African Community of Practice on Managing for Development Results (CoP-MfDR Africa) Jinja, Uganda, Jinja, Uganda, December 11 – 14, 2007

Performance Budgeting in Malaysia Koshy Thomas Malaysia Koshy Thomas MoF Malaysia Linking Budgeting & Planning Performance Budgeting in Malaysia Linking Budgeting & Planning

Planning for Development Results in Malaysia  Vision Plan (Vision 2020)  Outline Perspective Plan (OPP)  Five Year Plan (Goal Setting)  Annual/Budget Year Plan Koshy Thomas MoF Malaysia

To Move The Economy Up The Value Chain To Raise The Capacity For Knowledge And Innovation And Nurture First Class Mentality To Address Persistent Socio-economic Inequalities Constructively And Productively To Improve The Standard And Sustainability Of Quality Of Life To Strengthen The Institutional And Implementation Capacity NATIONAL MISSION – 5 KEY THRUSTS Koshy Thomas MoF Malaysia

Moving the Economy up the Value Chain up the Value Chain Raising the Capacity for Knowledge and innovation And nurturing “first class mentality” Addressing persistent socio-economic socio-economicinequalities constructively and constructively and productively productively Improving the standards And sustainability of the quality of life Strengthening the country’s Institutional & Implementation capacity by establishing a more effective implementation & monitoring mechanism & monitoring mechanism Increasing productivity, competitiveness & vale-add in agriculture, manufacturing and services sector Increasing productivity, competitiveness & vale-add in agriculture, manufacturing and services sector Generating new sources of wealth in technology & knowledge intensive sectors ICT, Biotech, skills based services Generating new sources of wealth in technology & knowledge intensive sectors ICT, Biotech, skills based services Expanding market for Malaysian products and services Expanding market for Malaysian products and services Promoting Good Governance Promoting Good Governance Enhancing Public Service Delivery System Enhancing Public Service Delivery System Development through international co-operations Development through international co-operations Eradicating Hardcore poverty and halving overall poverty Eradicating Hardcore poverty and halving overall poverty Reducing Disparity in income employment & wealth ownership Reducing Disparity in income employment & wealth ownership Developing Competitive Bumiputeras Developing Competitive Bumiputeras Reducing disparities in development between states, region, as well as between rural & urban areas Reducing disparities in development between states, region, as well as between rural & urban areas Holistic human capital development encompassing Knowledge, skills, progressive attitude & thinking, Strong moral & ethical values Holistic human capital development encompassing Knowledge, skills, progressive attitude & thinking, Strong moral & ethical values Fostering a society with strong values Fostering a society with strong values Nurturing top quality R&D science and innovation Nurturing top quality R&D science and innovation Advancing women in development Advancing women in development Empowering youth For the future Empowering youth For the future Improving infrastructure & urban Transportation system Improving infrastructure & urban Transportation system Meeting Housing needs & improving urban services Meeting Housing needs & improving urban services Ensuring environmental conservation & sustainable resource management Ensuring environmental conservation & sustainable resource management Improving health care services Improving health care services Enhancing the water r delivery system Enhancing the water r delivery system Developing sports for sporting excellence & a healthy lifestyle Developing sports for sporting excellence & a healthy lifestyle Strengthening National Unity Overriding Objective © CeDRE Malaysia 2006

Program Planning & Horizontal Linkages NATIONAL PRIORITY Reduction in the incidence of HIV/AIDS Min of EducationMin of HealthMin of Family A Donor ACivil Society Org AwarenessEducationCounselingTreatment HORIZONTAL LINKAGES © CeDRE Malaysia PROGRAMS SUB-PROG PROGRAMS SUB-PROG PROGRAMS SUB-PROG PROGRAMS

Program Planning & Horizontal Linkages NATIONAL PRIORITY Reduction in the incidence of HIV/AIDS Min of EducationMin of HealthMin of Family A Donor ACivil Society Org AwarenessEducationCounselingTreatment HORIZONTAL LINKAGES © CeDRE Malaysia SUB-PROG PROGRAMS

SAMPLE PROGRAM STRUCTURE SOCIAL SECTORECONOMIC SECTORADMIN. SECTORSECURITY SECTOR AGRICULTURETRADE & INDUSTRIES MANUFACTURING NATURE CONSERVATION & SUSTAINABILITY FOOD SECURITY PROGRAMSELF-SUFFICIENCYINCOME GENERATION POVERTY REDUCTION CEREALS PRODUCTIONOILSEED PRODUCTIONLIVESTOCK PRODUCTION FRUIT PRODUCTION RICE PRODUCTION WHEAT PRODUCTION MILLET PRODUCTION LAND MANAGEMENT SEED & FERTILIZER SUPPLIESAGRI EXTENSIONFINANCE FARMER TRAININGADVISORY SERVICESSTAFF TRAINING DEVELOP- MENT GOAL SECTOR SUB- SECTOR PROGRAM SUB- PROGRAM ACTIVITY SUB- ACTIVITY © CeDRE Malaysia

SAMPLE PROGRAM STRUCTURE SOCIAL SECTORECONOMIC SECTORADMIN. SECTORSECURITY SECTOR AGRICULTURETRADE & INDUSTRIES MANUFACTURING NATURE CONSERVATION & SUSTAINABILITY FOOD SECURITY PROGRAMSELF-SUFFICIENCYINCOME GENERATION POVERTY REDUCTION CEREALS PRODUCTIONOILSEED PRODUCTIONLIVESTOCK PRODUCTION FRUIT PRODUCTION RICE PRODUCTION WHEAT PRODUCTION MILLET PRODUCTION LAND MANAGEMENT SEED & FERTILIZER SUPPLIES AGRI EXTENSIONFINANCE FARMER TRAININGADVISORY SERVICESSTAFF TRAINING DEVELOP- MENT GOAL SECTOR SUB- SECTOR PROGRAM SUB- PROGRAM ACTIVITY SUB- ACTIVITY MINISTRY OF AGRICULTURE AGRICULTURE DEPARTMENTLIVESTOCK DEPARTMENTSURVEY & LAND Rec. DEPARTMENT FRUIT DIVISION.ARABLE AGRIC. DIV.IRRIGATION DIV.INFOR. MNGT DIV. © CeDRE Malaysia AGRICULTURE RESEARCH CENTRAL AGENCIES MINISTRY OF PRIMARY INDUSTRIES

How best to implement and achieve results in the program areas Results Based BudgetingResults Based Budgeting Personnel Performance SystemPersonnel Performance System Administrative Development Circulars TQM, ISO, Productivity Improvement, Micro Accounting, Service Quality, Counter Services……Administrative Development Circulars TQM, ISO, Productivity Improvement, Micro Accounting, Service Quality, Counter Services…… Monitoring of DE and OEMonitoring of DE and OE Internalised Self EvaluationInternalised Self Evaluation Results Based BudgetingResults Based Budgeting Personnel Performance SystemPersonnel Performance System Administrative Development Circulars TQM, ISO, Productivity Improvement, Micro Accounting, Service Quality, Counter Services……Administrative Development Circulars TQM, ISO, Productivity Improvement, Micro Accounting, Service Quality, Counter Services…… Monitoring of DE and OEMonitoring of DE and OE Internalised Self EvaluationInternalised Self Evaluation Koshy Thomas MoF Malaysia

Strategies for implementation Getting the Necessary Policy Support Design Work Intensive Capacity Building Change Management Phased Roll-Out Continuous Review and Strengthening Strategic Alliance E-enabling Getting the Necessary Policy Support Design Work Intensive Capacity Building Change Management Phased Roll-Out Continuous Review and Strengthening Strategic Alliance E-enabling Koshy Thomas MoF Malaysia

Problems and Challenges Senior Management Involvement Commitment, mind set change Employee Involvement Communication Phased Implementation Adequate Resources Working in Silos Capacity Issues Senior Management Involvement Commitment, mind set change Employee Involvement Communication Phased Implementation Adequate Resources Working in Silos Capacity Issues Koshy Thomas MoF Malaysia