also part of the overwhelming need to be

addressed, especially in relation to national security issues.

2.5 Works by Schedule

Adhere to exactly each activity from the schedule of action plans that have been

demonstrated. Departments / Ministries need to accurately comply with any

activities such as new policies, one-off and planned thresholds and do not hold

unplanned activities. Compliance with this plan is important to avoid any deficit

or surplus budget.

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2.6 Reducing Work Not Priority

Reduces work involving overtime payments. Referring to government regulations,

these expenses should be controlled. The head or officer who directs the work is

required to be satisfied that the work is absolutely essential to be completed

within the stipulated time. All instructions for this overtime work shall be issued

in writing before it is executed.

2.7 Office Rental

Deferred office rental activities and office renovation activities. With reference to

the Treasury Circular issued by the government, if the activity is not for security

reasons or attempts to save cost to the Department or the Ministry then all the

proposed rental and renovations are not allowed. If there is still a need for its

implementation, it needs to get approval from the Treasury.

2.8 Utility Utilization Conservation

Reduce the use of utilities and materials such as water, electricity and

communication tools. Savings on these energy and utility resources can be made

if the Department or Ministry practices a comprehensive saving ethics and applies

the importance of these practices. Referring to government-issued regulations, the

enforcement of regulation on utilization of utilities internally in the Ministry or

Department should be made in the effort to conserve the utilization of these

utilities.

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2.9 Controlling Asset Purchases

Reduce asset purchases. Any assets that are not required should not be purchased

by the Department or the Ministry. Only critical and critical assets only to the

Department's / Ministry's productivity and operation need to be purchased.

Purchase of this asset will result in an increase in maintenance cost or license.

2.10 Reduction of Claim Payments

Reduce bill payments and claims. Reducing the activity of external meetings and

saving utility utilization, etc. will result in a reduction in expenditures involving

payment of claims and payment of related bills. Officers shall ensure that no

outstanding bills and claims on supplies and services provided by suppliers and

contractors. He also has to ensure that all bills and claims for a year are explained

before the end of the financial year.

2.11 Improving the National Blue Ocean Strategy

The full use of the Training Center available locally under the National Blue

Ocean Strategy approach. The Sulu terrorist intrusion in Lahad Datu has been a

testament to the successful coup of military and police forces in the fight against

traitors and enemies of the country. However, the intrusion also proved the

capabilities of the national security forces in the face of any threats from within

and outside the country. Furthermore, the government has launched the National

Blue Ocean strategy (NBOS) which goes beyond the cooperation of the Home

Ministry (KDN) and the Ministry of Defense which has also proven to bring

many benefits as well as contributing to the government's cost savings.

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The patrolling programs together between ATM and PDRM also contribute to the

reduction of crime rates reported under the Government Transformation Program

(GTP) Report 1.0. This is in line with the success of minimizing the needs of the

increase in the occupancy of the ATM members.

This program is a government initiative to lead the country towards a developing,

high-income, harmonious and prosperous country in all respects. The National

Blue Ocean Strategy (NBOS) is a government effort to enhance the government's

delivery system to the people with creative projects or ideas through collaboration

between ministries, departments, federal agencies, states and local authorities as

well as private parties.

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3. The Effectiveness of Expenditure Savings

As described earlier in this task, planning involves efficient human resource management

to achieve both the needs of the organization and its own employees. The processes

involved in the planning are:

3.1 Designing the Goals

This process begins by defining what the organization needs. If there is more than

one objective, priority is given to the more important objective which tends to

raise revenue with minimal resources. For organizations leading to the ISO 9000

certification, in addition to the Organizational Quality Policy Statement, the most

popular objective planning mechanism is the Management of Goals (MBO)

introduced by Peter Drucker.This concept provides flexibility to the entire staff to

plan their own responsibilities and roles to the organization. Once agreed upon by

the parties, within the prescribed period, it will be revised to determine the

effectiveness of its implementation. This concept highlights the commitment and

accountability of both the workers and their organizations.

3.2 Assessing Current Situation

After planning the required objectives, the organization needs to understand the

current situation of ability to measure their capabilities in terms of human

resources, finance, technology and so on. Organizations should get detailed

information on this subject through surveys conducted by human resource

departments. In the context of analyzing the type of work, an inventory of human

resources needs to be held which contains information on employee skills. This

will ensure the recruitment of workforce in place and time.

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 This analysis will show the knowledge, skills and capabilities of an employee

who is required to carry out an assignment.Management will use this information

to provide job description and specification to facilitate job evaluation. This

information can also help manage the management of human resources more

effectively, determine the training required through the identification of training

(training needs analysis) and improve management efficiency in placing human

resources according to the suitability of the assignment.

3.3 Identify Weaknesses and Advantages

Organizations need to identify proactively or reactive factors of assistant and

antitrust attainment factors.

3.4 Developing an Alternative Plan to Achieve Objectives

This involves organizational creativity in setting the 'Plan B' choices that are

appropriate in achieving the objective if it is found to be failing or potentially

unsuccessful.

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4. Impact Of Expenditure Reduction

The reduction in expenditure is definitely a guideline for all departments under the

Ministry of Defense in executing prudent spending that can help reduce the government's

financial deficit and minimize the amount of public spending. In addition, it is also

expected to enhance the image of the government in the eyes of the people. As a people,

with such austerity measures it is hoped that all government agencies will be fully

utilized, not just meeting the circular file alone.

However, for Chief Secretary to the Government, Tan Sri Ali Hamsa, said these saving

measures would have an impact that would affect the achievement of senior government

officials. However, he believes the government's initiative to introduce saving measures

will help save the public expenditure of up to RM400 million a year. (Baharom Mahusin,

2014).

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5. Conclusion

The expenditure management within a department or ministry is an important aspect that

should be emphasized. Good financial management will ensure that a department or

ministry is capable of carrying out all planned activities effectively. The management of

this expenditure is usually in charge of the Officer but for the full management of all the

employees within the Department / Ministry should cooperate in the implementation.

The role of Officers in the Management of this expenditure is that he needs to ensure

efficient and strategic use of resources in line with the development goals of the state and

the State, should provide the annual budgetary budget perfectly, as well as ensure that

provisions are provided for the purposes approved by the Ministry of Finance and the

implementation of the activities efficiently, effectively and economically within the

stipulated time. And from time to time it is also necessary to perform internal audits and

resolve issues arising from auditing.

Generally, careful attitudes in prudent spending or spending are a good practice and need

to be continued as much as the income earned but if it is not dealt with cautiously,

efficiently and effectively or otherwise managed in a more economical manner, of course

returns or results are not satisfactory and may cause the Department or the Ministry to be

caught in heavy debt.

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Hence, in this context the role of Officers is important, as well as strengthening their

knowledge and skills in the areas of financial management, they should also be able to

drive a Department or Ministry in efficient and sound financial management through

various effective efforts. It is hoped that Malaysians especially for these circulars will not

only be booked but be the practice of government agencies throughout the service.

Prudent spending should not be done seasonally only or practiced during economic

instability solely. Prudent spending should be carried out at all times and across

government agencies with no exception at any agency. This circular should be used by all

departments / ministries without giving any privilege to any agency or any individual in

the government.

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Reference

Ali Hamsa. (2014). Meneruskan Momentum Transformasi, Merakyatkan Perkhidmatan

Awam. Dicapai daripada http://www.jpm.gov.my

Anderson, W., Wallace, M. S., & Warner, J. T. (1986). Government spending and

taxation: what causes what? Sourthern Economic Journal, 630-639.

Gonzalo, J. (1994). Five alternative methods of estimating long-run equilibrium

relationships. Journal of Econometrics, 60, 203-233.

Pengorbanan pegawai awam. Utusan online.Dicapai daripada

http://www.utusan.com.my/utusan (2014).

Pekeliling Perbendaharaan Bil. 7 Tahun 2008. 2008. Garis panduan bagi perbelanjaan berhemah

Pekeliling Perbendaharaan Bil. 2 Tahun 2009. 2009. Garis panduan Bagi Penyediaan Cadangan

Perbelanjaan Tahun 2010 dan 2011

Wong Hock Tsen & Lim Kian Ping (2005) The Relationship Between Government

Revenue And Expenditure In Malaysia IJMS 12 (2), 53-72

Zulfefly Abdul Karim, Aminudin Mokhtar, Norain Mod Asri (2006) Hubungan antara

hasil dengan perbelanjaan kerajaan Negeri Dimalaysia. Jurnal Ekonomi Malaysia (40) 59-93.

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