THE MALAYSIAN GOVERNMENT & ITS STRUCTURE – PART 2

THE MALAYSIAN GOVERNMENT & ITS STRUCTURE – PART 2 Prepared by: Ms. Narimah Hashim Jabatan Perakaunan & Kewangan Fakulti Ekonomi & Pengurusan, UPM NHashim....UPM....1.8.2006

THE GOVERNMENT DEPARTMENTS • Represent the second highest level of agencies after the ministries set up for the purpose of implementing the policies of the Government • Their daily activities involve in providing services directly to the public • Departments are set up at both state & district levels due to its importance to the people NHashim....UPM....1.8.2006

GOVERNMENT DEPARTMENTS • Each department will have its Head Office & the majority are located in Kuala Lumpur • All functions relating to formulating of policies, planning, monitoring & coordinating of activities at state & district levels will be the responsibilities of the Head Office • Administrative wise, each department is headed by an administrativeofficer referred to as the Director-General NHashim....UPM....1.8.2006

STATUTORY BODIES • Another important component of the GAM • Set up by the Act of Parliament or by the State Legislative Council • For specific purposes to help achieve the goals & objectives of the nation • The statutory bodies are often defined as public enterprises or semi government bodies NHashim....UPM....1.8.2006

AKTA BADAN BERKANUN (AKAUN & LAPORAN TAHUNAN) 1980, SEKSYEN 2 • “..mana-mana pertubuhan perbadanan, tidak kira dengan apa nama ia dikenali, yang diperbadankan menurut peruntukan-peruntukan undang-undang Persekutuan & yang menjadi pihak berkuasa awam atau agensi Kerajaan Malaysia tetapi tidak termasuk pihak berkuasa tempatan & pertubuhan perbadanan yang diperbadankan di bawah Akta Syarikat 1965” NHashim....UPM....1.8.2006

STATUTORY BODIES • All statutory bodies will have their own staff • The main administrative officer is referred to as the General Manager who is responsible for the administration & management of the corporation & towards achieving their objectives • The statutory bodies will also have their own Board of Directors whereby the members are appointed by the minister to whom the corporation is accountable to NHashim....UPM....1.8.2006

DIFFERENCES BETWEEN STATUTORY BODIES & GOVERNMENT DEPARTMENTS • RESPONSIBILITIES • Towards the Government & to the relevant ministry • Federal statutory bodies are responsible to the Federal Government, & State statutory bodies are responsible to the State Government • Government departments are set up for carrying out the specific tasks of the Government NHashim....UPM....1.8.2006

DIFFERENCES BETWEEN STATUTORY BODIES & GOVERNMENT DEPARTMENTS • CONTROL • Government departments are control directly by the ministry or the central agency, whilst statutory bodies are controlled indirectly • This indirect control is exercised through the BOD & with respect to important aspects only i.e. policies, directions, objectives & finance • Control of financial matters covers budget estimates & their annual & 5-year development plans • For their budgets, they must get the approval from their Ministry, Treasury, Public Service Department & ECU NHashim....UPM....1.8.2006

DIFFERENCES BETWEEN STATUTORY BODIES & GOVERNMENT DEPARTMENTS • ACTIVITIES • Apart from providing services to the public, the statutory bodies are also involved in profit generating activities through their business & enterprising undertakings • They are also involved in development activities in line with the development projects of the country • But the activities of Government departments are limited to the tasks of implementing the policies set for each ministry by the Government & generally, of providing of services directly to the public NHashim....UPM....1.8.2006

DIFFERENCES BETWEEN STATUTORY BODIES & GOVERNMENT DEPARTMENTS • MANAGEMENT METHODS • Statutory bodies have administrative freedom - free to choose whatever methods of management suitable for their organizations • But the government departments do not have such freedom & many government departments are being monitored by their relevant ministries NHashim....UPM....1.8.2006

OBJECTIVES FOR SETTING UP OF STATUTORY BODIES • To enable the Government to carry out business activities & earn profits while providing services to the public • To enable the Government to be involved directly in specific areas where the private sector will not get involved due to the need for large capital investment • To enable the administrative machinery to have more freedom in carrying out certain tasks without being tied to Government rules & regulations & thereby can act faster in line with the private sectors NHashim....UPM....1.8.2006

OBJECTIVES FOR SETTING UP OF STATUTORY BODIES • To lighten the burden of the Government in terms of financial provisions since they are capable of getting additional income • To assist with the socio-economic development of the nation • Summary: • The advantage of setting up the statutory bodies is that they can provide public services more effectively & efficiently & at the same time with the private sectors, bring progress to the economy NHashim....UPM....1.8.2006

ROLE OF THE STATUTORY BODIES • To enable the Government to have a dual role in the economy & social sectors • They are profit making bodies as well as being able to provide various facilities & services to the people NHashim....UPM....1.8.2006

STATUTORY BODIES • Can be set up at both Federal & State levels for specific tasks • Examples: • FELDA, JENGKA, KETENGAH & KESEDAR – responsible for the land & regional development • FAMA, MAARDI, RRI, LPP & PORIM – responsible for agriculture, research & rural development • MARA & LTH – responsible for Bumiputra participation NHashim....UPM....1.8.2006

STATUTORY BODIES • KTM, Lembaga Pelabuhan Klang & Suruhanjaya Pelabuhan Pulau Pinang – responsible for public& port facilities • Bank Negara Malaysia (BNM) & Bank Simpanan National (BSN) – responsible for financial services & facilities • UPM, UUM & USM – responsible for education at institutions of higher learning NHashim....UPM....1.8.2006

STATE GOVERNMENTS • Have their own administrative structure & machinery • Even though in most States they are the same, but there are some differences especially in Sabah & Sarawak NHashim....UPM....1.8.2006

THEIR ADMINISTRATIVE STRUCTURE • Is made up of the following: • Sultan/Raja/Yang DiPertuan Besar/ Yang diPetua Negeri • State Councils Meeting / State Exco meeting • State departments & the Federal branch • Federal & State Statutory bodies • Commissions NHashim....UPM....1.8.2006

STATE GOVERNMENTS • At all the States, the Raja is referred to as the Sultan with the exception of the state of Perlis where HRH is known as Raja & in Negeri Sembilan HRH is referred to as The Yang DiPertuan Besar • For all the other states without a Raja such as Malacca, Penang, Sabah & Sarawak they have what is referred to as the Yang DiPertua Negeri & are appointed by the YDPA NHashim....UPM....1.8.2006

STATE ADMINISTRATIVE STRUCTURE • Generally operates at 3 levels i.e the district level, the mukim level & the kampong level • At district level, it covers all projects planned at the Federal & State levels but its implementation is at district level • At this level, involving mainly the District & Land Office led by the District Officer • Areas of responsibilities covering mainly land & district office administration & development activities NHashim....UPM....1.8.2006

STATE ADMINISTRATIVE STRUCTURE • Their responsibilities also covers coordinating the activities of the various Federal & State agencies located at the district level • A particular districts will consists of several mukims • The head of a public office at this level is referred to generally as the ‘Penghulu’ but in Kelantan referred to as the ‘Penggawa’ • His responsibilities is to assist the functions of District & Land Office as well as to coordinate activities of all the kampongs in his mukim NHashim....UPM....1.8.2006

STATE ADMINISTRATIVE STRUCTURE • The kampong level is the lowest level in the State administrative structure • All ‘Ketua Kampung’ is appointed by the State Government & is only given an allowance • They do not considered as public officers • Even then they play an important role in identifying sites or appropriate location for projects or development purposes NHashim....UPM....1.8.2006

LOCAL GOVERNMENT • Local government is located outside the Federal territory are under the authority of the State Government, are also known as the Local Authority • The Local Government Act (1971) provides for the set up of local governance to give opportunity for the local residents to get involved in the administration of their areas NHashim....UPM....1.8.2006

LOCAL GOVERNMENT • Their scope & authority as provided by the ACT covers administration, general provisions for finance, revenue collection & accounting, audit etc. • Even though little publicity is made of local governance , their activities are important to the health & welfare of the general Malaysian public NHashim....UPM....1.8.2006

LOCAL GOVERNMENT • The Local Authority have powers to have their own by-laws & to collect taxes or charge rates to the local community • Have financial autonomy, but their budgets require approval from the State Government • Their responsibilities covers town planning, public facilities, housing, health & other services • Headed by a Mayor (Datuk Bandar) or Yang Dipertua • The Local Government will receive grants from State Government to supplement their revenue NHashim....UPM....1.8.2006

THAT’S ALL FOLKS! • THE END NHashim....UPM....1.8.2006

THE MALAYSIAN GOVERNMENT & ITS STRUCTURE – PART 2