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