232 Public Administration in Southeast Asia

been lamented. Trying to pay taxes online has not been easy when the deadline draws nearer, so much so that extensions normally have to be given to the official deadline. The country’s privatization efforts have often been criticized and dubbed “crony capitalism,” particularly during the Asian financial crisis in 1997 when privatized companies such as MAS were renationalized at prices far exceeding the market value. On the administrative front, the NPAS, which was designed to introduce meritocracy in performance evaluation in the civil service, has also been heavily criticized for its unintended effect on inequity and fairness. Other administrative reforms, such as the Client’s Charter, has also been criticized for being a mere publicity drive, since evidence shows that whatever is promised in the charter is not always practiced, and most customers are also unaware of their rights and entitlements [49]. Thus, reforms though well-meaning and designed for improvements in the civil service, also had unplanned effects in its implementation.

While the critics may be many and loud, the Malaysian civil service has not looked back. The personal role of Prime Minister Mahathir in his more than 20 years of premiership has indeed altered the paradigm of the civil service. Malaysia has survived the punishing financial crisis of 1997, and is looking forward to being a developing nation by 2020, despite the challenges of the current global financial crisis. Given time, the reform efforts will bear fruit, as the NEP did some 30 years ago. Acknowledging criticism and differences for improvements will further strengthen the civil service delivery system. For example, it used to take 3 days for the public to apply for an international passport, but now it can be done within 24 hours. Filing for income tax through the e-filing system has greatly reduced paperwork, and access to the system has very much improved over the years. The government is committed to further improve civil service delivery and, in 2007, established a special task force known as PEMUDAH, for the purpose of facilitating business. Currently, Malaysia is ranked 24 out of 178 economies in the World Bank’s “Doing Business Index and Report 2008,” which sees many quarters within the government wishing to improve on the ranking.26

11.8 Conclusion

In 2007, Malaysia celebrated its 50th year of independence. A country that has come of age is a far cry from its colonial beginnings. It is now the 19th largest exporting country according to the World Trade Organisation, and is in 24th position in terms of ease of doing business according to a World Bank Report.27 Certainly, the civil service has contributed immensely to the development and growth of the country.

The Malaysian civil service has its roots in the British colonial administration of the country, a legacy that today still sees the civil service being highly hierarchical and centralized. Central agencies such as the Public Service Department, the PSC, and MAMPU exercise a great amount of control in the civil service. Apart from that, the elitist ADS also has a huge influence on the running and policy formulation and implementation of the civil service. The predominantly Malay workforce in a multi-ethnic and multi-cultural Malaysia can also be traced to its historical roots. The ramification of the divide-and-rule policy of the British colonialists is a largely homogenous civil service. Nonetheless, as the country forges ahead, efforts are being undertaken to attract more non-Bumiputra into the civil service.

26PEMUDAH, http://www.pemudah.gov.my (accessed October 1, 2009).

27World Bank, Doing Business 2008, World Bank, Washington, DC, 2007, http://www.doingbusiness.org/ ExploreEconomies/?economyid=119 (accessed March 24, 2008).

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Civil Service System in Malaysia 233

Reform efforts carried out within the civil service were both structural as well as administrative. Undoubtedly, the personal role of former Prime Minister Mahathir Mohammad had a huge impact on these reform efforts. Major policies such as Malaysia Incorporated and privatization were aimed at transforming the very structure of the civil service. These policies radically altered the civil service presence in the economic activities of the country; as well as in the conduct of its business. It has since been characterized as being “genuinely performance-orientated [50],” as bold moves such as performance-based and competence-based reward systems were introduced, coupled with an attractive remuneration package. In the words of the former chief secretary of the government, a “paradigm shift” would be the calling for the Malaysian civil service.

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