10MP: More private sector role in public service delivery

By FLORENCE A SAMY

PETALING JAYA: The door will be further ajar for more private sector involvement in the delivery of public service and new national investments.

Under the 10th Malaysia Plan, the Government will act as a catalytic facilitator to create an enabling environment for the private sector through effective policies and regulations.

“To move towards a high-income nation, the resources, talent, technology and innovation of the private sector will need to be unleashed so that it becomes a more significant engine of growth for the economy,” the 10MP report stated.

The government will intensify its engagement with the private sector, whose participation will include outsourcing of non-core government functions, delivery of frontline services and public-private partnerships.

An outcome-based approach will also be adopted for planning, resource allocation, monitoring and evaluation; enabling a more effective resource management and greater value-for-money in terms of public investments.

“The 10th Malaysia Plan marks the beginning of a new way for the Government to deliver. Both the GTP (Government Transformation Programme) and 10th Plan embraces a transparent approach,” the report stated.

To ensure accountability, the Key Performance Index (KPIs) to measure outcomes will be attributed to individuals and regularly and transparently reported to the public, the report stated.

The national priority outcomes include the National Key Result Areas (NKRAs), the 10th Plan Key Result Areas (KRAs) and National Key Economic Areas (NKEAs).

The plan is to also reduce fiscal deficit from 7% of the Gross Domestic Product (GDP) last year to below 3% by 2015 as well as reducing the total Federal Government debt from 53.3% in 2009 to 49.9% of the GDP by the end of the 10MP.

Budget allocations will be based on a two-year rolling cycle with more funding being shifted from the physical to soft infrastructure.

Under the 10MP, 40% of the total funding would be channelled to soft infrastructure compared to the 22% under the Ninth Plan.

This is in line with the country’s goal to transform into a high-income nation that requires higher value-added activities and skills development.

The Government will also increasingly move away from building physical infrastructure and operating public services towards buying services from the private sector.

Under the 10MP, the Government will strengthen its role as a policy maker and independent regulator by separating policy-making from regulation, consolidating agencies to prevent overlapping of jurisdiction such as the setting up of the land public transport commission or SPAD, among others.

The Government will also systematically reduce its ownership and control of non-core assets via privatisation and divestments.

“A level playing field will be created such that all companies can compete fairly even in areas where the Government remains as shareholder or operator,” the report stated.

It will also attempt to minimise redundancies, drive productivity and improve efficiencies through centralised management of shared resources as well as broaden its tax collection base and consolidate its ICT operations.

 http://thestar.com.my