GOVERNMENT AGENCIES

Government agencies or  public agencies are state-controlled organizations. They implement  the policies, laws  and programmes of the government and advise the political executive (Ministers) .  A government agency is established by legislation (perundangan) or by executive powers or executive / administrative  order. 

Public agencies are established  by either a national / central government or a state government. In other words, public agencies exist  at the Federal, State and Local Government levels in the machinery of government.  Some examples of public agencies in Malaysia are: The Ministry of Finance; the Ministry of Health; the Ministry of  Education; the Department of Agriculture; Malaysian industrial Development Authority; the Inland Revenue Board; Bank Negara Malaysia; Malaysian Communications and Multimedia Commission (MCMC); and Intellectual Property Corporation of Malaysia.

Government Agencies are classified into Central Agencies and Operating Agencies.

Central  Agencies  are agencies that are involved in formulating public policies, coordinating, controlling and monitoring the various activities, programmes and projects carried out by all government agencies. The main objectives and functions of the central agencies may be summarised as follows: (a)  to formulate public policies concerning economic, development ,  fiscal and human resource planning; (b) to recruit and train public employees to serve in various government agencies;  (c) to scrutinise and approve annual operating and development budgets and five-year development projects of all public agencies;  (d) to review existing schemes of service, compensation and retirement benefits and introduce new schemes; and (e) to ensure that public policies and programmes are implemented and managed by the various operating agencies according to schedule and approved allocation.

Examples of Central Agencies in Malaysia are: The Federal Treasury; The Economic Planning Unit (EPU); The Implementation, Coordination Unit (ICU); the Prime Minister's Department; The Malaysian Administrative Modernisation  and Management Planning Unit (MAMPU) and the Public Service Department (PSD).

Functions of the Federal Treasury

(i)   To formulate and implement fiscal and monetary policies in order to ensure effective and efficient distribution and management of financial resources;

(ii)  To formulate financial management and accounting processes, procedures and standards to be implemented by all government agencies;

(iii)  To manage the acquisition and disbursement of Federal government loans from domestic and external sources;

(iv)  To monitor and ensure the effective management of the Minister of Finance Incorporated companies;

(v)   To monitor the financial management of  Ministries, Government Departments and Statutory bodies;

(vi)   To formulate and administer policies related to the management of Government procurement and asset

          management; and

(vii)  To formulate policies and administer Government housing loans for  civil servants.

Functions of the EPU

The EPU was established in 1961. It is the principal government agency responsible for the preparation of development plans for the nation - i.e. for the formulation, implementation, progress evaluation and revision of development plans/projects.

Its specific functions are the following:

(a)    To formulate policies and strategies for socio-economic development -i.e. both long-term and medium term plans;

(b)    To appraise, evaluate  and recommend development programmes and projects;

(c)     To undertake economic research and offer advice to the government on economic issues;

(d)     To do planning for regional and corridor development; and

(e)     To act as the Secretariat to the  National Economic Council (NEC).

Functions of the ICU

The Implementation Coordination Unit (ICU) of the Prime Minister's Department is the lead agency in the monitoring of development projects in Malaysia. Its functions may be summarised thus:

(i)      To develop various project monitoring systems to meet various development  plan requirements;

(ii)     Periodic collection and analysis of financial and physical data concerning development projects that are being 

         implemented  in the country;

(iii)    To identify the problems encountered in implementation and the reasons for any gaps between planned and

          actual    performance  and to ensure that  effective feedback on project implementation  is  provided to top

          management on a timely  and regular basis for remedial or  corrective action;

(iv)     To provide advice, consultation and technical support for the planning, implementation, monitoring and project

            management    to all government agencies; and

(v)       To prepare reports on outcome evaluation of development  programmes / projects (i.e. performance reports)  for

             use by all   government agencies.

Functions of MAMPU

(a)       It is the  driving force for change in the administration and management of the Public Service in Malaysia.

           To introduce and promote new initiatives in the administration and management of the public service, as well as

            evaluate    and award government agencies for their performance in the public service delivery system of the

            country, towards    achieving an efficient, effective  and responsive civil service;

(b)       It is responsible for  Planning and promoting the development of communication and information technology

            (ICT) in the Public Sector.

            To plan, devise, coordinate and assess the  implementation of ICT development in the Public Sector towards

             strengthening   the service delivery of the government;

(c)        It is the consulting agency  in the organisational management of communication and information technology

             (ICT) for Public Sector.

             To provide consultation services to ensure the structure, system, work procedures and implementation of ICT

              development are in line with efforts to improve the government's delivery system;

(d)          It is the facilitator for the transformation and modernisation of the Public Sector.

              To synergise knowledge, expertise and resources (from public, private  and NGOs) towards enhancing the

               modernisation  and transformation of the Public Sector.

Functions of PSD

The Public Service Department (PSD) is the foremost human resource management agency in the public sector in Malaysia. All aspects of human resource management come within the jurisdiction (bidang kuasa) of the PSD. The functions of the PSD are the following:

(i)         Formulation of policies on recruitment, appointment, promotion, discipline, training, career development   and

             termination of service;

(ii)        Determining human resource requirements and  appropriate organisational structure for all government

             agencies;

(iii)       Formulation of policies on remuneration (saraan)  benefits  and facilities for public sector personnel;

(iv)       Providing scholarships to school-leavers for pursuing higher studies locally and abroad;

(v)        Providing adequate trained manpower  to all government  agencies; and

(vi)       Administering and implementing all laws and regulations pertaining to pension and other superannuation 

            (retirement)  benefits.

Operating Agencies

Operating agencies are also known as implementing agencies. They are government agencies responsible for planning and formulating and implementing  certain  specific policies (micro policies) such as agricultural policy, foreign policy, etc , and design programmes, activities, projects to achieve the purposes of such policies;  coordinate, control,  implement, monitor and evaluate all activities / operations under its jurisdiction.  These agencies are required to submit periodical reports on funds management and progress reports on five-year development programmes to the central Agencies. Central Agencies exercise oversight on the  operating agencies. Operating agencies consist of Ministries, Departments and Statutory bodies at the Federal and State levels.  An Operating Agency is headed by a Minister and the Chief Executive Officer,  a permanent senior civil servant,   is  known as the Controlling Officer or Secretary-General (in a  Ministry);  in a Department under the control of the Ministry, the Chief Executive is known as the Director-General; and in a Statutory body the Chief Executive is  known as the Director-General or General Manager. Operating agencies also oversee departments and statutory bodies under their control.  For example, the Ministry of Agriculture and Agro-Based Industry is responsible for overseeing the activities and programmes of the following  Department s and Statutory bodies under its control / jurisdiction: the Department of Agriculture;  the Department of Fisheries; the Department of Veterinary Services; Farmers' Organization Authority of Malaysia (LPP); Federal Agricultural Marketing Authority (FAMA); Fisheries Development Authority of Malaysia; Agrobank; Kemubu Agricultural Development Authority (KADA); Malaysian Agricultural Research  and Development Institute (MARDI); Malaysian Pineapple  Industry Board (MPIB); Muda Agricultural Development Authority (MADA) and Yayasan Tekun Nasional.

Some examples of Operating Agencies are :  Ministry of Foreign Affairs;   Ministry of Health; Ministry of Human Resource; Ministry of Education; Ministry of Defence. 

In Malaysia Government Agencies consist of Ministries, Departments and Statutory bodies.

Ministries are Federal agencies. They are the highest bodies in the Federal administrative machinery.  Each Ministry is headed by a Minister (political head who holds a certain portfolio), normally a member of the Cabinet.  and the Chief Executive Officer  (Controlling Officer) is known as the Secretary-General who is a permanent and politically-neutral senior civil  servant. Usually a Ministry is established by an Executive Order or Cabinet Directive.  The organisational structure of a Ministry is divided into  several divisions or sections or units depending on its size. Each Ministry is responsible for formulating its vision, mission, objectives and functions and planning, coordinating and controlling government policies pertaining to its mandate and functions and the resources entrusted to it.  The programmes and projects and activities of the Ministries are financed  from the Consolidated Fund of the government on an anual basis.  It is also the responsibility of the Ministry to control departments and statutory bodies under its jurisdiction.  Some examples of Ministries in Malaysia  are:  Ministry of Foreign Affairs; Ministry of International Trade and Industry; MInistry of Education & Higher Learning;  Ministry of Youth and Sports; Ministry of  Finance.

To learn more about the role of the various Ministries/ Government Departments in Malaysia, please go to the Malaysian Government 's Official Portal at:      www.malaysia.govt.my

Government Departments

Government Departments are the second highest agencies. They are responsible for implementing government policies, programmes and projects,  conducting research and enforcing laws.  Usually the functions of a department are related to certain policy determined by the Government. The daily activities of a government department involve direct delivery of services to the public. The services provided include security, social development, social  welfare services, aviation service,  health care, issuing international passports and other travel documents, etc. A government department is headed by a Director-General who is responsible for  administering  the law under the purview (bidang kuasa)  of his or her department.

Some examples of government departments in Malaysia are: Department of Environment; Royal Customs and Excise Department;   Immigration Department of Malaysia; Department of Civil Aviation; Marine Department Malaysia; Road Transport Department of Malaysia; Department of Statistics.                                                       

Statutory Bodies

Statutory bodies are established by a statute (Act of Parliament). They are set up for achieving   certain objectives   of the government.  They are also known as public corporations. They are wholly - owned by the state. They are created under  Federal or state law for a particular business, commercial or financial  or social purpose. They are under the control of the relevant  Ministries. Examples of  statutory bodies in Malaysia are:   Bank Negara Malaysia; Malaysian Industrial development Authority (MIDA); MATRADE; Securities Commission; The Inland Revenue Board of Malaysia; Malaysian Communications and Multimedia Commission; Companies Commission of Malaysia; FAMA; MARDI; Intellectual Property Corporation of Malaysia; Human Rights Commission of Malaysia; all public universities;  State Development Corporations.

© Peter Johnson 2000 - 2014

      Updated: January 2014