Professional Documents
Culture Documents
0 INTRODUCTION
The government has played a crucial role in ensuring that the nation’s wealth
is enjoyed by the citizens in a fair and equitable manner. Thus, it’s becomes the
responsibility of the government to plan for the citizens. Due to the global economic
crisis that affected our countries, it makes difficult for the government to plan wisely.
However, today global economic crisis has showed a strong sign of recovery and this
requires the government to plan the resources wisely. The resources are plan and
present as a budget. Every year, Ministry of Finance is responsible for planning the
Dato’ Sri Mohd Najib Tun Razak on 23rd October 2009 at Dewan Rakyat. The theme
of Budget 2010 is “1Malaysia, together we prosper. Budget 2010 is the last budget for
9th Malaysian Plan. It is the foundation of the development of new economic model
the industrial based. Now, Malaysia is moving to the new economic model. This new
innovation process. The innovation includes private and public sector governance,
safety net, and branding innovation. The government is serious in implementing those
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Budget 2010 focuses on the well-being of the citizens and achievements of
National Key Result Areas (NKRAs). This budget is also emphasize on advancing the
role private sector as the driver of economic growth, developing high-skill human
capital, and increase the efficiency of the public sector. There are three strategies that
are focused by the government on this budget which are driving the nations toward a
high income economy, ensuring holistic and sustainable development, focusing on the
well-being of the citizens. There are so many programs that are implemented by the
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2.0 DEFINITION
positioning, market share, etc. All organizations can innovate, including for example
change with the current situation. If it is still a long notch with no change to
While innovation typically adds value, innovation may also have a negative or
destructive effect as new developments clear away or change old organizational forms
and practices. Innovation can be described as the result of some amount of time and
effort into researching an idea, plus some larger amount of time and effort into
developing this idea, plus some very large amount of time and effort into
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3.0 FEDERAL GOVERNMENT BUDGET 2010
The pie chart above shows the Malaysian Federal Government budget for
expenditure of the government. The estimated revenue for the year 2010 was RM
2009. There are 6 sources of Malaysian government revenue which are from income
tax, borrowing and use of government assets, export duties, import duties, non tax
revenues and other taxes, and indirect taxes. The income tax was the largest sources
of revenue which is 38.3% from total revenue. Non-tax revenue was 25.4% of the
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total revenue where it comes from various sources such as licensing, registration
payment, and permits, payment of services such as court, port, rental, and any others.
The income that gained from indirect taxes was about 12.9%. The government
borrowing and the use of government assets were about 21.7%. The other two
revenues were import and export duties, 0.9% and 0.8% each.
Malaysian government was divided into two parts which are operating expenditure
finance the operation of the government. The estimates operating expenditure for year
2010 was RM138, 279 billion. It covered the emolument (RM 42.2 million), debt
service charges (RM 15.9 million), supply and services (RM 20.8 million), pension
and gratuities (RM 10.8 million), grants and transfer to state government (RM 4.9
million), subsidies (RM 20.8 million), and other expenditure (RM 22.7).
In the other hand, for the development expenditure, the estimated expenditure
for 2010 was RM 53,220 million. The development expenditure refers to the expenses
divided into four major sectors which are economic, social, security, and general
the contingencies. For the year 2010, government had allocated RM 25.4 billion for
economic sector that will cover infrastructure, industry, and agriculture development.
For social sector, a sum of RM 20.3 billion was provided to improve the education,
health, welfare, and community development. For security sector, RM 3.7 billion had
been provided by the government to develop the security system such as defence and
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internal security. For general administration, government had allocated RM 1.8 billion
for the development of general administration of the country. Lastly, for the
The essence of the 2010 Budget a lot written and implied. To ensure that all the three
economies. Second, to ensure a holistic and sustainable development and final, well-
being of the people. In order to achieve the first and second strategy it requires the
close cooperation of public and private sectors. The result is the well-being of the
people. Two factors that should be considered to be achieved first and second
and value added in the two sectors. In the context of public services, innovation can
development
areas where it competes with private sector. This second wave of privatisation aim to
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dependence on government. For this government will privatise companies under
Ministry Of Finance and other viable government agencies. Therefore, through this
and other agencies did not fully independent in government like in the past when its
end up to force government to help pay its debts receivables (bailouts), amounting to
services in others fields that is more important such as education and so on.
The efforts aim at enhancing confidence and public perception, eliminating corruption
In order to intensifying government delivery system, there are various innovation has
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Government Transformation Programme. It aims at enhancing the efficiency and
strengthen public training institution to produce high quality and knowledgeable civil
servants. On the ground of this INTAN Bukit Kiara will be upgraded to a school of
government with autonomy power. Last but not least, the establishment of cross
fertilisation program between government department and GLC’s that aim to provide
Through this program it will place the government officers in private companies and
international agencies.
high quality human capital with suitable skills. Thus to produce a high quality human
Government will allocate RM 30 billion for primary and secondary education. The
in Sabah and Sarawak. Through this 4 NKRA sub components will be given attention.
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years old. For this an allocation of RM48 million will be provided to
renovate all facilities and pre school curriculum under KEMAS as well
teachers.
Second: Increase literacy and numeracy rate, this is where government aim to
ensure that 100% of all normal school children will master basic
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This program will emphasise on early childcare and education in an integrated and
following :
First: PERMATA Negara involves early childcare and education program for
Second: PERMATA Seni, which will provide training for talented students in
This is an effort to strengthen public higher education institution (IPTA) in order to become
more competitive and improving in their world ranking. A greater autonomy will be given for
them in managing finance, human resource, administration, student intake and income
also will linnet the rules and regulation and give opportunity to IPTA to generate their own
income. This also will reduce the financial dependence on government. But the income
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generation activity by IPTA will be observed by government to ensure it not jeopardize their
based on innovation, creativity and high value added activities. This approach will
increase the more than double per capita income of citizen in the next 10 years.
Through this strategy, Khazanah Malaysia Berhad and Permodalan Nasional Berhad
will enhance the collaboration with foreign investor. In line with this the government
will intensify efforts to attract FDI by allowing equity ownership in companies and
joint ventures in local project. Presently an aggressive step has been taken in order to
attract investors from Middle East, China and India. Currently investor from Saudi
Arabia has invested USD 1.5 billion in a high impact project in collaboration with 1
GLC’s and Private sector companies also must enhance their social responsibility. In
This sector has significantly contributed to the income of people in rural area and to
economic growth. This sector has the potential to generating income for citizen. Thus
marketing the products. On the ground of this, this program were aimed at attracting
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more young entrepreneurs, encourage best practices agriculture, and upgrade
agriculture infrastructure. RM 6 billion will be allocating for this sector. the program
First: Implement the incubator Program; this is to train and guide youths and
Second: Modernize the aquaculture industry; this also will provide a training
In line with all the programs, efforts are being undertaken to establish Federal Land
for large scale food production. FAMA will facilitate the marketing of these products.
In addition to ensure agriculture products are marketed abroad effectively, the cargo
Facilities will be upgraded, and MAScargo will upgrade air cargo facilities for export
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Public- Private Collaboration will be enhanced to enable the private sector to
spearhead economic growth. The high impact project will be taken jointly with the
cooperation among private and public sector. The role of the government is in order to
provide and facilitate the provision of basic infrastructure to ensure the project
Centre.
The government is very serious towards the welfare of the citizens. This is the
The health problem becomes the important agenda of the government. That is why the
government allocated RM 14, 783 billion on the public health. This allocation is to
manage, build, and upgrade the hospital ad clinic in Malaysia. For year 2010,
government had planned to construct and upgrade the hospitals in certain areas. The
construction and upgrading the hospitals covered the area of Kluang, Bera, Shah
Alam, Alor Gajah, and Tampoi. Besides that, Malaysian government will introduce
community clinic service in the urban area known as 1Malaysia clinic. This
community clinic service is similar with the “klinik desa” at the rural area. The
1Malaysia clinic is located at the housing area to enable the people to get basic health
treatments.
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4.4.2 Improving Public Transport
Malaysian government also place the urban public transportation as one of the
NKRA to assist the public I their daily activities. This is because the effective and
efficient public transportation can increased productivity and reduced the traffic
Awam (SPAD) as the authority to monitor and enforce service standards and planned
for the long term urban public transportation. The SPAD is expected to operate in
2010. Besides that, government had set up new 8 Electric Multiple Unit (EMU) and
upgrading the 9 EMU. This is done by the KTMB to increase the efficiency of the
responsible to acquire 35 units of Light Rail Transit (LRT) for Kelana Jaya-Taman
Melati line. There are 4 units of train that have been delivered and currently operating,
while 22 units will be delivered in 2010, and the remaining will be delivered in 2011.
the year 2010. In order to eradicate poverty, government had identified 50,000 units
of hardcore poor households and 4,000 “Orang Asli” household that are registered
under eKasih program. Government had provided the opportunities for skill training
and income generating program to reduce hardcore poverty. Some of the measures
taken by the government are distributing federal welfare assistance on the first day in
every month starting on 1st September 2009 for peninsular Malaysia, and 1st January
2010 for Sabah and Sarawak. Besides that, government is also continuing “Skim
Program Lonjakan Mega” in Batang Sadung and Batang Lupar, Sarawak. The
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government has allocated RM 141 million for this program. This program will help
5.0 ISSUES
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