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Budget reform—the Malaysian experience
Authors:John Antony Xavier
Abstract:Budget reform had been on the Malaysian government agenda for over two decades. The first major effort at budget reform was the introduction of the Malaysian version of Programme and Performance Budgeting System (MPPB) in 1969. Another major restructuring of the budget process took place in 1989 to modify MPPB. The package of modifications was titled the Modified Budgeting System (MBS). This article reviews the development of budget reform over the past decades. It documents the modest progress of MPPB and examines the rationale of the recent reform. The article then surveys the objectives and elements of the latest initiative in greater depth to assess the extent of its improvement over the previous effort. The article also illustrates, based on the lessons learnt from the implementation of MPPB, that an appropriate administrative structure, culture and implementation strategy are all-important for reform success.
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