CHAPTER 4

POLICY FORMULATION
PREPARED BY:
FARAHSAHIRA BINTI ROSLAN
NURUL DIYANA BINTI AMIRALAM
NURUL WAHIDAH BINTI SHAMSUDIN
2014835682
PREPARED FOR:
MISS JALILAH BT JAAFAR SIDEK
CLASS: MC248S3A

2014807556
2014275668

DEFINITION OF PUBLIC
FORMULATION
Policy process - pertinent and
acceptable courses - dealing
with some particular public
problem - identified and
enacted into law.

THE NATURE OF POLICY

SOLUTIONS
5 types of policy solution:
1)Inducements
2)Rules
3)Facts
4)Rights
5)Powers

PUBLIC POLICY IN MALAYSIA

Requirement of the political and social structure
and the future demand of the nations.
Malaysia is a multi-ethnic society, so need to
taking into consideration-political, social, and
economic.
Malaysian political system is based on
Parliamentary Democracy-Yang Di-Pertuan Agong
(YDPA) as the Supreme Head of the country.
Federal Constitution (FC) divides into three
authority : legislative, judicial, and executive.
Separation of power and check and balances
doctrine are stated in FC.

PUBLIC POLICY IN MALAYSIA

Policy can be created through one or combination of
three process :

Political channel - the policy is initiated through

recommendation of several political reigning

process.

Administrative processes - it happens in

ministerial level. The drafted policy is discussed at

several high-level government meetings.

Integrated Aproach - it combines both

processes. Special comittees may be set up to study

the policy in-depth before present it to the Cabinet.

COORDINATING AGENCIES IN
MALAYSIA
The most important councils :
a) National Development Council (NDC)
b) National Economic Council (NEC)
c) National Security Council (NSC)
d) National Development Planning
Committee (NDPC)

POLICY SHORT AND LONG

TERM
Action policy create through legal action, planning,
program and project.
In all stages of Outline Perspective Plan (OPP) 5 years
Development Program will be enforced : Eighth
Malaysian Development Plan (2001-2005).
Normally case of economic planning involve in a longterm measure :
a)Outline Perspective Plan (OPP1) 20 years (1970-1990)
New Economic Policy (NEP).
b)Outline Perspective Plan (OPP2) 10 years (1991-2000)
New Development Policy (NDP).
c)Outline Perspective Plan (OPP3) 10 years (2001-2010)
Vision Development Policy.

ACTORS IN
POLICY
FORMULATION
(US & MALAYSIA)

ACTORS IN POLICY
FORMULATION
Governmental Agencies (US)
Developed policy proposal by career bureaucrats rather in the
congress.
Expertise in specific areas of public policy-particularly good
position.
New agency proposal to remedy previous legislation.
Provide information to congress and becomes the basis for
legislation.

The Politician and Governments Public

Administrators (MALAYSIA)
Refine as the Cabinet ministers, members of parliament, and
high-level of government officials.
Responsible in ensuring the success of the policy
implementation.

ACTORS IN POLICY
FORMULATION
The Presidency (US)
President involved in the policy formulation processpresidential commissions, task forces, interegency
committees, and other arrangements.
President personally involved.

Prime Minister (MALAYSIA)

Chief of Cabinet.
Create and plan government policy.
Responsible in administration of Malaysia.

ACTORS IN POLICY
FORMULATION
Congress (US)
The institution that is most commonly associated with policy
formulation - through the development of new legislation.
Congressional committees and congressional staf - allow
substantial involvement.
New organizations - Office of Technology Assessment (OTA)
-Congressional Research Service (CRS) - Congressional Budget
Office (CBO) - give congress a greater voice.

Cabinets (MALAYSIA)
Draft - discussion with other ministers and central agencies (Ministry of
Finance, Economic Planning Unit, Implementation and Coordination Unit)
to get advice recommend.
Bill usually prepared one month before Parliament session.
After information gather, in Cabinet weekly meeting (Wednesday)
Minister give approval after getting clearance from Cabinet Secretariat.
After debate, the bill will submit to YDPA for the Royal Assent.

ACTORS IN POLICY
FORMULATION
Interest Group (US)
Most frequently mentioned determinants - role and influence of
interest group.
Pluralism - shaped by bargaining, negotiation, and
compromise.
V. O. Key:
group interest are the animating forces in the political
process;an understanding of American Politics requires a
knowledge of the chief interest and their stake in public policy.
Founding Fathers - the idea of interest group can be traced
back.
Arthur Bentley argued- In the Process of Government - there
no political phenomena except group phenomena.
Theodore Lowi argued - interest group liberalism - produced
situation-undue power - structure policy outcomes
(characterized by corruption, backroom, a lack of long-range
palnning, and injusticed).

ACTORS IN POLICY
FORMULATION
Interest Group (MALAYSIA)
A group of individual who form the interest group to put forth
their ideas and needs for government consideration.
Can get strong public support trough campaign and activities.
Consists of academic professionals and social cultural groups.
Example : Human Right Institution of Malaysia (SUHAKAM)

The Public (MALAYSIA)

Act individually or form interest groups.

EXPLAINING
POLICY
FORMULATION
(US & MALAYSIA)

EXPLAINING POLICY
FORMULATION
Rational-Comprehensive Model (US)
Model of decison making assumption individuals make
decision rational calculation : cost and benefits.
The components which include in this model :
1. The decision maker confronted with problem
2. Goals, values and objectives are clarified and ranked
3. A set of alternative policies
4. The consequences from the selection are investigated
5. Each alternative can be calculated and compared
6. The decision maker chooses that maximizes his or her goals,
values or objectives.

EXPLAINING POLICY
FORMULATION
Rational-Comprehensive Model (MALAYSIA)
A process for making logically-sound decision in the public
sector.
Intended to achieve maximum social gain - the gain must
exceeds cost.
Steps to achieve rational decision :
a)Intelligence gathering.
b)List of possible to resolve the identified
problem.
c)Alternatives are evaluated.

All Resources Needed

for Pure-Rationality
Process
1. Establishment
of complete set of
operational goals
with weights

INPUT

3. Preparation of
complete set of
alternative policies
4. Preparation of
complete set of
predictions of benefits
and costs for each
alternative.
5. Calculation of net
expectation for each
alternative

6. Comparison of net
expectations and
identification of
alternative(s) with
highest net expectation.
Pure-Rationality
OUTPUT

All Data Needed for

Pure-Rationality
Process
2.
Establishment
of complete
inventory of
other values
and resources
with weights.

Policy (Policies)

EXPLAINING POLICY
FORMULATION
The Incremental Model (US)
Incrementalism views public policy formulation continuation
of past government activities with only minor modifications.
Constraints of time, intelligence, and cost prevent policy
makers from identifying the full range of policy.
The key assumption of this model:
1.Decision makers do not have sufficient prective capabilities.
2.Decision makers accept the legitimacy of previous policies.
3.Sunk costs prevent serious consideration.
4.Incrementalism reduces conflict.
5.The characteristics of the decision makers more suited to
incremental model.

EXPLAINING POLICY
FORMULATION
Incremental Model (MALAYSIA)
Views public policy as a continuation of past government
activities.
Costs and benefits for dealing with a problem in public policy
is time-consuming & expensive.
Policy-makers accepts :
a)The legitimacy of established programme.
b)Previous policy.
c)In this model, only a base and small changes are considered
by existing programmes or policies.

EXPLAINING POLICY
FORMULATION
The Systems Model (US)
Developed by biologist then applied to the study of politics by
David Easton.
His suggests that public policy formation afected by demand
for new policies or support for the existing policies.
Demands and supports then acted on by a political system or
conversion mechanism.
Inputs (demands and supports) are converted by the
processes of the political system (legislatures, the courts) into
outputs (policies or decisions) and these have consequences
for the system and for the environment.
Demands may be internal to the system (political parties or
interest group) @ external to the system (ecology, the
economy, culture, demography).

EXPLAINING POLICY
FORMULATION
Support includes action help the system operate and help to
sustain it
Support is derived from three directions :
1. the political community
2. the regime or rules of the game
3. the government itself
A political system generates support by meeting demands of
the polity.
The outputs of the system (political decision or public policy)
create support when they satisfy demands or when system
members perceive the government.

EXPLAINING POLICY
FORMULATION
System Model (MALAYSIA)
View as system output.
A response of a political system where the forces initiated
from the environment itself.

THE SYSTEMS FRAMEWORK

INPUTS

SUPPORT

POLITICA
L SYSTEM

FEEDBACK

DECISIONS
OR POLICIES

OUTPUT
S

ENVIRONME
NT
DEMANDS

EXPLAINING POLICY
FORMULATION
Elite Model (MALAYSIA)
Views public policy as preference, priorities,
values and interests.
Suggest that people passive, apathetic, illinformed and easily manipulated.
Elites shape mass (public).
Elites make public policy by themselves.

ELITE MODEL (MALAYSIA)

EXPLAINING POLICY
FORMULATION
Institutional Model (MALAYSIA)
This model is authoritatively determined,
implemented and enforced by political
institutions.
Policy is not a policy-adopted by government
institutions.
Government policies are generally regarded as
legal obligations.
Extend to all people.

EXPLAINING POLICY
FORMULATION
Group Model (MALAYSIA)
Views politics as a struggle among various
group in a society to influence public policy.
Policy-makers constantly respond to group
pressures and balancing conflicting interests in
society.
Public policy is the equilibrium reached in the
group struggle.

CASE STUDY
DYNAMICS OF POLICYMAKING IN MALAYSIA :
THE FORMULATION OF
THE NEW ECONOMIC
POLICY & THE
NATIONAL
DEVELOPMENT POLICY

DYNAMICS OF POLICY-MAKING IN MALAYSIA: THE

FORMULATION OF THE NEW ECONOMIC POLICY &
THE NATIONAL DEVELOPMENT POLICY
About how to integrated the policy.

National Development Policy(NDP) is the

continuation of the NEP. It is the ongoing thrust of
NEP in eradicating poverty and restructering society.

CONT
First Phase : Public Rhetoric
Began in the mid-1980s- public
pronouncement by interest groups and political
parties.
It is about weaknesses or strengths and
negative or positive impact of the NEP.
For those who apposed the NEP(Chinese-based
political parties and interest groups) saw the
NEP as the most divisive policy ever devised.

CONT
Second Phase : The Setting Up of the
National Economic Consultative Council
Was a rather unusual forum for problemsolving for the development of a common
economic policy.
Policy proposal in the NECC proceed in two
stages:
a)The review stage
b)Formulation stage

CONT
Third Phase : Drafting the Plan in the
Economic Planning Unit(EPU)
Cabinet Economic Comitee was given the task
of formulating policy proposal in June 1990.
On June 11, 1991- MCA President, Lim Liong
Sik announced- Cabinet had form a comittee to
deal with the formulation of the NEP.
(OPP2)-May 17, 1991 Prime Minister, Datuk
Seri Dr.Mahathir, cabinet- agreed in principle not
to take NECC proposal word for word but only
line of thought.

CONT
May 22- Cabinet : Meeting at Kuching, Sarawak
approved draft OPP2.
RMK-6 Tabled in Parliament on 24th July but
pased on July 30 after 4 days debate- change in
name of new policy NDP.
3 indication- Bureaucrats EPU at the Prime
Ministers Department were working
independently of the NECC in drafting the OPP2

CONT
Policy Formulation Process Analyzed
Public agenda (systematic)- issues on which a
majority of citizens are sufficiently concerned
about to make representations
Formal agenda (governmental)- items on which
government wants to act.
Policy formulation evolved very diferentlyblurring the role of NECC- an apparent shift from
the Council towards the Cabinet and Prime
Ministers Department.

CONT
Final decision phase made by Prime Ministers
Department
NECC performed some important tasks : mapped
technical terrain, injected ideas, socialized and
mobilized experts, orchestrated positions &
intermittently pushed and prodded interest groups.
Distinction between 2nd phase and 3rd phase (public
agenda vs official agenda) is clear.
2nd phase- let it happen but 3rd phase made it
happen
Policy considered only 3rd phase where proposalsset on decision agenda.

ORGANIZATIONAL CHART OF THE ECONOMIC PLANNING UNIT (EPU) OF

THE PRIME MINISTERS DEPARTMENT, MALAYSIA
ECONOMIC PLANNING
UNIT
Director
General
Foreign
Investment
Committee
Special Team
on Privatization

Macro Planning
Division

Macro
Economics
Human
Resources
Regional
Economics
Distributio
n
Secretariat
NDP
Committee

Legal
Adviser
External
Assistance/Gener
al Services
Computer
Services

Administrati
on &
Finance

Sector Planning
Division
Social Services
Commerce &
Industry
Agricultu
re
Infrastructure &
Utilities
Energy
Development
Budget

MALAYSIA: FORMULATION OF THE NATIONAL DEVELOPMENT POLICY

Parliament

Cabinet

Comment
on Report

Final Plan
Discuss
report

Prime Ministers
DepartmentEconomic Planning
Unit
1. Consider
general
approach to
formulation
2. Review impact
and
performance of
new Economic
Policy
Working
groups
drafting
details
Prepare
draft
Final Report

NECC
Deliberations
1. Review of
NEP
2. Working
groups
drafting
details of
proposals.

Final Report
DEPAN

THANK
YOU