As a policy maker, the Government needs to be committed to implementing more

transparent financial administration and ensuring that public funds are spent prudently. This

commitment is to ensure the strengthening of fiscal sustainability. In addition, new methods in debt

management and reporting that also take into account liabilities from finance leases and government

guarantees will be introduced to ensure sustainable financial management. Accordingly, transparent

and prudent management of public funds will significantly provide the best value for money and

produce better outcomes for the people. Comprehensive reforms will be implemented to ensure

prudent management of public finances towards a more transparent and accountable Government

as such:

1) Improving the budget system, ie improving fiscal planning and improving the efficiency and

transparency of government owned companies, a study will be conducted on the existing rules

governing the operation of government owned companies to address weaknesses and further

improve governance practices. In addition, periodic reviews of government portfolios will be

conducted to assess the role and functions of government owned companies. In addition, a

regulatory body will be established to consolidate information on the assets and liabilities of

government owned companies as well as prepare and publish comprehensive financial reports.

2) Improving procurement management, by maximizing the value of public investment, the

government will review the existing public private partnership (PPP) framework for project

implementation on a PPP basis. In addition, the total commitment of PPP projects will be determined

to control the level of liabilities and annual commitments of the Government. Setting annual

commitment limits will help the Government to minimize fiscal risk. Meanwhile, forensic audits will

be intensified for selected PPP projects to improve the existing framework.

3) Strengthen the performance management, monitoring and evaluation framework, leverage on an

outcome based approach by enhancing performance management To address fiscal challenges in the

short term, the Government will introduce zero-based budgeting as a method to tightly control

expenditure. At the same time, to ensure that expenditure achieves the set outcomes, the

implementation of outcome based budgeting will be strengthened as an integrated method of

performance measurement. This method is to ensure more efficient and effective management of

public expenditure. The outcome based budget will provide a platform to coordinate national

outcomes with the ministry's programs and budget allocations as well as increase accountability at all

levels. In addition, the performance of programs and activities will be measured based on key

performance indicators tailored to the role and functions of the ministry. Accordingly, steps will be

taken to ensure accurate and timely performance reporting, develop technical capabilities and

promote a culture of adopting performance information.

Governance reform at various levels symbolizes a new brand of the Malaysian Government

that will be formed to meet the needs and expectations of the people. This goal will be achieved by

upholding the principles of transparency and accountability in providing more efficient and effective

public services. Going forward, a transparent and accountable Government is essential to ensure that

the people are the real beneficiaries and enjoy Malaysia's prosperity.