New Public Management in Malaysia: in search of an Efficient and effective service delivery

Abstract

The Malaysian public sector has undergone various transformations since the Independence. From its custodial role in the newly independent country, the public sector had changed and taken an active role in the country’s economic development. However, since 1980s onwards, the philosophy and techniques of New Public Management (NPM) have been implemented in Malaysia. This again transformed the public sector from being an engine of economic growth to become a facilitator to the private sector and service provider to the public. In line with NPM’s underlying belief of the superiority of businesslike practices, various contemporary management practices and philosophy were implemented in the Malaysian public sector. The implantation of private sector practices in the public sector was enhanced with the introduction a performance measurement system which utilises the use of key performance indicators in 2005. Thus, the purpose of this paper is to examine and analyse the current improvement programme within the wider public sector reform programmes in Malaysia. The issues and consequences of using key performance indicators in the public sector are discussed. To understand further the reasons and the push for reform, contextual descriptions of the various phases of public sector reform in Malaysia are also discussed in this paper.