Modernizing the budget system: The Malaysian experience

Programme and performance budgeting (PPB) was first introduced in Malaysia in 1969 and experience with operating and developing the system carries lessons for other countries. The initial introduction under the influence of external advisers, involved treating PPB as a mechanical exercise in which right procedures had to be followed. From 1972 the strategy changed to making the system serve to assist with utilizing and managing resources more efficiently in relation to programme objectives. The successful development of the system agency by agency points first to the importance of local rather than foreign expertise; second, to the need for the agency head to be committed and involved, rather than leave the introduction and management of the system to lower level experts; and third to the significance of the leadership role of the Treasury.