CHAPTER 5: CATEGORIES AND

TYPES OF PUBLIC POLICY IN

MALAYSIA
 LEARNING OBJECTIVES

Upon the completion of this chapter, students should

be able to:

 List down and explain several types of public policy

(Constituent, regulatory, distributive, redistributive)
 Describe on the types of public policy in the
Malaysian sphere.
 Discuss on merits and demerits of each types of
public policy
 INTRODUCTION

 There are several types of public policy which are

patronage, regulatory, redistributive and monetary
policies.
 Joseph Stewart et al. (2008) highlighted several
types of public policy, namely regulatory, distributive
and redistributive policies.
 Meanwhile, Meier (1987) had identified 4 types of
public policies namely constituent, regulatory,
distributive and redistributive policies.
 CONSTITUENT POLICY

 Constituent policy involves the composition or

make up of government.
 It concerns with the establishment of government
structure, with the establishment of rules (procedures)
for the conduct of government, of rules that distribute or
divide power and jurisdictions (James E. Anderson,
2011).
 Constituent policy also includes such matters as
personnel practices and budgetary actions (James
E. Anderson, 2011).
 It can be divided into two elements which are
structural and procedural constituents.
 CONSTITUENT POLICY

 A Structural Policy creates government structure. For

instance, the creation of the Department of Homeland
Security. This new department pulled together functions
from 22 units in other executive departments. The idea is
to enable the department to act in a more unified and
effective manner to protect the nation’s internal security
against terrorist attacks (James E. Anderson, 2011).

 A Procedural policy outlines the steps in a process:

Courtroom procedures, procedures for the government
to take people’s land and homes, and procedures for
which the government bans a particular drug from being
sold on the market (Carter A. Wilson, 2016).
 Examples

Structural Policy
 The establishment of The Global Infrastructure Anti-
Corruption Centre (GIACC)
 The establishment of Central Asset Management
Corporation (CAMcorp). They are responsible for the
management of seized and forfeited assets.

Procedural Policy:
 The compulsory acquisition of land. land acquisition
process under the Land Acquisition Act 1960 (“LAA”).
 Merits

Protect national Conflict

interest/safety avoidance

It provides a
Employment guideline for
Opportunities both government
and citizens.
 Costly

Demerits
Time
People not fully
consuming: an
understand the
in-depth analysis
procedures
is needed

Not stable and it

would be facing
changes-depends
on who is the
government of
the day.
 REGULATORY POLICY

 This kind of policy is different as compared to patronage policy as

this policy employs the use of the stick (punishment) rather
than carrot (incentive).
 This policy set guidelines for the actions and practices of private
individuals, firms, or businesses (Carter A. Wilson)
 Regulatory policy is about achieving government's objectives
through the use of regulations, laws, and other
instruments to deliver better economic and social
outcomes and thus enhance the life of citizens and
business (OECD, 2016).
 According to James E. Anderson (2011), regulatory policy imposes
restrictions or limitations on the behavior of individuals
and groups.
 In other words, the government formulates regulatory policy for the
purpose of controlling the conduct of certain behavior that can
bring harm to the society.
 REGULATORY POLICY

 There are two types of regulatory policies: competitive and protective.

 Competitive regulatory policy generally regulates entry into markets
and may also regulate prices.

 For instance, the role of state public utility commissions in regulating the
price of electricity. Electric companies operate as a monopoly. They can
charge whatever the market of consumers of electric services is able to bear.
The commissions were established to regulate the prices of electricity-
generating monopolies in order to protect the public interest.

 The Protective Regulatory policy protects the public from a perceived

harm. Protective regulatory policy often requires a change in behavior
brought about by invoking rewards or penalties. Examples of regulatory
agencies are the Environmental Protection Agency, the Consumer Product
Safety Commission, the Occupational Safety ad Health Administration, and
the Federal Aviation Administration. All these agencies protect the public
from pollution, hazardous products, workplace dangers, and unsafe
airplanes.
 Examples
Regulatory Policy:
 A) Occupational Safety And Health Act 1994 (OSHA 1994).
 Enforced by the Department of Occupational Safety and Health
(DOSH).

 B) Solid Waste and Public Cleansing Management Act 2007

(Act 672)
 Wilayah Persekutuan Kuala Lumpur, WP Putrajaya, Pahang, Johor,
Melaka, Negeri Sembilan, Perlis dan Kedah
 1 SEPTEMBER 2015
 Fine RM 1000
 MHLG

 Rear Seat Belt Policy

 Consumer Protection
 Able to solve people’s People obey and conform
problem promptly the policy

Merits

Keep the public safe from a

wide range of dangers: Help to solve the problem
community safety and of market failure
sound environment
 Conflict migh occur
The issue of
between two or more
enforcement
parties.

Demerits

The issue of
The use of coercive
standardization
power
among states
 DISTRIBUTIVE POLICY

 This policy appear to allocate benefits or resources to the larger

population. A good example is the interstate highway system.
The highways are found in every state and are used by most people.

 Those who do not use them still benefit from them indirectly
because most goods such as foods, clothing, automobiles, furniture
etc are distributed by way of interstate highway (Carter A. Wilson,
2013).

 This policy do not impose costs upon any specific group. Rather, the
costs are paid by public treasury, which means tax payers generally.

 Distributive policies usually involve using public funds to assist

particular groups, communities or industries (Anderson, 2015)
 DISTRIBUTIVE POLICY

 According to Robert B. Denhardt and Janet V. Denhardt

(2009), distributive policy is the most common form of
government policy, uses general tax revenues to provide
benefits to individuals or groups, often by means of
grants or subsidies.

 The federal government provides direct grants to state

and local government for a variety of purposes.
Besides that, the government often creates public goods that
all citizens can enjoy. In some cases such as national
defense, the good is provided to all while city, state or national
park, it is anticipated that some citizens will use the benefits
and others will not.
 Examples

 A) Grants received by Local Government: Annual

Equalization Grant, Road Maintenance Grant, Launching
Grant, Development Grant etc.
B) Pan Borneo Highway Sarawak:
 Total road length: 1060 KM
 Construction period for phase 1: 2016-2021
 Estimated Construction Cost: RM 16.488 B (phase 1).
 Toll Free

 General tax reduction

 Malaysian Educational Policies
 Merits

Those who do
not use them
Low level of
still benefit
conflict
from them
indirectly

Create Improve
winners and society’s
no specific standard of
losers. living
 Demerits

The issue of
Less effective
priority and
during economic
citizens’
downturn
preferences

The issue of
Wastage of
equality of
people’s money if
development
the project
throughout the
delayed/cancelled
country
 REDISTRIBUTIVE POLICY

 This policy involves the process of redistribution of wealth and resources to

the citizens by managing economy effectively and efficiently.
 This policy is more likely to benefit one group of people (poor) at the
expense of other groups through the relocation of wealth.
 According to Robert B. Denhardt and Janet V. Denhardt (2009),
Redistributive policies take taxes from certain groups and give them
to another group.
 Redistributive policy deals with income stabilization, which help to support
those who are unemployed or retired, social welfare where the
government provides either direct payments to individuals or supporting
state and local efforts for the indigent (poor people), or health care
program such as Medicaid and Medicare.
 This can be clearly seen in the case of progressive taxation. Income tax
is the example of progressive taxation in which the person who earn high
income needed to pay more income tax as compared to low income earners.
 On rare occasions, redistribution is from the less-well-off to the better-off,
example: Capital Gains Proposals.
 REDISTRIBUTIVE POLICY
 The policy involve deliberate efforts by the government to shift the
allocation of wealth, income, property, or rights among broad classes or
groups of the population (i.e haves and haves-nots, proletariat and
bourgeoisie) (Anderson, 2015).
 Some people believed that this policy refers to Robin Hood policies
because, allegedly, they take from the rich and give to the poor. One
example of redistributive policy is welfare payments for low income, single
women with children.
 Affirmative action is another example of a redistributive policy, as this
policy is perceived to shift privileges from advantaged to disadvantaged
groups.
 Every American President since Roosevelt and prior to Reagan has
supported some major redistributive effort. Presidents Reagan and George
H. W. Bush seeking to limit and even reduce redistributive programs.

 Redistribution can also take place on a global scale such as foreign aid
being provided to impoverished countries. i.e. food aid to Somalia (Miller
and McTavish, 2014).
Merits
 Difficult to enact
because they
involve the
relocation of
resources. Those in
power rarely yield
the resources
willingly

Deterrent to wealth
Create culture of people working or
dependency Demerits investing in new
opportunities

The issue of
redistributing the
wealth/resources to
the needy
 Examples

 Social Assistance- BR1M, BB1M

 Progressive Taxation- Income Tax
 National Social Welfare Policy- Social Welfare
Department (SWD) has a financial assistance scheme for the
poor older persons especially those without next of Kin. The
scheme is called Aid for Older Persons (BOT) in which a
monthly allowance of RM 200.00 per person will be given
upon approval. The department also could consider other
assistance such as artificial / orthopedic appliances and
spectacles.
 Skim Kumpulan Wang Simpanan Pekerja (KWSP)
untuk suri rumah
RM 40 1st Phase (August 2018), RM 40 + 10 (SOCSO) (2019),
2 % from husband’s contribution starting in 2020.
 Additional types of public policy

 Foreign and Defense Policy

 Monetary policy
 Patronage policy
 Foreign and Defence Policy

 Foreign and Defence policies are about maintaining national defense,

securing the country’s borders, responding to international threats against
the nation and its people, promoting the country’s national interest,
advancing its economic position, and pursuing relations with other nations:
building trust, enhancing cooperation, forging alliances, and building
coalitions.
 Malaysia renounces the use of threat and application of force as a means of
settling international conflict and advocates and practice the peaceful
resolution of disputes.

 The primary objective of the National Defence Policy is to protect and

defend national interests which form the foundations of Malaysia’s
sovereignty, territorial integrity and economic prosperity.

 The National Defence Policy illustrates this through the adoption of a

defence strategy based on bilateral and multilateral defence
diplomacy achieved through regional and international cooperation.
 MONETARY POLICY

 The fourth type of public policy is monetary policy.

 Monetary policy is formulated by the government to
control the supply of money and controlling interest
rate (Abdul Rauf and Rozalli, 2010).
 Monetary policy is useful to curb the problem of
inflation and recession in a country.
 PATRONAGE POLICY

 This is a form of policy in which the government

deploys incentives for individuals or corporations as
a reward.
 The government believed that if there is no incentive
provided to the citizen, they will refuse to accept
changes or suggestion made by the government.
 This policy motivates people or corporation to
change rather than giving punishment for non-
compliance.
 There are three sub-types of patronage policy which
are subsidies, contract and licenses.
Features of Public Policy by Hogwood and Gunn
(1984).

 The process of policy making involves several sub

processes and may extend over a considerable period of
time.
 The process of policy making involves intra- and inter-
organizational relationship with a key role of public
agencies
 Public policy involves many participants (policy makers,
public, interest groups, the experts and media)
 It has to deal with many constraints such as technology,
resources, assumptions and reactions of interest groups.
 It is also ill-structured in so far as objectives are ill-
defined and vague.
 Importance of Public Policy (Prabir Kumar De, 2012).

 1. the sum of all government activities that influence

the life of the citizens either directly or indirectly
 2. the study of public policy enables us to understand
the causes and consequences of policy decisions and
improve our knowledge about the society
 3. enables policy makers to improve their
understanding of the linkages among the socio-
economics force, political processes and public policy
 4. Public policy as an activity and area of study
continues to hold relevance as long as one finds the
process of governance
 CONCLUSION

 The discussion of typologies will provide the reader with

a notion of the scope, diversity, and different purpose of
public policies.
 Besides that, this topic will prove much more useful in
distinguishing several public policies.
 This topic also will differentiate policies in the basis of
their effects on society and the relationship among those
involved in their formation.
 In sum, Distributive Policy is the distribution of new
resources, Redistributive Policy is changing the
distribution of existing resources, Regulatory policy is
regulating activities and Constituent Policy is
establishing or reorganizing institutions.
 SUGGESTED TUTORIAL QUESTIONS

Question 1
Briefly explain distributive, redistributive, competitive
regulatory, and protective regulatory policies. Provide an
example of each. (10 marks)

Question 2
Explain FOUR (4) drawbacks of Redistributive Policy (10 marks)

Question 3
Elaborate on FOUR (4) features of Public Policy (10 marks)

Question 4
Briefly explain FOUR (4) importance of Public Policy (10 marks)
SUGGESTED TUTORIAL ACTIVITIES

Identify any public

policies in Malaysia
and categorise it
accordingly