Pengukuhan Perkhidmatan Awam

1
Pengukuhan Perkhidmatan Awam Institusi
Berintegriti Langkah ke Hadapan
Konvensyen Integriti Nasional 2008

• Tan Sri Datuk Yong Poh Kon
• Pengerusi Bersama PEMUDAH
• 7 November 2008

2
Good Governance Basis for Sustainable
Development

• Good governance combination of transparent and
  accountable institutions, strong skills and
  competence, and a fundamental willingness to do
  the right thing
• Paul Wolfowitz, WB President
• Good governance is strongly linked to the need
  to maintain Malaysias competitiveness in the
  face of increasing global pressures. For a small
  country like Malaysia, the perception of
  corruption or inefficiency is something that we
  simply cannot afford
• Hon. PM of Malaysia
• WB research Corruption can lower a countrys GDP
  by 2-4 per annum imposes a 20 tax on foreign
  investors

3
Significance of the Civil Service

• Directly/indirectly manages a large percentage of
  national resources controls spends resources
  equivalent to 1/3 of GDP and about 2/3 of GDP, if
  NFPEs are included
• Emolument costs to the Government 24 of Federal
  Government Expenditure or about 7 of GDP in 2008
• Impacts on all aspects of the economic and social
  life of the citizen/nation
• Plays a key role in national competitiveness and
  sustainability of development

4
Careful management of national resources
significantly enhances development
sustainability..

• 2008
• Federal Government Total Expenditure RM200
  billion
• Government Procurement Estimate RM80
  billion
• Expenditure on Supplies and Services RM27
  billion
• Expenditure on Development RM53 billion
• Careful Spending can save estimated 15 RM12
  billion
• E-bidding saves an estimated 20 - 30
  RM16-RM24 billion
• Include state local governments, est. savings
  of RM13 billion or RM17 - RM26 billion with
  e-bidding

5
Savings per annum is very significant

• Compare estimated savings of RM16 - RM24 billion
  per annum with
• Internal Security allocation in 2008
  RM7.5 billion
• ACA budget in 2007 RM148
  million
• Health in 2008 RM10.8 billion
• Penang Second Bridge estimated cost RM4.8
  billion
• 6,600 units of low cost houses in 2009
  Budget RM330 mil
• So much more can be done... without increasing
  tax burden e.g. GST RM10 bil, with careful
  management and integrity/good governance

6
ACA given more bite

• Welcome the PMs announcement at the first ASEAN
  Integrity Dialogue in April 2008 to make the ACA
  more independent
• Establishment of an independent Corruption
  Prevention Advisory Board of prominent and
  upstanding members of the community
• Increase ACA staff to 5,000 from the current
  2,000 Budget Allocations increased from RM71 mil
  in 2004 to RM148 mil in 2007
• ACA to submit report to Parliamentary Committee
  on the Prevention of Corruption that will be
  established

7
The Hong Kong Experience is a Learning Experience
for Malaysia

• In 60's corruption rife in Hong Kong
• In 1974 ICAC established
• Multi-pronged Approach
• Enforcement
• Corruption prevention
• Community relations

8
Progress of ICAC over the last 30 years

• Non Anonymous Complainant
• Anonymous Complainant

9
Progress of ICAC over the last 30 years
Corruption Complaints - Government
Private Sector
10
Statistics on Corruption(2000 - 2006)?
77.2
10.1
29.2
4.1
1.8
11.3
0.7
1 ACA Statistics 2 ICAC Annual Reports
11
The Hong Kong Experience Progress Built
Confidence

• 77 cases reported investigated
• 29 will end up in arrests

12
ACA Improving Statistics
13
ACA will receive increasing support Public
support for ICAC
2007 ()?
1993 ()?
83.7
36.7
Would not tolerate corruption
Would not tolerate private sector corruption
89.0
55.4
64.7
54.4
Willing to report
99.0
98.0
Confidence in ICAC
14
Improvements but is it enough?

• World Bank Doing Business Report
• - Malaysia moved from 24 in 2007/8 to 20 in
  2008/2009
• - Thailand moved 6 ranks from 19th to 13th
• Competition is snapping at our heels
• Transparency International Index for Malaysia
• - Ranking from 39 in 2005 to 47 in 2008
• Civil service effectiveness, transparency,
  accountability and integrity no longer an option.
• - Thailands bureaucratic reforms (regulatory,
  legal, divestiture and transformation) improved
  efficiency, effectiveness and accountability of
  the civil service

15
Higher Expectations by Citizensof the Civil
Service

• World class and attracts the best?
• Cognizant of challenges facing the economy and
  citizen expectations?
• Customer-centric and focused on fair and
  equitable outcomes?
• Committed to high ethical standards of honesty,
  integrity, impartiality?
• Accountable for actions/decisions and trusted to
  act in public interest?
• Consultative and open to stakeholder views
  tolerant of public debate?
• Committed to acting efficiently, effectively and
  in timely manner?
• Provides a transparent and predictable
  regulatory environment?
• Provide objective, evidence-based advice to
  government without fear or favour?

16
Moving Forward

• More representative and inclusive civil service
  that reflects customers it serves
• Attract and retain the best
• Outcome and not process-based
• True business partnership with the business
  sector oneness of purpose and a shared sense of
  direction
• Ministries/departments needs to move away from
  silos to cross-functional teams
• Enhance professionalism and self esteem/image of
  civil servants as they serve citizens without
  fear or favour
• Transform and re-engineer the civil service
  continually from within departments/Ministries

17
Moving Forward

• Much has been achieved 18 months of PEMUDAH
  interactions has shown readiness and commitment
  to change
• Impressed with the efficient and conscientious
  senior civil servants and openness to
  consultation and debate on the way forward
• As civil service progresses, re-invents itself
  and builds on the highest of ethical standards
  befitting of the civil service, the image of the
  civil service will further improve in a
  corruption-free environment
• Moving forward has begun BUT it needs the
  commitment of every civil servant to make a BIG
  difference