Monday, August 23, 2004

Sustaining economic growth through efficient and effective Delivery Systems and Mechanisms: The Malaysia Formula

Today the focus upon National Competitiveness has become a pivotal element, in the government's overall policy objectives, because it has a direct bearing on economic growth, and social development, targets which need to be achieved, in an increasingly competitive and challenging regional and global environment. There are many challenges that the nation has to face and overcome successfully, and thereby be able to achieve the developed industrial nation status in 2020.

Amongst them:

  1. The challenge for the nation to remain politically and economically independent, so that, it does not have to suffer the indignity of having to be dictated by lender and donor countries and institutions, or be easy targets for manipulation, by major powers.

  2. The challenge for the people to determine their own future and destiny, and this can only be achieved, when they are contented and appreciative of the environment within which they lives e.g. with their quality of life, availability of economic opportunities, access to various facilities, which can satisfy their various needs, such as in religion, education, business, recreation and the whole spectrum of daily life.

  3. The challenge for the Business Community to be ahead of the competition, in increasingly open and liberalized markets, and in environments which have been dictated by breakthroughs in technological developments, such as in ICT, the impact of R&D, and the infusion of knowledge, into every aspect of business activity. Competition has to be faced in both the domestic markets, and in the external markets.

These challenges require the right balance amongst political, economic and social governance, which can enable the formulation and implementation of policies and measures, which are effective, appropriate and timely, and can achieve the overall multipronged objectives of:

  • national competitiveness
  • national resilience
  • social cohesion and stability
  • political and economic stability
  • sustained economic growth over the long term.

Key to all these objectives is the Public Sector Delivery System which provides the foundation and the infrastructure, as well as the administrative support, to the people at large, in every aspect of daily life. And "people" includes the foreigners, who have chosen to make Malaysia their business base, and those who make Malaysia their "Second Home".

And "daily living" covers not only business, but everything else, that can make for high living standards and good quality of life, which includes supply of clean water and efficient transport systems, well-equipped schools with dedicated teaching staff, reasonably priced public housing, easy access to good healthcare, unimpeded worship of religion, and quick and efficient assistance in times of problems, and natural calamities.

It is important to remember that the Public Sector Delivery System has the entire nation and the populace as its' clientele, and, therefore, the civil servants at all levels (i.e. national, state and local levels) must be able to understand their respective individual, and team roles, in delivering every facet of service, to the people, whether those in business, in the schools, or those who need services at the counter level.

To ensure the efficiency of the system, appropriate strategies are required for the necessary political, economic and social governance of the country. And the civil service is a stakeholder in the nation, as a component of Malaysia Incorporated.

Providing service to the nation and the people will also mean providing service to the civil servants and their families, directly or indirectly, because, as individuals, they can benefit, or conversely suffer, out of what the nation can provide. The civil service must appreciate that what it contributes, will determine what it can get from the nation, in terms of remuneration and perks, and quality of life.

Very often, discussions on the Public Sector Delivery Systems focus upon the structure, the mechanisms and the Rules and Procedures. These are elements which are easier to deal with, and in fact, make for impressive presentation of what the Public sector will do.

But the problem, at all levels of government, is not with the system, per se, but with the human resource which man the system as such.

It is the human resource which is responsible for implementing each and every policy and each and every measure and programme.

It is very easy to come up with Structures, Rules and Procedures. There are any number of books written on How to do things. Any number of Circulars and Instructions can be crafted, as also Work Manuals and Client Charters and Corporate Philosophies.

But all these will have no added value towards sustaining economic growth, with social equity and stability, if the people who operate the delivery system fail to deliver due to language and skills constraints.

The civil service, as also those responsible for political governance, must understand their roles in achieving the National Objectives, and they must prioritize National Interest over parochial concerns.

The dynamics of the regional and global environments, no longer allows the Malaysian Public Sector the time or the luxury of the hype of Slogans, and endless circulars.

The days of the Civil Service "mandors" and "tandils" are over.

This is the Electronic age, and Malaysia has to compete in so many ways, and must succeed.

The quality of the Public Sector delivery system must be benchmarked against the best in the world, and efforts must be made to eradicate any aberration that is an obstacle to the efficient functioning of the system e.g.

  • obsolete rules and regulations
  • unnecessary procedures
  • undue delays in decision making
  • encumbrances of red tape which adds on to costs
  • lack of integrity and honesty which spawns corrupt practices
  • lack of capacity of the human resource to comprehend, and therefore benefit from, new developments, such as in ICT.

While higher levels of education can contribute towards enhancing of skills and capabilities, it does not take a PhD. or even a degree, for that matter, to understand that every functionary in the Public sector must be "Bersih, Cekap and Amanah".

The civil servant, as also the politician and other functionaries in the private sector, who is "Bersih", will be always, free of negative attitudes, and will be "cekap" in executing his/her duties by giving his/her best, and will be "amanah" not to betray the trust placed on her/him to deliver as part of the public sector delivery system.

To my mind, the Malaysian Formula to sustaining economic growth, through efficient and Effective Delivery Systems and Mechanisms is made up of the three ingredients of Bersih, Cekap, and Amanah.

Optimal doses of "Bersih" ensure that no ulterior motives lurk behind any decision, any effort, and that national interest will prevail. And then, all else will fall into place, to ensure National Competitiveness.

Optimal doses of "Cekap" will ensure the highest levels, of productivity, quality and efficiency, and thereby contributing directly to achieving national targets, whether in trade, investments, educational achievements, sports, and overall economic and socio-economic goals.

And a 100% dosage of "Amanah" will ensure that the public sector delivery system does deliver as expected, free from the constraining and often debilitating effects, arising from corruption, abuse of power and authority, prioritizing of self-interest, lack of patriotism and love for the nation.

For the business community, these are translated into many things e.g.:

  • cost-efficient business environment
  • timely and appropriate public sector decision making
  • reliability of public sector support and business facilitation
  • public sector partnership in meeting the challenges of competition.
  • continuous innovation and creativity within the public sector, to enable business to respond to global market dynamics and to succeed in that effort.
  • a public sector that is, itself, responsive to the needs of the business community

It is important to remember that the influence and authority of the Public Sector is pervasive in the social and economic life of the people. It is equally important to remember that such influence and authority must be needed and appreciated, and can directly and indirectly contribute towards achieving the goals of sustained economic growth and all the benefits accruing from it.

Therefore the monitoring and review system within the Public Sector must be efficient, and be alert and responsive enough to make adjustments and changes and to innovate.

Every strategy or program put into place must be accompanied by a comprehensive monitoring and review mechanism, even if it is as mundane an initiative as installing lighting in an industrial estate. The street lights must indeed serve their purpose and not burn out after 2 weeks, due to non-judicious choice of contractors.

The government has promised to "Reinvent the Public-Sector". Actually, the public sector has to re-invent itself. And it has to be done now, and quickly.

National competitiveness and economic growth must be sustained and enhanced.