CHAPTER 1: INTRODUCTION

Political Map of Malaysia

31 Aug 2013 — Hari Merdeka (Independence Day) is a national day of Malaysia commemorating the independence of the Federation of Malaya from British colonial rule in 1957, celebrated on August 31 each year. This should not be confused with Hari Malaysia (Malaysia Day) when Malaysia was formed on 16 September 1963 together by Federation of Malaya, Sabah, Sarawak and Singapore. The 56th Merdeka Day celebration at Dataran Merdeka, Kuala Lumpur, on Saturday, involved the participation of 16,375 people from 15 contingents and five decorative floats.

The History of Malaya
Sejarah Kemerdekaan Malaysia

Vision 2020
Meniti Cabaran Wawasan 2020

Cabaran Wawasan 2020

Beyond Vision 2020

Wawasan 2020 (Jawi: واوسن 2020) or Vision 2020:
It is a Malaysian ideal introduced by the former Prime Minister of Malaysia, Mahathir bin Mohamad during the tabling of the Sixth Malaysia Plan in 1991. The vision calls for the nation to achieve a self-sufficient industrialized nation by the year 2020, encompasses all aspects of life, from economic prosperity, social well-being, educational worldclass, political stability, as well as psychological balance. In order to achieve Vision 2020, Mahathir lamented that the nation required an annual growth of 7% (in real terms) over the thirty-year periods (1990–2020), so that the economy would be eightfold stronger than its 1990 GDP of RM115 billion. This would translate to a GDP of RM920 billion (in 1990 Ringgit terms) in 2020.

Challenges:

Mahathir outlined nine strategic challenges that Malaysia must overcome to achieve Vision 2020.

Challenge 1: Establishing a united Malaysian nation made up of one Bangsa Malaysia (Malaysian Race).

Challenge 2: Creating a psychologically liberated, secure and developed Malaysian society.

Challenge 3: Fostering and developing a mature democratic society.

Challenge 4: Establishing a fully moral and ethical society.

Challenge 5: Establishing a matured liberal and tolerant society.

Challenge 6: Establishing a scientific and progressive society.

Challenge 7: Establishing a fully caring society.

Challenge 8: Ensuring an economically just society, in which there is a fair and equitable distribution of the wealth of the nation.

Challenge 9: Establishing a prosperous society with an economy that is fully competitive, dynamic, robust and resilient.

Dr.Mahathir bin Mohamad, the former Prime Minister of Malaysia was the Chief Guest

 and keynote speaker at the CIMA Global leader's summit held in May 2005 in Sri Lanka. 

He speaks about Malaysia and its pursuit of development.

Malaysian Politics Under Mahathir
Economic Crisis and the breakdown of Authoritarian Regimes
11MP: PM NajibRazak Full Speech

Prime Minister Speeches (Full Text)

Your Majesties, Your Royal Highnesses, Your Highnesses, Your Excellencies, People of Persekutuan Tanah Melayu. I am indeed proud that on this, the greatest day in Malaya's history it falls to my lot to proclaim the formal independence of this country. Today as new page is turned, and Malaya steps forward to take her rightful place as a free and independent partner in the great community of Nations - a new nation is born and though we fully realise that difficulties and problems lie ahead, we are confident that, with the blessing of God, these difficulties will be overcome and that today's events, down the avenues of history, will be our inspiration and our guide...read more>>>

In the early past, Malaysian contacts with the west have been mainly with Great Britain and it was thus only natural that the political institution, that grow up in this country would have many common features with those in operation in England. Topping the list of these ideas is Democracy. To understand the growth of this institution, it will be necessary to go back a little in history.

People who live together, whether in communities, towns, cities or status, need some sort of government. The latter has been described as an organization which has certain powers, usually to make laws; enforce them and judge violations.

The manner in which these powers of government are distributed depends on the kind of government that operates in a country or a state. Some countries such as Great Britain and France, have a unitary system of government in which governmental powers are concentrated in a single (unitary) strong Central Organization. Some states have a Confederation System in which the nation is made up of a loose federation of states. Each state has its own government and regulates its own affairs. Those indivi­dual units are much stronger than those of the central government. The latter only controls those affairs which affect all the member states, for example, foreign affairs or relations with other states. Normally, all the states have equal voting power in the central government irrespective of the areal extent or density of its population.

The United States and Canada have still another system, called the Federal system. Under this system, the central government has certain powers. But the governments of the individual states and provinces also have important powers that cannot be taken away from them. In addition, certain powers and duties are given to the governments of smaller areas within the states and provinces, (referred to as "Local or Municipal Government").

Nobody knows exactly how Government first began. In some ancient tribe perhaps the physically strongest man became the leader; enforced his own power and thus became the government. When he died, his eldest son took his place and with this grew up the idea of leadership passing from father to son, i.e. always in the family. This is what is meant by HEREDITARY rule, because each ruler inherits his authority from his father.

Sometimes, as in ancient Egypt, the king (called Pharoah) came to be regarded as a god. As such, he could do no wrong and there grew up the idea that he must be allowed to have absolute power. This system of government was therefore called ABSOLUTE MONARCHY. If a ruler used his powers selfishly, instead for the good of the people, the ruler was called a TYRANT and his government became known as a TYRANNY. In the ancient world, most governments were absolute monarchies or tyrannies.

The Greeks in Athens worked out a form of government which they called a DEMOCRACY. The words 'demos' and 'kratos' meant "People" and "Power".

Democracy comes from joining these two words together to mean a system of govern­ment in which the power lay in the hands of the people as a whole, and not in just one or a few of them. Abraham Lincoln described democracy as "government of the people; by the people; and for the people". He meant that in a democratic country everybody takes part in making the laws which all have to obey and which are made for the benefit of all. Thus, Great Britain; the United States; India and Malaysia (to mention a few) call themselves democracies, although their system of democracy may not be a perfect one and according to Greek standards.

During the 17th century, a Civil War in England reduced the power of the sovereign and caused him to become a CONSTITUTIONAL MONARCH, that is, he had to rule according to the law of the land. This is the kind of monarch in Britain and Malaysia today. Parliamentary democracy begins when people living in each area, choose someone to represent them; that is, to act as their spokesman in a fairly small assembly called a Parliament, where the laws of the nation are made. The spokesman/woman is chosen by voting in an election. In Britain and Malaysia, elections take place normally at least every 5 years, so that the people can, if they wish, change their representative for another. According to the views they hold, the men and women who offer themselves for election usually form into different groups called POLITICAL PARTIES. This helps the voters to choose between them.

The government is usually formed by members of Parliament belonging to the party (or parties) which has the greatest success in the elections. As the modern ministers of the government have to deal with many matters, they have the advice and help of people called CIVIL SERVANTS. The latter make a life-long study of the tasks of government and carry out the decisions made by Parliament. Politicians come and go but the civil servant is always there.

In modern times, some ways have been found to make the system really democratic:

(a)People are allowed to vote secretly in elections, so that they need not be afraid to vote just as they like.

(b)Those chosen as representatives are paid for the work that they do in Parliament, so that even a poor man may have a chance to enter it.

(c)The government has very little or no control, except, under special circum­stances, over the ways newspapers write about matters which affect the public, so that every person can read what others have to say about such matters.

(d)The monarch or ruler does not enter into disputes between political parties, but acts only in matters on which all the people are agreed.

Countries such as France, the United States; India and Indonesia, have no monarchs but a President, who is also elected. These countries are known as Republics. A DICTATORSHIP arises when one man seizes power and rules without respect for the law or for other people's opinions. Oligarchy means "rule by the few". Aristocracy (Greek "rule by the best") stands for government by a few noble families, while Plutocracy means "rule by the wealthy".

DEMOCRACY IN MALAYSIA

In Malaysia, government is carried on at 3 main levels:

(a)The Sovereign:

At the top is the Sovereign. All the important acts of government are carried out in the name and on behalf of the Sovereign. Those acts of government include treaties with other nations; new laws passed by Parliament and the punishment of offenders against the law. As the King cannot take part in politics, all government decisions are taken by his advisers instead. The chief of these advisers are the members of the cabinet, which include the Prime Minister and other ministry, who take charge of the main departments of government.

(b)The Central Government

Second comes the Central Government of the country. It comes under the parliament, which is made up of the Dewan Rakyat, and the Dewan Negara. The main respons­ibility of running the government falls on the shoulders of the Cabinet.

The Cabinet depends on the support of the Dewan Rakyat for it can govern the country only so long as it can obtain a majority vote for any important question which is discussed in the Dewan Rakyat. When that support fails, the cabinet must resign and be replaced by another which is approved by Parliament.

Since a new Dewan Rakyat is elected at least once every five years, the cabinet of the day depends on the support of the people of the country. This is known as Parliamentary Democracy.

Defence or preparing the country against the possibilities of war, and relations with Commonwealth and other foreign countries, are also part of the duties of the Central Government. So also are trade and agriculture, employment, health, pensions and education. As money is needed for all this, the Central Government is responsible for the government finance and taxation which provides it.

(c)Local Government

Lastly, there is the Local Government — in which the affairs of smaller areas, such as counties and large towns, are best looked after by the people who live in those areas.

Local authorities look after roads in their areas (except for a few trunk roads which are the responsibility of the Central Government); housing; water supply and water drainage. They also administer or look after, the education and police services of their areas, although the rules and laws are laid down by the Central Government.

THE MALAYSIAN PARLIAMENT

The Federal Parliament is the supreme legislative authority in Malaysia, headed by the Yang Di-Pertuan Agong or the King, and two Dewan or Houses, namely the Dewan Negara or Senate and the Dewan Rakyat or the House of Representatives whose life is fixed by the Federal Constitution at five years. On the expiry of five years. Parliament automatically stands dissolved and within 60 days in the States of Malaya, and 90 days in the Borneo states, from the date of dissolution of Parliament, a general election to elect representatives for the Dewan Rakyat shall be held and Parliament shall be summoned to meet on a date not later than 120 days from the date of dissolution. Provision is also made for the Yang Di-Pertuan Agong to dissolve Parliament at any time within this prescribed maximum period. Parliament performs a number of functions of vital importance to the nation. They are:

(a) Make new laws

Parliament's first duty is to make laws. Usually these are proposed by the representatives of the government but ordinary members are given a chance to do this too. Until a proposed new law becomes an Act of Parliament, it is called a Bill. It must go through several stages in each Dewan before it becomes an Act and part of the law of the land. The final stage in the process is when the Bill is sent to the Sovereign to receive the royal assent. And with this the Bill becomes an Act of Parliament and a Law.

(b) Parliament — the watch-dog

Government ministers are responsible for carrying out the law contained in the Act of Parliament. This is done through the civil servants of the ministry, the portfolio for which the said minister holds. Parliament must always be on the watch to see that the ministers and their civil servants enforce the law.

(c)Controller of the finances of the Government

Parliament controls the finances of the Government. Federal taxes and rates can only be raised under the authority of Parliament as expressed in the form of Federal law. All revenues raised, however, must be paid into the Federal Consolidated Fund, and all expenditure can only be made under the authority of Parliament.

(d)Forum for Criticism

Parliament also serves as the forum for criticism and the focus of public opinion on national affairs. Through debate in Parliament the policies and actions of the Govern­ment are kept attuned to the state of public opinion.

THE CABINET

The Cabinet is a group of people who are the most important members of the govern­ment. Though the number of Cabinet Ministers is unspecified, there are usually about 20 of them. The chief member of the cabinet is the Prime Minister; the other members are called cabinet ministers. The latter are almost always members of one or other of the two Houses of Parliament. Seldom is a man appointed to the cabinet who is not a member of either House. But he becomes one as soon as possible after his appointment.

Generally speaking, each cabinet minister has a special job to do. Thus we have the Foreign Secretary (Foreign Affairs); Minister of Finance; Minister of Home Affairs. Although, each cabinet minister may be in charge of a department of the government, this does not mean that he can do what he likes, without asking the other members of the cabinet. In fact, the whole cabinet is responsible for all the most important decisions: Cabinet Joint Responsibility.

And with this background let us venture further into the realm of Politics and Government.

THE NATIONAL ANTHEM

Negara-Ku is Malaysia's National Anthem. The Music is derived from the State Anthem of Perak — Terang Bulan but is played at a slower tempo.

There are three versions of the Anthem:

(1)Full/Royal Version. This is the version which children in schools are taught to sing. It may also be played in public when it is sung or played by orchestras. The full version may be played only for His Majesty the Vang di-Pertuan Agong, or His Royal Highness the Timbalan Yang di-Pertuan Agong while exercising the functions of the Yang di-Pertuan Agong, or a Ruler nominated to exercise the functions of the Yang di-Pertuan Agong, or when the Royal Standard is broken to symbolise the presence of His Majesty.

(2)Abridged version is played for:

-Her Majesty the Raja Permaisuri Agong;

-Their Excellencies the Governors of Melaka and Pulau Pinang;

-The official representative of His Majesty (when His Majesty is represented by one of Their Royal Highnesses the Rulers, the appropriate State Anthem should first be played in full followed by the abridged version of the National Anthem); and

-His Majesty's diplomatic representatives in Commonwealth and foreign countries.

This version is also to be played as a Toast to His Majesty the Yang di-Pertuan Agong.

(3)Short version to be played at the end of public performances and entertain­ments.

THE NATIONAL ANTHEM

Negaraku, tanah tumpahnya darahku

Rakyat hidup bersatu dan maju

Raja kita selamat bertakhta

Rahmat bahagia, Tuhan kurniakan

Raja kita selamat bertakhta

Translation

My country, my native land

The people living united and progressive

May God bestow blessing and happiness

May our Ruler have a successful reign

May God bestow blessing and happiness

May our Ruler have a successful reign

Malaysia Crest

The armorial ensign of Malaysia shows a 14-pointed star representing the 13 consti­tuent States within the Federation of Malaysia together with Federal Government, while the Star and the Crescent together form the traditional symbol of Islam - the national religion of Malaysia. The five kris represent the five former Unfederated Malay States (Johor, Kedah, Perlis, Kelantan and Trengganu). The left-hand division of the shield represents the State of Pulau Pinang and the right-hand section, showing the Melaka Tree, the State of Melaka. These two States formed part of the former Straits

Settlements. In the four equal sized panels in the centre, the colours black and white are the colours of Pahang; red and yellow are the colours of Selangor; black, white and yellow are the colours of Perak; red, black and yellow those of Negeri Sembilan. These four States formed the original Federated Malay States. The three sections below re­present the States of Sabah on the left and Sarawak on the right. In the centre is the Bunga Raya - the National Flower. The tigers depicted as supporters in the Arms of the former Federated Malay States are retained. The motto in romanised script on the left, and Jawi script on the right - Bersekutu Bertambah Mutu — is the Malay equivalent of "Unity is strength". The yellow of the scroll is the Royal colour of Their Royal Highnesses the Rulers.

The Malaysian Flag

The national flag of Malaysia consists of 14 horizontal red and white stripes (along the fly) of equal width, representing the equal membership in the federation of the 13 component States-Johor, Kedah, Kelantan, Melaka, Negeri Sembilan, Pahang, Pulau Pinang, Perak, Perlis, Sabah, Sarawak, Selangor and Trengganu and the Federal Goverment.

The union or canton of dark blue in the upper quater next to the staff and extend­ing down to the top of the fifth stripe stands for the unity of the peoples of Malaysia. The union contains a crescent which is the symbol of Islam. The 14 points of the star are emblematic of the unity of the 13 States and the Federal Goverment. The yellow of the crescent and the star is the royal colour of Their Highnesses the Rulers.

RUKUNEGARA

In the endeavour to bring about national unity in Malaysia's multiracial society, certain principles have been formulated. These principles, acceptable and applicable to all, serve as a bond to bind the people together. Actions are guided by these principles known as RUKUN-NEGARA ("rukun" means principle or basis and "negara" means national):

OUR NATION, MALAYSIA, is dedicated

TO ACHIEVING a greater unity for all her people;

TO MAINTAINING a democractic way of life;

TO CREATING a just society in which the wealth of the nation shall be equitably distributed;

TO ENSURING a liberal approach to her rich and diverse cultural tradi­tions;

TO BUILDING a progressive society which shall be orientated to modern science and technology.

WE, her peoples, pledge our united efforts to attain these ends guided by these princi­ples:

Belief in God (Kepercayaan kepada Tuhan).

Loyalty to King and Country (Kesetiaan kepada Raja dan Negara).

Upholding the Constitution (Keluhuran Perlembagaan).

Rule of Law (Kedaulatan Undang-undang).

Good Behaviour and Morality (Kesopanan dan Kesusilaan).

General Background to Rukun Negara

Malaysia is a multi-racial society with diverse social, cultural and religious traditions. Each group has its own set of values which change from time to time. Sometimes, mis­understanding arises amongst these various groups, the case of which can be traced to the lack of knowledge and/or communcation which exists amongst themselves. To reduce any possibility of a conflagoration of such a situation, it is imputative for one to learn more about each other, mix and assimilate as and when the opportunity to do so occurs. While it is difficult, the main aim of the various componsntt of our Malaysian society, should be to have the same aspirations, values and principles. Taken together, these principles constitute our Rukun (principle) Negara (nation).

National unity is the over-riding objective of the country. The quest for a national identity and unity is common to many countries, especially new and developing countries. This search for national identity and unity involves the whole range of economic, social and political activities: the formulation of education policies designed to encourage common values and loyalties among all communities and in all regions; the culvitation of a sense of dedication to the nation through services of all kinds; the careful development of a national language and literature of art and music, the emergence of truly national symbols and institutions based on the cultures and traditions of the society. The basic point is emphasised in the Rukunegara ".... from these diverse elements of our population, we are dedicated to the achievement of a united nation in which loyalty and dedication to the nation shall over-ride all other loyalties."

The outburst of racial riots of May 13th, 1969 showed clearly an area of weakness which undermined the very foundations of the nation. The trauma of racial riots led to a critical self-analysis of what went wrong and the formulation of new approaches towards strengthening national unity. As a result of this analysis and reexamination, the National Consultative Council proclaimed on 31st August 1970, the Rukunegara, the- National Ideology, which represents a national consensus and commitment to the task of creating a united, socially just, economically equitable and progressive Malaysian nation.

RUKUNEGARA AND NATIONAL CULTURE

Culture is an identity and a way of life of a race of people. It indicates the different aspects of man's life:

-the language they speak,

-the religion they practice,

-the homes they live in,

-the food they eat,

-the dress they wear,

-the way in which they earn a living,

-the method in which they govern themselves etc.

The country is today in the midst of the growth of a cultural pattern which is truly and culturally Malaysian. While its roots have been formed as a synthesis of influences which are Malay, Chinese and Indian in their origin, this new cultural pattern is also reflected in our paintings; sculpture and carving, architecture and literature. But a great deal can be done by the impact that a common educational system can make on the whole issue because a common culture for this multi-racial society will take time to develop. Time, however, will not create any serious problem because of the ease with which the younger generation of the immediate future can be integrated into the community — a process which would encounter many difficulties in the case of the older generation. Thus the progress that can be achieved will depend almost entirely on the younger generation to shoulder the responsibilities and produce the results that their elders expect of them.

And in building this new culture, the most important hurdle that we will have to cross will be to remember is that the culture we build must be based on the past experiences and civilizations of the modern multi-racial society of Malaysia. It is imperative that this fact be brought home to the younger generation — that no culture can be build up from nothing. The formation of a Malaysian culture must be the result of a fusion of the Malaysian, Chinese, Indian and the indigeneous races of Sabah and Sawarak and this is not going to be an easy prospect for the following reasons:

-present use of different languages and scripts of each groups;

-each belong to different religions, customs and traditions;

-that inter-marriages between the various races are quite rare;

-and finally that inter-communal contacts have been relevantly recent because each community had lived individually in the historial past.

However, modern education and westernization have played their part in bringing the middle-class elements together — which will help them build a common culture together even though unconsciously. But the encouraging factor is that this Malaysian culture will grow, even rapidly, once the people are convinced that we — the Malays, Chinese, Indians and others living here all pride ourselves as Malaysians with only one culture — Malaysian.

RUKUN NEGARA - Its Objectives

The ultimate goal of the Malaysian Government is to build a Malaysian nation based on the Rukunegara, the main objectives of which are:

Creation of a United Nation.

We are dedicated to the creation of a united nation in which all regard themselves as Malaysians irrespective of race or creed. Malaysia is a multi-racial society with all its complexities. This situation is further complicated by the fact that certain economic groups are identified with communities which, in turn, are identified with particular geographical locations. This society is further divided horizontally by a distinct generation gap which makes effective communication even more difficult. Neverthe­less, from these diverse elements of our population, we are dedicated to the achieve­ment of a united nation in which loyalty and dedication to the nation shall over-ride ail other loyalties.

We are dedicated to a policy in which the constituent parts are joined together in a federal form of government where national objectives are pursued consistent with the maintenance of State rights.

A Democratic Society

We are dedicated to maintaining a democratic way ol life in which ultimate power lies with the people acting through a constitutionally elected Parliament. All of us regard ourselves as Malaysians irrespective of race or creed.

In our system the National Interests must prevail. Thu interests of the whole must come before the interests of any sectional group, because otherwise the stability and security of the nation will be jeopardised.

Fundamental liberties and freedom of political activity consistent with the laws of the country are guaranteed by our Constitution, but these rights should not be abused in the name of democracy, to promote racialism or to destroy democracy itself.

A Just Society

We are dedicated to the creation of a just society in which all members of a just society in which all members have an equal opportunity to enoy the material wellbeing afforded by the Nation. A just society exists where there is a fair and equitable distribution of the nation's wealth. To ensure this, it is necessary that the weak and the disadvantaged be assisted to enable them to compete on equal terms. The just society we aspire to is free from the exploitation of one by another, or of one group by another group.

A Liberal Society

We are dedicated to ensuring the existence and growth of a liberal society in which its members are free to practice and profess their own religious customs and cultures consistent with the requirements of national unity. The Malaysian nation is indeed unique in having rich and diverse cultural traditions and practices. We aspire for a society in which this diversity can be an asset and a source of strength.

A Progressive Society

We are dedicated to building a progressive society which will keep in step with scientific and technological developments while developing spiritual values. The world is now witnessing revolutionary changes in the sciences and in technology. The progressive society to which we are dedicated is one which keeps abreast with the advancements in the field of science and technology and operates without losing sight of spiritual values.

PRINCIPLES OF RUKUN NEGERA

There are 5 Principles of Rukunegara as outlined below:—

(a)Belief in God (Kepercayaan kepada Tuhan)

This Nation has been founded upon a firm belief in God. It was in the name of God that this Nation was established as a sovereign State.

Islam is the official religion of the Federation. Other religions and beliefs may be practised in peace and harmony and there shall be no discrimination against any citizen on the ground of religion. of any conduct or behaviour which is arrogant or offensive to the sensitivities of any group. No citizen should question the loyalty of another citizen on the ground that he belongs to a particular community. Good behaviour also includes a high standard of morality in both personal and public life.

(b)Loyalty to King and Country (Kesetiaan kepada Raja dan Negara)

Malaysia is a constitutional monarchy and the Yang Di Pertuan Agong is the sovereign Head of State. Parallel with this institution of the Yang Di Pertuan Agong as a constitutional monarch is the continued existence of the institution of the State Rulers who are heads of their respective states.

The Yang Di Pertuan Agong, the Rulers and the Governors are the symbols of unity and, therefore, stand above politics.

The loyalty that is expected of every citizen is that he must be faithful and bear true allegiance to His Majesty the Yang Di Pertuan Agong and be a true, loyal and faithful citizen of the Federation. In addition and without derogating from such loyalty, citizens who are subjects of the Rulers must bear true allegiance and loyalty to their respective Rulers.

Loyalty constitutes the soul of our nationalism. It is this inherent loyalty to King and country which binds together our various races into one single, united Nation. Loyalty to other countries is inconsistent with undivided loyalty to this Nation.

(c)Upholding the Constitution (Keluhuran Perlembagaan)

Citizenship confers on a person membership of a state. The Constitution confers on a citizen certain rights and privileges; it also imposes on him certain duties and obligations towards the Nation.

It is the duty of a citizen to respect and appreciate the letter, the spirit and the historical background of the Constitution. This historical background led to such provisions as those regarding the position of His Majesty the Yang Di Pertuan Agong and Their Royal Highnesses the Rulers, the position of Islam as the official religion, the position of Malay as the national and official language, the special ppsition of the Malays and other Natives, the legitimate interests of the other communities, and the conferment of citizenship. It is the sacred duty of a citizen to defend and uphold the Constitution.

(d)Rule of Law (Kedaulatan Undang-Undang)

Justice is founded upon the rule of law. Every citizen is equal before the law. Fundamental liberties are guaranteed to all citizens. These include liberty of the person, equal protection of the law, freedom of religion, rights of property and protection against banishment.

The Constitution confers on a citizen the right of free speech, assembly and association and htis right may be enjoyed freely subject only to limitations imposed by law. The rights and freedoms guaranteed by the Constitution do not include the right to overthrow the Government either by force or by other unconstitutional means.

The Rule of Law is ensured by the existence of an independent judiciary with powers to pronounce on the constitutionality ana legality or otherwise of executive acts.

(e)Good Behaviour and Morality (Kesopanan dan Kesusilaan)

Individuals and groups shall conduct their affairs in such a manner as not to violate any of the accepted canons of behaviour, which include the abhorrence and rejection of any conduct or behaviour which is arrogant or offensive to the sensitivities of any group. No citizen should question the loyalty of another citizen on the ground that he belongs to a particular community. Good behaviour also includes a high standard of morality in both personal and public life.

Chapter 2
The Constitution of Malaysia

The Constitution of Malaysia is the supreme law of the country. It sets out a broad framework.on how our country is governed. It lays down the rights of the individual and the extent to which, and in what circumstances, these rights may be limited.

The Constitution guarantees liberty of the person, protection against retrospective criminal laws and repeated trials, equality before the law, freedom of movement, freedom of speech, assembly and association, freedom of religion, and the rights to property ownership.

The Constitution may be amended by Parliament if a two-third majority is secured.

GENERAL CHARACTERISTICS

The Constitution of Malaya (before the formation of Malaysia) was drafted by a team of foreign jurists. They formulated the Constitution based on models and experiences of a number of independent nations. In the case of Malaya, the main model followed was that, of India. The amendments which converted the Malayan Constitution into the Malaysian Constitution were due to political negotiations and compromise. The result is a constitution adapted to the political conditions of the country which differ slightly from the political conditions in 1957.

Though our constitution was drafted by these foreign experts, it must not be pre­sumed that its contents are not framed to our country's state of affairs. The basic concept was the formation of a democratic representative government in which the elected members were responsible to the public. This concept had-been followed by the Minangkabau descendents in Negri Sembilan since the 16th century.

One unique feature in our Constitution is that the monarch is elected on a rotation basis for a term of 5 years. This clearly shows the practice amongst the Minangkabaus of Negri Sembilan. In this system, the 4 undangs (dignitaries) elect a ruler on the basis of an unanimous agreement.

Another important feature of the constitution is that of Fundamental Liberties. This concept has already been established in the Constitution of Johore granted by Sultan Abu Bakar in 1895 which states that, "No person can be deprived of his liberty, detained or imprisoned except in the due cause of law. The freedom of liberty of all persons, who are not restrained by just and impartial action of the law, is the basis of all good governments."

The Malaysian Constitution proclaims Islam as the official religion of the country but it permits the practice of other religions in peace and harmony. Thus we see that although the constitution of the country is a modern instrument, drafted by foreigners and based on constitutions of other nations, there are many ideas and concepts which have been drawn from local sources.

The Constitution provides a parliament consisting of two houses, the Senate and the House of Representatives. A Cabinet is appointed from the members of Parliament and is collectively responsible to the Parliament. The machinery of government is closely modeled on that of Britain.

BAHASA MALAYSIA

The Constitution of 1957 stated that Bahasa Malaysia be the official language of the country but for 10 years after independence the use of English for official purposes was permitted. After this period English becomes the second language of the country. For the same period, English was to be the only language used in the High Court. As for Sabah and Sarawak, the termination of English as the official language took place 10 years after the formation of Malaysia, i.e. 1973 Bahasa Malaysip is now.

AMENDMENTS TO THE CONSTITUTION

The basic principle regarding an amendment to the constitution is that it can be done by an Act of Parliament, but the move must be supported by 2/3 of the total number of members (2/3 of each House). There are, however, a number of exceptions to this basic principle. For example:

(a)Some specific amendments must have the consent of the Conference of Rulers to become effective. These are amendments affecting the Conference itself, tho precedence of Rulers and Governors, federal guarantee of the rights of Rulers and the special privileges of the Malays.

(b)Some amendments can be effected by the procedures for the enactment of an ordinary Parliamentary kill. This includes the functions of the ministers in reference to citizenship matters, the election and retirement of ancestors, the admission of any state to the existing Federation.

(c)Certain other amendments can be effected by ordinary Acts of Parliament.

(d)Certain provisions as to amendments affecting Sabah and Sarawak. The Malaysia Act made it clear that any amendment would require the 2/3 majority principle. No amendment could be made without the consent of the Governor of the State. This will be in matters such as:

(e)Rights of citizenship for those born before Malaysia Day.

(f)The Constitution and jurisdiction of the High Court of Borneo and the appointment, removal and suspension of judges of that court.

(g)Financial arrangements between the Federal Government and the State.

(h)Religion in the State; its use in the State; use of language in the State and in Parliament and special treatment of the natives.

(i)The allocation to the State of the quota of members in the House of Representatives.

(j)The Immigration Act (1963) has given to the Borneo States the control Of immigration into those states, not only over aliens but federal citizens too.

THE FUNCTIONS OF THE YANG Dl PERTUAN AGONG

Malaysia is made up of 13 states. Of these, Malacca, Penang and Sarawak each has a Governor as Head of State whilst Sabah has a Yang Dipertuan Negara. Each of the other nine states has a Ruler. The Ruler of Perlis carries the title of Raja and that of

Negri Sembilan, the Yang Dipertuan Besar, whilst in the other states they are called Sultans.

One of the main bodies established by our Constitution is the Conference of Rulers (the Majlis Raja-Raja). It is made up of the 9 Rulers and the 4 Governors. Among its many duties, the main one is the election of the Yang Dipertuan Agong and his Deputy, the Timbalan Yang Dipertuan Agong. The method by which this is done is laid down in the Constitution. The Governors do not take part in this election.

Before the proceedings begin, any Ruler can refuse to offer himself as a candidate. When this happens, the name of the Ruler is struck off the list. Precedence is governed not by the age of each Ruler but by the date on which each ascended the throne. The candidate who thus heads the list is usually the previous Timbalan Yang Dipertuan Agong. A secret ballot is taken and the successful candidate must have at least five votes in his favour. He is then declared the Yang Dipertuan Agung.

If the first Ruler on the list fails to get the five necessary votes, then a bollot is taken on the others in precedence till one ruler is finally selected.

Once elected, the Ruler will hold office for five years. Therefore, a Regent is appointed to take his place in his own State. But the Ruler still remains as Head of the Muslim religion in his State. Also, no changes can be made in the Constitution of the State without his approval.

Though the Yang Dipertuan Agung js appointed for a term of five years, a Timbalan Yang Dipertuan Agong is also elected. The Timbalan.takes over the duties of the Yang Dipertuan Agong, if and when this is necessary. This may happen when the Yang Dipertuan Agong is away on State visits to foreign countries or if he resigns from this post. The Yang Dipertuan Agong can also be removed from his post by the Conference of Rulers if he is found unfit to rule because of some physical, mental or other cause. Then again, if for the reasons above or some other cause, the Yang Dipertuan Agong ceases to be Ruler of his own State, he automatically ceases to hold office of the Yang Dipertuan Agong, the Timbalan Yang Dipertuan Agong takes over till the election of a successor.

HEAD OF STATE

On assuming office, the Yang Dipertuan Agong is Head of State. He takes precedence over everyone in the country. His consort, the Raja Permaisuri Agung comes next to him.

As Head of State, he receives foreign ambassadors and other representatives. At the same time, the Yang Dipertuan Agong repreents the Rulers at any Federal function.

PARLIAMENTARY OR LEGISLATIVE FUNCTIONS

The functions of the Yang Dipertuan Agong can be divided into two parts — non- discretionary and discretionary. The former are mostly connected with Parliament. Just as in the case of the Ruler of England, Parliament is made up ot the Yang Dipertuan Agong and the two Houses of Parliament, the Senate (Dewan Negara) and the House of Representatives (Dewan Rakyat). No bill can become law till it obtains the assent of the Yang Dipertuan Agong who affixes the Public Seal to the Bill. This the Yang Dipertuan Agong does on the advice of the Cabinet.

Once it is elected, Parliament sits for five years from its first meeting. It is the duty of the Yang Dipertuan Agong to open Parliament, on which occasion His Majesty usually addresses both Houses either together or separately. It is also the duty of His Majesty to summon the next session of Parliamont within six months after the end of the previous one.

The Dewan Rakyat consists of 154 members 114 from Peninsular Malaysia, 24 from Sarawak and 16 from Sabah. The life of tho Dowan Rakyat is 5 years. The members of the Dewan Rakyat are elected by the general public. But a person can be disqualified for membership under certain circumstances. The Yang Dipertuan Agong has the power to remove this disability within certain limits.

The Senate or the Dewan Negara has 58 members, made up of 26 elected and 32 appointed members. Each state sends two representatives who are elected by the State Assemblies. The remainder are appointed by the Yang Dipertuan Agung. Much care is taken in choosing these Senators for they represent those who have distinguished themselves in public service professions, commerce and industry. Representatives of racial minorities and aborigines are also included in this list.

It is the responsibility of the Yang Dipertuan Agong to see that tho House of Representatives is given a true picture of the finances of the country. This is done in the Budget session when a statement of the estimated receipts and expenditure for tho financial year are presented to the two Houses. His Majesty also orders reports of the Auditor-General and other Commissions to be laid before the Houses of Parliament.

DISCRETIONARY POWERS

You would have noted that the functions mentioned above are carried out by His Majesty on the advice of the Prime Minister and other Advisors. But there are other cases in which His Majesty can use his own discretion. Two of tho most important of these are, the appointment of the Prime Minister and the dissolution of Parliament.

According to the Constitution, the government must be formed by the party which commands a majority in the House of Representatives. The party will have a person who is recognized as its leader in Parliament. Normally, the task of forming the government will fall on the shoulders of this person Under these circumstances, the Yang Dipertuan Agong will recognize him as the Prime Minister and call upon him to form the Cabinet.

However, conditions may arise which can bring in other difficulties. This usually happens when no single party can command a majority in the House of Representatives. Thus, a coalition of two or more parties is necessary to form a government. It is here that His Majesty plays a very important part — for he can either accept or reject the person chosen to lead the coalition. His Majesty has to be very careful in this decision because a wrong choice can result in a lot of complications. This discretion in the appointment of the Prime Minister is thus a strong weapon in the hands of His Majesty.

As regards dissolution of Parliament, this can happen at any one of the following two conditions. It sometimes happens that the party in power in Parliament may think that a certain period is in its favour to have a general election. His Majesty, by refusing to dissolve Parliament at this time, can bring about changes in the political position of the ruling party. It is very important for the Prime Minister to have control of

Parliament. If he fails to retain this, then he will request His Majesty to dissolve Parliament and hold elections. His Majesty can refuse to grant this. In doing so, he can force the Prime Minister to tender in his'resignation and that of his Cabinet. This allows the Yang Dipertuan Agong, instead of calling for a general election, to look around and find a more suitable candidate who can form a new government. In both the cases given above, the Yang Dipertuan Agong can exert a lot of influence.

ADMINISTRATIVE FUNCTIONS

The main task of His Majesty is to appoint the Prime Minister and the other Ministers and Deputy Ministers of the Cabinet. He has the power to revoke these apointments if advised to do so by the Prime Minister, the Attorney-General, the Auditor-General or the Chief of the Armed Forces Staff.

Secondly, his task is to appoint the various administrative bodies which inlcude the Public Service Commission and the Railway Commission. Appointments to the Election Commission, the Police Forces Commission and the Armed Forces Commission are made on the advice of the Ministers concerned. His Majesty can also create special administrative posts.

The Yang Dipertuan Agong has also to safeguard the special position of the Malays and guard the legitimate interests of the other communities who reside in the country.

FOUNTAIN OF JUSTICE

The Yang Dipertuan Agong is above the law. This means that no proceedings can be brought against His Majesty in any court in the country. All the laws are made in His Majesty's name and with his authority.

The Yang Dipertuan Agong appoints the Judges of the Federal and High Courts and he has the power to dismiss them too. However, His Majesty acts on the advice of either the Cabinet or one of the Ministers.

FOUNTAIN OF HONOUR

The Yang Dipertuan Agong is also the Fountain of Honour. His Majesty can bestow honours for either chivalry or recognition of other services. This is normally done on His Majesty's birthday or some other very special occasions. The title of Tan Sri was introduced to distinguish those who were made Datuks by His Majesty from those given a similar honour by the Sultans and other Heads of States.

PREROGATIVE OF MERCY

As the "fountain of mercy", the Yang Dipertuan Agong has the right to show mercy on those sentenced by the Court. But in this case, the power is rather limited because the Rulers and the Governors have this power in their own states. In cases tried by a Court Martial, His Majesty has the power to exercise this prerogative. Secondly, as Head of the Muslim religion in the states of Penang and Malacca, the Yang Dipertuan Agong can pardon sentences imposed by the Muslim Religious Courts.

MILITARY DUTIES

The Yang Dipertuan Agung is the Supreme Commander of the Armed Forces. As mentioned above, His Mejestv thus has the power to exercise the prerogative of mercy in sentences passed by Military Courts.

SOVEREIGN IN EVERY SENSE OF THE WORD

From the above, we can see that the Yang Dipertuan Agong is a sovereign in every sense of the word. Thu laws ore his laws, assented by him "with the advice and consent" of Parliament. Every Executive act is an act of His Majesty's Government made on his behalf and on his authority on the advice of his ministers. The third organ of government, the Judiciary, consists of his Judges who are appointed by him and who are completely independent of the other two organs, the legislature and the executive.

THE CONFERENCE OF RULERS

The Conference of Rulers is a unique institution which is not found in any other government in the world. It is a body which is made up of the royal Rulers of the nine States and the appointed heads of the remaining four.

As far as the Royal Rulers are concerned, the institution is essentially hereditary. The Ruler in all these States must be a Malay, male, of royal blood, a Muslim and a descendent of the Ruler of the State. But the method by which the ruler of State is selected varies considerably from state to state. In six states, the Ruler has the right to designate his Heir and successor. In Negri Sembilan, the four Ruling Chiefs select the Ruler and the vote must be unanimous. In Kedah and Perlis, the selection is done by a modified principle of primogeniture. In Perlis, the Ruler is called a Raja while his counterpart in Negri Sembilan is styled Yang Dipertuan Besar. In each of the other 7 Royal States, the Ruler is named the Sultan.

The Heads of State of the four non-royal states are all appointed by the Yang Dipertuan Agong. In Malacca, Penang and Sarawak the Head of State is called Governor while in Sabah he is referred to as the Yang Dipertuan Negara. The Yang Dipertuan Agong makes the appointment after consulting the Chief Minister of each State. The only qualification specifically required of the candidate is citizenship. The position of the Head of State is non-political, in fact, largely ceremonial and formal.

Conferences of Rulers are normally confined to the Royal Rulers only. They have the power to not only elect but also remove the Yang Dipertuan Agong. Other functions include agreeing or disagreeing to the extension of any religious acts, observances and ceremonies to the Federation as a whole. In these matters the Rulers act at their own discretion.

The royal Rulers possess an absolute and discretionary veto over any law which directly affects their position, privileges, honour and dignity.

YANG DIPERTUAN AGONG AND CONFERENCE OF RULERS

According to the Constitution, the Yang Dipertuan Agong is not superior to the Conference of Rulers. This may be seen from the fact that His Majesty has to obtain the consent of the Conference for being absent from the country for more than 15 days. The only exception is a state visit to another country.

The Conference of Rulers is also consulted when the following appointments are made:

(a)Auditor-General

(b)Election Commission

(c)Public Services Commission.

However, the appointing authority is not obliged to follow this advice.

The Conference possesses the power to veto over certain types of letislation. For example. Article 153, which grants special privileges to Malays, cannot be amended without the approval of the Conference of Rulers. Nor can the boundaries of a state be altered except with the consent of the Conference of Rulers.

PROCEDURE AT CONFERENCES

The Conference has the right to deliberate on matters of national policy or any other topic which it thinks needs its attention. In such a case, the Yang Dipertuan Agong must be accompanied by the Prime Minister; the other Rulers and Governors by their Mentri Besar and Chief Minister respectively. The Yang Dipertuan Agong will act on the advice of the Cabinet while the Heads of States on the advice of the Executive Councils. This means the members of the Conference of Rulers remain as constitutional heads only. Situation may become worse if Heads of State act un­constitutionally.

THE KEEPER OF THE RULERS' SEAL

The Keeper is a sort of secretary to the Conference. One of his main duties is to call meetings of the Conference. He has to do this, on the direction of the Yang Dipertuan Agong four weeks before the expiry of the Yang Dipertuan Agong's term of office or if and when a vacancy occurs in the office of the Timbalan Yang Dipertuan Agong. Important decisions require the procurement of 5 votes in favour of the motion. In matters of less importance, a majority of those voting would be sufficient.

CONCLUSION

One of the clauses of the Malaysian Constitution guarantees the right of the Rulers of a State to succeed, hold, enjoy and exercise the rights and privileges of the Ruler in his State. This royal guarantee cannot be amended except by the consent of the Conference. This means that the position and right of the royal Rulers are permanent in the Federation of Malaysia.

THE HEADS OF STATES

Each state has its own Constitution. This is divided into two parts. The first deals with the Royal Succession and other aspects of sovereignty whilst the second part is concerned with the running of the government machinery. As far as the latter is concerned, there is little difference between the Constitution of the various states. The system of government is the same as the one that was introduced by the British before Merdeka. Some changes have been made in the many Constitutions and many clauses have been adopted from the Malaysian Constitution. This is to make sure that parliamentary democracy will function under the same conditions in all parts of the country. As regards the Royal Succession, the candidate must be a Malay male of royal blood and professing the Muslim religion. In exceptional cases, when a suitable candidate with royal blood is not available, a commoner may be chosen. The method in which the selection is made varies greatly according to Icoal custom and tradition.

In Perak, the selection to the throne is by the Raja Muda, Raja Bendahara and Raja di Hilir. On the death of the Sultan, the Raja Muda bocomos the Sultan, Bendahara becomes the Raja Muda, whilst tho oldest son ol tho Sultan becomes the next Raja di Hilir. This process is not automatic. The nomination must be approved by the State Chiefs especially for the title of Bendahara and the Raja Muda. In any case, the likely candidates may be rejected if found to be unsuitable.

in Negri Sembilan, the Ruler is selected from the male heirs of tho Royal Family. This, however, is not the case in most of the other states whoro the Ruler succeeds by right of primogeniture. This means that the eldest son of the late Ruler ascends the throne. But in every state, there is a body whose duty is to select the Ruler or their Apparent and proclaim him as the successor. In Negri Sembilan, this task falls on the four Ruling Chiefs or Undangs of Jelebu, Johore, Rembau and Sungai Ujong. In Perak it is the Council of State (Dewan Negara), whilst in Trengganu it takes the name of Supporters of the State (Jemaah Pangkuan Negeri). One of the prime duties that these Councils have to perform is not only of approvving the candidate but of deciding whether the Ruler is fit to continue to reign. If in their opinion the Ruler has become unfit, then they have the power to replace him. This was illustrated a few years ago when the Council of the Royal Court of Johore together with His Highness the Sultan, deposed of the Heir Apparent. These and other bodies are so powerful that if the Sultan dies or abdicates, the successor is not chosen automatically but has to be confirmed by such bodies.

In the case of the four non-Royal states of Penang, Malacca, Sarawak and Sabah, the appointments are made by the Vang Dipertuan Agong. Those chosen for these appointments must be Malaysian citizens. They can be of any race or religion and are not required to be residents of the state.

The functions of the Rulers and the Governors are nearly like those of the Yang Dipertuan Agong with certain limitations. For example, the Ruler is the Head of the State Religion, except in the case of Governors, the Yang Dipertuan Agong is the Religious Head. But in other cases, the prerogative of mercy is rested in the Head of State who presides over the State Pardons Board. He is also the Fountain of Honour. Each State has its own system of conferring honours.

As far as the administration of the State is concerned, the Ruler or the Governor is the executive. He acts on the advice of the State Executive Council, the Chairman of which is the Mentri Besar or the Chief Minister.

0In conclusion, we can say that the thirteen Heads of State are the pillars on which Malaysia is built. Each has transferred certain functions to the Central Government, but each retains certain authority. The State Constitutions have the same fundamental aim — to maintain a monarchiaj system of government based on Parliamentary Democracy. The Ruler or Governor acts on the advice of the State Executive Council, just as the Yang Dipertuan Agong acts on the advice of the Federal Cabinet. The functions of the Ruler or the Governor as regards the formation of a State Government and the opening and dissolution of the State Legislative Assembly are exactly the same as those exercised by the Yang Dipertuan Agong at Federal level.

Chapter 3
The Constitutional Development of Malaysia

The first step in the constitutional development of the country was taken in 1896 when the states of Perak, Selangor, Negri Sembilan and Pahang were united to form the Federated Malay States. Frank Swettenham who had himself planned the political structure of the Federation was appointed Governor-General; this highest office he held till 1901. In the seven years that he was in office, Swettenham organized a new federal administration, centralized at Kuala Lumpur.

Swettenham was promoted to the post of Governor of the Straits Settlements in 1901 and he held the office until 1903 when he retired and left for England. Every­thing seemed to be calm, quiet and prosperous during the period when Swettenham was in office. But soon after his retirement, the federation was faced with a good deal of criticisms. The first open criticism of over-centralization was voiced by Sultan Idris of Perak at the Durbar of Rulers, held in Kuala Lumpur in 1903. As a result of this, a policy of decentralization was introduced.

A number of suggestions were carried out for almost three decades. One of the most realistic was that put forward by Sir Cecil Clementi in the Sri Semanti Durbar in 1931. He suggested the whole country be made into a union under the High Commissioner in Singapore. The post of Chief Secretary in Kuala Lumpur was to be retained. But the plan aroused a good deal of opposition and Clementi had no choice but to withdraw his proposals. Nevertheless, he instituted reforms in other ways and by 1935, the State Councils were reconstituted so that non-Malay interests (Chinese, Indians and Europeans) were given representation. The powers of Chief Secretary were passed to the Residents of the individual states. This was the position when the Japanese attacked in 1941.

BEGINNINGS OF MALAY NATIONALISM

When Clementi put forward his plan for a Malayan Union in 1931, it was criticized severelly. The manner in which this was attacked revealed the lack of unity amongst the Malay States then. The different political units in the country each had their own particular interests and the various races too had no common aim. There was a general lack of Malayan consciousness for the individual regarded himself as a member of a state or a community and not as a citizen of the country as a whole. The Federated States were afraid of incurring financial loss and they were reluctant in supporting the underdeveloped states. The Unfederated States, on the other hand, felt that they would lose their autonomy if they joined the Union. The Malays feared a loss of political power, while the Chinese were afraid of Malay domination. Under such cir­cumstances, there was no feeling of loyalty to Malaya as a whole.

This was one of the main reasons for the lack of a strong nationalist movement in the country before the Second World War. This is because nationalism can only be built on the basis of unity and common interest. These factors were lacking and together with the country's political disunity and plural society they prevented a strong nationalist party from being formed. Nevertheless, it is true that most Indians and Chinese were politically conscious-, the defect was that they were interested in the political changes which were taking place in their countries of origin rather than in Malaya.

As far as the Malays were concerned, though it is true that the majority of them lacked political consciousness in the years before 1941, the seeds of Malay nationalism had already been sown in the years between the two world wars. Under British administration, the Malays, who already shared a common language and cultural heritage, were slowly welded together into one political and social unit. The technological developments introduced by the British, such as the railways and the telegraph cut across geographical barriers, and brought people from different areas into closer contact. Moreover, the British Government provided for the first time, common laws for the whole country.

The first impulse towards nationalism was an indirect result of the desire of Malay religious leaders to reform Islam in the country. This movement was deemed necessary because some of the Malays had been led astray from the true teachings of Islam. It was, therefore, necessary to bring this state of affairs to an end, and enable the Malays to find ways and means of improving their lot. This then was the real situation when the Japanese attacked the country in December 1941 and captured it by mid-February 1942.

Though the Malays were not particularly politically conscious during the pre-war British occupation, their post-war attitude was one of growing nationalism. This was the legacy of the Japanese Occupation. Though they had been harsh on the local people, the Japanese did wake up the peoples of Malaya as to their true political position.

Malay post-war attitude was stimulated by the slogan, "Malaya for the Malays". They felt that they had the proprietory right to the country and the responsibility to hold office. As for the non-Malay communities, the Malays acknowledged they had a kind of tenant interest and may be represented in state councils. This was not a right but a privilege granted to them. There was no doubt that Malay attitude towards the Chinese community was not very cordial. The Malays feared the presence of economic power in the hands of the Chinese, afnd that the latter could use this to gain political power in the nation. As far as the Indians went, the Malays possessed a high degree of tolerance.

The British Military Administration, which had taken over the administration since the reoccupation of the country, came to an end on 1st April, 1946. A Union was established in its place with Sir Edward Gent as Governor. There were protests all over the country as Malay members boycotted the Advisory Councils. The Sultans kept away from the swearing-in ceremony of the new Governor.

It did not take the new Governor long to realise that the Malayan Union was a failure and that without Malay support, if could not work. As far as the Chinese and Indians were concerned, the proposals were in their favour. But their loaders did not give the Union the backing that the Government might have expected from them. All they were interested in was citizenship which was promised to them. The only supporters of the Malayan Union were the members of the Malayan Nationalist Party, which contained Communist reactionary elements. Thus, the British Government had no option but to withdraw the Malayan Union proposal in favour of a Federation as proposed by Datuk Onn.

As far as the Constitutional Development of the country is concerned, two significant events took place in 1948. The first was the creation of the Federation of Malaya. One of the more significant provisions was that which provided for the acquisition of Federal citizenship by operation of law and by application. Though the provisions in this section were complicated and favoured the Malays, nevertheless non Malays were able to acquire citizenship.

The second important event was the outbreak of guerilla warfare when the communists tried to take over the government of the country. The Emergency had begun. Thus, there was a temporary suspension in the growth of political parties. The British Government felt that a war between a colonial administration and the communists was a bad time for political controversy in the country.

A significant trend during this period was the easing of provisions for federal citizenship. For example, in 1951, an extension in time to apply for citizenship was granted. The following year, the 1952 Enactment liberalized the provisions of citizen­ship by operation of law.

One notable feature of the Emergency was that it did not curb but, in fact, promoted the desire for independence. But it soon became apparent to the leaders that independence could only be achieved through some merger of the communal parties. It was in the face of this that the Alliance, made up of U.M.N.O., M.C.A. and M.I.C. was formed in 1952. It was this political coalition which was to sweep through the State and Federal elections in due course. In 1954, the British Government decided to initiate an unofficial majority in the Federal Legislative Council. In the first election, held in July 1955, the Alliance captured 51 of the 52 elected seats.

In August, 1955, discussions were held between the British Government, the Rulers and the Alliance Government as to the next steps that were to be taken. It was a result of this that the Federation of Malay Constitutional Conference met in London in January and February 1956. Agreement was reached on full self-government and independence within the Commonwealth.

It was agreed to appoint a Commonwealth Constitutional Commission with specific terms of- reference as follows:

1.The establishment of a strong central government with some autonomy in the States,

2.Safeguarding the positions and prestige of the Rulers.

3.Providing for a Constitutional Head of State.

4.Creating a common nationality.

5.Safeguarding the special position of the Malays and the legitimate interests of other communities.

It may be noted here that the Commission was under the Chairmanship of Lord Read and had four other members on it: two Englishmen, one Indian and one Pakistani. No Malayan served on this Commission. The Commission met in Malaya 1956, soliciting memoranda from organizations and individuals. It received 131 such memoranda. It visited each State and Settlement and conferred with officials and private persons. The Commission went to Rome to prepare its report. A final draft was accepted by the Federal Legislative Council in July, 1957.

A new Constitution came into being with the emergence of the new nation on August 31, 1957 — Merdeka Day.

TOWARDS MALAYSIA

When the Federation of Malaya emerged as a new nation on August 31, 1957, one would have expected the union of Singapore with the rest of the Peninsula. But events showed that the separation created by the Malayan Union was to be of a permanent rather than a temporary nature. Malay leaders were unwilling to have Singapore included in the Federation due to its predominant Chinese population. The leaders of the Alliance were not only unhappy but in fact feared the leftist political views widely held in Singapore.

Meanwhile, by the Singapore Constitution (1958), the State had achieved internal self-government. But the State Government had no control over the defence, external affairs and internal security.

Almost from the beginning, the leaders in Singapore were aware of the fact that the island state was not economically viable. They considered that merger with the Federation would be a logical development. It was up to Singapore to convince the government and people of the Federtion that merger with Singapore would not lead to Chinese domination or the communist conquest of Malaya, and the overthrow of the Federal Constitution.

It was at this stage (late 1961 and early 1962) that signs began to appear which indicated that the Peoples Action Party was losing its hold on the government of Singapore and a likelihood that a leftist party would take over. The Prime Minister of the Federation was peevishh about the matter. He mooted the idea of a merger between the Federation and Singapore. Going one step further, it was deemed necessary to include the British Territories of Borneo into the plan. It was felt that with the merger the population would be equally balanced.

The idea found immediate favour with both the British and Singapore governments. In July 1961, the Malaysia Solidarity Consultative Committee was set up with two main objectives.

Firstly, to collect information regarding the response of the people of the territories concerned towards the formation of Malaysia. Secondly, to propagate the idea of Malaysia by the use of all the mass media available. After four meetings the Committee produced a memorandum which supported Malaysia and made recommendations for various aspects of the constitutional arrangements.

In August, 1961, the Prime Ministers of the Federation and Singapore had reached general agreement for the merger of the two territories. On 18th October, the Federal Parliament expressed its approval of the merger. Discussions were held in London from November 20th—22nd, 1961, and this was followed by an announcement that a commission would be set up to ascertain the views of the peoples of North Borneo and Sarawak. The views of the Sultan of Brunei were also to be sought. On 6th January, 1962, the Cobbold Commission was announced. In addition to the Chairman, twomembers each were appointed from Britain and Malaya.

The Commission worked in Borneo from 19th February to 1st August, 1962. The Commission unanimously agreed to the formation of Malaysia and urged an early decision in principle. Meetings were held in London in July and it was decided that Malaysia would be formed by 31st August, 1963. It was agreed that a Inter- Governmental Committee be set up to work out the future constitutional arrange­ments. Those were to include safeguards for the special interests of North Borneo and Sarawak in religious freedom, education, representation in the Federal Parliament, the position of the indigenous races, control of immigration, citizenship and the State Constitutions.

Meanwhile, such activity was going on regarding the merger question in Singapore. Ultimately, a Referendum was set for 1st September, 1962, on the merger issue. The outcome was a decisive verdict in favour of merger. In Brunei, the leader of the largest political party, A.M. Azahari, began a campaign against Malaysia.. But he stopped his campaign when the Sultan announced the acceptance of the Malaysia plan in principle. Following the Singapore Referendum, the North Borneo Legislative Council and the Sarawak Council Negeri, both gave their unanimous approval to the establishment of Malaysia.

While, internally, everything was moving smoothly towards a merger in Malaysia, opposition to the plan came from Indonesia and the Philippines. In early 1962, the Communist Party of Indonesia opposed the creation of Malaysia. In September, 1962, the Foreign Minister declared that Indonesia was not indifferent to the formation of Malaysia. Meanwhile, the Philippines, in 1962, began to press a claim to North Borneo. This claim was based on the former Sultan of Sulu's 19th Century sovereignty over a portion of the territory. As a result of the above, relations between the three countries began to deteriorate rapidly in 1962.

Meanwhile, in Brunei, opposition increased. The Sultan made it clear that he had only agreed in principle, but was not committed to Malaysia. In spite of this, a revolution broke out against the Sulan on 8th December, 1962. But it was short-lived and unsuccessful and was put down with British help. However, many of the revels escaped into Sarawak to begin guerilla activities on their own. It soon became clear that the revolt had the support of Indonesia.

Undismayed by the Brunei revolt and the opposition from Indonesia and the Philippines, Tunku Abdul Rahman announced in December, 1962, that Malaysia would be inaugurated on 31st August, 1963. Things began to get hot after this. Not only did the opposition parties in the States begin anti-Malaysia campaigns, but Indonesia's confrontation took to acts of violence. Legal trade between the Federation and Indonesia came to a virtual stop.

Tuanku Abdul Rahman was aware of the serious dangers that faced the formation of Malaysia. So he left no stone unturned in his efforts to bring calm to the area. Talks at ministerial level, the invitations to United Nations officials to come and see for themselves, meeting with President Sukarno in Tokyo, talks with the Philippines President, are only a part of what took place. There was some very hard bargaining but progress was being made. At the end of June 1963, Brunei announced its rejection of the terms offered to it for merger. The shock of this was, however, offset a bit by the signing of the Malaysia Agreement between the Federation and Singapore. But opposition to the Malaysia Agreement came from many sources. Ultimately, it was agreed to request the United Nations to ascertain the wishes of the Borneo people as to merger, prior to the establishment of Malaysia.

The United Nations teams arrived in mid-August and were later joined by the Indonesian and Philippine observers. After about 3 weeks, the Mission reported to the United Nations Secretary-General. On 15th September, 1963, the latter announced that the majority of the peoples of the two territories supported merger.

Then began a series of events in which accusations and counter-accustations were hurled at each other. The cause of this was the announcement that Malaysia would come into effect on 16th September, 1963. Finally, inspite of all the opposition and the hue and cry from Indonesia and the Philippines, Malaysia came into being on 16th September, 1963.

Chapter 4
The Dewan Negara and The Dewan Rakyat

In the last chapter, we mentioned that the Malaysian Parliament is made up of the Yang Dipertuan Agong and the two Houses (or Dewans) — the Senate (or Dewan Negara) and the House of Representatives (or Dewan Rakyat). We have already read about the functions of-the Yang Dipertuan Agong. Let us now have a look at both the Dewans — their composition, functions and other important aspects.

THE SENATE OR DEWAN NEGARA

The Senate is also referred to as the "Upper" House. It is made up of 58 members. 26 are chosen from the State — each of which sends two representatives. The 32 remainder are appointed by the Yang Dipertuan Agong. These are chosen with care and must be Malaysian citizens of at least thirty years of age. They must have rendered distinguished public service or have achieved distinction in the professions, commerce, industry, agriculture, cultural activities or social services or are representatives of racial minorities or are capable of representing the interests of aborigines. According to the Constitution, Parliament can increase the State representatives to three or reduce them to one only.

Once appqinted, a Senator holds office for six years. However, when the Senate was first composed, half the Senators were given a term of three years only. This was to ensure that only half the members of the Senate would be chosen every three years. The other half would thus be made up of old and experienced Senators and the work of the Senate could thus be carried out smoothly.

The President of the Senate and the Deputy President are elected by the members from amongst- themselves. There is no fixed term of office for the President. A new one is chosen as soon as a vacancy occurs. The President cannot be a member of any State Legislative Assembly. If he wishes, he will have to resign from the latter to carry on in his new post. As President, he presides over meetings, hfe has to maintain order and also advise on points of parliamentary procedure and practice. He has a casting vote and uses this when there is a tie. In short, his duties are very much like those of the Speaker of the House of Representatives.

THE HOUSE OF REPRESENTATIVES       

The House of Representatives consists of 154 members, as shown in column 3 of the table on the next page.

Table 1

PARLIAMENTARY ELECTION RESULTS, 1978: NATIONAL, PENINSULAR MALAYSIA AND STATE

National Parliament
Parties	Seats Contested	Seats Won	Votes Obtained	% of Valid Votes
Barisan Nasional	153	131	1,996,307	57.5
UMNO	(74)	(69)
MCA	(27)	(17)
MIC	(4)	(3)
Gerakan	(6)	(4)
PPP	(1)	(0)
Non-party	(1)	(1)
Berjaya	(10)*	(9)*
USNO	(7)*	(5)
PBB	(8)	(8)
SUPP	(7)	(6)
SNAP	(9)	(9)
DAP	53	16	664,463	19.2
PAS	89	5	537,253	15.5
Sapo	1	1	10,150	0.3
Others	93	1 **	265,617	7.6
Total		154	3,473,790	100.0

* Includes officially endorsed 'independents' contesting the same seat.

**An independent.

The Barisan Nasional won 9 seats uncontested. The seats were won by UMNOI4I, MCAtt), Berjaya (I). PBB(l), SUPP(1) and SNAP(I).

The representatives are chosen by the people of the country or to be exact by their own constituencies. Citizens above the age of 21 years are eligible to vote and the person who gets the most votes in his constituency is elected.

After a general election, the primary task of the Representatives at the first meeting of the House is to elect a Speaker and his Deputy. He is chosen from amongst themselves and the Speaker must not be a member of any State Legislative Assembly. The post is one of great responsibility and the candidate is chosen with great care. He presides over all the meetings of the House and has great power. These include:

1.Maintenance of order in the House.

2.To ensure that during debates members raise issues that are relevant to the topic under consideration.

3.Interpret Standing Orders when a dispute arises.

4.To ensure that Bills presented to the Senate for approval are passed within the prescribed period.

This means that the Speaker can allow or prohibit any member from speaking, asking or answering questions. In the case of disorderly behaviour, the Speaker can order him to leave the House, by force if necessary. In the event of disorder in the House, he has the power to suspend or adjourn a sitting. In most cases and during a debate, a decision made by the Speaker is final. He can either allow the session to be an open or a close one. The Speaker can refuse a request for an adjournment. And finally, in case of a tie, he has the casting vote.

Members: Qualifications and Disqualifications

From the above, it can be seen that the Dewan Rakyat is probably the most important institution in the country. Apart from the fact that a member must be a Malaysian citizen over 21 years of age, it is necessary that the members who make up the Dewan must have a certain standing in the society that they represent. Thus, those with an unsound mind, who have been declared bankrupt, who have been convicted and sentenced to more than a year's imprisonment or a fine exceeding $2,000/-, or are guilty of any election and citizenship offences, are not allowed to become members of the House of Representatives.

Functions

Broadly speaking, the Dewan Rakyat performs three functions which are of great importance to the country.

Firstly, it is the Legislative authority. This means that it makes the Laws of the country. It must be pointed out here that laws are also made by State Assemblies, but their powers are limited only to local matters and that the supreme authority is the Dewan Rakyat.

Secondly, the Dewan Rakyat controls the finances of the country. Matters concerned with finance are discussed during the "budget sessions", which are probably the most important and longest meetings of the House. The collection of taxes, rates and other forms of revenue and expenditure must have the approval of the House.

Thirdly, Parliament is the place where the voice of the people is heard regarding national matters. The representatives of the people sit in the Dewan Rakyat. After a general election, the party which commands a majority in the Dewan is called upon to form a government. In case no single party commands a majority, then the party with the largest number of members is given the first opportunity to do so. He can do this with the help of another party or parties. This is called a coalition, and the partners must command more than half the votes of the House.

The leader of the coalition is then called upon to form the government. This government is responsible in particular to the House of Representatives. If it loses the confidence of the House and is not able to get the support of the majority, then the leader (the Prime Minister) may request His Majesty to dissolve Parliament. If he fails in this request, his government must resign. It is then left to the Yang Dipertuan Agong to either call upon another person to form a new government or dissolve Parliament and call for fresh elections.

THE ROLE OF THE OPPOSITION

We shall read more about elections in the next chapter. Here is is enough to say that the House of Representatives is elected on a Party System. In the 1978 elections Barisan Nasional polled a clear majority, and so its leader was asked to form the Government. The representatives of the other parties thus make up the Opposition.

The main reason for the presence of the Opposition is that there are always two sides to the picture. People have their own views on things that seem so simple to us. By giving a chance to the Opposition to put forward a point of view which is quite different from that of the Government, it is hoped that no decision will be made in a hurry. But this does not mean that the Opposition must speak against the Government on every issue that is debated. When the Opposition agrees with a proposal that the Government puts forward, it does not criticize it. Its policy is to criticize what the Government is doing and not block it from carrying out its duties.

The main target for which the members of the Opposition aim is the next election. They hope to defeat the Government then and run it themselves. So they try their best to get the opinion of the public on their side. They have thus to create a good picture with the voters. Nobody is going to vote an opposition into power if they have no respect for its members. There have been many cases of unruly behaviour in Parliament in many countries. Such a situation is not serious in this country.

We can, therefore, say that the role of the Opposition is an important one in a democratic country. It forces the Ministers and other members of Government to explain and defend their actions. They know that their actions are open to debate in the Dewan Rakyat. In this way the Opposition plays another important role — it tends to keep the administration honest. And this is of great benefit to the country. So a healthy Opposition is a credit to any country.

PARLIAMENTARY PRIVILEGES

According to the Constitution: "The validity of any proceedings in either House of Parliament or any committee thereof shall not be questioned in any court", and that "no person shall be liable to any proceedings in any court in respect of anything said or any vote given by him when taking part in any proceedings of either House of Parliament or any committee thereof."

These few lines in the Constitution are of great importance because they are connected with one of the main pillars on which Parliamentary Democracy is based. This is freedom of speech. Thus a member can say what he likes in Parliament (of course, within reason) without any fear of prosecution. He is thus immune from civil and criminal proceedings in courts for what he said in Parliament. It is for this reason that we sometimes hear of members challenging one another to repeat what he said in Parliament, "outside the House".

Each House is free to have its own procedure and has the right to punish members for breach of privileges or contempt of the House. Even those who are authorised by the House to act on its behalf have this immunity extended to them. It is only udder these conditions and with these privileges that Parliament is able to fulfil the responsibilities to it. And this it does by the procedure given below.

Parliamentary Procedure

We have had a look at the composition and other aspects of the Dewan Rakyat. Let us now see how the House carries out its functions. There are four main ways by which this is done:

1.By way of questions to Ministers.

2.By debate on a motion.

3.By speeches on a motion to adjourn.

4.By debate on a Bill.

One of the most effective ways by which members of the Opposition can ascertain how the Government in power is carrying on its responsibilities is by questioning Ministers on the work that their Ministries are doing. This is done during question time. At the beginning of each sitting, one hour is reserved for oral questions. How­ever, these questions which are printed and circulated to members must be submitted at least 2 weeks before the sitting. The Speaker has the power to request a question to be answered even at short notice, if in his opinion, it is of great importance.

Now let us go on to a debate on a motion. A motion is a decision or opinion which the House as a whole arrives at. Though this decision is arrived at after a good amount of discussion, it is always possible that many members do not agree with the motion. Thus the House debates the motion, and members take turns to either support or speak against it.

Sometimes it may happen that a member is not happy at the discussion that has taken place and wants the matter to be discussed again. He can then get up and move  the adjournment of the House to open a further discussion on that matter. Before he can do this, he must get the approval of the Speaker who will only approve if he is entirely satisfied with the genuiness of the request. Even then, nobody must object to the request and if that happens, then at least 15 members must support the request.

Once it has got the -necessary support, the adjournment provides members with another opportunity to speak and make their views heard. The importance of this is that it gives the Government another opportunity to note the views of the House, because no member of the Government can move a motion for adjournment.

We have read above that the Dewan Rakyat is the Legislative Authority and makes the Laws of the country. Parliament makes these decisions by way of Acts of Parliament. But before this can be done, a Bill has to be introduced to either House by the Government or a Member as an individual. However, in the case of a Money Bill, this can only be introduced by a Minister and in the Dewan Rakyat.

Each B.ill must undergo three "readings" in each House before it can be passed. On the first occasion, the Clerk at the Table reads the Bill. It is then ordered to be printed and be ready for the second "reading". At the same time, members are also told of the second reading and are given copies of the Bill.

The most important stage of the Bill is at the second "reading". Members then debate on the good and bad points of the Bill. If after this, the Bill does not get the approval of the House, it cannot become Law. If it gets the necessary approval, it is then passed on to a Select Committee. It can amend the Bill if it thinks fit, but the amended Bill must be approved by the member who first tabled it before the House. After this, it is prevented for the third "reading" and put to vote.

The Bill must be passed by both Houses, otherwise it cannot become Law. We may also mention here that the Senate can only delay the passing of the Bill but cannot, like the Dewan Rakyat, veto the Bill. If the Senate delays the Bill to the maximum period permitted by the Constitution and the Dewan Rakyat still approves it, it is presented to the Yang Dipertuan Agong for his assent.

The Yang Dipertuan Agong must give his assent for a Bill to become Law. This assent is given on the advice of the Cabinet. The Public Seal is then affixed to the Bill. The next step is to make the Bill public. This is done by publishing it. Only then can the new Law come into force.

In conclusion, we can say that from the above account, it is clear that the represent­atives at the Dewan Rakyat and the Dewan Negara play an important part in our democratic way of life.

Chapter 5
The National Election

THE ELECTION COMMISSION

The Election Commission is an independent body, constituted under Article 114 of the Federal Constitution and thereby the Chairman and members of the Commission are appointed by the Yang Dipertuan Agong, after consultation with the Conference of Rulers, and hold office until they attain the age of 65.

Briefly, the policy of the Election Commission is to safeguard, supervise and maintain the democratic process of the country through fair and just elections. It is the responsibility of the commission to ensure that the citizens are able to elect their representatives by direct votes at any election.

MAIN FUNCTIONS

The Elections Commission has four main functions. The first of these is to divide the country into constituencies. In doing this, the Commission has to bear in mind it has the responsibility of holding three different elections. These are the Fedeal, State and Local Council elections. The boundaries must be fixed in such a way that, as far as possible, there are equal number of voters In each constituency. Once established, no major changes can be made for about eight to ten years.

At present, the Federation of Malaya is divided into 154 such constituencies whilst the states are divided into 362 smaller ones. Each constituency returns one member to either the Dewan Rakyat or the State Legislative Assembly. In case of the Local Councils, the units are smaller and are called wards. The process for election is the same in all the three.

The second function of the Commission is to prepare and maintain an up-to-date Electoral Register or Roll. The Roll was first began in 1954 and 1955. All citizens of 21 years of age and over, are called to register as voters in the constituencies in which they lived. At that time nearly 1,240,000 names were registered.

Each year the Commission carries on the work of revising these Registers. A date called the "Qualifying Day" is announced well in advance. Those who have not registered as yet or those who wish to register are requested to get this done. A short period is also given to the public during which any errors or other mistakes may be corrected. After this no further revision can take place till the next revision.

In addition to being a Federal citizen and over 21 years of age, a voter must be of sound mind. A person serving a term in prison cannot vote, whilst a person who has committed a crime in connection with elections is also barred from voting.

The third function of the Elections Commission is to arrange for the nomination of candidates for the general election or a by-election. The former takes place when Parliament is dissolved. Normally this takes place when the House of Representatives has served its elected term of office. A by-election takes place when a seat is declared vacant due to the death or resignation of a member.

When this happens, the Commission issues a Writ of Election to the Returning Officer of the constituency. Normally, the Returning Officer is the District Officer or the Chairman of the Local Council. The Writ requests the Returning Officer to take charge and organize the coming election. This must be done within sixty days of the vacancy or dissolution.

The Returning Officer now has two tasks facing him — nomination and polling. Having got the necessary qualifications, the candidate must now be nominated. This means that he must have a proposer, a seconder and four other persons to support him from his own constituency. But it is not necessary that a candidate must also be from that constituency. In other words, a candidate can stand for election in any state provided he has the qualifications and the six supporters in the constituency in which he wishes to contest the election.

Nomination papers must be received by the Returning Officer on a specified date, that is, ten days after the receipt of the Writ. These nominations can only be received between 10 a.m. and 12 noon and each must be handed in together with a receipt. After this the Returning Officer satisfies himself that the candidate have fulfilled all the requirements. Having done this he then invites any objections to any of the nominated candidates.

Once these are settled, the Returning Officer then goes on to the next step. This is to get ready for the election itself. If there is only one candidate, then he is uncontested and returned to his seat in the House. If there are more than one candidate, then the voters will have to select their candidate on polling day. And this brings us to the fourth function of the Elections Commission.

Polling Day is the day on which voters will cast their votes and choose their representative. It must be fixed between three and eight weeks after Nomination Day. During this period, the various parties will start canvassing for votes. This is quite a common sight in Malaysia during election time.

Each polling station is under the charge of a Presiding Officer. There are a few things that the Presiding Officer must always adhere to. The first is that there is absolute secrecy in the voting. He must also make sure that nobody cheats during polls, like filling in fictitious votes. It is to avoid this that the Electoral Rolls are opened to the public during the registration period.

The Presiding Officer needs a good number of people to help him on Polling Day. So he gets government servants to help him. At the same time, sites are also fixed as polling stations. All the necessary equipment is to be ready, which includes booths, tables, pencils, ballot-boxes and the like.

The next task of the Presiding Officer is to lock and seal the ballot-boxes. He does this publicly so that those present can see that nothing unfair has been done. The ballot-box is then put in a place where everydoby can see it. Polling then begins.

The first thing that each voter does on entering the polling station is that he establishes his or her identity and checks the entry in the Electoral Roll. He then gets the ballot paper and a mark is made on the roll to show that this is done. We may mention here that these ballot papers are printed with greatest care to make sure that there is no cheating. The ballot paper is counterfoil and the Electoral Roll number of the voter is written on the counterfoil.

The voter then puts his "X" against the name or symbol of the candidate he wants to vote for, folds the paper and drops in into the ballot-box. He must not write anything else on the ballot paper or his vote will be disqualified. A blind or crippled voter gets the help of the Presiding Officer to mark his ballot paper. This is done in absolute secrecy.

There are cases of people who cannot cast their votes in person because of duty. Members of the Armed Forces, Police and other such persons make up this list. In such cases, the votes are sent by post to the Returning Officer. It may also happen that a voter comes to the polling station and finds that a mark has been made against his name, which shows that he has already voted. It is possible that a genuine error has been made in this case. The Presiding Officer then issues a coloured ballot paper to the voter and he uses this to cast his vote. The Presiding Officer has to keep these separately and keep a list of these. It is clear that every effort is made to ascertain that an election is a just and honest one.

The Presiding Office closes polling at the appointed time. He then seals the ballot- box and other documents in front of all those present. These are the Electoral Roll, counterfoils, spoilt ballot papers or tendered votes (if any) and the coloured ballot papers. He then writes out a report and counts the number of ballot papers issued to him. Having done this, the Presiding Officer, with the help of a police escort, takes all the above to the Returning Officer.

THE COUNT

At the place of count, the Returning Officer receives the sealed ballot-boxes and the documents. Each box is opened in front of all present and the papers in it are counted. These are then checked with the statement made by the Presiding Officer. If more ballot papers are found in any box, then a thorough check is made and the false papers taken out. The false papers are later sent to the Elections Commission. When all the boxes have been brought in and their contents checked, they are then mixed together in a heap. Any postal votes are also added, and counting begins.

Tendered votes are not counted but kept aside. These will be examined only if there is any election petition. If a paper is marked in such a way as to show doubt in mind of the voter, then the Returning Officer rejects the vote. Apart from these, however, counting continues and when completed, the Returning Officer announces the name of the winning candidate.

All candidates have to deposit a fixed sum of money on Nomination Day. The Returning Officer now refunds this money to the winner and all the other candidates who have secured at least 1/8 of the total number of votes. Those who get less than this number of votes get their deposit forfeited.

The last duty of the Returning Officer is to collect all ballot papers, counterfoils and marked Electoral Rolls, and to put these into a container and seal it. This container is kept under lock and key for six months. After this, the Returning Officer notifies the political parties of the specific day when the container will be destroyed. The sealed container is then burned. This ensures maximum secrecy in voting.

The only person who can order the container to be opened is the Election Judge. This he does when there is an election petition. This petition can be made by a voter or candidate if he feels that, something had not been fairly carried out. He thus challenges the elections. When this is done, the Chief Justice appoints a Judge from the Supreme Court to look into the petition. Petitions can also be made if a candidate or his supporters have acted improperly during the elections. In all these matters, the decision of the Election Judge is final.

In conclusion, we see that an election is a slow process with many security measures taken to ensure that it is legal. This process has been tried for decades all over the world, and every attempt is made to give the voter complete freedom in casting his vote. This is the basic principle on which Parliamentary democracy is built.

Chapter 6
Citizenship
A citizen of a country is a person who belongs to that country. He has certain duties to his nation, and in turn, the nation has certain duties to its citizens.

The idea of citizenship is not a new one and goes a long way back in history. It has helped to unify people of different origins into individual nations. We, in Malaysia, have clauses in the Constitution which deal with the question of citizenship.

Citizenship in Malaysia is slightly complex. Basically there are two kinds of citizen­ship. One is State citizenship and the other is Federal citizenship. State citizenship is even complicated further because of the 11 states in Malaya. Only four (Johore, Kelantan, Perak and Trengganu) mention people as being subjects of the Ruler. In the other seven, their Constitutions do not have any separate state citizenship.

It is forturnate that the states of Sabah and Sarawak do not complicate this position further. These states have their own form of citizenship. Before these states became a part of Malaysia, citizenship was mostly British.

Citizenship may be gained in one of three ways:

1.By Operation of Law

2.By Naturalisation

3.By Registration

BY OPERATION OF LAW

There are three kinds of people who are citizens by the Operation of Law. The first of these are those who have been citizens before Merdeka Day. Citizenship was first begun with the Federation of Malaya Agreement in 1948. These persons may have become citizens by any one of the three ways listed above.

However, those who become citizens by either Registration or Naturalisation could be deprived of this status should they break any laws connected with this category of citizens. Secondly, those who were born within the Federation immediately before or after Merdeka Day. In 1962, the case of diplomats and visiting military personnel was brought up. As these people were not residents but only transients, a law was passed which did not give automatic citizenship to their children born in Malaysia.

Next came those children of Malaysian parents who were born outside the country. These children are automatically Malaysians but they fall into one of the two categories. If the father is a citizen by birth, the child is automatically a citizen. If, on the other hand, the father is a citizen by registration or naturalisation, the child has to be registered within one month of birth at any Malaysian Consulate or any other acting Consular Agent. There is one exception, however, and that is in the case of a person who even though he is not a Malaysian citizen but as a resident in the country, is sent abroad in the services of the Federal or a State Government.

BY NATURALISATION

An alien, who having lived in the country for a number of years may apply for citizen­ship should he decide to make Malaysia his new home. The Constitution makes provision for such people. They can become Malaysian citizens by Naturalisation if they can fulfil the following conditions:

1.He be over 21 years old.

2.He must have lived in the country for not less than 10 out of the preceding 12 years. In any case, the applicant must have lived in the country for the entire year preceding the date of application.

3.He must be of good character. This means that he must not have been convicted of a crime during the three years preceding his application.

4.He must be able to speak the National Lanaguge. This means that he has to pass a simple test in the above.

5.He must give up any other citizenship which he had before the application.

6.He must take an oath of allegiance to the Yang Dipertuan Agong.

BY REGISTRATION

This is mainly for wives and children of Malaysian citizens. A woman who marries a Malaysian can become a citizen provided she has stayed in the country for at least two years before making her application. She must be of good character, be able to speak the National Lanaguge and to prove that she intends to stay permanently in the country.

Application for citizenship can also be made for the children of these new citizens even if they have not reached the age of 21.

DUTIES OF A CITIZEN

A country has certain duties towards its citizens. A citizen, in turn, has certain duties too towards the country. Let us have a look at the duties should perform for his country.

First and foremost, a citizen must be loyal to his country. We often hear or read in newspapers of plots by certain groups to overthrow the government. A citizen who joins in such a plot to overthrow a popularly elected government is not loyal. If he feels that the government is not keeping the promises that it made during elections, then he has the right not to vote for it in the coming election, but not to engage in a plot to overthrow it by violent means.

We have all heard about the late Sir Winston Churchill who became Prime Minister of England during World War II. During this time, England was weak while Germany was the most powerful nation. Churchill worked hard, and in the end, brought victory to his country. But in the very next election, the Party that Churchill headed, lost, and the Labour Party came into power. This is an example of how a citizen can use the power of his vote. It is for this reason that it is the duty of a citizen to vote in an election. This is his right. It is also the duty of a citizen to obey the laws of his country. These laws are passed to protect the public from bad elements and to maintain order in the country. If everyone does what he or she likes, there will be chaos in the country.

Let us now turn to taxes. No one is in favour of parting with his money for taxes. but it is necessary. We tend to forget that taxes are for our own benefit. The Govern­ment makes use of the money to provide facilities for us. By paying taxes, a citizen is supporting his government and country.

The duties of a citizen include the defence of his country. A citizen must be ready to fight for the defence of his country. Most countries have passed laws which require every citizen to serve in the armed forces for a certain period of time. This is the prime test — willingness to die for one's own country. We have seen this happening during wars, and it is for this reason that each country builds a monument in honour of those who sacrificed their lives for the country and flag.

TERMINATION OF CITIZENSHIP

Since Merdeka, we have seen many foreigners deciding to make Malaysia their home and to become Malaysian citizens. But before becoming citizens, each has to renounce his or her previous citizenship. In the same way, a Malaysian can renounce his citizen­ship on his own free will and acquire that of another country. To do this, he or she must be 21 years of age.

It is to be noted that a citizen renounces the citizenship on his or her own free will, and not deprived of it by the country. In the case of those who become citizens by operation of law, it is very difficult to deprive.them of their citizenships. As for those who have acquired citizenship by registration or naturalisation, they may be deprived of their citizenship if the authorities feel that they are not worthy of it. But they must be given notice and the reasons as to the action taken. The Government must show that its action is taken in the light of public interest. The person concerned, however, has the right to request that his case be investigated by a Committee of Enquiry. This committee is presided over by a judicial officer.

The following are the grounds on which a Malaysian can be deprived of his citizen­ship.

1.Change of Nationality — as in the cass given above.

2.Disloyalty.

3.Criminal conviction — if within 5 years of gaining citizenship, a person is convicted and sentenced to more than one year's imprisonment or a fine of $5,000 or more.

4.Residence — in a non-Commonwealth country for 7 years without reporting to the Consulate.

5.Fraud in applying for citizenship.

6.Divorce — a woman who becomes a citizen by marriage, may lose her citizenship if divorced or separated from her husband within two years, except by death.

Parental action — where parents are deprived of citizenship, it is left to the decision of the Government to consider citizenship of their children.

Chapter 7
Fundamental Liberties

Up to now, we have discussed how a person can become a Malaysian citizen, and what the state expects of him to do. Now let us see what the State is obliged to do for its citizens. This is written in the second part of our Constitution and is dealt with under the heading "Fundamental Liberties". These are explained under nine sub-headings as given below.

RIGHT OF LIFE

The Constitution states that no person can be deprived of his life except in accordance with the law. A person who takes the life of another, even in self-defence, or a driver who knocks and kills other people, is, therefore, brought before the Courts of Law. It is the Court which reaches the final decision, and if the person is found guilty, then he has to pay the penalty. This is a very long way off from the days when people used to fight duels or lynch someone who had done them wrong. Today, this would mean taking the law into your own hands, and this is very serious offence.

FREEDOM OF MOVEMENT

This is another fundamental liberty that the Constitution grants its citizens. This allows a citizen to move freely throughout the country and to reside in any part that he thinks is suitable. But, sometimes it is necessary to restrict the movement of certain people. This may be in the case of a person who has taken the law into his own hands. The action of the police authorities may be justified on this matter, but to ensure that the power is not abused, freedom of movement can only be controlled under a number of conditions. Therefore, when a person is arrested, the police must explain the reason as to the arrest and make sure that the person understands this. The police must allow him to get the help of a lawyer that he chooses. Finally, the police cannot detain a person for more than 24 hours (excluding holidays and time spent on travelling). He must appear before a Magistrate within 24 hours. Only a Magistrate has the power to detain a person for a further period. It is only in an emergency that the Government has powers to go beyond the conditions discussed earlier. And to do that, approval must be obtained from the Yang Dipertuan Agong, the Dewan Rakyat and the Dewan Negara. Then again, a person who feels that he has been detained unlawfully, has the right to claim the protection of the Supreme Court. In fact, this applies to all people.

The Constitution also prohibits repeated trials. This means that once a person is convicted or made free, he cannot be charged again for the same crime. This can only be done if an Appeal Court makes the previous trial null and void and then orders a retrial. To obtain a retrial is not an easy matter.

SLAVERY

The Constitution says that no person shall be held in slavery. All forms of forced labour are prohibited. However, in the case of National Service, Parliament can pass laws calling the people to do their period of compulsory service. This is for the benefit of the country too, especially when the nation is fighting for honour and justice. It should be noted here that the period a prisoner spends during his term of sentence, shall not be taken as forced labour.

BANISHMENT

According to Article 8 of our Constitution >

1.All persons are equal before the law and are entitled to the equal protection of the law.

2.Except as expressly authorised by this Constitution, there shall be no discrimin­ation against citizens on the ground of religion, race, descent or place of birth in any law or in the appointment to any office or employment under a public authority or in the administration of any law relating to the acquisition, holding or disposition of property or the establishment or carrying on of any trade, employment, business, profession, or vacation related to employment.

Though this article is a very important one, it is also the one with the most exceptions. For example, in most countries, only men are called upon to do "National Service". Most employers pay women less than men for doing the same job. Thus different countries have passed other laws to amend this article.

In Malaysia, in keeping with the opening words given in Clause 2, the Yang Dipertuan Agong and Parliament have allowed some favour to be shown for the advancement and welfare of the aborigines and help Malays to participate in business and public life. It is due to this that we have a quota system in government jobs and scholarships, Malay land reservations, and that only Malays can be recruited into the Malay Regiment. Another example is that a citizen by naturalisation or by registration cannot be the Prime Minister of Malaysia.

FREEDOM OF SPEECH, ASEMBLY AND ASSOCIATION

Once again, these are restricted by Acts of Parliament. These can be seen in the example given below:

(a) Speech

Parliament has the right to restirct this for the security of the country. This is made clear in Section 28 of the Internal Security Act, which outlines "Any person, who, by word of mouth or ... by any other means spreads false reports or makes false state­ments likely to cause public alarm, shall be guilty of an offence . ..

Freedom of speech can also be restricted to promote friendly relations with other countries. It is for this reason that the Government has control over newspapers, magazines, periodicals, books and other printed matter. These affect our daily life. Magazines which are bad for public morality are prohibited.

Even in our Courts, freedom of speech has certain limits. And a person who goes beyond this limit, may find himself in trouble for contempt of court. In addition to this, there are also limitations to maintain the dignity and integrity of other indivi­duals.

(b) Freedom of Assembly

The most immediate limitation here is that the people who assemble must be unarmed. There are cases when stricter rules have been imposed. For example, when the Indians were fighting for their independence, the British government imposed many restrictions. One of these was that not more than five people could assemble at one place, and that they should be unarmed. By looking at the above, the restriction imposed by our government is a genuine one, because, apart from carrying arms for the defence of the country, etc., as permitted by law, there is no reason why armed people should assemble if their intention is not to break the law.

(c) Freedom of association

According to the law, this means that a person has the right to join any lawful society, organization, political party, trade union, etc. This freedom can only be restricted to safeguard public order, security and morality. This was done during the Emergency. Such restriction needs the consent of Parliament or a Proclamation by the Yang Dipertuan Agong.

(d) Freedom of religion.

Religious freedom is guaranteed by law. A religion can be preached so long as:

1.No attempts are made to convert Muslims to other religions.

2.The work of preaching does not have any bad effects on public order, health or morals.

Religious groups are allowed to hold property, build schools, places of worships and other homes for charity. But no one can be forced to pay money to any other religion except his own. Schools which are run by missions cannot force pupils of other religions to attend their religious classes.

EDUCATION

Government schools and those run by public bodies are not allowed to have discrimin­ation on grounds of race, religion, or place of birth. The fees charged are the same for all. The government also gives grants-in-aid to most schools, under certain situations. However, in the case of Muslim religious schools, special grants may be made.

PROPERTY OWNERSHIP

All persons are entitled to own, acquire or dispose of property in accordance with the law. No person can be deprived of his property except in accordance with the law. But no law can order a property to be taken over, unless fair and reasonable compensation has been paid.

CONCLUSION

In conclusion, we hope that the reader now has an idea of the link which exists between the citizen and the nation. We have a good example here in which the people originating from different countries and are of different races have become citizens of this country. Our Constitution considers various aspects. These are to safeguard the Fundamental Liberties of its citizens. It is hoped that with the sense of awareness in us with regard to our duties to the country and in turn its duties to us, we would make Malaysia a free, happy, peaceful, prosperous, and united nation.

Chapter 8
Judiciary

The creation of a new Federation necessitated the organization of a new judicial structure. Two High Courts to co-ordinate jurisdiction and status were designated: one for Peninsular Malaysia and the other for Sabah and Sarawak. A new Court, called the Federal Court was created above these two Courts, with its principal registry in Kuala Lumpur. Each of these Courts is headed by a Chief Justice assisted by Judges, whose number varies from 4 to 12 in Peninsular Malaysia and 8 in Sabah and Sarawak. However, the Parliament has the power to increase the number, if and when the need arises.

The Federal Court is made up of the Lord President of the Federal Court, the two Chief Justices of the High Courts and four other Judges. Once again, Parliament has the power to increase or reduce the number of Judges. In cases where the Lord President feels that it is in the interest of justice to do so, then he can appoint a Judge of a High Curt, other than the Chief Justice, to sit in the Federal Court.

As far as Sabah and Sarawak are concerned, a special provision had been made in view of the somewhat undeveloped communication network. As a judge of a High Court is not available for the time being, a Judicial Commissioner had been appointed. He is subject to certain limitations, which are included in his order of appointment. His jurisdiction is limited to the area of his appointment. Nevertheless, he maintains the same powers and privileges as accorded to a High Court Judge. It is obvious that this arrangement is of a temporary nature. Actions taken by the Commissioner are for cases which are of utter and immediate importance.

APPOINTMENT OF JUDGES

All appointments to the Federal and High Courts are made by the Yang Dipertuan Agong, on the advice of the Prime Minister. But before His Majesty does this, the Constitution states that a number of individuals and certain bodies must be consulted with. These are:

1.The Conference of Rulers.

2.The Prime Minister must have the views of the Lord President and all the Chief Justices.

3.The Prime Minister must consult both the Chief Justices of the High Courts, and in the case of Sabah and Sarawak, the Chief Ministers of the States.

4.The Prime Minister must consult with the Chief Justice of the High Court concerned, as to the appointment of a judge of that Court.

In the case of the appointment of the Lord President, the Prime Minister is not obliged to consult anyonq in making the recommendation. Finally, if the Prime Minister is determined in appointing a certain Judge,'then the Yang Dipertuan Agong has no option but to make the appointment, whether he likes it or not.

As for the Judicial Commissioner, the power to appoint one is entirely in tl]e hands of the Governor of the State concerned. But he must get the advice of the Chief Justice of the High Court of Peninsular Malaysia. The Yang Dipertuan Agong is also invested with the power to make the above appointment, but it is a reserved one which is to be used in exceptional circumstances only. It may be pointed out here that a Judicial Commissioner need not have the qualifications of a High Court Judge. He needs only to be an advocate or a person professionally qualified to be admitted as an advocate of the High Court. Transfer of High Court judges, other than the Chief Justice, is permitted from one High Court to another. Such a transfer is done by the Yang Dipertuan Agong on the recommendation of the Lord President of the Federal Court, after consulting the Chief Justices of the two High Courts concerned. The qualification for the appointment of a judge, the Federal Court and the High Court are the same. These include:

1.Citizenship

2.Experience and service for the ten preceding years as advocate of High or Federal Courts, or a member of the judicial or legal service of the country.

INDEPNDENCE OF JUDICIARY

To ensure that judges can without fear or favour do their duty, there are several provisions in the Constitution designed to secure their independence so that they are not subject to control or direction either by the legislature or the executive. Judges are allowed to hold office till 65 years of age, after which it may be extended for another six months, on the approval of the Yang Dipertuan Agong. But a judge may resign at any time. A judge can be removed from office by a procedure established in the Constitution. Parliament provides for the remuneration of judges.

The conduct of a Judge of the Federal or the High Court is not to be discussed in either houses of Parliament, except under special circumstances; but certainly, no discussion at all in a State Legislative Assembly. Any contempt of Court will be tried in the Federal Court and the High Courts and the appropriate punishment given.

REMOVAL OF JUDGES

A judge can be removed from office for two reasons.

1.Misbehaviour.

2.Inability to discharge properly the functions of his office.

The action is taken by the Lord President after consulting the Prime Minister, or by the Prime Minister presenting the circumstances of the case to the Yang Dipertuan Agong. The Yang Dipertuan Agong will then appoint a special tribunal consisting of at least five persons of the High Court. The Yang Dipertuan Agong cannot remove a judge without the recommendations of the tribunal. But the Yang Dipertuan Agong is not obliged to accept the recommendation of removal. He has the final say. It is with a sense of pride that we note that until today, no judge has been removed from his office.

JURISDICTION OF THE HIGH COURTS

The High Courts possess all the judicial power of the federation. They exercise control over the subordinate courts. The Federal Court has exclusive power in dealing with:

1.Appeals from decision of a High Court or the Judges thereof.

2.Disputes between States and the Federation.

3.Any question as to provisions in the Constitution.

4.To render appropriate advice to the Yang Dipertuan Agong regarding any question which may arise with regard to any provision in the Constitution. It is possible to take the appeal from the Federal Council to the Privy Council.

JUDICIAL AND LEGAL SERVICE COMMISSION

The Constitution provides for a Judicial and Legal Service Commission. It is made up of a Chairman (normally the Chairman of the Public Services Commission); the Attorney-General and one or two members appointed by the Yang Dipertuan Agong. As for Sabah and Sarawak, a branch of the Judicial and Legal Service has been created. Its Chairman is the Chief Justice of the High Court. He is assisted by the Legal Adviser of the State; the Chairman of the State Public Services Commission and two persons designated by the Federal Court. The Commission has also to administer certain disciplinary actions concerning members of other services too. This is an addition to the administrative functions connected with the service itself.

FREEDOM AND JUSTICE IN OUR COURTS

We commonly hear people say that a person accused of a crime is innocent until proven guilty. In a democracy, this principle is the basis of justice. It was first established in the Magna Carta (1215), which is referred to as the charter of personal liberties. The same principle is supported in the Constitution of the United States which forbids either the Federal or the State Government to deprive a person of life, liberty or property without ensuring that he is given full justice.

The word “court" which is so closely connected with justice needs a little explan­ation. It originates from the days when offenders were brought before their Ruler for judgement. He did this in the courtyard of his palace — thus the name court. Courts of law have existed from very ancient times. One of the earliest to formulate and issue law was King Hamurabi (about 1950 B.C.). The Roman Empire had an efficient system of civil and criminal courts.

During the Middle Ages in Western Europe, two persons would settle their dispute by either drawing lots or by duelling. The winner was considered to be in the right. Criminal cases were commonly settled by ordeal. Various forms of torture were given. One example of this was compelling a suspected person to put his hand into a fire. It was generally believed that if the accused was innocent, then God would spare him. As far back as the 11th Century, groups of citizens were called in to give their opinion on certain matters, which include some disputes at law. In time, this led to the formation of the jury system, which is familiar to us today.

PROTECTION FOR AN ACCUSED PERSON

Criminal procedures are thrown into operation when a person suspected of having committed a crime is arrested. When a police officer wants to arrest a person, he must have a warrant. This is a court order signed by a magistrate, which authorizes a police officer to seize and search a particular person. A search warrant is required for searching the home of a citizen in cases where the latter refuses a search voluntarily. Awarrant is not required when it becomes necessary for an officer to seize someone in the act of committing a crime or running away when challenged.

After the arrest, the suspected person is taken to a police station where the charges brought against him are officially recorded. In extreme cases, the accused must be brought before a magistrate or a Justice of Peace within a period of time. He is permitted to consult his lawyer and if there is any doubt that he is being held legally, his lawyer can obtain a writ of habeas corpus. This requires that he be brought before a court at a stated time, so that a decision could be made regarding the legality or otherwise of his detention.

If the offence is of a minor nature, then the magistrate has the right to have a trial without jury. If the magistrate finds the accused guilty, he can pronounce sentence which may be a small fine or a short term in jail. The accused has the right to appeal against the sentences to a higher court.

In cases where the crime is considered to be a major one, the magistrate will conduct a preliminary hearing. The accused has the right to make his own statement. But he cannot be questioned in order to bring out additional evidence. If the magistrate finds that there is enough evidence to warrant trial, the accused is then bound over to another court. In the meantime, the accused in most cases, has a right to be on bail. This is the money that is deposited as a guarantee that he appears in court at the appointed date and time.

Usually two parties are involved in a criminal case — the State or the people and the defendant or the accused. The State is represented by the Public Prosecutor or his Deputy. If he decides to prosecute, then the State must present a bill of indictment in which the charges and evidence are specified. In cases involving death, the coroner may hold an inquest. This is a sort of trial with witnesses and jury to ascertain the cause of death.

Once an accused is brought to trial in a court, he is first asked by the Clerk (of Court) to state whether he is guilty or not. If he pleads guilty, the judge has the right to pass sentence there and then or defer judgment for further study. The judge cannot pass judgment in the case of crimes which are punishable by death, even if the accused pleads guilty. In cases where a plea of not guilty is returned, the judge will then allow both the prosecutor and the defence to prepare their cases. In some countries, the State appoints a defence attorney in cases where the accused cannot afford to hire one. Witnesses are notified to appear in court for the trial. Anyone who does not do so voluntarily gets asubpoena. This means that if the witness fails to obey the order given, then he may be charged for contempt of court and be punished.

THE JURY SYSTEM AT WORK

With regard to the more important civil and criminal cases, these are conducted at the provincial supreme courts. The accused is summoned to the court at the time set for the trial. As a mark of respect, all those present in the courtroom are expected to stand when the Clerk announces the arrival of the Judge. They remain standing till the Judge takes his seat.

The jury is carefully chosen and any member is liable to be questioned by the attorneys of both sides. If there is any possibility of bias, for or against the accused, then that member of the Jury is removed and a new one takes his place. This goes on

till both parties are satisfied with the jurors chosen. They are then sworn in and seated in court.

The proceedings begin when the prosecution opens its case. The witnesses are then called, one at a time, and sworn in "to tell the truth, the whole truth and nothing but the truth". The main aim of the prosecution is to prove the accused guilty while that of the defence is to free the client. Witnesses are cross-examined by both the prosecuting and defence attorneys. Any witness who tells a lie, under oath, is liable to be charged for perjury and sentenced. The cases for the defence and the prosecution end when they have done their best and summed up their cases before the jury.

The jury then adjourn into the jury room and then begin to consider all the evidence that they have heard. It is important that the jury must reach an unanimous decision. It is for this reason that the trial might drag on for days. Members of the jury are not permitted to discuss the case with anybody, except the Judge and that too in an open court. If a jury fails to reach a verdict within reasonable time, then it is said to be dead locked. A new jury will then be chosen, and a new trial begins.

When a jury has reached a decision, it returns to the courtroom, where the foreman announces the verdict. If the defendant is found "not guilty" he is set free and cannot be charged for the same crime again. If he is found to be guilty, the Judge may pronounce the sentence or he may postpone it. In fases of conviction, the defence can file in an appeal to a higher court, arguing that the trial was in some way unfair. The Court of Appeal may uphold the verdict of the trial court or order a new trial.

JUVENILE COURTS

In nearly all communities, young offenders are treated separately from adults. This is done to avoid giving to a child or teenage offender, the stamp of a criminal that may have an adverse effect on his whole future. Juvenile courts are staffed by judges or magistrates and probation officers who are especially trained. The purpose of the juvenile court is not to determine guilt and punishment but to understand causes and treat these youngsters who need help. It is only the most serious delinquents that are sent to reform schools and other such institutions. Most boys and girls are sent home to their families with no court record or any black mark against them. In this way, they are given another chance to better themselves and follow a new path.

In conclusion, it is therefore not difficult to see the steps and care that our courts take to ensure that justice is meted out to all. This is far different from the French system whereby the accused is guilty until he can prove his innocence.

Chapter 9

Government Administrative and Planning Machinery

All Federal Government policies are implemented through the various Ministries and Departments. They are the main instruments for giving effect to Government policy after Parliament has passed the necessary legislation.

As we have seen Malaysia has a Federal form of government with a bicameral legislature, residual legislative power resting with the states. The Malaysian Parliament consists of the Yang di Pertuan Agong and the Houses of Parliament (Majlis), known as the Senate (Dewan Negara) and the House of Parliament (Dewan Rakyat). The term of office of members of the Senate is 6 years and is not affected by the dissolution of Parliament. The maximum term in the House of Representatives is 5 years. Bills have to be passed by both Houses and assented to by the Yang di Pertuan Agong. A bill may originate in either House, with the exception of a money bill which may not be introduced in the Senate. A money bill which has been passed by the House of Representatives and which the Senate fails to pass without amendment within a month, is presented to the Yang di Pertuan Agong for his assent unless the House of Representatives directs otherwise. The Senate has the power to hold up for one year a bill which is not a money bill and which has been passsed by the House of Representatives.

The Malaysian Constitution can only be altered by two-thirds majority in each of the two Houses of Parliament.

AT STATE LEVEL

Each state has its own constitution, which must be compatible with the constitution of Malaysia. The constitution of all the states are similar. In the East Malaysian states there are certain differences in nomenclature, and these are also mentioned in the articles of those states.

In each of the states there is a Head of State. In 9 of the States of Peninsular Malaysia (the 9 which were originally in the Federated and Unfederated States) the Head of State is a Malay Ruler. The Malay Rulers are either chosen or succeed to their position in accordance with the custom of the particular State. In other states, the Head of State is appointed by the Yang di Pertuan Agong acting on the discretion but after consultation with the Chief Minister of the State. In Sabah and Sarawak the Heads of State are, known as Yang di Pertuan Negeri. They hold office for 4 years.

The executive authority in a state is vested in the Head of the State but he is advised by an Executive Council (Cabinet in Sabah and Supreme Council in Sarawak) in the exercise of his functions. The Executive Council is headed by a Chief Minister

Menteri Besar) who is a member of the State Legislative Assembly and who is likely to command the confidence of the majority of the Members of that Assembly. The Head of State is required to act in accordance with the advice of the Executive Council (or Cabinet or Supreme Council) except in certain matters. These exceptions include the appointment of the Chief Minister and the witholding of consent to a request for dissolution of the Legislative Assembly. A Malay Ruler may also act other­wise than in accordance with the advice of the Executive Council in matters which fall within his purview as Head of the Muslim Religion or relate to the customs of the Malays.

The Legislature of the State consists of the Head of Stale and one House known as the Legislative Assembly (in Sarawak the Council Negeri). The Legislative Assembly (Dewan Negeri) consists of a Speaker, elected members and members nominated by the Head of State. The maximum life of assembly is 5 years.

RELATIONS BETWEEN THE FEDERAL GOVERNMENT AND THE STATES

The division of legislative powers between the Central Government and tin: States is set out in a Federal List, a State List and a Concurrent List. Any matter not enumerated in any of the Lists falls to the States. The main subjects in the Federal List are external affairs, defence, internal security, civil and criminal law, citizenship, finance, commerce and industry, shipping, communication, education, health and labour. The most important general state subject is land. Some matters such as religion, language, immigration and citizenship are subject to special constitutional safeguards in their application to Sabah and Sarawak. The Malaysian Parliament may make laws with respect to any matter in the State List for the purpose of promoting uniformity of the laws of two or more states, and may legislate on any state subject if so requested by the Legislative Assembly at the State.

AT LOCAL LEVEL

Each of the 13 States of Malaysia has its own State Government to handle state affairs. In Peninsular Malaysia each state is divided into districts each under a District Officer. Each district is divided into Mukims (daerah in Kelantan), each under a chief called a Penghulu (Penggawa in Kelantan). Each village in the mukim has a headman called Ketua. Sarawak is divided into Divisions and Sabah into Residencies.

Under the Federal Constitution Local Government is a state matter, with the exception of the Federal Capital which is responsible to the Federal Government through the Minister responsible for Local Government. In accordance with a decision taken by the Government to restructure Local Authorities under Local Government Act, 1976, State Governments have restructured their Local Authorities to make them more financially viable units.

The Municipality of Kuala Lumpur attained City Status on February 1, 1972. On February 1, 1974, Kuala Lumpur became the Federal Territory responsible to the Minister in charge of Local Government.

MINISTRY OF LOCAL GOVERNMENT AND FEDERAL TERRITORY RESPONSIBILITIES

The Ministry of Local Government and Federal Territory is responsible for the following Departments and quasi-Government bodies:

1.Local Government

2.City Council

3.Civil Defence Department

4.Printing Department

5.National Archives

6.National Library

7.Fire Services

8.Town and Country Planning Department

Aims

(i)to equip urban and Local Council areas with facilities through minor develop­ment schemes for improvement of conditions in these areas;

(ii)to achieve uniformity of policy and co-ordination of laws pertaining to Local Government for the development and progress of Local Authorities;

(iii)to co-ordinate all activities and projects carried out in the Federal Territory especially those undertaken by Dewan Bandaraya (City Hall) Kuala Lumpur;

(iv)to act as coordinating agency especially in respect of matters and activities of various Departments in the Federal Territory;

(v)to upgrade the Fire Services especially in respect of fire prevention;

(vi)to organise, manage and maintain archives and national (Government) records and records of individuals and business personalities which will help Government officers and the public doing research and to provide assistance and advice to Government Departments on a systematic and economical method of record management;

(vii)to manage, develop and provide a complete collection of reference materials on Malaysia and its society and other materials consistent with the country's requirements; to receive all materials published in Malaysia and compile and publish a national bibliography; and to provide library services;

(viii)to organise and train volunteers for requirements in time of peace and war in order to minimise loss of property and lives resulting from natural disasters and enemy attacks;

(ix)to direct planning policy through technical advice and guidance to Federal and State Governments and quasi-Government bodies; and to co-ordinate and assist projects in the fields of town planning and soil-use;

(x)to improve general services in respect of publication service to Federal and State Governments and Statutory Bodies and to enable this service to become a medium for the dissemination of Government policies and laws to the public.

LOCAL GOVERNMENT

The main functions of the office of the Director General for Local Government are:

(i)to advise the Minister on policy formulation in all matters relating to Local Government and on the effective execution of policies laid down by the Minister and the National Council for Local Government;

(ii)to maintain close liaison with State Governments and to advise and offer guid­ance on all Local Government matters;

(iii)to advise and assist State Governments in the promotion, development and restructuring of local authorities under the Local Government Act 1976;

(iv)to assist in the modernisation of the Local Government System in respect of laws, management and administration through seminars, workshops, discussions and conferences held from time to time.

The Director General's Office is also responsible for the drafting, in consultation with Attorney General's Chambers, of all local government laws, by laws and amend­ments thereto. Contributions in aid of rates on Federal and State Government property in Local Authority areas are the responsibility of this Department. This Department also processes and co-ordinates development projects for inclusion in the Malaysian Development Plans either for direct financing or for loans financing.

City and Municipal Councils

The Municipal Councils represent the most highly developed system of local government in Malaysia. They are financially autonomous local authorities with membership (except Kuala Lumpur) either elected or appointed. These Councils are more independent in character and therefore do not depend on the State or Federal Governments like the other local authorities in the country. They recruit their staff, plan and under­take their activities within the framework of their income or revenue, subject only to control of the Federal Government in terms of legislation and national policies and State Governments in the approval of the Annual Budgets, staff establishment lists and by-laws. They seek Federal Government grants to finance major development projects.

The activities include public health, public works, town planning, public housing, public utilities, civic, cultural, sports and recreational facilities and, in the case of the Pulau Pinang Municipal Council, the provision of public transport.

Georgetown, Pulau Pinang, was granted the status of City Council on January 1, 1957. The City Council of Georgetown was administered by a Council of 15 With a Mayor elected from amongst the Councillors until July 1, 1966 when its adminis­tration was taken over by the Chief Minister. With effect from July 1,1974, the City Council was merged with the Rural District Council of Pulau Pinang in a restructuring exercise under the provisions of the Local Government (Temporary Provisions) Act, 1973. Since then, the local government administration has been run by a Board of Management comprising 24 members and a chairman, all appointed by the State Authority. The incumbent councillors ceased to hold office with effect from July 1, 1974. On January 1, 1977 the,status was changed under Local Government Act, 1976, to that of Pulau Pinang Municipal Council. Since then it has been run by 24 appointed Councillors and a President who is a public servant.

The Melaka Municipality became a fully elected Council on May 27, 1961 and was administered by a Council of 12 with a President elected from amongst the Councillors until its administration was taken over by the Chief Minister with effect from September 21, 1966. As from January 1, 1977 the Council was restructured under the Local Government Act, 1976. Its area of jurisdiction was extended from 4.2 sq. miles to 103 sq. miles covering the whole of Melaka Tengah District and is now known as Melaka Tengah Municipal Council.

The former Town Council of Ipoh was granted the status of Municipality on May 31, 1962 and was administered by a Council of 18 with a President elected from

amongst the Councillors. On July 1, 1975, the Municipal Council was restructured under the provisions of the Local Government (Temporary Provisions) Act, 1973 and a Board of Management was appointed comprising 22 members and a chairman. Four Local Councils, which existed within the former Municipality area but were outside its administration, were integrated with the restructured Municipality. Following the restructuring the incumbent Councillors ceased to hold office but were re-appointed by the State Authority to the Board of Management along with other new members.

On February 1, 1972 Kuala Lumpur was conferred the status of a city with a City Council administered by a Mayor appointed by the Yang di-Pertuan Agong. The Mayor was assisted by an Advisory Board consisting of four Senior Government Officers and three unofficial members appointed by His Majesty. On February 1, 1974 the Kuala Lumpur City Council limits were extended to cover an area of 94 square miles. It is now administered by a Commissioner who has been given the title of a Mayor (Datuk Bandar). He is assisted by an Advisory Board consisting of the Commissioner as Chairman, one official member, two persons appointed as members by the State Government of Selangor and eight other members appointed by the Minister responsible for Local Government. With effect from February 1, 1974 the Kuala Lumpur City Area was declared a Federal Territory.

In 1977, one new Municipal Council was formed under The Local Government (Temporary Provisions) Act, 1973 i.e. Johor Baharu Municipal Council and three were formed under the Local Government Act, 1976 i.e. the Seberang Perai Municipal Council, Petaling Jaya Municipal Council and Kelang Municipal Council.

Johor Baharu Municipal Council was formed on April 1, 1977. Its jurisdiction extends to 45 sq. miles and is run by a Board of Management comprising 24 appointed members and a chairman. Johor Baharu Municipal Council is a merger of Johor Baharu Town Board, Kangkar Local Council and Pandan Local Council.

Seberang Perai Municipal Council was formed on December 16, 1976 under the Local Government Act, 1976. It is a merger of three Local Authorities namely the District Council North, South and Central Province Wellesley. The present Municipal Council is run by 24 appointed Councillors and a President who is also a public officer.

Kelang Municipal Council was formed under the Local Government Act, 1976 on January 1, 1977 when its status was upgraded from a District Council to that of a Municipality. The present Municipal Council's area of jurisdiction is 23.5 sq. miles and the Council is run by -24 appointed Councillors.

The Petaling Jaya Municipal Council was created on January 1, 1977 when the Selangor State Government adopted the Local Government Act, 1976. The Council has an administrative area of 22.5 sq. miles.

Town Boards and Town Councils

Medium sized towns in the Peninsular were administered by Town Boards until 1950 when some were superseded by Town Councils.

When a Town Board is granted a constitution under the Local Government Elections Act, 1960, and at least a majority of its members are elected, it is styled a Town Council. At this stage, it remains a department of the State Government and does not become a financially independent body until it is granted financial autonomous status by the State Government.

Rural District Councils

Rural District Councils are found only in the State of Melaka, and form part of the local government administration. They were formerly called Rural District Boards. The Administration of Rural District Councils in Melaka was taken over by the State Government from March 1, 1972.

Local Councils

Local Councils in Peninsular Malaysia wore created as the result of the emergency when new villages which were created required local administration. They exist in towns and villages but vary considerably in size, depending on the size of the population. They have wholly elected chairmen and are financially autonomous. District officers have advisory duties but have power to disallow the Councils' budget and by-laws.

Local Councils operate simple forms of rating, but receive a considerable measure of grants-in-aid. They carry out simple local government functions, mainly in the fields of public health, development of communications and water supply and rely almost entirely on Government Departments for technical services and assistance.

District Council

The District Council in Peninsular Malaysia was created under the first restructuring exercise i.e. under the Local Government (Temporary Provisions) Act, 1973 when a few local authorities within one District were Integrated to form a District Council under the temporary act. The area of jurisdiction of the District Council does not go beyond the boundary of the former local authorities which were integrated. The District Council is being managed by an appointed Board of Management and a chairman. Under the act there were nine District Councils In Selangor, five in Kedah, three in Perak and twelve in Johor.

The Electoral System

The Local Authorities Elections Ordinance of 19!>0 was a turning point in the progress of local government in Peninsular Malaysia

In the case of Municipal Councils, it is laid down that the total number of elected councillors should exceed those nominated, excluding the President.

In the case of the Town Boards and the Rural District Councils, the Ordinance merely enables the State Authority to require that all, or a majority, of the members of the Board should be elected instead of appointed or nominated; where such an order was made, the Board concerned thereafter became a Town Council.

In 1960 a new system was introduced under the Local Government Elections Act whereby the life of a local authority other than a Local Council was fixed at three years, all members (whether elected or nominated) retiring simultaneously. The first elections under this new system were held in 1961.

In 1961 the Local Government Elections (Amendment) Act was passed whereby the provisions of the 1960 Act were extended to apply to Local Councils as well.

Until 1960 the organisation of elections in the Municipalities, Town Councils and Boards and the Rural District Councils was the responsibility of the State Authorities. The 1960 Act transferred this duty to the Election Commission.

As a result of Confrontation in 1963 all Local Council elections were suspended.

Appointment of Councillors under Local Government Act 1976

All Councillors serving in Local Authorities which have been restructured under the Local Government Act, 1976 (Act 171) are now appointed by the State Government under Section 10 of the Act. The number of councillors in each restructured local authority should be not less than 8 and not more than 24 excluding the Mayor (for City Countil) or the President (for District and Municipal Council).

Relationship with the Federal and State Governments

The legislative and executive power in local government matters lies with the State Governments. The Federal Government's power is limited to legislation for the purpose of ensuring uniformity of law and policy and the giving of technical assistance and advice on education and publicity.

National Council for Local Government

The amendment of the Constitution in 1960 provided for the establishment of a National Council for Local Government, with a Minister as Chairman, and one representative from each of the States and not more than ten representatives of the Federal Government. Its purpose is to formulate a national policy from time to time for the promotion, development and control of local government throughout Malaysia and for the administration of any relevant laws. i3oth Federal and State Governments are bound to implement any policy so formulated (Sabah and Sarawak are not required to follow such policy). It is also a forum in which projected local authority legislation is examined, and it is the duty of the Council to advise on any matter put to it by any of the State Governments.

Consultative Committee of Municipal Corporations

The Consultative Committee of Municipal Corporations is a loose association and its membership consists of three representatives from each Municipal Council.

The aim of this committee is to provide a forum where members would be able to exchange views on matters of common interest, to advise the Minister in charge of Local Government on all legislation pertaining to and/or affecting Municipal Corproations, and to bring up to the Minister problems faced by Municipalities and any other matters concerning such Municipalities and to recommend to the Minister ways and means of resolving such problems.

Restructuring of Local Authorities

Under the Local Government (Temporary Provisions) Act, 1973 a few local authorities have been restructured.

In 1976 the Local Government Act, 1976 was passed. The office of Director General is actively advising and assisting States to restructure their local authorities under this Act. The States of Pulau Pinang and Selangor which first restructured their Local Government Act, 1976.

The aim of the restructuring exercise is for the restructured local authorities to adopt not only the Local Government Act, 1976 but also the other Acts related to Local Government i.e. Town and Country Planning Act, 1976 and Street, Drainage and Building Act, 1974.

The Local Government Act, 1976 envisages the establishment of only two types of local authorities in future, namely, Municipal Councils for urban areas and District Councils for rural areas. All Local Authorities established under the provisions of the Act will be financially autonomous and all the members and the chairmen will be appointed by the State Authority.

CITY OF KUALA LUMPUR

Kuala Lumpur, the Federal Capital of Malaysia, comprises an area of 94 square miles. From a small mining post founded in 1857, it expanded and in 1880 became the capital of the State of Selangor. In 1895 when Perak, Selangor, Negeri Sembilan and Pahang merged to form the Federated Malay States, Kuala Lumpur was selected as the capital. It was also the capital of the Federation of Malaya in 1948. Its status as capital of the nation remained unchanged with Merdeka in 1957 and later the formation of Malaysia 1963. The population is estimated at 800,000.

Administration

Under the Federal Capital Act, 1960, the administrative control of Kuala Lumpur was transferred from the Selangor Government to the Federal Government. The Act came into force on April 1, 1961, when the Municipal Council was dissolved and Municipal affairs were administered by the Commissioner of the Federal Capital of Kuala Lumpur.

The City of Kuala Lumpur Act, 1971 conferred the status of a city on Kuala Lumpur with effect from February 1, 1972.

The Datuk Bandar (Mayor) is the head of the City Administration and is assisted by an Advisory Board consisting of official and unofficial members. The Datuk Bandar is subject to the direction of the Minister of Local Government and Federal Territory.

The Federal Territory was established by an amendment to the Federal Constitution — vide the Constitution (Amendment) (No. 2) Act, 1973 which took effect from February 1, 1974. The City limits have been extended from 36 square miles to 94 square miles to give the city its special position as the National Capital of Malaysia, reflecting the interests and identity of the whole nation.

The Advisory Board comprises the Chairman, Datuk Bandar of Kuala Lumpur, the Secretary-General to the Ministry of Local Government and Federal Territory and ten Unofficial Members.

TOWN AND COUNTRY PLANNING

The Federal and State Governments are jointly responsible for all Town and Country Planning in Peninsular Malaysia.

Functions

The Department of Town and Country Planning is responsible for the overall direction of planning policy with technical advice and assistance to the Federal/State Govern­ments.

Its functions include the following:

(i)advice to the Minister of Local Government and Federal Territory, Government Departments and statutory bodies with regard to planning at national level;

(ii)preparation of national planning legislation and organisation of the planning service;

(iii)assistance in the preparation of State and Regional plans;

(iv)planning advice to the National Development Committee and other central agencies in conjunction with National Development;

(v)assistance in co-ordination of Federal Ministries and Departmental projects in the field of urban and land-use planning;

(vi)assistance in the preparation of regional settlement pattern plans;

(vii)planning service to the Ministry of National and Rural Development for opening up land development schemes in rural areas, and the preparation of plans of new townships;

(viii)assistance in the development of Universiti Kebangsaan (National University) and Universiti Pertanian (Agricultural University);

(ix)research and publication of studies;

(x)assistance in landscape design, civic design and traffic studies for major town centres in support of urban planning.

Regional Planning

In 1977 the Regional Planning Division carried out the following:

(i)Regional study and development of Johor Barat;

(ii)Feasibility study on the planning and development of Negeri Sembilan;

(iii)Planning service to Trengganu Tengah Development Authority;

(iv)Regional and implementation study in Johor Selatan;

(v)Extension of planning service on Johor Tenggara and on the regional study of Melaka; and

(vi)Monitored regional and development study on Kedah and Perlis.

Urban Planning

The main function of this division is to assist the State and Local Governments in the development of towns in Peninsular Malaysia.

This division completed a report on "Implementation of the New Economic Policy in urban areas, Vols. I & II" Planning briefs for the city of Kuala Lumpur and nine towns were completed.

Rural Planning

In 1977, this division prepared 9 town plans for the Federal Land Devleopment Authority.

Apart from rendering planning service and advice to the Federal Land Development Authority and other local authorities dealing with rural planning, this division reviews and assesses the effectiveness of planning that had been carried out, especially in regard to social services.

Special Planning Unit (Pahang Tenggara)

By 1977, the bulk of the Pahang Tenggara New Town Master Planning Program had been completed and detailed development plans prepared to permit implementation of 10 of the 36 proposed New Towns of the Region.

Detailed site plans were prepared to enable Government Agencies to develop their facilities and services in the earlier towns. A change in land allocation policy In FELDA also created the need for layout plan amendments in the FELDA towns in the region.

A further master plan was also completed for Town 2 and preliminary studies weir carried out to enable master plan preparation for another 4 towns.

Research and Training

About 150 sub-professional officers received training during 1977.

This division completed the following reports:

(i)Squatter settlement in Kampong Pandan.

(ii)An Explanatory brief on the Town and Country Planning Act, 1976.

(iii)"Town Planning — in Brief".

This division also analysed data on the Physical Socio-economic Study of Fishermen's villages in Kuala Kedah, Kuala Perlis and Tanjung Dawai.

State Departments

The functions of State Departments include planning of land use and control of development in accordance with State and National policies; preparation of structure plans for new and existing towns and village and detailed layouts for housing estate development; and advising and assisting in the planning and development of State projects such as industrial estates, low cost housing schemes and general housing projects, development of tourism within the state, planning of open space and National Parks, land reclamation and development of transport and generally areas for urban development.

PUBLIC SERVICES DEPARTMENT (PSD)

The PSD is the central personnel agency of the Government and is responsible for the formulation and implementation of all personnel policies relating to the management of employees in the Public Sector agencies. These policies relate to the terms and working conditions of Government employees, their career development such as transfers, postings, promotion and training, discipline, superannuation and other fringe benefits, and other matters relating to employee welfare. It is also responsible for salary administration and "establishment matters" namely, the creation, evaluation and classification of posts for the public sector agencies and the determination of tho scheme of service, i.e. the qualifications and other requirements relating to tho recruitment and promotion of employees in their respective cadres. It is NOT responsible for the actual process of recruitment as this is purely the responsibility of the Public Services Commission (PSC).

The PSD comprises a number of divisions and they perform various specialised functions:

1.Service Division. It is responsible for the overall management, recruitment, placement, promotion and discipline of Government officers within the "Common User Services". These comprise the Administrative and Diplomatic Service, the General Administrative Service, the Executive Service, the General Clerical Service and other categories of personnel.

The Division formulates and supervises the implementation of public service personal policies governing appointments, promotions, discipline, secondment, and termination of service for the public sector. It is also responsible for administering a number of compulsory government examinations for various categories of staff at various levels. It is responsible for the management of the Central Staff Records, established in the middle of 1977, to centralise data on all Government employees.

2.Pensions Division. This Division is responsible for the administration of laws governing the award of pensions, gratuities and retiring allowances including widows' and orphans' pensions, workmen's compensation and other superannuation benefits to which mambers of the Public Services, the Judiciary, the services commissions and Members of Parliament are entitled. The Division also provides advisory service on policy matters affecting superannuation benefits to members of the Armed Forces.

3.Training and Career Development Division. This Division controls and sponsors training programmes in the civil service to ensure a sufficient supply of skilled and semi-skilled manpower for Government departments.

4.Establishment Division. It is responsible for the following functions:

(i)staffing requirements and control of establishment matters by way of deter­mining types, grades and number of posts required within the Government Service;

(ii)inspection of organisations, systems and procedures of Government agencies to ensure their effectiveness with a view to increasing efficiency within the Government machinery;

(iii)formulation and review of schemes of service and examination syllabi, deter­mination of terms of absorption and contract for appointment to the Govern­ment Service;

(iv)evolution and recognition of qualifications for appointment to Government Service.

5.Pay and Allowance Division: It is responsible for the formulation and implement­ation of principles affecting wages and allowances for employees in the public sector including Statutory Bodies, Local Authorities, Army and the Police. The Division ensures that the principles concerning pay are formulated and implemented uniformly and fairly.

6.Consultation Division. This Division comprises two units: Unit A carries out consultation regarding anomalies submitted by the Public Services staff and Unit B carries out consultation regarding anomalies submitted by the staff and associations from the Statutory Bodies, Local Authorities and Education Service.

From the above discussion it is obvious that the PSD is the nerve centre of the civil service. It is responsible for all establishment and service matters subject only to overall approval by the Treasury in matters which have financial implications. Together with the Treasury, which is responsible for financial control, the PSC which is responsible for recruitment and the Development Administrative Unit of the Prime

Minister's Department, which is responsible for research, the PSD controls the size and well being of the entire Civil Service.

PUBLIC SERVICES COMMISSION

With the exception of the High Court Judges and the daily rated employees, all appointments and promotions in the civil service are made by the PSC. The Commission is divided into 4 divisions: (i) General Administration and Finance, (ii) Recruitment, (iii) Service, and (iv) Promotion and Discipline.

Chapter 10

Government Ministries

All Federal Government policies are implemented through the various Ministries and Departments. They are the main instruments for giving effect to Government policy after Parliament has passed the necessary legislation.

In a book of this nature, it is not possible to examine all the Ministries and Depart­ments. Hence, in this chapter, we look at three Ministries Ministry of Law and Attorney Generals' Chambers, Ministry of Culture, Youth and Sports, and the Ministry of Education. In the next few chapters, a few more Ministries are examined.

MINISTRY OF LAW AND ATTORNEY GENERAL'S CHAMBERS

The Minister of Law and Attorney-General acts in many capacities. He is the Public Prosecutor responsible for the prosecution of all criminal offences; the Legal Adviser of the Government in all its branches; the advocate of the Government in the Courts; the Draftsman of all legislation; the official leader of the local Bar; and also the guardian of public rights. As Minister and Attorney General he is responsible for the following Departments;

(i)Ministry of Law and Attorney General's Chambers,

(ii)Public Trustee, Official Administrator and Custodian of Enemy property

(iii)Official Assignee,

(iv)Legal Aid Bureau,

(v)National Bureau of Investigation, and

(vi)Narcotics Bureau.

Some of his political duties and responsibilities are delegated to a Deputy Minister of Law. The Chief executive of the Ministry of Law is the Solicitor-General. He performs the dual duties of the Chief Adviser in all legal matters as well us tin¹ Administrative Head in the Ministry. Under the law, the Solicitor-General may exercise any power and perform any duty that the Attorney-General is authorised or required to exercise or perform.

The principal functions of the Public Trustee are:

(i)Administration of estates of deceased persons

(ii)Administration of trusts

(iii)Officiating as Trustee of Unit Trusts

(iv)Executor of Wills.

The Official Assignee Department deals with the administration ol the estates of debtors and bankrupts. The aim of the Bankruptcy Law is twofold to distribute the effects of the debtor in the most expeditious, equitable and economical way and to free him from the demands of his creditors after he has made a full surrender of his entire property. I ho main object of the law is to protect the interests of both creditors and debtors.

The Legal Aid Bureau aims to

(i)provide for a social need lacking in the past, and

(ii)strengthen further the application of the legal maxim' equality before the law'. Eligibility for legal aid is determined by a Means Test and every applicant for legal

aid is required to make a statutory declaration as to his income and property. The primary objective of the service is to provide Legal Aid and Advisory Service to the poor on most legal problems affecting them.

The National Bureau of Investigation was establised in 1973 to replace the former Anti-Corruption Agency. Its function are:

(a)to investigate and prosecute offences under the Anti-Corruption Act, 1974. Under this Act the Bureau posseses powers to investigate, detain and prosecute any person, without exception, including Members of Parliament, Members of State Legislative Councils and public officers. The Bureau is also empowered to investigate and inspect any bank accounts and the accounts of any person who is under suspicion of corruption, and to call upon any person to make a sworn declaration of his property or family possessions.

(b)to investigate and prosecute offences under other prescribed laws viz. Penal Code, Customs Act, etc.

As a preventive measure the NBI will not hesitate to recommend to the Heads of the Department concerned, if it finds that the officer involved in any alleged corrupt practices or malpractices cannot be prosecuted in court for lack of evidence, to take appropriate disciplinary action against him for contravening Government Code of con­duct and discipline. Disciplinary action includes:

warning,

(i)reprimand,

(ii)fine,

(iii)forfeiture of salary,

(iv)withholding of increment,

(v)stoppage of increment,

(vi)deferment of increment,

(v)reduction in rank,

(vii)termination of service,

(viii)dismissal.

The NBI is not only an ordinary investigation department but an organisation which provides a positive service to those who are being victimised by the corrupt-practices or misdeeds of those in power. The existence of the NBI is the result of the determination of the Government and the people to have an investigation body which is independent, just and impartial. Although only a minority of the people are prosecut­ed for corruption offences, it does not mean that people should be complacent and treat the problems of corruption lightly, especially in high places. The people must be made to realise all the time that corruption can never be accepted as a way of life although it may help them sometime in order to get things done quickly.

MINISTRY OF CULTURE, YOUTH AND SPORTS

This Ministry strives to achieve the aims and objectives of the New Economic Policy of the Government by promoting national unity among the races through social and economic integration, by fostering a stable and just society win constantly filled with a sense of dedication to the principles laid out in the Rukunegara and to instil a national consciousness among the people so that an identity of its own could be moulded through frequent intermingling and interaction in all kinds of cultural youth and sports activities.

The Ministry's 4 main divisions are Administration, Culture, Youth and Sports. The Administrative Division ensures the efficiency, progress and coordination of the Minis try as well as provides its physical and manpower requirements.

The Culture Division is responsible for the implementation of Government policy on National Culture based on the following guidelines:

(i)The National Culture must be based on the culture of the indigenous people of this region.

(ii)suitable elements from other Malaysian cultures which are found acceptable could be infused in the National Culture—Islam to be an important element in the creation of a national culture.

The objectives of the Culture Division are:

(i) to strengthen national unity through National Culture

(ii)to promote and sustain national identity which comes from the National Culture

(iii)to enrich and upgrade the quality of human and spiritual life, in line with socio­economic developments

(iv)to create international understanding by participating in cultural activities and introducing the Malaysian identity to the World Community.

The objective of the Youth Division is to raise the standard of youths so as to make them economically progressive and socially cohesive and to promote goodwill and solidarity among youths of all races.

The objectives of the Sports Division are:

(i)to evolve a dynamic, healthy and active society in the process of nation building through participation in sports and recreation;

(ii)to enhance Social harmony and goodwill among the various Communities so as to build a united nation;

(iii)to better the standard of sports of the country and thus enhance the image of the country through sports.

MINISTRY OF EDUCATION

Objectives of Education

According to the Third Malaysia Plan (1976-80) the main objectives of education and training are:

1. strengthen the educational system for promoting national integration and unity through;

(i)the continued implementation, in stages, of Bahasa Malaysia as the main medium of instruction at all levels;

(ii)the development of personality, character and good citizenship and the promotion of moral discipline through curriculum and extra-curriculum activities;

(iii)narrowing the gap in educational opportunities between the rich and poor, and among the various regions and races in the country, through a more equitable distribution of resources and facilities; and

(iv)the eventual integration of the educational system in Sabah and Sarawak into the national system;

2.the orientation and expansion of the education and training system towards meeting national manpower needs, especially in science and technology;

3.the improvement of the quality of education in order to reduce wastage and increase its effectiveness for nation building; and

4.the expansion of the research, planning and implementation capacity to meet the above objectives.

It is obvious from the above objectives the education and training system has a multi functional role to play in the creation of a society based on the principles of the Rukunegara and the realization of the objectives of the New Economic Policy. The overiding objectives is national integration and unity.

HISTORY OF EDUCATION IN MALAYSIA

When the British established the Straits Settlements, the Malay Peninsula was very thinly populated and large areas were completely uninhabited. The mass migration of Chinese to the Peninsula resulted in the population of Singapore and Penang reaching about 60,000 each at about 1860; As for the Malay states, the Bumiputra population could be roughly estimated at about 30,000. They settled mainly in the padi growing areas of North Perak, Kedah, Perlis and Kelantan.

The population figures underwent a great change with the extension of British influence. The resultant development witnessed the influx of immigrants from China, Indonesia and India. In addition to the above, the Siamese Malay states came under British protection in 1909, and the population figures increased to roughly 2'A million. The population then increased at the rate of about a million per decade and stood at about 5 million when the Japanese attacked in 1941.

The most notable feature of the population was not its rate of increase or numbers, but its racial composition. Made up of the three main races - the Malays, Chinese and the Indians, it was "plural" in character. In a plural society, it is normal for the racial divisions to coincide with economic functions. Though this was only true to a certain extent, these economical division of functions was not rigid because the different racial groups did not live in water-tight compartments. While each group had its own characteristics and natural preferences, the search for employment resulted in some contact between the various races. The steps taken in the educational advancement of the people must be appreciated against the problems created by a pluray society. This meant that 4 different types of schools had to be established at least at the primary level.

Broadly speaking, we can divide the history of education in Malaysia into three main periods:

(i)Pre-war period under British administration.

(ii)Period of post-war Education (1945-65).

(iii)Education since establishment of Malaysia.

1. Period under British Administration (Pre-1941)

(a)Malay Education

The first Malay school was opened as a branch of the Penang Free School in 1816. It is the Glugor Malay School, which is still in existence today. In addition to this,London Missionary Society opened a number of Malay Schools. Some of these schools functioned till 1847, when the society withdrew its mission.

Munshi Abdullah mentions a number of Koran schools that were functioning during his period. The education in these schools was only religious, and the boys had to learn the Arabic verses of the Koran by heart. The reverent Mr. Keasberry helped Malay education greatly by printing a Malay reader and a book on arithmetic. By 1860, Koran schools were not given grants unless they taught Arithmetic, Writing and Reading in addition to religious education. In time these Koran schools developed into the Government Malay Schools.

The training of Malay teachers was begun in 1878, when a one-year course was started for teachers in the Straits Settlements. The course was extended over two years in 1901, at a training college opened at Malacca. Twelve years later (1913) another such college was opened at Matang, in Perak. In 1922, as a result of a report made by Sir Richard Winstedt, the Sultan Idris Training College was opened. It provided a three year course of training. Teachers from Sarawak and Brunei were also trained in this college.

The Winstedt report brought other changes in Malay education. A basic school course of four years was fixed. Later this was increased to six years. After the fourth year, the Malay student could enter an English school.

At first, Malay parents were opposed to the education of girls. Probably the tradi­tional Muslim seclusion of women was responsible for their attitude. However, a gra­dual change took place. A Lady Supervisor of Malay Girls' school was appointed as a result of the Winstedt Report. This brought an improvement in the education of Malay girls.

In 1935, a teachers' college was opened in Malacca, which provided a two year (later a three year) course.

(b)Chinese Schools

From the earliest days, Chinese schools were established wherever there were Chinese children. They were owned and maintained by the Chinese community. The syllabus they followed were the same as the ones used in China. It was only after the 1911 Revolution in China that the syllabus taught in Malayan schools was changed.

The national language, Kuo-Yo was adopted as the medium of instruction. The school course also underwent a lot of changes. Children attending Primary school had to go through a six year course Lower Primary (4 years) and Upper Primary (2  years). This was followed up by a Junior Middle course of three years. Later a Senior Middle (3 years) course was introduced.

One of the problems confronting Chinese schools from the beginning, has been the supply of teachers. At first, teachers were recruited from China. Later Normal classes  for the training of teachers, based on the traditional Chinese pattern, were started with Government aid. This orientation towards China failed to produce a Malaysian outlook among the children.

Efforts were made by government to remedy this situation. Only lately the gover­nment started a scheme based on the English pattern a two-year course being introduc­ed for students who had passed the Junior Middle School.

English was taught in Chinese schools after the First World War. The standard, how­ever, was not very high. The Government began to make grants after 1924. These were to be used for a variety of purposes, including teachers' salaries and the erection of new buildings.

The interest the government took in Chinese schools resulted in great changes. New books with a Malayan outlook were introduced; the syllabus was revised; and for the first time a regular pay scheme for teachers was introduced. This was in 1952, a year which also saw the begining of the teaching of Malay in Chinese schools.

(c)Indian Schools

Indian schools are for the most part Tamil schools. Although there are a few schools in which Malayalam, Telugu and Punjabi is the medium of instruction, the majority of Indian schools use Tamil. Like the Malay schools, the first Tamil school was attached to the Penang Free School. In Malacca, the Anglo-Tamil School (run with Government aid) was founded in 1850. It existed for only ten years.

The real begining of Tamil education in the country begins with the introduction of Tamil labour. Schools were started on estates in Province Wellesly, Malacca, North Johore and other parts of the country. Under the Labour Code of 1912, estates were required to provide a school, if there were ten or more children of school going age,

i.e. seven to fourteen years. A small grant was given by goverment to help in the main tenance of this school.

In 1930, a British Inspector of Tamil schools with a knowledge of Tamil was appointed. The curriculum was widened and orientated to meet Malayan needs. Train­ing courses for teachers were also initiated. The post was abolished during the depres­sion.

(d)English Education

The first English school in Malaya (and South-East Asia) was founded by the Rev. R.S. Hutchings on 21st October 1816. This was about thirty years after the foundation of Penang. It was called the Penang Free School. It was free in the sense that pupils of all races and religions could attand it. Fees were charged, but free places were also provided. A section for girls was opened, but this was forced to close in 1851. The school was aided financially by the East India Company and contributions from the Church. It came under government control in January 1920.

After the founding of Singapore, Raffles invited Hutchings for consultations, and plans were made for the establishment of a school. In 1837, the Singapore Free School (Raffles Institution) was declared open. The contribution made by Raffles to educa­tion was very important. He was the first to formulate an education policy for Malaya, although the policy adopted later fell far short of the expectations of its founder.

Slowly following the pattern of the Penang Free School, other institutions were established in the Malay States. The most well-known of these are the Malacca High School, the King Edward VII School of Taiping, and the Victoria Institution of Kuala Lumpur.

In addition to these government controlled schools, English schools were established by the various missionary societies. Their work in the field of education might be assessed from the fact that before the First World War, more than seventy-five per cent of the boys receiving an English education were attending Mission schools. With the increase in the number of government schools, this percentage has fallen, but even to­day, nearly half of the students are in these schools. There are also numerous private schools, run by the Missions or by individuals.

The first school for girls was established as u part of the Penang I rue School. How­ever, it was closed in 1851. In due course, the Raffles Girls' School was started in Singapore. As far as Malaya was concerned, the attitude to the education of gills was discouraging. After years of hard work, this attitude was changed and girls began to attend school. In this field, schools established by the Convents of the Holy Infant Jesus and the Methodist Mission have done good work.

As far as the government schools are concerned, the St. Geroge's Girls' School of Penang is one of the biggest of its kind. It was taken over by the Government in 1910 Schools for girls run by the government are now established in every state.

In 1905, the Malay College was founded at Kuala Kangsar. Its main aim was to encourage English education among Malays. After this education, the pupils were absorbed into, the administrative service of the country. The College has more than fulfilled its aim and today the administration of the country is in the hands of many pupils who received their education there.

A college for girls, parallel to the Malay College, was to have been established in 1942, but plans were interrupted by the Japananese invasion. It was only in 1974 that the Malay Girls' College at Kuala Lumpur was started.

(e)Higher Education

In 1905, the King Edward VII College of Medicine was started in Singapore. To provide for higher technical education, the Teacher Technical School was opened in Kuala Lumpur in 1906 to train technical assistants for the Railways, Public Works and Survey Departments. It was named the Technical College in 1942.

Raffles College in Singapore was started in 1928 to provide higher education in arts and science and teacher training. In 1931, the College of Agriculture was established at Serdang (Selangor). In 1949, the Medical College and Raffles College were fused into a University College.

(f)Teachers' Training

The training of teachers was begun in 1905, when an experimental course was given for teachers in Kuala Lumpur. As a result of this, a two year Normal course was begun two years later. In 1918, selected local teachers were sent to the University of Hong Kong on scholarship. This practice was stopped with the establishment of the Rallies College in 1928.

With the increased demand for education in the post war period, Teachier Training Colleges were taken over at Kirkby and Brinsford Lodge in England Another college was established in Penang.

In addition, the Diploma-in-Education course begun by the University of Malaya increased the output of graduate teachers.

2.Period of post-war Reconstruction (1945-65)

While the country was still under the occupation of the Japanese, Britain made plans as to the education set-up that would be introduced when the country got rid of its Japanese occupation. The political set up was being organized so as to unite the Straits Settlements; the Federated Malay States and the Unfederated Malay States. It was therefore natural that the education planning should also follow suit because the time was ripe for a unified system of education. The division of children into different types of schools during the pre-war, only helped to promote cooperation among different races as children from various communities studied under one roof. This was a first step towards the promotion of one nationality which the government was making its main aim.

The place where the base for the above could be laid was the schools. But apart from the English-medium ones, where Malay, Chinese, Indian and other pupils studied together the rest were communal. Thus the first requirements was "a unified system of

equality". The result of this was that in 1950, a commission of enquiry under I  I.

Barnes who was Director of Social Training, University of Oxford, was set up "to enquire into the adequacy or otherwise of the education facilities available for Malays" etc.

(a)The Barnes Report

Before we refer to the report that Barnes made, we must remember that the British were in a way surprised as to the manner in which the Malays had become awake poli­tically. Dato Onn bin Jaafar had formed the UMNO and openly rejected the Malayan Union Proposal that the British had made on their return. But even more important than the above, the British Authorities were surprised at the unity which was shown by the 3 main races of the country.

By this policy, the British would take a minority party under its way and secretly give it all the help, but on condition that party went against everything that the majo­rity party wanted. A good example of this is India which was ultimately divided into India and Pakistan. The Muslims of India were given a separate homeland though there are still 35 million living in India. They could easily have lived together in India as they had been living for centuries. But British divided the country, so that the Indians and Pakistanis would ever be at war and thus give them the chance to take advantage of the situation. In Malaysia however and fortunately for us, they were not able to "divide and rule" because the Malays, Chinese, Indians and the rest all showed a sense of unity of purpose.

Under these circumstances, Barnes recommended that this budding feeling of national unity must be begun when the children are studying and growing up in prima­ry schools. Thus education must be changed from the racial set-up of the pre-war days and geared into base which is inter racial. This will thus give the idea of unity right from the beginning to these young and growing minds. An thus he advocated the set­ting up of National Schools.

The schools were to be bi-lingual and all pupils had to learn English and Malay for a six-year course. After this the brighter ones were to be sent to Post-Primary classes, in which the medium of education was to be English for a six-year period and free for all. We can thus say that the main result of the Barnes Report was the creation and establishment of National schools.

The next step was taken in 1951 when the government appointed 2 Chinese educators,. Dr. Fenn of America and Dr. Wu of the United Nations. Their job was to find out how the scores of chinese-medium schools in the country could be made trilingual, with Chinese as the optional subject. They were also to try to transform Chinese education from its Chinese background to a Malayan one.

(b)The Act of 1952

The main results of the basis mentioned above were as follows:

(i)National Schools were to be set up.

(ii)Teaching was not only to be in Malay and English but also in Chinese and Tamil as the third language.

Things were just moving, when the High Commissioner Sir Henry Gurney was shot in October, 1951. Everything was just put aside temporarily. Things began to move only when a new Alliance Government, headed by Tunku Abdul Rahman took office, and Dato (Later Tun) Abdul Razak became the first Education Minister. In April, 1956, the first report (the Razak Report (1956) was issued to form the base of the Education policy of an independent Malaya. We will read a detailed account of it below.

SARAWAK

From the beginning, the Brookes followed a deliberate policy of discouraging foreign investment in Sarawak. It was this policy that slowed the development of its educa­tion and medical services. Another reason for the above was the lack of sufficient revenue. And to remedy this situation, the Brookes relied heavily on the Christian Missions for both their educational and medical services. One precaution that the Brookes took was that they allocated separate areas to the different missions so that they would not conflict with each other or confuse the simple people, whom they might attract. The missions were not to preach to the Muslims who had a special place in the Brooke political system. Their activities amongst the Dayaks were also watched with some suspicion. Raja Charles in particular respected the Dayak traditions as they stood and feared that missionary influence would probably do more harm than good Nevertheless the Government was quite satisfied to leave the missions on their own

As far as the medical services are concerned, the missions ran hostels where sick people were cared for. As for the Government, its record as far as medical services are concerned was a poor one. The hospital and dispensary at Kuching did not even have a nurse till 1870, two years after the beginning of the reign of Raja Brookn I. Even the hospital relied on voluntary assistance for many years after. Sibu did not have government hospital until 1913.

The situation was slightly better as far as education was concerned. When Raja Brooke began his reign, the children of Malay Chiefs were receiving some religious education when the officials of the mosque taught the children to recite the verses of  the Koran in Arabic and write Malay in the Jawi script Malay primary schools were built, especially after 1883, but their standards were low.

As for Chinese education, schools were built and run by the Chinese community wherever there were Chinese children. But as In Peninsular Malaysia, the education given was geared more to China than to local life. The teachers were recruited in China and the curriculum they followed resulted in the development of Chinese rather than Sarawak nationalism. Together with the schools that were run by the Christian missions, 21,400 children were attending schools in 1940. Of these 16,000 were Chinese; 4,000 Malays, and 1,400 native children. This imbalance was more marked at the higher levels because very few Malays or natives received secondary education. The main reason for this was that as the Chinese lived in towns, they were better placed to make use of the educational facilities that were available.

One of the reasons for the backwardness of education in Sarawak was the attitude that the Rajas themselves adopted towards education. The Brookes were not concern­ed about education and Raja Charles doubted the value of education in a land like Sarawak. They argued that Sarawak would not be able to provide the jobs for which these educated people would be trained. At the same time education would result in their being dissatisfied with their traditional way of life. An educated Chinese could find employment in the towns and yet be with his community. This would not be true in the case of a Dayak who would be separated from his community and his culture. All said and done, the Brookes could see no purpose in educating the rural population.

It was only just before the Japanese occupation that the Government began to change the above attitude. We have read about how Raja Vyrna Brooke was not very keen to rule as an autocrat like his father but had begun to hand over the administra­tion to his officers. This meant that the administration was taking a shape in which his Malay-educated officials would become misfits, because they could not read and write English which was the official language.

It was during the 1930's that a change was coming into the social status of the Iban. Resistance to the Raja's government had almost ceased and the Ibans were no longer needed as warriors. Another role had to be found for them. The problem was touched upon by the Blue Report of 1935 which recommended the employment of Dayaks as Native Officers. This was followed by the Hammond Report on Education in 1938 which recommended that Government provide education for Dayaks. By 1940, the first Government school was established, patterned on the schools that were already availa­ble for the Malays. It was the arrival of the Japanese which halted the experiment before it could show results.

No one can doubt the sincerity of the Brookes when they doubted the value which an elaborate education system would have on the Dayak. That the policy the Gover­nment had followed was to act against the long-term interests of the Dayaks and the other native people of Sarawak was illustrated when the Japanese occupation came to an end. As Sarawak progressed towards self-government, the Dayaks were at a sad dis­advantage in the competition that followed for positions and in the administration of their own country.

SABAH: System of Education

The story of education in Sabah followed a different pattern than that followed by the Brookes of-Sarawak. The initial step was taken by Teacher when he persuaded the Imam of Sandakan to build a mosque and a school. At the same time, Pryer built a school for Chinese and Muslim children at Sandakan in 1886. Both these attempts failed. It was the Christian missions that were to achieve success in the schools that they founded.

The first of these was opened in Sandakan in August 1887 by the Roman Catholic mission and was followed by one established by the Reverend W.H. Elton of the Protestant Mission. An Education Department was established in 1909 and it began by subsiding the 23 mission schools that were functioning by 1913. This subsidy was first granted in 1911 to all mission schools considered suitable at a rate of $1.50 per student each half year. The grant was continued at the same rate for schools teaching in Chinese, Kadazan or Malay but was increased for schools teaching in English.

In 1915, the Government opened a Malay-medium school for the sons of native chiefs whose ages ranged from 9 to 25 years. The school did not seem to have been popular till 1923 when religious instruction in the Koran and English was introduced. The school, however, did not serve the purpose for which it was established because the students preferred clerical positions in towns rather than return to the interior to succeed their fathers. The school thus closed in 1930.

It was in 1921, that the Government decided to participate in the field of education rather leave it entirely in the hands of the missions. It began by establishing the first Malay primary school and by 1930 there were ten such schools catering for about 400 students. It was obviously clear that interest in education was picking up amongst the indigenous people. In 1935, the chief of Truaran asked that a school be built in his village. Soon after the Government reformed the school system and new schools were established. So much so that by 1941, there were 28 Government schools in which 1663 male pupils were receiving their education. A proposed school for girls was not established because of the Japanese invasion. The first Chief Inspector of Schools was appointed in 1913. It was his duty to supervise the schools which were watched over by the District Officers.

The Sabah school system owed much to the one operating in Peninsular Malaysia. The curriculum and syllabus was based on the one that operated in the Peninsular. R.O. Winstedt, whose name has been legendary as far as education in Peninsular Malaysia is concerned, took a personal interest in the education in Sabah. He provided the syllabus for vernacular schools and permitted the training of Sabah teachers at the Sultan Idris Training College at Tanjong Malim. By 1940, 11 of the 53 vernacular school teachers for Sabah had been trained at the college, in 1939, the Government now strongly committed to its own schools, decided not to increase grants to the missions, which by 1940 had established 52 schools with almost 400 pupils. Chinese who formed the bulk of the urban population benefited most from the higher levels of education which mission schools offered.

As far as Chinese education was concerned, the story followed the same pattern as elsewhere in Sarawak and Peninsular Malaysia. They established their own school wherever they settled, inspite of receiving no subsidy from government. In fact the Chinese were not prepared to accept the subsidy because with it would come control and supervision. By 1940, there were 59 Chinese schools with about 5,00. The schools provided a 4-year course with, in some cases, a further 2 years in English. There curriculum and syllabus were similar to that used in China, from where most of the teachers were also recruited. Government control of Chinese schools did not extend beyond banning certain anti-British text books.

By 1940, the situation as far as education in Sabah was concur nod was not very encouraging. Only a minority of school going children were actually attending school.

The missions (Roman Catholic: Anglican and Lutheran) were not in the financial posi­tion to open schools in sparsely populated areas outside the main urban areas. But they did provide education up to secondary level, for which the missions should be commended. But it was the Government that was not living up to its responsibility. Setting aside the rural areas, Government efforts in urban areas were half-hearted. No efforts were made to co-ordinate the various types of schools. The vernacular schools were elementary and there was little incentive for native children to continue their education. The attitude of Government towards education can be judged from the fact that only 2% of all Government expenditure was directed towards education, which was considered of minor importance. Sabah was thus left ill-prepared for the rapid changes which occurred after the Japanese occupation.

THE RAZAK REPORT (1956)

The implementation of the Laporan Fenn-Wu (1952 Act) hit a snag as the country was passing through the Emergency which cost the government $300,000/- per day. The political situation changed in 1955 when the Alliance Government swept itself into power.

One of the important points to note about the policies which the Alliance Govern­ment followed was the top priority that it gave to Education even before indepen­dence. Dato Abdul Razak, was appointed the Minister of Education, appointed the Razak Committee of 15. Its main task was to recommend the changes which were necessary for the establishment of a national system of Education.

The main points of the Report were:

(1)The National Language

As the National Language of the country, Malay was to be taught as a compulsory subject in all schools. It was to be the basis on which a person got his/her promotion in the government service. The only exception in the latter case would be a Pass in the National Language paper.

English was to be the second language of the country in all primary schools. As for Chinese and Tamil, these languages were to be taught where there was demand for these by at least 15 pupils. In short, the Report meant that while Malay pupils would be bi-lingual, the non-Malays would be tri lingual.

(2)Common Syllabus

Though the Report retained the various types of vernacular syllabus, it began with the use of a common syllabus for all the schools in the country. This, it was felt, was to be the base on which the national system of education was to be built.

To sum up, one can say that the main decision of the Razak Report (1956) was to abandon the "National schools" as advocated by the Barnes Commission. These were to be replaced instead by the introduction of a variety of primary schools which could be divided into:

(a)Standard Primary Schools — with Malay as the medium of instruction; and

(b)Standard Type Primary Schools — with English; Kyo-Yu or Tamil as the medium of instruction.

Malay, (the National Language) was to be a compulsory subject in all schools anil the goverment service, while common syllabus was to be used in all schools, irrespec­tive of the medium of instruction.

We can say that the main breakthrough in our education policy came about with the Razak Education Report of 1956. This report for the first time in the history of Malaya introduced a national system of education.

(3)Education since Establishment of Malaysia (1961—5)

The period between 1961-65 was considered as one of transition and witnessed changes which were introduced into the system destined to meet the educational needs of the nation.

All schools, (primary and secondary; government-run or privately operated) were required to conform with regulations on the national system of education. Not only was school fees, in all primary schools abolished, but the school-leaving age was raised from 12 to 14 years. In addition, upper-secondary vocational schools wero established as extensions to sekolah-sekolah lanjutan kampong.

The period also saw the implementation of the National Language Policy which made English as the second language. Its use was not done away with altogether be cause the Government was aware of the importance of English in fields of higher education, international affairs and commerce. The next step was taken in the implementa­tion of the comprehensive system of education in 1965, when the school-leaving age was raised to 15. This also saw the abolition of the Secondary School Entrance Examination (Standard 6) and the extention of 9 years of automatic education for all.

Priority was given to the training of teachers, and a teacher training programme was integrated and streamlined to meet the ever-increasing teacher requirements. Facilities were expanded accordingly.

Education Programmes under the 1st & 2nd Malaysia Plans

The objectives of the education programmes under the First Malaysia Plan (1966) were as follows:-

(i)to consolidate further the national education system in order to promote social, cultural and political unity.

(ii)to provide educational facilities, particularly at the Secondary level to meet the needs of the increasing school-age population.

(iii)to improve the quality of education and to spread education opportunities more evenly throughout the country so as to correct imbalances between the urban and rural areas.

(iv)to diversify educational and training facilities by increasing such facilities in vital fields, especially those relating to agricultural and industrial science and techno logy.

(v)to accelerate teacher training in order to produce the necessary number of qualified and skilled teachers.

Under the Second Malaysia Plan (1971-75) the main objectives of education and training are as follows:-

(i) consolidation of the education system to promote national integration and unity.

(ii) orientation and expansion of education and training programmes to meet the manpower needs of the country.

(iii) improvement of educational for the building of the progressive society orientated towards modern science and technology.

(iv) improvement of the research; planning and implementation capabilities to meet the above objectives.

Implementation of Bahasa Malaysia in Schools

The implementation of Bahasa Malaysia as the main medium of instruction achieved the desired aim when from 1975, all national type (English) Primary Schools began using Bahasa Malaysia as the medium of instruction. By 1982, it will be the sole medium in all forms in Secondary Schools and in 1983 for all courses at University level.

UNIVERSITY EDUCATION

Soon after he had established Singapore, Raffles drew up a plan which in April 1823, resulted in laying the foundation of the Raffles Institution, Singapore. In 1904, Governor John Anderson, received a petition from leading (non-European) Singapo­reans, mainly Chinese, requesting that the Governor take steps in the establishment of a medical school in Singapore - a request which was accompanied by funds contributed voluntarily and willingly by the local community. It was this enthusiasm (financial and otherwise) which saw the opening of the Singapore Medical School in September 1905, the name of which was changed in 1912, to King Edward VII College of Medi­cine. Four years later (1916) the Diplomas of the College were officially recognized by the General Medical Council of Great Britain and its graduates permitted to prac­tice anywhere in the British Empire.

The centenary of the founding of Singapore fell in 1918 and together with it, the appointment of the Maxwell Commission whose main task was to advise the gover­nment on the policy that it should adopt on higher education. The Maxwell Committee recommended that progress in this venue should be a 3-staged one:

(i)Establishment of technical and higher grade schools.

(ii)Provision of arts and science colleges.

(iii)Establishment of a university — residential; teaching and examining, with powers to confer Arts and Science degrees.

It was the above Commission which led to the establishment of Raffles College on 22 July, 1929 by Sir Hugh Clifford. And it was with it the Raffles College, that the nucleus of a future university was laid. The final step was taken by the Carr-Saunders Commission which was appointed after the war. It recommended the immediate amal­gamation of Raffles College and the King Edward VII College of Medicine into a university, which was established in 1949, with the Rt. Hon. Malcolm MacDonald as Chancellor. The College of Medicine became the Medical Faculty. Raffles College became the Faculty of Arts and Science. The plans which had been formulated regard­ing the role of the University of Malaya to meet the highest academic needs of the country, suddenly necessitated a wholesale change when, in 1957 the Malay Peninsula procured its political independence whilst Singapore was to remain under British rule. Malaya's decision to have its own university resulted in the founding of a separate University of Singapore.

HIGHER EDUCATION IN MALAYSIA

As in many developing countries, Malaysia is placing Appropriate stress on the development of higher education facilities to supply the technical and administrative cadres needed to develop the country. Up to 1957, the higher education needs of Malaya were served by the University of Malaya located in Singapore. Subsequently after Malaysia achieved her independence in August 1957, a division of the University of Malaya in Singapore was established in Kuala Lumpur and this became the University of Malaya. The Singapore division was thereafter renamed the University of Singapore.

With the ever-increasing number of students obtaining pre-university qualifications, it has been found necessary to establish more institutions of higher learning. Hence, other universities and colleges have been set up. University Sains in June 1969, Universiti Kebangsaan Malaysia (The National University of Malaysia) in 1970, Universiti Pertanian Malaysia (Agricultural University of Malaysia) in October 1971, and the National Institute of Technology was upgraded to the status of university, Universiti Technologi Malaysia (University of Technology, Malaysia) on April 1, 1975. In addi­tion, the Mara Institute of Technology was established to provide education and train­ing in a wide range of professional and semi-professional courses to Bumiputras. A number of other private institutions have also been set up to meet the country's skilled manpower needs.

Chapter 11
Ministry of Finance

INTRODUCTION

The Ministry of finance is headed by a Minister and under him are two Deputy Ministers. The Ministry has a multiplicity of functions to perform and objectives to achieve. For this purpose, a large number of Divisions and Departments have been set up. The chart on next page shows the administrative and organisational structure of the Ministry and also the functions of the numerous Divisions and Departments under it. The Chart also shows the role of the Central Bank (Bank Negara Malaysia) in this framework.

As the functions of the various Divisions and Departments are already indicated in the Chart, it is not necessary to look at them in greater detail for our purpose. However, as the Government expenditure has shown a rising trend because of greater Government participation and involvement in the economy, we will, in this Chapter, examine the way Government exercises control over its expenditure and how it raises revenue to meet this expenditure. Having done this, then we will briefly look at the role of the Central Bank in the economy of Malaysia.

CONTROL OF EXPENDITURE TREASURY CONTROL

The Treasury is responsible for enforcement of the financial provisions of the Constitution and Financial Procedure Ordinance, and also is directly involved in the administration of other laws having financial implications.

The Treasury has general responsibility to see that the money spent by the Govern­ment is spent wisely for the purpose intended by Parliament, and the financial commitments incurred are covered by specific legislative authority. Treasury control of expenditure is a continuous day-to-day process but is particularly marked at the time when the Annual estimates are being prepared. The subsmission to, and the detailed item by item scrutiny by Treasury officers of the Estimates prepared by Ministries and Departments is the annual occasion for a comprehensive review of the Ministries' and Departments' activities and general trend of expenditure in the context of current government policies. In the process, any wasteful, uneconomic or un­necessary expenditure proposals are eliminated.

DEPARTMENTAL CONTROL

While the Treasury clearly plays a crucial role in the control of expenditure, the importance of Departmental control must be emphasised. The fact that over and above departmental control there is control by the Treasury does not remove the respons­ibility of the Department itself to ensure that money is spent in the best way possible, and where expert knowledge is required on a subject to see knowledge is obtained and applied.

AUDIT

An integral part of control over government expenditure is the supervision and chock over actual spending that is made by the Auditor-General. He is appointed by tho Y*ny Di Pertuan Agong on the advice of the Prime Minister. He shall not be removed from office except on the like ground and in the like manner as a Judge of the Federal Court. The Auditor-General is required to audit the accounts of the Federal and State Governments and other Statutory Authorities. He submits his report to the Yang Di Pertuan Agong who shall cause them to be laid before the House of Representatives. Reports effecting the accounts of States are also sent to the Rulers or Governors of the States who shall cause them to be laid before the State Legislative Assembly.

The Auditor-General occupies an entrenched position independent of the Executive been taken to safeguard the collection and custody of public money; whether payments were made in accordance with proper authority, and were properly charge­able and supported by sufficient vouchers or proof of payment; and whether the provisions of all laws relating to the moneys or stores subject to his audit have been in all respect been complied with. In the performance of his functions, the Auditor- General may call upon any person for any explanation and information, has access to all records (including all secret matters unless expressly excluded by law) and examine upon oath or affirmation any person he may wish. His department in fact makes a running 'spot' audit throughout the year. He may also make recommendations and generally conmment upon all matters relating to public accounts, public moneys and stores.

The Auditor-General occupies an entrenched position independent of the Executive and is expected to impartially scrutinise and report on the accounts of the government.

INLAND REVENUE ORGANISATION

The Head of the Inland Revenue Department is the Comptroller-General of Inland Revenue who has the care and management of all inland revenue duties comprising income tax, development tax, estate duty, etc.

He is also the Registrar of Business and the Collector of Estate Duty for the purpose of the Registration of Business Ordinance and the Estate Duty Ordinance of Peninsular Malaysia respectively and is responsible to the Collector of Stamp Duties in the eleven branches in Peninsular Malaysia.

An important branch of the Department is the Investigation Branch, primarily responsible for the detection of tax evasion.

CUSTOMS AND EXCISE ORGANISATION

The Royal Customs and Excise Department, Malaysia, is headed by the Comptroller- General who is responsible to the Minister of Finance, through the Permanent Secretary of the Treasury, for the general administration of the department and for all policy matters relating to customs and excise.

FUNCTION

The principal function of the department is the collection of customs and excise revenue for the Federal Government and the prevention of evasion of such revenue. It is the biggest revenue earning department and is responsible for the collection of more than 50% of the total Federal revenue.

FINANCING OF GOVERNMENT EXPENDITURE

In order to carry out their multifarious activities, Governments must obtain the services of labour and other factor units and acquire goods produced by private business firms. Governments may simply take these services and goods by force, compelling persons to provide their resources without payment or for less than the current market prices. In earlier centuries such practices were common; in later years conquering armies followed the same procedure, and even present democracies draft men into the armed forces.

As a usual practice today, the taking of factor units by force is regarded as highly inequitable, and is resorted to only in extreme cases. The normal procedure is to obtain factor units and produce goods by paying for them current market prices. Accordingly, by some manner the Government must obtain the funds necessary to make these payments. The sources of Government revenue are:

1.Sale of Goods and Services: To a very small extent. Government sells the services produced to the user and thus finances the production of the services in the same manner as does a private enterprise. The costs of various licensing activities and a portion of the costs of operation of the courts are financed by the charging of fees and fines. The Post Office is financed out of the revenue it receives. Similarly, other publicly owned organisations like electricity, water supply, toll-bridges and the like are financed by charges made against the users. Governments also obtain revenue from the sale of land and royalties from the lease of mineral rights on public land. In most case, however, either government services are of a character that they cannot be sold to the users (defence) or the sale basis is considered contrary to accepted standards of equity (education and medical services).

2.Borrowing: This method, in a sense provisional or temporary source, is the borrowing of money. Just as individuals or business firms may borrow in anticipation of other revenues, so may Governments. It is ordinarily presumed that the money borrowed will eventually be repaid from other sources, although in practice this may not always be the case. Sovereign governments may repudiate their debts or they may continue indefinitely to refund maturing debt by the sale of new issue. Borrowing is the residual form of financing. It is resorted to only when all receipts have been taken into account.

The Methods and Sources of this Borrowing are:

The internal sources available to the authorities: At all times the Treasury seeks as a matter of routine to make the fullest use of surplus balances on internal accounts of government departments and of extra-budgetary funds (e.g. Employees Provident Fund, National Insurance Funds, and the Issue Department of the Central Bank).

Governments may resort to the printing of paper money «•> n mmm. <>t I'uylMU their bills. Governments, unlike individuals have the power to create monoy and uivti it legal tender qualities. So an increase in the fiduciary note issue generates an inflow of funds into the Treasury. The printing of paper money is normally'avoided as a source of government revenue because its use is too easily abused. Once this method of financing is started, it is difficult to stop, and runaway inflation can start.

3.Funds borrowed by the issue to the public of debt which is not negotiable, and is not therefore bought and sold on a market. This is called "non-market" borrowing. The Treasury borrows direct from the public by the issue of National Savings Certificates, Defence Bonds, Premium Savings Bonds, and by taking deposits from the public in the Post Office Savings Bank. All these liabilities are repayable on demand.

4.The funds borrowed by sale to the public of negotiable Government securities and bills. These are bought and sold on a market and for which market prices are quoted.

The Government borrows in the Stock Market by the issue of securities. New issues of Government securities are made from time to time by the issue of Treasury Bills. Government expenditure is incurred fairly evenly throughout the year but revenue comes in irregularly, most of it is received at the end of the financial year. The government makes up the difference by borrowing, largely through the issue of Treasury Bills. This is short term government debt and is called "floating debt".

1.Intergovernmental Grants/Loans: Some governments may receive revenue in form of grants from other governments, in the form of grants in aid, block grants, and other types. They may also receive loans from the World Bank, the Asian Develop­ment Bank and other sources.

2.Taxation: It is the most common, and the most important method of financing government activities. The Government provides numerous services to the community without any charge. The provision of these services costs the Government large sums of money. The revenue collected by the above methods does not sufficiently defray the whole cost of the service. So the Government has no alternative but to collect the difference by various forms of taxes. The payment of the tax does not in itself enable the taxpayer to receive any governmental service to which he would not otherwise be eligible. The basic distinction between taxes and other sources of government revenue is the compulsory element involved. The individual has no choice in the matter, if he is eligible for payment on the basis of some standard established.

Since the tax is compulsory payment, the Government must not abuse this power to raise taxes. Because of the compulsory aspects of taxation, the collection of taxes may have very significant effects upon the behaviour of individuals and the functioning of the economy. This must be taken into consideration in the selection of taxes if the tax structure is not to interfere with the attainment of the economic goals of society. Furthermore, if the goals of society are to be realised, the burden of the taxes must be distributed among various persons in a manner consistent with those goals.

OBJECTS OF TAXATION

The purpose of taxation is not merely to raise revenue to meet government expend­iture. There are many kinds of taxes and each type of tax is designed to achieve a specific purpose. Let us now look at some of the objects of levying taxes.

In the earlier days, taxes were mainly levied to meet the Government expenditure Expenditure was estimated and, following proposals submitted by the Minium ol Finance, taxes were imposed to meet the cost. Taxes which are used for tlm purpnti) ol collecting revenue are called revenue taxes. They are to pay for the goods imil torvlcoi produced by the Government, either to meet the whole cost or hIsh to mako up tho deficit where receipts do not cover expenditure.

Today the problem of raising revenue has becomo mom complex I ho Government has acquired over the years far more responsibility',, anil tho motliods it uses to collect revenue have to be consistent with its objoctlvos. Griutoi degrees of literacy and political consciousness impose on tho Government certain constraints. A tax structure which soaks the poor will result In political upheaval and the downfall of the political party in power. Tho Governmont weighs all the methods carefully before selecting the most apt method in given circumstances. To bring about a more equitable distribution of wealth and income the Government imposes death duties which remove inequalities in the ownership of wealth, progressive income tax and surtax to remove inequalities in income.

There are certain vital industries which the state may want to develop, in case there is war. A country wanting to industrialise may have to protect certain infant industries at the early stages of development. For these reasons, customs duties may be levied, not only to raise revenue, but to protect industries such as agriculture and chemicals from foreign competition.

The Government can regulate certain taxes to secure ends which it considers desirable and which cannot be achieved by the mere operation of the price system. If the society consumes excessive liquor or is smoking heavily, it can levy high purchase taxes. The resulting high price reduces the consumption of these products. Normally, the tax on luxuries is higher than on necessities.

The relationship between expenditure and revenue can be used as one of the weapons to fight against cyclical unemployment. During periods of depression, it can lower taxes to stimulate demand and during periods of inflation it can raise taxes to dampen demand. By manipulating its taxes it can influence the level of economic activity and employment. It can also mobilise its resources by favouring certain regions and discriminating against others — it could grant tax concessions to industries established in depressed areas where labour and resources are idle.

So we find that different forms of taxes have different impacts, on the working of the economy. In some cases they are used to raise funds for public purposes, in some cases to prohibit or regulate certain activities, and in others to equalise the distribution of wealth. Whatever the objective, in the process of implementing them, revenue is raised.

CLASSIFICATION OF TAXES

There are numerous ways of classifying taxes. We may first of all distinguish between taxes on output, income or expenditure on the one hand, and capital taxes on the other. The former are taxes on flows and the latter on stocks. Estate duties (capital gains tax) are an example of capital taxes, the size of the tax depending on an individual's stock of wealth.

A further distinction can be made between direct and indirect taxes. A direct tax is one which gets at income directly, that is, a tax which is levied as a straight deduction from income irrespective of the way in which it has been earned or the way in which it is used. A direct tax cannot be avoided in the sense passed on to others. We can classify direct taxes as: 

(i) taxes on income – income tax, surtax, profits tax, company tax.

(ii) taxes on capital – estate duty, capital gains tax.

(iii) other taxes – vehicles road tax, local rates, stamp duties,.

An indirect tax, in contrast, is one for which the taxpayer’s  liability varies in proportion to the volume or value of particular good, sold or purchased. Individual taxes are levied on certain commodities and it is anticipated that the person taxed will compensate himself partly or fully at the expense of another, the ultimate consumer. It has the advantage that it is difficult of evasion and the burden is not loll directly. Moreover, payment may be made at convenient times, and a means of taxing small incomes is avoided.

A customs dut is an indirect tax on expenditure, the amount paid depending on the value or volume of the commodity imported. A customs duty falls on consumers. It is difficult, if not impossible to shift it on to the exporters. An excise duty is an indirect tax, levied this time on goods manufactured and .consumed in the country imposing the tax. Cigarettes, beer and liquor are favourite targets for excise duties. It is obvious that the consumer can avoid paying them by not consuming cigarettes or beer or not buying imported goods.

Indirect taxes tend to cause a dislocation and diversion of trade from the course it would otherwise pursue. In practice the disturbance is minimised by applying taxes only to commodities for which the demand is largely inelastic. Indirect taxes used to consist mainly of excise duties, but since 1930's due to the change in the role of fiscal policy customs duties have contributed largely to revenue. If duties are really protective they cannot produce revenue but may be justified in assisting infant industries or keeping out dumped goods.

Indirect taxation is the main form of taxation on low incomes and is levied mainly on articles of wide consumption to ensure wide contribution. At the same time this form of taxation is the least equitable since it falls most heavily on the lowest incomes and has no relation to the capacity of the taxpayer to bear the burden.

STRUCTURE OF TAXATION IN MALAYSIA

Let us examine the tax structure in terms of direct and indirect taxes.

Direct Taxes. In 1978 direct taxes contributed about 45% of the total tax revonue of the Government. There has been an increase in the share of the direct taxes over the years. It will be more useful to look at the components of direct taxes, one by one:

1. Company tax. Companies pay a flat of 40% of taxable profit. However, according to the 1980 Budget companies with a paid up capital of not less than $1 million or with a net asset of not less than $1 million which conform to the equity restructuring requirements of the Government pay income tax at a lower rate of 35%. Company taxes are designed to stimulate economic growth, particularly industrial expansion. To accelerate the process of industrialisation the Government offers a comprehensive range of investment incentives, specially designed to grant relief from taxation in various forms. Investors who are establishing companies or expanding existing ones can apply for any of the following four major forms of tax relief under the Investment Incentives (Amendment) Act which replaced the Investment Incentive Act of 1968: pioneer status tax relief, investment tax credit, accelerated depreciation allowances, export allowances. As the share of the manufacturing sector in tho economy increases, the contribution of company taxes to total taxes is likely to increase.

For the years of assessment up to and including the year of assessment 1967 any cooperative society registered under any written law relating to the registration of cooperative societies was totally exempt from income tax. However, as from the year of assessment 1968 a cooperative society was exempt from tax only if the principal activities of the society consisted of:

1.transactions with its members or other registered cooperative societies;

2.marketing the produce or products of its members; or

3.selling to its members goods purchased for the purpose of being so sold.

As a result of administrative difficulties and the possibility of abuse under the system led to a revision. It was also felt that cooperatives should also contribute their share to meet the revenue needs of the nation. So with effect from the year of assess­ment 1977 all cooperatives subject to certain exemption are subjects to tax on a progressive basis. (Table II).

Table II

TAX ON COOPERATIVES
Chargeable Income	Rate of Tax
For every dollar of the first $10,000	5%
Fpr every dollar of the next $10,000	7%
For every dollar of the next $10,000	10%
For every dollar of the next $10,000	14%
For every dollar of the next $10,000	20%
For every dollar of the next $25,000	23%
For every dollar of the next $25,000	27%
For every dollar of the next $50,000	30%
For every dollar of the next $100,000	34%
For every dollar of the next $250,000	37%
For every dollar of the next $500,000	40%

Realising the various circumstances and problems surrounding existing and new cooperatives, the tax allows certain exemptions. The exemptions are intended to allow new cooperatives an inception period before they are subject to tax in order to solve the problem of small cooperatives, and to meet the need to allow for untaxed working fund which is compulsory under cooperative law, and which will eventually be returned for public purpose in the event of liquidation. As a result of the exemption of the new tax and therefore the agricultural and fishermen's cooperatives are not liable to this new tax. Given the 25% deduction! from income prior to tax and the scale rates applicable, the tax burden on most cooperatives would, in effect, be much loss than that falling on companies.

Table III

INCOME TAX STRUCTURE OF MALAYSIA
	Chargeable	Rate	Tax
	Income ($)	(%)	($)
On the first	2,500	6	150
On the next	2,500	9	225
On the first	5,000		375
On the next	2,500	12	300
On the first	7,500		675
On the next	2,500	15	375
On the first	10,000		1050
On the next	5,000	20	1000
On the first	15,000		2050
On the next	5,000	25	1250
On the first	20,000		3,300
On tho next	5,000	30	1,500
On tho first	25,000		4,800
On tho noxt	10,000	35	3,500
On tho lirit	35,000		8,300
On tho noxt	15,000	40	6,000
On tho first	50,000		14,300
On tho noxt	25,000	45	11,250
On tho lirit	75,000		25,550
On tho noxt	25,000	50	12,500
On the first	100,000		38,050
Over	100,000	55

2. Individual Income Tax. Table III) shows tho individual income tax structure of Malaysia. There are numerous deductions from gross income before the income tax is computed. The main categories of pormissable allowances include personal and family allowances, and allowances for contributions to specific activities like insurance, EPF contributions, and charitable contributions. An allowance of $1,000 is also provided for other dependents, other than wife and children. In addition to the allowances shown in Table W each resident individual, beginning with the year of assessment 1977, is granted a rebate of $600 which is deducted from tax payable. The granting of the $60 tax rebate does not apply to working wives who elect to be assessed separately on their employment. The income tax department also grants rebate of $30 for wife. The 1980 Budget quadrupled the allowances for children educated abroad from double the amount of children's relief.

Table III shows that the marginal tax rate begins at 6% and rises to a ceiling of 55% on all chargeable income over $100,000. An individual (other than a company) is liable to excess profits tax on chargeable income which exceeds $100,000.

Table IV

STRUCTURE OF PERSONAL AND FAMILY ALLOWANCES, MALAYSIA
Allowance in respect of	Actual allowance $	Cumulative allowance $
Taxpayer	4,000	4,000
Dependents	1,000	5,000
Wife	2,000	7,000
1st child	800	7,800
2nd child	700	8,500
3rd child	600	9,100
4th child	500	9,600
5th child	400	10,000

¹ The allowance for children educated abroad is four times the amount of children's relief.

3. Petroleum Tax. Before 1973 there was no tax revenue from petroleum. Since the discovery of petroleum in 1973 off the east coast of Peninsular Malaysia, and also off the coasts of Sabah and Sarawak, Malaysia's exports of petroleum has been increasing and this has contributed to the increasing share of direct tax revenue to the total tax revenue.

Indirect Taxes. The indirect taxes comprise of duties on exports (rubber, tin and palm oil) import duties and surtax (on liquors, tobacco, textiles, etc), and other taxes (excise duties, sales tax, road tax, and gambling tax). In 1978 indirect taxes contributed about 55% of the total tax revenue.

Export duties in respect of rubber, tin and palm oil are structured to assist producers of these commodities maintain, their position in the economy. The taxes are on a sliding scale i.e. the higher the export price, the higher is the tax rate. No export duty is imposed on rubber, palm oil and tin when their prices fall below 60 cents per pound, $500 per ton and $1,200 per pikul respectively. The 1980 Budget brought about a major reform in the export commodity tax structure to enable producers of primary commodities, particularly rubber, palm oil, and pepper smallholders, and operators of marginal tin mines to benefit from lower taxes. The new concept of commodity taxation is based on a cost plus approach. Under this concept the cost of production of the commodity is taken into account and the appropriate duties are only imposed at prices above the prevailing cost of production. Also to ensure that the duty structure does not create disincentives to producers, the maximum marginal rate has been*fixed at 50% for all the commodities. Hence, the taxes are not only equitable, but also have a stablising effect on the incomes of the producers.

Import duty revenue is mainly derived from tobacco, liquor, petrol, motor vehicles, textiles, etc. Tobacco and textiles am the two largest revenue earning items in terms of import duty since 1972. As the Malaysian economy is becoming more and more export orientated and less dependent on imports the share of import duty in total tax revenue is likely to fall.

The "other taxes" comprise of excise duty, sales tax, road assembled motor vehicles, locally refined petroleum, locally brewed malt liquors, cigarettes and various other locally manufactured goods. In view of the rising share of the manufacturing sector in the economy, the share of excise duties in total tax revenue has been rising.

THE CENTRAL BANK INTRODUCTION

Each type of bank usually specialises in a particular line of activity. We can generally classify all banks according to the functions they perform as:

1.The Central Bank. Most countries now have a central hank, the functions of which vary according to the level of economic development of the particular country. In Malaysia the central bank is the Bank Negara Malaysia. It is mainly responsible for maintaining economic stability and toes government policy.

2.Commercial Banks. The main form of banking institution In Malaysia end Singapore is the commercial bank, or joint stock bank. Commercial hanks play the most important role in modern economic organisation, are most numerous and perform various important economic functions.

3.Other Banks. These include:

(i)Industrial Banks: Industries require long term capital for buying new machinery and expanding their scale of operation. The industrial bank\ provide the much needed capital.

(ii)Agricultural or Cooperative Banks: Farmers also small industrialists need both short and long term finance. Long term loans are needed for permanent improvements of land while short term loans help them in purchasing seeds, fertilisers and imple­ments.

(iii)Savings Banks: These banks perform a useful function in collecting small savings and chanelling them to more productive uses. The idea is to encourage thrift and discourage hoarding. Savings are encouraged by both commercial and Post Office Savings Banks, but it is the latter that play a more important part.

ESTABLISHMENT

The Central Bank of Malaysia (Bank Negara Malaysia), formerly known as the Central Bank of Malaya, was established on January 26, 1959, under the provisions of the Central Bank of Malaya Ordinance, 1958. It served as the Central Bank of the States of Malaya but subsequent to the formation of Malaysia in September 16, 1963, it was renamed as the Central Bank of Malaysia. Malaysia originally comprised of the Status of Malaya (now known as Peninsular Malaysia) and the Borneo States of Sabah and Sarawak (now known as East Malaysia) and the Island State of Singapore. However, the State of Singapore seceded from Malaysia on August 9, 1965, to become an Independent Republic.

CENTRAL BANKING PRINCIPLES

The principles on which a central bank is run are quite different from the commercial banking principles. The main objective of the commercial bank is to make profit. The Central Bank, on the other hand, is mainly concerned with safeguarding the financial and economic welfare of the nation. The guiding principle of a Central Bank is that it should act only in the public interest and for the welfare of the country as a whole and without regard to profit as primary consideration. But it does not mean that a Central Bank does not or must not make a profit. Making of profit is only a secondary consideration.

The Central Bank is defined by Sayers as "the organ of government that under­takes the major financial operations of the government and by its conduct of these operations and by other means, influences the behaviour of financial institutions so as to support the economic policy of the government".

The fact that the objectives of the Central Bank are different from the commercial banks, it operates on different principles. It is able to carry out its objectives because it (i) has the support of the government, (ii) has a monopoly for issuing currency (coins and cash) and (iii) is not only a banker for the government but also a banker for commercial banks.

FUNCTIONS OF A CENTRAL BANK

1.To Issue Currency. Although the Central Bank of Malaysia was established in January 1959. It did not issue currency for the country until June 1967. Prior to this, currency used in the country was issued by the Board of Commissioners of Currency, Malaya and British Borneo (commonly known as the Currency Board) whose currency commonly called the Malayan dollars was, until January 16, 1969, legal tender in the countries now comprising Malaysia, Singapore and Brunei. For various political, economic and financial reasons, the Currency Board existed side by side with the Central Bank in Malaysia. It was only since June 1967 that the Currency Baord ceased to be the currency issuing authority in Malaysia, following the assumption of such powers by the Central Bank.

2.It Acts as a Banker to the Government. The banking business of the govern­ment is transacted by the Central Bank. In the same way, as a commercial bank performs ancillary services for its customers, so does the Central Bank for the Government. Such services inlcude:

2(a)Management of the National Debt: The Bank manages the local funded debt of the Central government as well as the issue of Treasury bills. It arranges new issues and conversions, records transfers and pays the interest on the stock to the holders as it falls due.

2(b)Administration of the Exchange Equalisation Account: Not all countries have such accounts. For example, in U.K. the Exchange Equilisation Fund was set up in 1932 in order to even out temporary fluctuations in the value of sterling in terms of other currencies, which resulted from the inflow or outflow of short term speculative foreign capital. In short, the function of the Exchange Equalisation Fund is to buy the surplus or supply the deficit of the amount of currency as need arises. This maintains stability in exchange rates which is essential for international trade.

(c)Controlling and Managing Foreign Exchange Operations: Foreign exchange is the currency of other countries It is required by individuals and businessmen to buy goods and services from and to make gilts or loam to people in other countries. At the same time, they will be buying our currency to pay for their purchase here. The two-way nature of these transactions means that as long as relative price are right, most of our demands for other countries currencies will be financed by their demands for our currency, leaving only small differences to be financed by movements of gold or foreign exchange reserves.

Most countries tend to hold as reserves only convertible foreign exchange because it will be readily accepted by almost all countries in payment for goods and services, inconvertible currency may be acceptable only by the country that issued it. Foreign exchange is required in trade because there is no single currency that is acceptable by all countries although many countries use sterling and USA dollars.

When a country is having balance of payments problems, then the Central Bank controls the sale of foreign exchange and the outward flow of its foreign currency The Bank tells them the type and size of transaction involving foreign exchange which will be allowed according to the policy in force.

The Central Bank administers the Exchange Control Ordinance 1953, on behalf of the Central government. The governor of the Bank is the Controller of Foreign Exchange for Malaysia.

4. Advises the Government on General Financial Matters: The Central Bank is in the best position to advise the government on monetary and financial matters. It gives advice on the likely economic effects of its financial policy. The Treasury has the last word and is responsible to Parliament for whatever decision reached. Bank maintains close liaison and cooperation with Treasury. In fact, the Bank is frequently called upon to advise on a wide range of economic and financial matters. The governor and senior staff sit on many government committees concerned with national planning and development, trade policy and commodity agreements, taxation, company legislation and other important economic and financial matters;

5.Grants Advances to the Government: The Central Bank may grant "ways and means" advances to the Government to tide it over temporary budget deficits, but the total amount of such advances is limited to 12Yi% of the estimated annual revenue and such advances must be repaid within three months after the end of the govor nment's financial year. The Bank is precluded from making further advances until all outstanding advances have been fully repaid.

6. Participates in International Financial Institutions: The Bank is tho designated depository for Malaysia in its official transactions with the International Monetary Fund, the International Bank for Reconstruction and Development, and the Asian Development Bank. It plays its role in international monetary affairs.

(c)The Bankers' Bank. Generally, we can say that the Central Bank acts as bankers' bank in three roles. They are:

-acts as the custodian of the cash reserves of commercial banks,

-acts as the lender of last resort, and

-acts as bank of central clearance, settlement and transfers.

(iii)(a)The Commercial Banks keep part of their reserves with the Central Bank just as individuals and institutions do with commercial banks: In just the same way that a commercial bank looks after a customer's deposits, the Central Bank looks after the deposits of commercial banks.

In addition banks are required to maintain statutory reserves with the Central Bank. They earn no interest and are not part of the cash ratio that the commercial banks are required to maintain. These reserves can be varied to suit changing economic conditions. By varying the reserves the Central Bank can influence credit creation.

The practice of depositing reserves has certain advantages. First it economises the use of cash. When the cash is in the hands of one bank rather than numerous commercial banks, it can be more effectively used. Second, it gives the commercial banks the opportunity to increase their reserves by just discounting bills with Central Bank in time of need instead of relying just upon their own reserves. Lastly, it gives the Central Bank the power to influence the credit policies of commercial banks.

(iii)(b) The Central Bank is the lender of last resort: The commercial banks lend money to the Discount Houses. The loans are short term and can be recalled at any time. This is why such loans are called money "at call". The Discount Houses invest most of their funds in Treasury bills and government securities. When there is a sudden increase in demand for cash from the public, the commercial banks recall their loans from the Discount House. The pressure may be greater from some banks. The Discount Houses look around for cash to meet their requirements. If they are unable to get any money and the whole market is short of cash, they are forced to the Central Bank. The Central Bank does not provide loans to commercial banks directly. It comes to their assistance only indirectly through the discount houses. It is to these discount houses, and discount houses alone, that the Central Bank acts as a lender of last resort.

The Central Bank dictates the terms at which it lends as a last resort. In particular it dictates the rate of interest payable on money so borrowed and the period for which cash may be borrowed. The Central Bank lends to the discount houses by discounting for them first class bills (bills which have least risk) or lend-ing against acceptable collateral securities. The rate of interest payable on loans or rediscounts is called Bank Rate. It is the minimum rate at which the Central Bank stands ready to lend as a last resort to discount houses. It is above the discount rates ruling in the market. The level of rates in the money market depentis on the current level of the rate charged by the Bank for loans, and on the market's expectations as to the future trend of the rate and as to the extent to which they are likely to be obliged to borrow from the Bank at that rate. The Bank Rate is the "penal-rate" and is costly for the discount houses to borrow from the Central Bank. This ensures that the discount houses will only go to the Central Bank as a last resort when the whole money market is short of cash. By making borrowing dearer, it can limit the total amount of credit and money in the economy.

The functioning of the monetary system depends upon the knowledge that the Central Bank will always lend to the discount houses as a last resort. It is by virtue of this knowledge that the commercial banks are content to keep their reserves at the agreed minimum of 10 per cent of their deposit liabilities, since their first iine of reserves for the replenishment of cash is the money lent at call to the discount market, and the banks know that the discount houses will at any time be able to repay the loans, because they know that, if all else fails, the discount houses can borrow the cash from the Central Bank.

(iii)(c)Provides Facilities to settle Interbank indebtedness — The commercial banks hold part of their cash in the form of balances at the Central Bank. These bankers' balances at the Central Bank provide the commercial banks some of the advantages a private customer derives from an ordinary banking account. The commercial banks can make payments to each other by cheques drawn on their accounts at the Central Bank, and they can draw out the notes and coins they want.

The first — their payments to each other — arises from the operation of the banks' clearing'. Although the bankers' clearing provides a machinery by means of which each bank can set off the payments which it is due to make to another bank against those which it is due to receive from that bank, at the end of the clearing each bank has a net position with every other bank, and this has to be settled by a transfer of cash. This transfer takes place by adjustment of the bankers' balances at the Central Bank.

The Clearing House arrangements were instituted by the Central Bank in January 1959. Before this the smaller banks had maintained balances with each of the larger banks, a practice which continues for local clearings outside Kuala Lumpur. All commercial banks are required to use the clearing facilities, those banks without branches in Kuala Lumpur sending their cheques direct to the Central Bank or to their agent banks.

THE POWERS OF THE CENTRAL BANK

It is important to recognise the position of the Central Bank. It is at the centre of the monetary system of Malaysia. Thus, although, it perform all the varied functions dis­cussed earlier, its most important function is that of controlling the commercial banks (including other financial institutions) in such a way as to implement the monetary policy of the government. It has wide powers to regulate the banking system and ensure high standard of banking services to public. It is able to perform its vital functions because:

-it has the sole right to issue notes;

-it.can control the amount of credit created by commercial banks;

-it can dictate the terms on which it lends to the discount house.

Monetary Controls

Let us now examine the methods used by the Central Bank to control the volume of credit. We can classify all methods into two categories — (i) Quantitative and (ii) Qualitative.

Quantitative Methods

The aim of quantitative controls is to limit the volume of bank loans and advances. This is done by:

(i)Manipulation of Bank Rate — We have mentioned this point earlier when discussing the functions of a Central Bank as a lender of last resort. When the whole money market is hard pressed for cash, the commercial banks recall their money at call to the discount houses. The discount houses are forced to go to the Central Bank. The Central Bank cannot refuse to lend but it can dictate the terms at which it lends. The rate at which it lends is higher than the market rates of interest. It is costly to borrow. Hence, the discount houses are discouraged from borrowing from the Central Bank. Even if they borrow, they try to repay the loans as quickly as possible. This they do by reducing or recalling their loans. In this way, the volume of credit is reduced.

The rate at which the discount houses borrow is the Bank Rate. If the discount houses have to pay higher interest rate, they will also charge higher rates for their loans and advances. So when the Bank Rate goes up, the market rates also go up. So the Central Bank by raising the Bank Rate (or discount rate) can discourage borrowing because borrowing is now more costly. This too brings about a reduction in the volume of bank deposits and the power of the banks to create credit.

The Central Bank controls the interest rate structure of the commercial banks through the Association of Banks in Malaysia.

(ii)Open-Market Operations — It is a name given to the purchase or sale of govern­ment securities, short term as well as long term, at the initiative of the Central Bank, as a deliberate credit policy. By means of this device, the Bank can artificially induce the required degree of stringency in the money market. The mechanism hinges on the fact that the commercial banks all maintain accounts at the Central Bank and regard these bankers' deposits as part of their minimal cash reserves. As the reserves expand, their capacity to create money increases, and as the reserves contract their capacity to create money is reduced.

The theory of open-market operations works thus: Let us suppose for example, that the Bank makes net sales of securities. They are paid for, by institutions or members of the public by cheques drawn on the commercial banks. These cheques will be cleared and result in a debit item owned by the banks to the Central Bank which will be settled by a reduction in bankers' deposits. Since such deposits are regarded by the commercial banks as part of their cash reserves, the banks will find that their cash ratios have fallen below the minimum requirement. In order to restore their reserves position, they will recall their loans and advances to the discount houses which will be forced into the Central Bank. In this way, the Bank Rate is made effective. Cash reserves are reduced, the ability of the commercial banks to grant loans and advances is reduced, loans and advances become more costly. The ultimate situation is that the total supply of credit is reduced. The reverse process comes into operation when the Central Bank instead of selling securities buys them. It simply means that if the Central Bank takes care of the legal tender money, credit will take care of itself.

(iii)Funding — It is a name given to the conversion of short-term into longer term, more permanent obligations. The receipts from the sale of longer-term securities are used to repay shorter term liabilities. Funding has been widely used in Western countries with references to National Debt management, as an instrument of monetary policy. By funding activities the short term assets like Treasury bills are reduced. Since they constitute part of the liquidity ratio of commercial banks, their reduction results in contraction of bank deposits and hence their power to create credit.

(iv)Credit Rationing — This refers to the restriction placed by the Central Bank on demands for loans and advances, from the private sector. It is necessary during periods of inflation and when the country has balance of payments difficulties. Credit is rationed by limiting the amount available to each customer.

(v)Varying Reserve Requirements — The Central Bank has the power to vary the statutory reserves, cash and liquidity ratios of the commercial banks. In times of strigency it could increase the statutory reserves, cash and liquidity ratios. These ratios can be varied to suit different economic conditions.

Qualitative Controls

Tho Central Bank also has the power should need arise to use selective controls. The aim of selective controls is to divert bank advances into certain directions or to discourage them from lending for certain purposes. In U.K. these qualitative controls are widely used because of their balance of payments problems. They can be used in a wide variety of forms:

(i)regulating the minimum down payments on specified goods particularly durable consumer goods like sewing machines, cars, refrigerators.

(ii)regulating the minimum payment period on all installment credit.

(iii)requesting (known as moral suasion) or issuing directives to commercial banks to give bank advances only for certain purposes — encouraging them to lend for productive purposes rather than speculative purposes.

So tho Central Bank by use of both quantitative and qualitative controls can restrict the volume of credit. In order to ensure that the comercial banks carry out the requirements, it is given power to investigate from time to time, under conditions of secrecy, the books, accounts and transactions of each licensed bank and any branch, agency or office outside the country established by a licensed bank incorporated In Malaysia. The banks are also required to submit regular returns to the Central Bank giving particulars of all loans and advances, both secured and unsecured, granted to certain categories of borrowers. Since 1968 the Central bank is also empowered to recommend to the commercial banks the rates of commission and other charges payable to banks including rates of interest.

COMMERCIAL BANKS

The evolution of banking in Malaysia since the early 1960's has been profound. The quest for growth and profits has led the commercial banks to reach out for new business far more aggresively than they had done in the past. Since its establishment in 1959, the Central Bank has constantly urged the domestic commercial banks to branch out into areas, especially in the rural sector, where banking has been inade­quate or non-existent. As a result, the significant growth of the banking system has brought with it a corresponding rapid expansion in the branch network of the commercial banks, especially in areas previously unbanked or inadequately served by banks. Credit and other banking facilities which had hitherto been enjoyed only in the urban centres are now rapidly available to a wide area in non-urban Malaysia. So banking facilities are fairly well spread throughout the country. There are sufficient banks to cater for the banking needs of the country for the time being and expansion of banking services is likely to be through the expansion of the branch network of existing domestic banks rather than in the establishment of new banks.

Chapter 12

Prime Minister Department

The Prime Minister's Department comprises numerous Divisions, Boards, Units, Authorities and other agencies. In this chapter an attempt is made to examine some of them. In addition, a few others are examined in Chapter Thirteen on Public Enterprises.

CABINET AND CONSTITUTION DIVISION

This Division serves as the secretariat to the Cabinet. It processes Cabinet Papers prepared by various ministries for submission to the Cabinet, prepares the agenda, records the proceedings of Cabinet Meetings and obtains feedback on the implement ation of Cabinet decisions. The Division also serves as the secretariat to several Cabinet Committees and a number of other high level bodies.

The Division deals with the appointments of Yang di-Pertua Negeri-negeri; the President of the Dewan Negara and the Speaker of the Dewan Rakyat; Ministers and Deputy Ministers of the Federal Government; Members of the Senate; Parliamentary and Political secretaries; appointments under the Constitution including judges and appointments to the various Service Commissions and the Election Commission; statutory appointments and designated posts.

It attends to parliamentary business such as the parliamentary calender, the Royal Address for the opening of Parliament and processes replies to parliamentary questions pertaining to the Prime Minister's Department.

ADMINISTRATION AND FINANCE DIVISION

This Division attends to the day-to-day administration and finance of the Prime Minister's Department. It is also concerned with all staffing, services and administrative matters as well as security measures of all Divisions in the Department. It exercises overall control over the administration of the National Mosque, National Monument and Dewan Tunku Abdul Rahman.

FEDERAL TRANSLATION BUREAU

It is responsible for the translation into Bahasa Malaysia or English of official documents, secret or confidential reports, white papers, agreements and contracts, special messages and speeches that originate from various Ministries, Government Departments and Statutory Bodies.

ADMINISTRATIVE MACHINERY FOR PLANNING AND IMPLEMENTATION

The planning machinery comprises the Economic Planning Unit (EPU) and the General Planning and Socio-Economic Research Unit (GPU) in the Prime Minister's Depart­ment and planning cells in strategic agencies, e.g. the Treasury, Bank Negara Malaysia, the Planning Division of the Ministry of Agriculture, the Development Division and the Educational Planning and Research Division of the Ministry of Education, the Planning and Development Division of the Ministry of Health, the Highway Planning and Public Transport Unit of the Ministry of Works and Utilities and the Research and Planning Division of the Ministry of Communications. Their activities are supported by the Department of Statistics which provides the statistical information needed for planning. The EPU is responsible in the National Development Planning Committee (NDPC), an inter-agency committee comprising the civil service heads of all major economic development Ministries under the chairmanship of the Chief Secretary to the Government. The NDPC in turn reports to the National Economic Council (NEC) — a committee of the Federal Cabinet under the chairmanship of the Prime Minister.

A Consultative Committer comprising the NDPC and members of the private sector was set up to provide for continuing interaction between representatives of the public and private sectors on matters pertaining to the formulation and implementation of policies and programmes for national economic and social development, particularly those concerning the private sector.

At the state level, the State Planning Units (SPUs) are located within the State Secretariat and work to the State Action Committee which are under the Chairman­ship of the Menteri Besar/Chief Minister. The activities of planning units in State Governments are in a number of cases supplemented by specially created Federal and/or State regional devleopment authorities established for regional development areas.

The Third Malaysia Plan was prepared by the central agencies of the Federal Government including the EPU, the Impelementation and Coordination Unit (ICU), GPU and the Department of Statistics, all in the Prime Minister's Department, the Treasury and Bank Negara Malaysia in conjunction with all Federal Ministries and Departments, State Governments and Statutory Authorities participated in the initiation of plan proposals in respect of their areas of concern and in the deliberations on these proposals working through specially constituted Inter-Agency Planning Groups (lAPGs) under the direction of the NDPC and the NEC. The private sector was also involved in the planning process through its participation in the Private Sector Consultative Committee of the NDPC.

The recommendations so formulated were examined in detail by special committees comprising a number of Ministers headed by both the Prime Minister and the Deputy Prime Minister before their consideration by the NEC and thereafter by the Cabinet. This process, wherein fundamental issues are fully considered at the highest levels of Government, ensures that Malaysia's development policies and programmes meet the needs of the people in terms of the underlying concepts and strategy of the Plan.

Plan coordination and implementation is the direct responsibility of executive Ministries, Departments and agencies at the Federal, State and regional levels. To ensure coordination and implementation at the national and inter departmental levels, ICU was established within the Prime Minister's Department. The Unit works to a National Action Council (NAC) under the chairmanship of the Prime Minister, the executive committee of which — also under his chairmanship — meets regularly with selected agencies of the Government for intensive review of their progress and problems. Arrangements at the State and District levels follow closely the pattern at the Centre.

The heart of the implementation machinery is the Operations Room at the Central, Ministerial, State and District levels.

ECONOMIC PLANNING UNIT (EPU) - BAHAGIAN PERANCANG EKONOMI

The EPU of the Prime Minister's Department is the central staff agency of the govern­ment for planning national economic development. It acts as the secretariat to the National Economic Council (NEC), the National Development Planning Committee (NDPC), the Foreign Investment Committee (FIC) as well as advice to the National Action Council (NAC) on issues relating to economic development planning and policy in particular to the New Economic Policy of the Government.

The main functions of EPU are:

1.to formulate government's broad objectives in development planning and to prepare the Five Year Plans,

2.to prepare the annual development budget for submission to the NDPC and thereafter the Cabinet,

3.to coordinate the execution of various development projects,

4.to monitor and evaluate the progress and results of the implementation of the Plans and recommend changes when necessary.

5.to maintain intelligence on the current state of the economy,

6.to advice the Government on general economic problems and inform inter­national organisations about economic development in Malaysia;

7.to initiate necessary economic and social research,

8.to plan and coordinate foreign development assistance for the implementation of the plans.

In order to carry out these functions the EPU is organised into the following divisions and sections:

(a)The National Planning Division (NPD). This Division is concerned primarily with national economic issues and development goals for both the short and long terms for consideration by the NEC and the NDPC. Its role involves in reviewing the main economic trends affecting the development of the economy particularly in respect of the restructuring of society, economic growth, the distribution of income and the growth and distribution of employment.

The activities of this Division revolve around five main centres of activity: Macro economics. Distribution, Population and Manpower, External Assistance and Econo metric Service.

(1)The Macroeconomic Section is mainly concerned with formulation and evaluation of the overall national development objectives and policies. This section maps out the path of development and determines the targets for public and private investment, consumption, exports and imports, prices, production and income generation.

(2)The Distribution Section considers the distribution and ownership of wealth, poverty groups and restructuring of the society as envisaged in the New Economic Policy.

The Population and Manpower Seciton is concerned with the review and analysis of the increase in population and labour force, manpower structure, employ­ment and unemployment and the development of trained/skilled manpower

(3) The External Assistance Section processes and coordinates applications from various ministries for external technical and capital assistance including those from multilateral sources such as the United Nations Development Programme, Colombo Plan, Commonwealth Fund for Technical Cooperation and from international financial institutions like the World Bank, the Islamic Development Bank as well as from bilateral sources. In conjunction with the Treasury, it undertakes loan negotiations with donor countries and international organisations.

(4)The Econometric Section helps to develop a computerized management information system for the Unit. This section works closely with the project monitoring section of the Implementation Coordination Unit in designing a suitable reporting system for monitoring and reviewing the implementation of development projects. This section also services the other sections in EPU, programming and designing appropriate models for projects appraisal and allocation of funds.

(b)Operation Division. This Division is responsible for the implementation of the plans by the process of allocating funds for the public sector development pro­grammes, the reviews and evaluation of the national plans, programmes and projects.

The focus of work in this section is the analysis of the role of different sectors of the economy in the attainment of Government's economic and social objectives and the problems they feel in meeting these objectives. For instance, the Agriculture Section conducts analyses on land alienation and development, padi pricu and production, rubber replanting, market prospects for major agricutlural crops and the economics of competing land uses for crops and forestry.

The Industry Section reviews and analyses the progress of industrial development and policies designed to promote further rapid growth litis it dons In close collaboration with the Ministry of Trade and Industry, Malaysian Industrial Develop­ment Authority (MIDA) and other operating agencies Ihe section also provides staff support to the Capital Investment Committee.

Detailed sectoral planning work is similarly undertaken in respect of such sectors as Education and Training, Transport and Communications, Utilities and Social Services.

(c)Foreign Investment Committee (FIC). The FIC was established to process applications from the private sector and foreign investors who intend to invest through acquisition of assets, or takeovers, This is to implement the long term objectives of the New Economic Policy whereby by 1990, 70% of the ownership of the shares of limited companies in Malaysia should be in the hands of Malaysians, 30% of which should be owned by Bumiputras or Bumiputra interests. It also undertakes the research and compilation of data concerning private and foreign investment.

(d)Regional Development Division. This Division is concerned with regional and urban planning studies and the assessment of the country's development potential in the light of spatial distributions of the natural and human resources within various regions of the economy. The activities of this section revolve around two main areas, the Area Planning and the Natural Resource Evaluation Sections.

(i).The area Planning Section is concerned with developing guidelines and criteria for initiating and evaluating proposals for integrated development programmes within specific urban and rural areas in the country. It also advices the state planning authorities in area and regional development work to ensure consistency with national strategy for regional development.

(ii).The Natural Resource Evaluation Section collects and collates information on spatial distribution of resources and the economic potential of the various regions in the country. The main task of this section is the compiling and systematic updating of the maps and data on the country's land resources. It also formulates policy guidelines relating to the environmental impact of develop­ment.

The EPU is responsible to the NDPC, an inter-agency committee comprising the civil service heads of all major economic development Ministries under the Chairman­ship of the Chief Secretary to the Government. The NDPC in turn reports to the NEC — a committee of the Federal Cabinet under the Chairmanship of the Prime Minister. Recently, a Consultative Committee comprising the NDPC and members of the private sector was set up. The object being to provide continuing interaction between representatives of the public and private sectors on matters pertaining to the formulation and implementation of policies and programmes for national economic and social development, particularly those concerning the private sector.

IMPLEMENTATION COORDINATION UNIT (ICU). BAHAGIAN PENYELARASAN PELAKSANAAN

Plan coordination and implementation is the direct responsibility of executive Ministries, Departments and agencies at the Federal, State and regional levels. To ensure coordination and implementation at the national and inter-departmental levels, ICU was established within the Prime Minister's Department. The heart of the implementation machinery is the Operations Room at the Central, Ministerial, State and District levels.

The objectives of the Unit are:

(i)to monitor and evaluate implementation of all government policies and pro­grammes to achieve the objectives of the New Economic Policy (NEP)

(ii)to coordinate the policies of all Ministers and Government Departments, as well as to initiate new policies and change existing policies so as to facilitate achieve­ment of the NEP.

(iii)to develop and maintain at all times a system of administration which is dynamic and effective at federal, state and local levels.

(iv)to further improve the capacity and capability of the administration for plan implementation through administrative reforms and the development of cost consciousness and efficiency in all governmental activities.

(v)to foster and encourage attitudes and values in the public sector consonant with the times and in line with the needs of development, change and progress.

In order to achieve the above objectives, the Unit discharges its functions as follows:

(1) Secretariat to the NAC

(i). at their meetings various Government agencies give briefings on 'Goal Pro­gramme Agency Matrix' which is prepared by this Unit. ICU is responsible for monitoring decisions made and ensuring that agencies responsible carry out these decisions within the short possible time.

(2) Supervision of Plan Implementation

(i)monitoring the progress on the implementation of development projects

(ii)to identify bottlenecks and study in detail problems faced in implementing tlm development programmes and suggest ways and means of overcoming them.

(iii)to act as coordinator at official level for Ministries, Departments, Statutory Bodies and Companies which have Government participation. It also oversees and coordinates the implementation of social and community development programmes, known as Gerakan Pembaharuan which extends to both the rural and urban sectors. Among major activities of community development are the Green Book Programme, Applied Food Nutrition Programmes and seminars for the Village Development Committees.

(iv)to be in charge of the National Operations Room and ensure its effective functioning.

(3)Machinery for the supervision of Bumiputra participation in commerce and

industry.

(i)to review and revise the existing Government Departments' policies and objectives with a view to increase the Bumiputras participation in the field of commerce and industry.

(ii)to identify the types of projects to be developed by Bumiputras and supervise the implementation of such projects.

(iii)to coordinate efforts in bringing greater Bumiputra participation in commerce and industry

(iv)to ensure proper use and distribution of resources between and among Govern­ment agencies with regard to staffing, finance and other resources with a view to achieve the objectives of the NEP.

(4)Evaluation.

(i)to evaluate the implementation of development projects

(ii)to assess the progress from time to time in relation to the Government's objective in creating a Bumiputra commercial and industrial community i.e. by 1990 Bumiputras own and operate 30% commercial and industrial enterprises.

(5)Development Administration

(i)to promote and maintain an effective and dynamic system of government administration at all levels.

(ii)to promote and maintain, through administrative reform and innovations greater economy and efficiency in governmental operation.

SOCIO-ECONOMIC RESEARCH AND GENERAL PLANNING UNIT (SERGPU)

The SERGPU in the Prime Minister's Department is engaged in activities.

(i) to undertake in-depth studies of the socio-economic problems of development and evaluate the socio-economic Impact of development programmes and projects after they are implemented or completed;

(ii)to conduct special studies on pressing national issues as directed by Government from time to time, either through Interdepartmental Committees and Task Forces or empirical research or both;

(iii)to develop social development policy guidelines as input for the national develop­ment plan and monitor the social aspects of development through the establish­ment and maintenance of a system of social indicators;

(iv)to receive, process and decide on application to undertake research in Malaysia by all foreign researchers and in the case of local researchers where they require the cooperation of Federal and State Government agencies;

(iv)to supervise, coordinate and advise on the operations of all divisions and units under SERGPU including the Public Complaints Bureau, the Malaysian Centre for Development Studies (MCDS), the Department of Statistics.

The role of SERGPU is indicated by its membership on several committees at the national level. The major ones include the Rubber Task Force, Committee on Construction Capacity, Committee on the Role of the Standards Institution of Malaysia in Relation to Exports, the Planning Committee on the National Airlines, the Committee on National Manpower Policy and a number of others. Apart from producing reports on specific topics, in some cases the Unit has also been made responsible for follow-up action on recommendation or monitoring implementation of the reports.

Planning and Research Division. This Division comprises three subdivisions responsible for (i) studies pertaining to the socio-economic impact of agricultural and rural development programmes and projects, (ii) studies pertaining to the socio­economic impact of industrial and urban development programmes and projects and

(iii) studies on poverty groups and population growth. In 1978 SERGPU initiated a Social Indicators Project which is compiling data on a number of areas like poverty eradication, health and nutrition, education, housing, natural resources and labour and employment. The results of this research effort should undoubtedly help Govern­ment policy makers to be more aware of the impact of the country's past development efforts and the changes that might be necessary in the country's development plans to enhance the enjoyment of a better standard and quality of life for people of all groups and regions in the country.

Public Complaints Bureau. The principal responsibilities of this Bureau are:

(i)to receive, consider and secure clarification of valid complaints by citizens over any administrative act done or omitted, relating to a matter of public adminis­tration by any Federal Department, and to redress grievances where possible;

(ii)to provide a feedback to Government regarding administrative matters and to identify problem areas so that corrective measures may be taken where necessary.

The Bureau deals with complaints from the public about difficulties encountered in dealing with Government agencies or public grievances about any Government administrative action which is considered unfair. It processes the complaints or grievances, gets in touch with the agency concerned and ensures that the legitimate rights of the people are not violated by executive or administrative mistake or abuse of power.

The feedback obtained from the Complaints Bureau on the basis of a systematic analysis of the complaints, enables the Government to effect improvements to the overall Government machinery. A new subdivision has been set up to undertake continuous analysis of the causes of administrative injustice, relating them to the administrative procedures, rules and regulations which give rise to them. The tub division will bring the Bureau closer towards becoming an agent for ensuring tliut administrative procedures, rules and regulations are not only just but are also implemented justly.

STATISTICS DEPARTMENT.

This Department is responsible for:

(i)collecting, processing and publishing of statistical information

(ii)the interpretation of statistics published as and when required,

(iii)providing statistical data and advising consumers on their use in both the public and private sector; and

(iv)providing assistance in the processing of data as undertaken by various government agencies.

A number of studies on demographic projection, housing needs in Malaysia, and padi production have also been undertaken in addition to conducting national cnnum and surveys.

NATIONAL FAMILY PLANNING BOARD (LEMBAGA PERANCANG KELUARGA KEBANGSAAN)

The National Family Planning Board is under the portfolio of the I’rlmo Minium's Department. It was established in 1966 and is responsible for implementing lire I amily Planning programmes to achieve the objectives of economic and social progress of the country as planned under the First Malaysian Development Programme. The major purpose of the scheme is to reduce the growth rate of the population to 2% by 1985 so that more resources can be devoted to investment, tlieinby Increasing the per capita income and the rate of national output.

The duties and functions of the Board are:

(i)the formulation of policies and methods lor tho promotion and spread of family planning knowledge and practice on the grounds of health of mothers and children and welfare of the family.

(ii) the programming, directing, administering and coordinating of family planning activities in the country

(iii)to be responsible for the training of all persons involved in the family planning extension work

(iv)to be responsible for the conducting of research on medical and biological methods relating to family planning

(v)the promotion of studies and research on inter relationships between social, cultural, economic and population changes and also research concerning fertility and maternity pattern in the country.

(vi)to set up a system of evaluation by means of which it will be possible from time to time to assess the effectiveness of the programme and the progress towards the attainment of national objectives.

The experience of the National Family Planning Board has proved that large number of people in both urban and rural areas are now keenly aware of the benefits of small family. As Table V shows the Family Planning Board has been reasonably successful in reducing the birth rate from 3.73 in 1966 to 3.18 in 1978.

Table V

	REDUCTION IN POPULATION INCREASE, MALAYSIA (PER THOUSAND)
Year	Crude Birth Rate	Crude Death Rate	Crude Rate of Natural Increase
1957	46.2	12.4	33.8
1966	37.3	7.6	29.7
1972	33.3	6.9	26.4
1975	31.4	6.4	24.9
1978	31.8	6.0	25.7

NATIONAL UNITY BOARD

The main objective of the Board of National Unity is the building of united, demo­cratic, just, liberal and progressive society in accordance with the principles of the Rukunegara. The task of the Board of National Unity is to help create a society where people of all races regard themselves as citizens of Malaysia and not as different groups.

In carrying out this task, the Board is arrested by an Advisory Panel whose functions are to inform and advise the Government on racial problems and suggest short term and lont-term solutions. The members of the Board comprise all races from all walks of life who are well informed in national affairs.

To implement its objectives, the Board is divided into 3 divisions — the Adminis­trative and Finance Division, the Community Relations Division and the Research Division.

Administration and Finance. This Division provides the requisite system of administration and finance and carries out functions of coordination, evaluation and servicing to ensure the achievement of the objectives of the Board.

The Division is responsible for the publication of a fortnightly magazine, 'Balai Muhibbah', which is the official organ of the Board. The magazine highlights goodwill activities and news throughout the country, and serves as reading material for students of the National Solidarity Classes and the general public.

Community Relations. This Division is concerned with the integration of the various races through the Community Relations Programme and other projects which are intended to promote not only closer understanding and cooperation among the multi-racial community but also to instil in them the spirit of loyalty to King and Country.

The Community Relations Division carries out numerous activities like National Solidarity Classes, Unity Quiz, dialogue, Unity Work Camps, Essay Competitions, Community Games, etc with the sole purpose of achieving national unity.

Research Division. This Division focuses its attention on ethno-socio problems especially those pertaining to rare relations within the context of national unity. In addition to this, the Research Division:

(i) organises closed door dialogue sessions with selected groups from time to time to obtain feedback for government action.

(ii)investigates complaints on racial discrimination.

(iii)submits reports and suggestions to relevant authorities.

(iv)processes and supervises applications from foreign researchers who either come individually or in a group.

(v)prepares booklets on customs and culture of the various ethnic groups ,is well us subjects on citizenship.

(vi)publishing a biannual magazine of the Board, 'NEGARA, which provides the platform for discussion on social problems within and outside the country, and delivers lectures and talks on Government policies in the context of national unity to social organizations, Government institutions and the private sector.

Chapter 13
Public Interest

INTRODUCTION

The role of Government agencies in the economic development of Malaysia can be discussed against the background of the socio-economic situation in the country.

The most obvious of the colonial 'heritage' of this country besides economic dualism was the phenomenon of racial identification with economic functions. When the country achieved independence in 1957, the indigenous communities were engaged in the stagnant and depressed sectors while the non-indigenous communities were engaged in the prosperous and thriving plantation/mining sectors as welt as in industry and commerce. This had a self perpatuating and cumulative effect on the Malays - savings are low because income is low, income is low because productivity is low, productivity is low because investment is low and investment is low because savings are low — the vicious circle of poverty. The vicious circle of poverty did not allow the Malays to accumulate capital and in turn to invest in their education or to move to urban areas where the growth industries were found.

To overcome the vicious circle certain economic measures have been taken since 1957 to reduce the racial economic imbalance and also to generate overall economic growth in the country. Public investment was adopted as one of the key instruments of economic policy in this direction. The public investment that was undertaken over the years was mainly directed in developing and improving the rural sector to benefit the Malay peasantry. Very little public investment was directed into commerce and industry (the growth sector) which was largely dominated by non-Malays. The objective of doing this was to narrow the racial economic gap. There was also no public investment undertaken to bring about Malay participation in commerce and industry, except marginally through assistance rendered to the rural cottage industries.

The Government agencies that were established over the years up to 1969, with the exception of Federal Land Development Authority (FELDA) and possibly the Council of Trust for Indigenous People (MARA), did not engage in the direct production of commodities. They were mainly concerned with the provision of credit, regulation of the market for rural produce, etc. There was very little Government participation in the economic activities of the country.

However, after the May 1969 racial riots the Government laissez faire philosophy changed. Despite the large public investment in rural development it was strongly felt that there had hardly been any improvement in the standard of living of the rural people. It was also obvious that there was very little Malay participation in the modern sectors of the economy both in terms of employment and ownership. As productivity and income levels were much higher in the modern sectors as compared to the traditional sectors, it was felt among government circles that the only way the living standards of Malays can be increased was by increasing their participation in the modern plantation and mining industries and also in commerce and industry.

As a result the Government launchud the New Economic Policy (NEP) with the twin aims of eradicating poverty and restructuring society. Public investment continued to take place in peasant agriculture and, in fact, the number of Government agencies engaged in this sector has increased significantly in recertt years. At the same time, there has been a substantial increase in the volume of public investment in commerce and industry. The number of Government agencies engaged in the production of industrial commodities, set up specifically to inject Bumiputra participation into commerce and industry, has increased substantially.

The strategy for achieving the objectives of the Ni l’ mn lo be realized through rapid expansion of the economy over time i.e. through expanding the national cake rather than through redistributing the existing cake. For instance, it is stated in the Second Malaysia Plan that the target of ownership is to be affected through the active participation of Malays in the new additions made to the stock of wealth, not through the disruptive redistribution of existing wealth. For this purpose other Government agencies have been set up to promote development.

The Government agencies that have been established can be broadly categorised into 3 main groups:

(1)Those institutions which were set up primarily to promote land development and settlement with a view to improving rural farm income. 'The FELDA, the Sarawak Land Development Board and the Sabah Land Development Board were established to open up new land schemes for the settlement of the rural poor and the landless, and have formed the backbone of rural development policy since the Second Malaysia Plan. The Muda Agricultural Development Authority (MADA) and the Kemumbu Agricultural Development Authority (KADA) were set up specifically to assist padi farmers in the two largest padi production areas in Malaysia, while the National Padi and Rice Authority (LPN) was charged with the responsibility of administering a price support programme for padi farmers and ensuring an adequate supply of rice for domestic consumers. The Federal Agricultural Marketing Authority (FAMA) was established to market selected agricultural produce so as to ensure that farmers receive a fair and equitable return for their produce.

(2)Those institutions which were set up to promote greater bumiputra participation in commerce and industry under the NEP. The Council of Trust for Indigenous People (MARA), the Perbadanan Nasional Berhad (PERNAS) and the Urban Development Authority (UDA) were established to undertake a wide range of mutually supporting activities with a view to increasing public investment as well as bumiputra participation and equity ownership in the commercial and industrial sectors of the economy. The activities of these institutions include acquisition of ownership in business and holding shares in trust for bumiputras, the training of bumiputras in various levels of industrial and commercial employment and the provision of credit, business premises and advisory services to bumiputra individuals and establishments. At the State level, the various State Economic Development Corporations (SEDCs) performed similar roles by engaging in manufacturing, construction and agricultural activities geared towards providing bumiputras with greater opportunities to participate in commerce and industry in the State economies.

(3)The Malaysian Industrial Development Authority (MlDA) previously known as the Federal Industrial Development Authority (FIDA), which was set up primarily to promote industrial development in the country. It serves as the central coordinating agency for processing and approving applications for the establishment of industrial projects, and for the granting of investment incentives.

SURVEY OF SOME GOVERNMENT AGENCIES

It is difficult in a book of this nature to discuss in detail all the institutions under all the categories in great detail. Hence an attempt is made to discuss some of the more important agencies or institutions.

LAND AND AGRICULTURAL DEVELOPMENT AGENCIES

(1). Federal Land Development Authority (FELDA). It was established in 1956 to promote land development and settlement as a means towards economic and social development. In the earlier stages, FELDA was concerned mainly with the opening of new land to promote crop diversification; and to improve the income of its settlers, but its functions were gradually extended to include processing and marketing of its crops. As the role of FELDA expanded, a number of subsidiaries, either wholly-owned or on a joint venture basis, were set up in the 1970s.

Since its inception, FELDA has developed numerous land schemes throughout Peninsular Malaysia, mainly for oil palm and rubber. Some schemes for cocoa, sugar cane and coffee plantation also have been opened up. FELDA is today the single largest producer of palm oil in Malaysia.

(2). Muda Agricultural Development Authority (MADA). It plans, coordinates and promotes social and economic development in the Muda area, which is one of the principal rice growing regions in Malaysia. Established in 1970, MADA carries out its functions mainly through its Engineering and Agricultural Divisions. The Engineering Division is concerned with the operation and maintenance of the Muda River Irrigation Project. The Agricultural Division concentrates its efforts on providing advisory and extension services to the farmers and the implementation of socio­economic projects in the Muda area. Besides coordinating the activities of rural-credit institutions, namely the Farmers' Organisation Authority, the National Padi and Rice Authority, the Agricultural Bank of Malaysia and the Malaysian Agricultural Research and Development Institute in the region, the Agriculture Division also effects the implementation of social and economic projects through a network of farmers' cooperatives and agro-based cooperative societies. The activities of these cooperatives are basically geared towards the provision of credit facilities to the farmers and involvement in agri-business projects and other small projects aimed at diversifying the incomes of farmers. The Agriculture Division also conducts socio-economic surveys and research in the region to achieve better planning for the farmers.

In support of the various agri-business projects and small projects undertaken by the cooperative societies, which range from the supply of farm inputs, the sale of agricultural machinery and the marketing of padi and rice to furniture making, poultry rearing and fresh water culture, MADA purchases combine harvesters and rents them to farmers' cooperatives to ease seasonal labour shortages during the harvesting season as well as to expedite the harvesting process.

(3). National Padi and Rice Authority (LPN). The Lembaga Padi dan Beras Negara was established in September 1971, as a statutory body under the National Padi and Rice Board Act, 1971, which is in force in Peninsular Malaysia and Sarawak. Its functions are:

(i)to ensure a reasonable and stable price of padi for farmers

(ii)to ensure a reasonable and stable price of rice for consumers

(iii)to ensure an adequate supply of rice to meet any emergency

(iv)to make recommendations for the development of the padi and rice industry and if acceptable, to assist in the implementation of such recommendations.

To fulfill its objectives LPN is responsible for implementing a national rice stockpile policy and price support programme for padi farmers. The LPN is authorised to implement the Guaranteed Minimum Price for Padi, to control the rice stockpile, to issue licences for wholesale, retail, rice milling, import and export and to control the movement of padi from one state to another.

The purpose of the Support Price of Padi is to prevent a fall in the price of padi to a low level seasonally and also at all times. The suitable price offered will be an incentive to the farmers to improve the production of padi, both in quality and quantity. With the establishment of LPN complexes, the Support Price scheme was implemented. These complexes buy padi directly from the farmers at the market price. This created competition between LPN and the private millers and helped to ensure that the farmers received a fair price for their padi.

LPN is responsible for ensuring that there is a sufficient supply of rice in the country and that it is readily available during any emergency. The purpose of the Rice Stockpile scheme is also to implement the Guaranteed Minimum Price (GMP), rice is purchased from millers at a price based on the GMP, provided the millers buy the padi at the GMP. The LPN Stockpile also stabilises the market price of rice to consumers through the sale of rice from the stockpile.

Rice for the stockpile is bought by LPN from local millers and also imported. The rice is stored and issued in continous rotation: the stored rice is sold after 6—9 months. Since the Price Control rules were implemented in 1974, LPN is the sole importer of rice to meet the shortages in the country.

(4)Federal Agricultural Marketing Authority (FAMA). FAMA established in 1965 to market selected agricultural produce in the country and to provide alternative market outlets to enable a fair and equitable return for the produce of farmers. The functions of FAMA were extended to:

(i)promote and develop efficient and effective management of agricultural enterprises dealing in or processing agricultural produce,

(ii)provide and supervise credit facilities for agricultural marketing and to ensure that those facilities are put to maximum use; and

(iii)engage in agricultural enterprises dealing in or processing agricultural produce. The FAMA Act enables the Authority to participate in direct trading of agricultural commodities without first having to prescribe marketing schemes or establishing marketing boards, as was required previously.

Agricultural produce, as spelt out in the FAMA Act, includes all agricultural produce except rubber, pineapple, padi and rice, tobacco, fish, and livestock.

To promote the marketing of the various agricultural produce, the Authority participates in local and overseas exhibitions, as well as trade missions abroad. As part of its information dissemination programme, FAMA engages in the collection, compilation, analysis and dissemination of market information to farmers, market intermediaries and the general public.

RESTRUCTURING AND INDUSTRIAL AND GENERAL DEVELOPMENT AGENCIES

(1)The Council of Trust for Indigenous People (Majlis Amanah Rakyat — MARA). The objective of MARA is to motivate, train and assist the Malays'and other Bumiputras, especially those in the rural areas, to participate progressively in commercial and industrial activities.

The objectives include the following:

(i)developing manpower resources to fulfill national requirements,

(ii)providing the Malays and other Bumiputras with managerial and technical consultancy services,

(iii)providing the Malays and other indigenous people with credit facilities for them to engage in commercial or industrial enterprise or in both,

(iv)establishing commercial, industrial, transportation and other projects which will expedite the participation of the Malays and other indigenous people in these fields;

(v)providing other facilities, services and the like, which are of particular or general interest to the Malays and other indigenous people in the field of commerce and industry.

In pursuance in the field of promoting greater Bumiputra participation in the economy, MARA continues to provide financial assistance to Bumiputra entre­preneurs, advisory and extension services as well as education and vocational training to Bumiputra establishments and individuals. In addition, MARA has established wholly-owned subsidiaries and participated in joint-venture projects in commerce and industry with Bumiputra investors.

2.Perbadanan Nasional Berhad (PERNAS). PERNAS was incorporated as a public limited company in 1969 to promote greater direct Bumiputra participation in commerce and industry through the establishment of wholly-owned and joint-venture companies that would provide opportunities for equity participation by Bumiputras and for raising their entrepreneurial skills.

Registered under the Companies Act of 1965, its capital is subscribed by a number of Government agencies, including the Federal Government and Bank Negara Malaysia.

PERNAS is Government sponsored and as such is entrusted with the implement­ation of the New Economic Policy. However, as a public limited company, its operations are geared towards profit making because profits provide the means by which the objective of PERNAS can be achieved. The Corporation is creating a crop of skilled local personnel comprising Malay and non-Malay managers, engineers and technicians.

By the end of 1978, PERNAS had established 8 major wholly-owned subsidiaries engaged in a wide range of economic activities, which included general trading, manufacturing, mining, insurance, construction, property development, engineering, securities and investment.

PERNAS believes that both the needs of Malaysians as well as foreign investors can be met by the formation of joint ventures where the rights of both parties are respected. PERNAS has succeeded in forming viable joint ventures in various fields.

3.Urban Development Authority (UDA). UDA was established in 1971 to accelerate Bumiputra participation in commerce and industry in the urban areas and new growth centres. It has been entrusted with various functions, some of which are:

(i)to provide and implement projects in urban areas for development, redevelop­ment, settlement, resettlement and public housing, and improvement in environ­ment, services, amenities, traffic circulation, vehicle parking, recreation facilities and other improvements for the promotion of national unity, health, safety, convenience and welfare.

(ii)to promote and carry out projects in urban development areas so that opportunities in the field of commerce and industry, housing and other activities can be shared by all races, and

(iii)to translate into programmes the Government policy of restructuring society through development.

By engaging in various development programmes of property development, urban renewal, provision of premises and emplacement of various business opportunities in strategic areas more opportunities have been created for Bumiputras to own property and participate in the urban centres. UDA also has pursued its strategy of direct participation in business in the form of joint ventures with Bumiputras and non- Bumiputras with a view to developing and expanding these ventures.

4.State Economic Development Corporations (SEDCs). Every state has set up its own SEDC to develop and bring about progress for the state in particular and the country in general. The 13 SEDCs in the country continue to promote social and economic development at the state level. These corporations, either on their own or in joint- venture with private companies and public agencies have been successful in bringing about more balanced regional development at the state level and in assisting the Bumiputra community to engage in industrial and commercial activities. The SEDCs also participate in and promote labour intensive and domestic resource based manufacturing, mining, building and building and construction and agricultural activities.

In order to ensure more balanced regional development, the SEDCs have under­taken the construction of industrial sites in less developed areas to promote the growth of new industires.

The major sources of finance for the SEDCs were primarily from the Federal Government, which were channelled through the respective State Governments. Other sources of finance were from the Agricultural Bank of Malaysia, the commercial banks and finance companies.

5. Malaysian Industrial Development Authority (Ml DA). Ml DA previously known as the Federal Industrial Development Authority (FIDA) which is a statutory body established by Act of Parliament, became operational in April 1967. Its main functions are to promote and coordinate industrial development in Malaysia and to advice the Minister of Trade and Industry on the formulation of policies relating to industrial development. The other functions of the Authority are:

(i)to undertake or cause to be undertaken economic feasibility studies of industrial possibilities

(ii)to undertake industrial promotion work in Malaysia or abroad,

(iii)to facilitate exchange of information and coordination among institutions engaged in or connected with industrial development,

(iv)to recommend policy on industrial site development, and where it deems fit, to undertake the development of such sites,

(v)to evaluate applications for pioneer status

(vi)to report annually to the Minister on the progress and problems of industrialisation in Malaysia and make recommendations on the manner in which such problems may be dealt with.

(vii)to advice the Federal Government on measures for the protection and promotion of industries including the imposition and alteration of, and exemption from, customs and other duties and import and export licensing.

MIDA's functions are related directly to the speedy establishment of new industries, expansion of existing industries and the solution of problems relating to industrial development in accordance with Government policy.

MIDA has been actively engaged in the deliberations of Government departments and international organisations such as UNIDO and ESCAP pertaining to development issues which are related to the policies and objectives of industrialisation. MIDA has also played an important role in activities concerning ASEAN cooperation.

6. Malaysian Industrial Development Finance Berhad (MIDF). The MIDF, originally a private finance institution, was reorganised in 1963 with the participation of the Malaysian Government and the World Bank. The shareholders include the Malaysian Government, commercial banks, insurance companies and industrialists.

MIDF's principal objective is to promote rapid industrialisation by assisting local and foreign investors to establish sound industrial enterprises in the country.

To this end, MIDF provides medium and long term loans to assist entrepreneurs in the purchase of fixed assets, such as land, buildings and plant and equipment for their factories normally up to 50% of the total fixed asset cost of the new or existing project. A fixed rate of interest is charged for all loans. Apart from financial assistance, MIDF is also prepared to advise entrepreneurs on capital needs and all matters pertaining to an industrial project.

MIDF undertakes to assist industries in capital flotation and offers direct equity participation. It can also act as issuing house for companies seeking to raise capital on the Malaysian Stock Market, underwrite both share and debenture issues and serve as Registrar for Companies.

In addition, MIDF through its subsidiary, Malaysian Industrial Estates Sendirian Berhad (MIEL) builds general purpose standard factories in suitable industrial estates. These are offered for sale to small and medium entrepreneurs but MIEL can offer long term loans to Malaysian-controlled companies for the purchase of these factories. MIDF has established a wholly owned subsidiary, MIDF Industrial Consultants Sendirian Berhad which provides comprehensive consultancy services.

Chapter 14
Efficiency in Government Administration

CHAPTER FOURTEEN

EFFICIENCY AND QUALITY OF SERVICE IN THE PUBLIC SECTOR

The development tasks to achieve the objectives of the New Economic Policy require significant, bold and effective measures for improving the administrative machinery for planning and implementation. Administrative efficiency will be crucial given the larger size of the investment effort with the launching of each new Five-Year Plan, in particular the need to ensure effective implementation of development programmes for the redressal of socio-economic and structural imbalances. This necessitates improvements being made to the administrative machinery requiring higher levels of professional capability, human understanding and dedication in the formulation and implementation of programmes and projects in line with national objectives.

Since the successful implementation of the NEP also depends to a great extent on the performance of the private sector, the administrative system has a vital role to play in creating the environment necessary for the private sector to attain the targets set for it. The responsibilities of the public service in this respect are wide. Not only is it necessary that adequate infrastcucture be provided for the growth of private invest­ment, it is also esential to ensure that private initiative is encouraged to develop along more socially responsible lines in accordance with NEP. Close rapport between the Government and private enterprise is therefore paramount. In this connection, clear and consistent interpretation of Government policies under the NEP as well as responsiveness on the part of public servants to the needs and problems of the private sector in the implementation of the NEP cannot be over-emphasised.

The efficiency of the administrative machinery of the Government in achieving the goals of the nation will also depend on the cooperation and support it receives from the rakyat. Their participation in the development effort and their confidence in the future are crucial elements in encountering communist subversion and insurgency. This challenging task requires full understanding and appreciation on the part of public servants of the complex socio-economic, political and human problems in the country.

DETERMINANTS OF EFFICIENCY AND QUALITY OF SERVICE-OF WORKERS IN GOVERNMENT SERVICE

The work output in the public sector can be classified either as quantitative or qualitative. The quantitative aspect is easily measurable by the volume of output as is in the case of a secretary who has to type a certain number of letters or a doctor who attends to a certain number of patients in a day. In such cases the performance or efficiency of a public servant is measurable by taking into account the volume of output and the time involved. However, qualitative work is not measurable as it involves numerous considerations of feelings, values, expectations, accountability and so on. It is difficult to measure the performance or efficiency of most public servants as the functions they perform are mostly qualitative in nature.

The efficiency and quality of public service can be assessed at three levels:

(i)Individual or group level

(ii)Organisational, Departmental or Sectorial level

(iii)Governmental and National level.

All these three levels are important and interrelated. This means that good performance in terms of efficiency and quality by individuals or groups of individuals will create a good image of not only their organisation or department but also of the Government and the Nation.

At the Individual or Group Level. At this level the efficiency and quality 6f service can be seen in terms of the attributes of public officers. An able, capable and responsible public officer is judged by:

(i)his ability to understand his environment — social, political, economic, etc. — and respond to changing environment

(ii)his ability to understand the organisational structure of his organisation and his position and responsibilities in that organisation.

(iii)his capability to carry out the responsibilities he has been entrusted with and courage to face the results

(iv)his willingness to cooperate with others to achieve the objectives of the organisation. In addition to having qualities of ability, capability and carrying out duties responsibly, he should have qualities of integrity, honesty and trust­worthiness.

At the Departmental Level. At the departmental level, the efficiency and quality of service can be seen from the capability and ability of the department not only to plan and implement the programmes, but more important it is the ability to integrate and coordinate its activities with the activities of other related departments. Given forward planning and cooperation, there is no reason why there should not be proper co­ordination of the activities of the relevant government departments and ministries. Proper coordination is important in the sense it reduces waste, saves time, results in better utilisation of resources and thus high standard of efficiency is maintained.

The efficiency and quality of service of individuals in the public sector depends on a number of factors:

(i)Personnel. Of all the factors of production, this factor is the most important. This factor not only addes life and meaning to other inputs of production, but it also determines the quality of service. There are several aspects of personnel which can influence the efficiency and quality of service. These aspects are inter related and wold become clear as we discuss the next few factors.

(ii)Attitude. The right attitude towards work is important in ensuring efficiency and quality. Every personnel of the public service not only has the obligation to give excellent and honest service but also the responsibility to inculcate values to improve his quality of service by upgrading his skills through training, studying, trying new ideas, discussing with others the problems of his organisation with a view to over­coming them. He must always be prepared to overcome his weakness relevant to his duties without being reminded by his superior. This aspect is emphasised in 'Panduan Perkhidmatan Cemerlang'which means 'Guide to Excellent Service’.

Guide to Excellent Service'.

(iii)Work Experience and Exposure. It is obvious that an experienced worker who has had lot of exposure to all kinds of problems and situations will be able to handle better new problems and challenges, and hence provide more efficient and better quality service. It is important that junior officers in the public services take the opportunity to interact with experienced personnel and learn from their experience.

(iv)Motivation. The level of motivation of an individual depends on a wide range of factors — upbringing, personal needs, value systems of the society, rewards and incentives, etc. However, efficiency and quality of service, can be improved by giving him encouragement or having some form of supervision over him. But it does not mean that through supervision his motivation can be improved. Factors which motivate a person are:

(a)the need for achievement

(b)appreciation arising from achievement

(c)nature of work

(d)opportunities for self-advancement. This acts as a powerful incentive in most cases.

In performing its supervisory functions the public sector must ensure that:

(a)good administrative procedures are followed. The procedures must be simple, easily understood, and put into practice in a just, fair and impartial manner.

(b)some degree of supervision is exercised. Junior personnel certainly require guidance and supervision. This will result in greater efficiency and better quality work. Although good supervision ensures that we get good quality work, but it does not necessarily mean that each public personnel should be placed under close supervision which can hinder his creativity and innovativeness.

(c)the atmosphere for work is conducive. This factor has an important effect on the morale of the person. A good working atmosphere includes proper lighting, layout of office, office equipment, etc.

(v)Salary or wage. Wage is a reward for performing certain tasks and bearing the responsibility to discharge the duties. Wage acts as a strong incentive. It is important that the wage paid takes into account the cost of living factor, the nature of the job, the responsibilities involved and the status attached to the job. The wage must be comparable to some extent with the private sector — all other things being equal, people with similar qualifications and experience must be paid the same wage, more or less. Otherwise, the private sector will lure away the more able personnel from the public sector.

(vi)Job Tenureship. This factor can have both positive and negative effects. It is important to give security of tenureship so that public servants will not look for other jobs that have security. On the other hand, security of tenureship might result in contentment, less receptive to innovations, indifferent attitude to work, may not spur a person to meet greater challenges, etc. In order to remedy the-weakness of secure jobs it may be necessary to have some controls in the system.

(vii)Opportunities for upgrading skills. We are living in a world of rapid changes. Hence it is important that public servants keep abreast with the latest developments relevant to their jobs. For this purpose in service training facilities must be available. In this r'espect, INTAN has played an important role. In addition, it is important that govern­ment officers be granted other training opportunities by provision of scholarship, either at local or overseas institutions.

(viii)Provision of Finance. Enough money should be allocated for administrative expenditure and development expenditure. Inadequate allocation can result in shortages of certain inputs, delay development and also result in the underutilisation of certain resources. Procedures for unavoidable additional financial needs must be simplified so that not much time and energy are wasted in responding to such requests.

(ix)Periodic Reviews and Evaluation. Our discussion quite clearly shows that there are a large number of hetrogenous factors that interact with each in varying intensities in determining efficiency and quality of service. Though evaluation of the contribution of each of ttie factors is complex but it is necessary so that high standards of efficiency and quality of service can be maintained. Evaluation units can be set up at various levels and such units should be staffed with trained, impersonal, honest and courageous personnel. Their basic aim should be to increase efficiency, reduce waste, and improve the quality of service. MAMPU and INTAN have contributed much in this direction. These institutions are being expended to meet the needs of the rapidly expanding civil service to achieve the objectives of the NEP. In addition, the govern­ment has set up other machinery at different levels to help maintain high standards in the Government service.

METHODS TO UPGRADE THE EFFICIENCY AND QUALITY OF GOVERNMENT MACHINERY

Some of the measures that have been taken by the Government to upgrade its machinery to increase efficiency and quality of service are:

1. Rapport with the private sector. We noted earlier that to achieve the objectives of the NEP, close rapport between the Government and private enterprise is paramount. For this purpose a Consultative Committee comprising the National Development Planning Committee (NDPC) and members of the private sector has been set up. This provides for continuing interaction between representatives of the public and private sectors on matters pertaining to the formulation and implementation of policies and programmes for national economic and social development, particularly those concerning the private sector.

2.Strengthening of Planning at State Level. Under the Third Malaysia Plan (TMP) efforts were made to develop new planning processes at the regional and state levels with a view to enabling the States to plan their requirements more effectively, consistent with national objectives. To this end, the State Planning Units (SPUs) were strengthened particularly in the less developed States. The EPU at the Federal level continues to extend such technical and training assistance as requried for this purpose.

Experienced personnel have been deployed to help upgrade the planning cap­abilities of State Governments in the endeavour to strengthen the process of de­centralised planning.

3.Making Coordination and Implementation More Effective. Plan coordination and implementation is the direct responsibility of executive Ministries, Departments and Agencies at the Federal, State and regional levels. To ensure coordination and implementation at the national and interdepartmental levels. Implementation and Coordination Unit (ICU) was established within the Prime Minister's Department. The Unit works to a National Action Council (NAC) under the Chairmanship of the Prime Minister.

The heart of the implementation machinery is the Operations Room at the Central, Ministerial, State and District levels. New techniques have been introduced for the monitoring of plan implementation especially in regard to the use of feedback techniques with respect to the progress and problems experienced by the less developed states.

The Cabinet Committee on the Implementation of Development Projects has sub­mitted 91 recommendations to government on how to speed up programmes and remedy shortcomings. All have been accepted. One of them, if put into immediate effect, could galvanise the entire public sector. The recommendation in question is that more power be given to those immediately in charge of projects in order that certain on-the-spot decisions may be made by subordinates without reference to a superior.

Although the delegation of authority is an important and very basic principle of efficient administration, it is seldom practised with the same enthusiasm as it is preached. One reason for this is that a certain rigidity of procedure is built into the structure of the civil service and is maintained by the requirements of government General Orders, which often strictly define the limits of authority vested in officers of specified grades. In effect, this means that a senior officer who wishes to delegate authority to a subordinate, cannot properly do so, and can only delegate respons­ibility. This will usually prompt the subordinate to defer decision-making and maintain the departmental status quo until his superior returns.

In part, this rigidity of structure is a legacy of colonial times, when the gap in education and qualifications separating senior officers from their subordinates was often considerable. In modern Malaysia however, this no longer pertains, and competent, qualified subordinates are now available in every branch of the public sector, including those offering sophisticated technical services.

Vestiges of the old rigid structure, which required every decision, however small, to be referred to an often distant and sometimes unavailable "Tuan" still remain. It is hoped that on the strength of the Cabinet Committee's recommendation, the whole public sector will benefit from their amendment or elimination.

4.Consolidation of Government Agencies. The Government has been taking steps not only to increase the number of Government agencies to implement various projects but also has been promoting operational efficiency among these agencies through consolidation of their activities to avoid duplication of functions.

5.Manpower development. There will continue to be strong demand for qualified marfpower especially in the technical and scientific fields in view of the expanded role of the public sector in the planning and implementation of programmes for eradicating poverty and restructuring society. In order to ensure that shortages do not constrain the planning and implementation of Government programmes measures have been taken to ensure efficient utilisation of the limited supply of scientific, technical and managerial manpower in the public sector through effective allocation of manpower resources, rationalisation of job functions and streamlining of departmental and agency functions. In-service training at all levels in the public sector and training at INTAN and overseas institutions has been emphasised in order to upgrade the professional skills and experience of local officers.

6.Re-orientating the attitudes of Government Servants. While the human dimensions of societal development will have to be carefully considered in the process of plan implementation, it is also necessary that the attitudes, interests and motivations of all public officials be aligned with national objectives. Positive steps in terms of re­orientating their attitudes through training and other means are being undertaken.

The principles embodied in the book for Government Servants ‘Panduan Perkhid- matan Cemerlang' the title meaning — 'Guide to Excellent Service' — are aimed at not only improving the efficiency and quality of Government servants but also to inculcate in them certain moralistic values towards society. In other words, the aim is to provide a leadership in the public service of a calibre which ensures dedication, integrity, efficiency and responsiveness to the aspirations of the rakyat in the task of national development.

7.Provision of incentives. In reviewing the General Orders, the Public Services Depart­ment has made several proposals for improving the performance of civil servants.

Theoretically, the new system will use the classic ‘Carrot and Stick' principle. Excellence will be rewarded with incentives such as a month's bonus, an extra week's leave with pay, double increments and study tours. Those who fail to perform their duties properly will, however, be disciplined.

With the incentive system, there is the implied threat that offenders will be pursued with fervour - welcome news to the public. But there may well be teething problems. Ill feelings and allegations of favouritism may be minimised by strict application of the procedures in selecting those eligible for rewards as well as reprimand, but they cannot be eradicated completely. This is where the civil servants' commitment to ethics and discipline will be really tested. He must learn to accept with equanimity both favourable and unfavourable verdicts on his own job performance.

This incentive system is discussed in the General Circular (No. 9) of 1980 entitled Panduan Melaksanakan Penghargaan Perkhidmatan Cemerlang' which is discussed next.

PANDUAN MELAKSANAKAN PENGHARGAAN PERKHIDMATAN CEMERLANG (GUIDELINES TO THE ACCOMPLISHMENT OF HONOURS FOR EXCELLENT SERVICE)

Tan Sri Hashim bin Aman, Chief Secretary to the Government issued a General Circular (No. 9) dated 13th. Dec. 1980, with the aim of raising the efficiency and quality of public service. It is entitled Ethika Perkhidmatan Awam (Ethics for Public Service). It is addressed to secretaries and heads of both Government departments and statutory bodies.

The Circular is in Bahasa Malaysia. An attempat is made here to translate it into English. Readers are advised also to read the original in Bahasa Malaysia.

1.As known to all Heads of Department, the Government has implemented the Book of Guidelines to Excellent Service with the aim of improving the efficiency of public services. The Government is also aware that among others, one of the ways to improve the standard of public services is to grant honours to those who have rendered excellent service. The granting of honours for excellent service will not only give incentive to the worker concerned, but it will also be useful as an example to the other members of the staff.

2.Hence with this all Heads of Department are directed to practise the giving of award of honours to those workers who have given excellent service. Ways of accomplishment of honours for excellent service have been elaborately explained in Appendix A. Appendix B consists of the ways MAMPU carries out the granting of awards for excellent service. Th£ ways that are used by MAMPU can be regarded as a guideline. But the types of honours, which include the criteria that have been mentioned in this General Circular as well as the system which is used by MAMPU are to be used as guidelines only by the Heads of Department. The Heads of Department, can, however, modify this system to suit the conditions in their respective offices.

3.In this process of choice the Heads of Department should determine that only those who are eligible be given the honour so that the honour will not be laughed at. The choice made covers all category of workers (i.e. from Division A, B, C and D) and is not solely restricted to one division only. To asusre that this honour for excellent service is valued and highly looked upon by the award winners and their fellow workers, the Heads of Department should ensure that they are selected justly, fairly and impartially.

'Service for the Nation'

TAN SRI HASHIM BIN AMAN

CHIEF SECRETARY TO THE NATION

APPENDIX A

WAYS OF ACCOMPLISHMENT OF HONOURS FOR EXCELLENT SERVICE

PART I

1.A Department Committee for Awarding Honours is set up in every department to select the excellent servant. Its members can comprise of the Head of Depart­ment and Heads of Divisions, and must be in representative form so that the  importance of every category of workers is considered.

2.The award of honours should be made once a year. The award should, as far as possible, be given at an appropirate time and not when the services rendered by the officer have become 'cold' (timely award). In specific cases, the Head of Department can give a certificate of honour at appropriate times.

3.The award given can be in the form of: —

(i) Certificate of Honour as given by MAMPU, the Prime Minister's Department.

(ii) A special Letter of Compliment for officers in the lower categories as given by the Police.

(iii) Certificate of Honour for retired servants who do not have a bad service record.

(iv) Souvenir in the form of medallion/colour which is not more than $100 in value.

(v) A bonus of one month's salary for servants who have been selected for excellent service.

(vi) One week's paid leave (excluded from the eligible normal leave; this leave cannot be substituted with cash).

(vii)Includes the winner's name in the list of Federal/State Award winners.

(viii) Selection to pursue courses overseas/study tour.

(ix) Double his salary increment and

(x) Consideration for fast promotion.

Methods of giving these awards are explained in detail in Part 11

4.The Wording of the letter of honour is left to the discretion of the respective departments. But as far as possible, the form should envisage or contain specific aspects as has been analysed in the Book of Guide to Excellent Service.

5.The various forms of certificates (indicated by different colours) should be produced to differentiate the levels of awards.

6.Where a staff has accomplished his work satisfactorily, but not as yet qualified to receive a specific award, should be encouraged with verbal compliments at that moment, or when he is among his colleagues (If it is desirable, this can be accompanied by a tea reception and etc.)

7.The annual honorary award is required to be made in an official ceremony where the Head of Department praises the good qualities and progress made by the award winners so that this will inspire the other staff members. The officers who are required to attend this ceremony are the Head of Department, Division Heads and Representatives from the Staff.

8.A servant who has already received the annual award should be recorded in book of services and initiated by the Head of Department.

PART II

1.Methods of awarding the various types of honours which has been enlisted in Part I are as follows:—

(i)A worker who has been selected as an excellent servant for his excellent overall work performance for the first time can be given a certificate of honour, a souvenir in the form of a medallion/colour; and a week's paid leave (i.e. excluding the normal leave which he is eligible for);

(ii){A worker who has shown high initiative in achieving any official objective (but is not selected as an excellent servant) can be given a special letter of compliment, a week's fully paid leave (i.e. excluding the normal leave he is eligible for);

(iii)A worker who has produced a vital project work can also be considered when giving this special letter of compliment and a suitable souvenir or medallion/standard colour.

(iv)A worker who has been selected as an excellent servant can be considered for one month's bonus. This is to encourage his work performance.

2.Further to this first level award as mentioned above, the following steps can be considered as further steps using the following criteria

(i)A servant who has received two annual awards for excellent service (not necessarily in consecutive years) is eligible for an increase in salary besides the usual salary increment (one incremental credit) or study tour;

(ii)A servant who has received three annual awards for excellent service can be considered for another salary increment or for a fast promotion which is as follows:—

(i)An ordinary level officer who has been confirmed in his job but is not eligible for a promotion can be given a rise in salary;

(ii)An ordinary level officer who is eligible for a promotion can be promoted within a short period.

(iii) superscale officer who is receiving his maximum salary and cannot be promoted further due to specific reasons can be considered for study tour, souvenirs and/or federal award if he has received two or three annual awards for excellent service.

3.These clauses should be noted so that a salary rise or promotion is not guided by the principles of services. For example, an officer cannot be promoted if he has not worked for the required minimum period. Moreover, the acquisition of annual award for excellent service is not the main criteria for promotion. It only helps in the choice of promotion.

4.Further to this the choice to give one week's paid leave (excluding the eligible normal leave which is provided) will also be included in the General Order Chapter C so that this leave can be approved under the authority of the Heads of Department.

5.In order to accomplish the double increment in salary as suggested, the respective Head of Services should accept it, and the Public Services Department should be notified of this so that this can be recorded. It is not appropriate to give double increment in salary to officers under probation as this conflicts with the conditions of sen/ice. For the accomplishment of the suggested consideration for promotion, the Head of Department should present recommendations which explain why an officer should be considered for quick promotion to the respective Head of Services (for example the Head of the Public Services Depart­ment). The authority which approves the promotion should comprise of the Head of Services because this involves the principle of service.

6.An officer in Category B, C and D will eventually retire or while still in his average scale and who has no bad record of service should be given a certificate of honour. Certificate of Honour can be prepared by the resepctive departments and certified by the rospective Heads of Services. An example of such certificate is attached as Appendix 'D'.

PART III

The following steps are taken for negative aspects in services: —

(i)In the award giving ceremony for excellent service, the Head of Department should, apart from praising the worker concerned for his good qualities, should also take the opportunity to touch upon (without actually mentioning the name) some of the bad incidents which have occured at times. These are considered as warnings to the other staff so that they will not repeat such habits. If necessary, warning letters should be written to the worker whose work is not satisfactory.

(ii)The Heads of Department should not hesitate to take disciplinary action on officers who are not careful and are irresponsible.

APPENDIX B

THE SYSTEM USED BY THE ADMINISTRATIVE MODERNIZATION AND MANPOWER PLANNING UNIT (UPTM/MAMPU) FOR MAKING AWARD FOR

EXCELLENT SERVICE

Aim

1.The aim of this paper is to introduce to the National Level Guidance Committee for the accomplishment of Public Service Ethics, the system that is used by MAMPU in giving awards to officers and servants who have rendered excellent service. This system can be used to aid other ogvernment agencies in making similar awards for their respective workers.

THE FORMATION OF THE MAMPU AWARD COMMITTEE

2.With the implementation of the Book of Guide to Excellent Service on 1st of January, 1979, a committee was formed by MAMPU to: —

(a)introduce the categories of award for excellent service which are suitable for such an organisation as MAMPU

(b)suggest criterias for the presentation of those awards

(c)prepare the different types of awards, i.e. in the form of gift or recognition; and

(d)suggest the candidate if available, to receive those awards, based on a time period of 6 months, i.e. the first period begins from July, 1978.

3.This Committee comprises of the Deputy Chief Director of MAMPU, a Chairman and four Directors of the respective Divisions, and the Head of Administration as a member.

  

A.CATEGORIES OF AWARD

4.After discussion the Award Committee introduced the following categories of awards as suited for such an organization as MAMPU which is responsible for modernization and initiation of innovations in the administration of the Public Sector:

Category I — Award for the excellent overall performance of work.

Category 11 - Award for excellent project work

Category III — Award for vast innovations in administration or for contri­bution in the form of special service.

5.The first category is suggested to include the general performance of work of all MAMPU staff without differentiating these position or post and this assessment is based on the Codes of Service in the Book of Guide to Excellent Service.

6.The second category of award which has been suggested is for the officer or officers who have produced excellent project work. This award should be specified for MAMPU because one of the important functions of MAMPU is to carry out Management Consultancy Studies for the Government.

7.The third category of award is for those MAMPU staff who have created or introduced significant innovations in administration. Attention should also be given to the special service which is regarded as extraordinary or outside the field of the required specific tasks.

B.CRITERIA FOR AWARD

8.Criterias or guidelines for each of the categories of award are explained as follows:—

I. Excellent overall performance of work

9.The Committee has decided to use the first four Codes of Service as the basic criteria for this award because they have direct relationship with the perform­ance of work and is easily assessed.

10.These four criterias are divided into 12 variables or characteristics and a simplified system of allocation of marks has been suggested. Each variable is given     1 —3 marks. The candidate who receives the maximum marks is considered as the winner. This criteria has been clearly explained in the appendix attached (Appendix C).

II. The distinguished project work

11.The Committee has proposed that the main considerations for this award are —

(a)Quality of project work and a specified report which has been prepared

(b)Merit or importance of the project from the point of view of expenditure/ profit

(c)The extent to which the client has acquired the proposal

(d)The extent to which the team members of the project aid in the accom­plishment of the proposal.

12.These basic tasks are complex because sometimes they do not take into full account of the expenditure and the benefits, do not assess the receipt of the proposal by the client and also cannot fully assess the involvement of the team members of the project in the processes of accomplishing the proposals. Hence the Committee has suggested that at present the assessment of these consider­ations be based on the discretion of the four Division Directors and Deputy Chief Director. Where there is no support from all parties, then the choice of the award winner should be based on majority vote.

III. Vast innovation in Administration or Special form of Contribution

(i)              This form of award is given to those special services which are, in the short term, difficult to evaluate and can only be evaluated in the long term. Hence, the Committee has suggested that this form of award be based on a written application by anyone of the Division Directors or by the Head of Adminis­tration.

C. THE TYPE OF AWARD

14.The type of award which has been proposed for each category is as follows: Category I — A special letter of compliment which can be framed up and is

signed by the Chief Director of MAMPU and by the Deputy Chief Secretary to the Prime Minister's Department.

Category II — A special letter of compliment together with an appropriate souvenir

Category III — Include the name of the award winner in the federal bestorial list, and/or choice for pursuit of courses overseas.

CONCLUSION

15.In summary, the factors which are important for the existence of this system of award in MAMPU is the formation of the Award Committee which comprises of the Heads of Divisions, and also the existence of a reference structure as has been explained in paragraph 2 above. As the Committee's proposals are accepted, this Committee has already started the other aspects of operation which includes the arrangement of the award giving ceremony.

 THE ROLE OF INTAN AND MAMPU IN MAINTAINING HIGH LEVELS OF EFFICIENCY AND QUALITY OF SERVICE IN PUBLIC SERVICE.

THE NATIONAL INSTITUTE OF PUBLIC ADMINISTRATION (INTAN)

The responsibility of the Public Services Department (JPA) to have trained and dedi­cated personnel is borne jointly by the Training and Job Achievement (Motivation) Division and INTAN. While the Training and Job Achievement Division provides scholarships and training rewards, INTAN organises various types of courses for all groups of officers in the public sector. INTAN also plays its role as an agent of change and development to ensure that progressive ideas are disseminated and put into practice.

The history of INTAN dates back to 1959 when the Training Centre for Government Officers was set up in Port Dickson to equip government officers with the necessary knowledge and expertise to face the challenges of development that emerged with independence. This centre later moved to its present campus in 1963. To meet the manpower requirements to achieve the objectives of the New Economic Policy, the Centre was given added responsibilities and elevated to the status of an institute in 1972.

Some of the important training programmes provided by INTAN are:

1.Management

2.Social Development

3.Policy Development

4.Agricultural Development

5.Land Administration

6.Local Government Administration

7.International Relations 

8.Office Administration.    

Besides organising courses INTAN also organises seminars, workshops and meetings. In its efforts to disseminate ideas and new concepts on management, INTAN publishes the 'BULLETIN INTAN', occasional papers and other publications.

The objectives and functions of INTAN are:

(i)to increase the efficiency of the administrative system as a whole to effectively develop and implement national policies and programmes,

(ii)to enhance the knowledge, skill and understanding of the civil servants relating to the processes involved in the implementation of public policies and programmes particularly in the application of modern techniques in organisation and management,

(iii)to promote among civil servants a deeper understanding of the inter-relationship between the Government on the one hand and the political, economic and social environment on the other and the implications of governmental action on the nation's socio-political system,

(iv)to develop progressive attitudes among the civil servants as leaders in Malaysia's multi-racial society,

(v)to develop and create efficient cadres of supervisory staff throughout the Governmental agencies,

(vi)to promote an effective and systematic staff development programme at depart­mental level through the provision of expertise and assistance in training functions as well as the coordination of departmental training efforts,

(vii)to provide a medium for free exchange of ideas and experience among civil servants thus enabling them to better understand their role and functions,

(viii)to be the centre for the collection and dissemination of new ideas and tech­niques of modern administration,

(x)to coordinate management training programmes in Malaysia,

(x)to assist in providing consultancy services for development projects carried out by Government Departments and statutory bodies, and

(xi)to carry out research on the problems of administration and management in the public service.

INTAN's attention is focussed on training/teaching in development policies, planning and implementation techniques and in the use of modern tools in manage­ment and in the implementation of new concepts and approachc-s in organisation and management.

Although the public administration system comprises government ministries, departments and statutory bodies, it has to operate within the integrated socio­cultural, economic and political system. INTAN thus aims at providing linkages between these two systems so as to ensure that training is relevant to the real problems confronted by Government agencies and is an integral part of the process of national development.

The Centre for Development Policy and Administration provides courses that concern the conceptional linkage between the internal and external environment while the Centre for Management Development and the Centre for Employee Development focus in inter and intra organisational efficiency.

The Bureau of Research and Planning, through its research functions, provides an insight into, as well as a feedback on, the problems of administering public policies. On the basis of this feedback, this Bureau recommends new and effective methods and processes of management and administration to be introduced at the training level. The Bureau also assists other Government agencies in instituting new methods and systems as well as in analysing and resolving administrative problems as an extension of INTAN's training and research activities.

Relations between Malaysia and other countries and her participation in Inter­national Bodies and Regional Cooperative Movements are becoming increasingly more important. Government officials will have to be properly and adequately trained to deal with International law, diplomacy and other related subjects and hence it was felt that such courses must be conducted for these officers. To do so the need for setting up a separate centre was strongly felt. This centre known as the Centre for Inter­national Affairs and strategic studies started functioning in 1978.

MALAYSIAN ADMINISTRATIVE AND MODERNISATION AND MANPOWER PLANNING UNIT. (MAMPU).

Malaysia is undergoing through a rapid process of socio-economic development and this requires the modernisation of the administrative machinery. Development leads to an increase in the aspirations of the public. Therefore, the performance of the administrative machinery of the Government needs to be improved upon from time to time. One of the ways of achieving this is to have systems, techniques and manage­ment procedures which are modern and suitable. These innovations cannot be carried out easily by a single agency on its own because the agency requires its work force to carry out their daily duties. Also this requires expertise and involvement of external people to give objective and unbiased advice. The Consultancy Services for government servants started in 1949 with the setting up of the Organisation and Method in the Treasury. In 1967 this service was expanded with the setting up of the Administrative Development Unit in the Prime Minister's Department which was later combined to become the Division for the Coordination, Implementation and Administrative Development. After that the task of administrative development was transferred to INTAN. The role was then passed on to the Prime Minister's Department in 1977 when MAMPU was set up because it was felt that a single special agency was required to devote all its attention to the modernisation of government machinery.

The role of MAMPU is to plan the modernisation of the administration, to provide maangement consultancy services and to carry out and coordinate planning processes and manpower development.

To carry out its role MAMPU has the following objectives:

(i)to strengthen the administrative structure and manpower planning at the Federal, State and local government levels,

(ii)to improve and modernise the administrative system at the operational level through conducting studies

(iii)to introduce techniques and make innovations to increase the effectiveness and management of resources at all levels of government service.

(iv)to introduce as effective system in its efforts to plan and improve manpower so that forecasts of manpower requirements can be made for the development of the economy.       

(v)to control and coordinate the buying aryj utilisation of data processing equip­ment by government agencies.

Since its establishment, MAMPU has carried out a number of studies, some of which are:

(i)Study of the modernisation of the Land and District Offices for Negri Sembilan, Selangor, Kelantan, Trengganu and Kedah.

(ii)A Cencus of the computer problems of government agencies.

(iii)A study of the selection procedure of the Public Services Commission, Edu­cation services and the railway services.

(iv)A study of the organisation of the National Bureau of Investigation.

(v)A study of the administrative machinery of the State of Kelantan.

In carrying out its tasks of administrative modernisation, MAMPU is responsible to  the National Committee for Administrative Development which is chaired by the Chief  Secretary to the Government. As such the National Committee for Administrative Development appears to be the highest body in matters relating to administrative development. It is responsible for examining carefully all declarations made by MAMPU and ensure that those declarations which have been agreed upon are implemented. It can also direct MAMPU to carry out any form of research which it feels is necessary.

From the viewpoint of its role in manpower planning, MAMPU is responsible for coordinating the activities of planning and manpower development and also to strengthen the efforts of the agencies in planning for manpower so that an effective and universal system for the development of manpower can be developed. This will ensure that supply equates demand and also there is an efficient, economical and effective use of manpower. The role of MAMPU is very important, considering the fact that manpower is the most important factor for government agencies to function efficiently and carry out the development projects which have been undertaken by MAMPU in this field are:

(i). National Manpower Master Plan

(ii).Guideline for the Planning of Manpower and Budgetting

(iii). Shortage of Manpower in the Agricultural Sector

(iv). A study on the facilities for the production or generation of skills in Malaysia.

APPENDIX C

KRITERIA BAGI PENGHARGAAN UNTUK PRETASI KERJA KESELURUHAN YANG CEMERLANG

KRITERIA ASAS (4 TERAS PERKHIDMATAN AWAM)	ANGKUBAH VARIABLES		Pemberian Markah (Sekil daripada 1 —3 dengan 3 sebagai markah yang paling tinggi)
			1	2	3
A.TARAF PRESTASI KERJA B.SIKAP BERTANGGUNGJAWAB C.SIKAP TERHADAP KERJA VIS-A-VIS KEPENTINGAN AWAM D.KELAKUAN TERHADAP ORANG AWAM (Termasuk perhubungan dengan kakitangan/pegawai di pejabat.	1.	Hasil kerja (jumlah)
	2.	Mutu Kerja
	3.	Hasil kerja yang mu- nasabah pada masa yang tertentu
	4.	Daya Utama
	5.	Sikap bertanggung- jawab k^pada kerja
	6.	Disipliiti Diri
	7.	Kemampuan untuk menerima kerja
	8.	Kesanggupan untuk membuat kerja lebih masa
	9.	Hasil Berkumpulan/ Berkongsian
	10.	Sikap tolong menolong
	11.	Sikap bertolak ansur
	12.	Kegiatan-kegiatan kebajikan dan sosial selepas waktu pejabat
JUMLAH:
JUMLAH BESAR MARKAH:

APPENDIX D

LAMBANG KERAJAAN MALAYSIA SURAT PENGHARGAAN

Mengambil sempena persaraan__________pada_______daripada perkhidmatan Kerajaan, saya bagi pihak Yang Amat Berhormat Perdana Menteri dan Kerajaan Malaysia dengan bangganya menyampaikan ucapan terima kasih dan setinggi-tinggi penghargaan di atas perkhidmatan yang telah disumbangkan sekian lama kepada Kerajaan dengan patuh dan jujurnya.

Saya juga mendoakan semoga __________dilimpahkan segala kebahagian hidup dan senantiasa berada dalam keadaan sihat walafiat dalam masa persaraan sebagai hasil dari khidmat bakti yang sangat dihargai itu.

Yang ikhlas,

KETUA PENGARAH

PERKHIDMATAN AWAM,

MALAYSIA

TEMPAT METRI

Chapter 15
Code of Ethics For Government Servants

In this chapter we examine the Code of Ethics for Government servants. As we do not have an English version of the book 'Panduan Perkhidmatan Cemerlang', we have made an attempt to translate it into English. In English the title means 'Guide to Excellent Service'.

Panduan Perkhidmatan Cemerlang' was first published in 1979 by Jabatan Perdana Menteri Malaysia and printed at the Government Press by Ibrahim bin Johari, P.I.S., Director General of Printing, Kuala Lumpur.

We request users of this book by us also to read the original — in case we have missed out some points or misinterpreted some points.

INTRODUCTION

A series of important events occuring after independence — such as the May 13th, 1969 incident - led to the formulation of Rukunegara as the national ideology of the country, the formulation and implementation(of the New Economic Policy. This requires that all government servants review thp role they are to play in the develop­ment of the country. Nevertheless, the period after the May 13th incident saw the beginning of a new era in the history of Malaysia when there was a general awakening, which was later to play an important role in shaping all policies and programmes for the development of the country.

Rukunegara and the New Economic Policy have given the right direction to the development of politics, social and economic aspects. Both Rukunegara and NEP, which have been collectively agreed upon by all racial groups, form the base of the Malaysian society. The society which is to be evolved is a society which is firmly united, and mutually understanding, obedient and loyal, averted from poverty and oppression, possessing high morals, and having a national culture and a national language.

All these hopes and aspirations can be achieved by restructuring the society in such a way that eventually racial differences resulting from economic dominance and ownership of wealth can be eradicated. This is indeed a formidable challange, particularly the govenments who will be responsible for carrying out and implementing the collectively agreed policies. Are we government servants ready to accept the responsibility to provide and give honest, efficient and effective service to the public?

The publication of this book Guide to Excellent Service' is intended to give guidance as to how honest, efficient and effective service can be achieved and improved upon from time to time. This book must be read with care, properly understood and thought over. What is most important is that all suggestions and reminders found in this book must be put into practice.

Mankind obviously has intentions of doing good. What normally encourages them to do bad is bad example set, lust for greediness, an attitude of self-importance and a weak character. Professional and other types of training to improve the quality of work is not sufficient for a person to become a good government servant, if the skill and efficiency acquired by him are put to use for achieving selfish intentions. Hence, he needs to be given moral and spiritual education, in addition to professional and other training.

' It is not possible to achieve benefits from any task by having merely thoughts, ideas and day-dreaming. Benefit can only be achieved by performing the task according to the regulations and discipline in force. It needs to emphasise that any benefit can only materialise with action that is orientated towards discipline. Discipline does not necessarily mean that restrictions are placed on all actions. Discipline which is meant in this context is spiritual discipline, i.e. self-discipline. Although there is no better judge than the person himself; any person who commits a mistake and feels safe because it has not been detected or seen by others, on the other hand, will realise on his own accord his immoral action and reflect his shallow character. Such an action can be assured to be an act of sabotage or an abuse of the confidence entrusted in him by the public and the nation. Man created by God is prone to carelessness. He is often careless and always makes mistakes and as such he needs to be given attention and guidance. However, carelessness should not be an excuse for performing bad job or carrying out tasks with bad intentions. On the other hand, guidance only determines the direction and not on its own achieves its objective. In the process of achieving the aims and objectives of the nation, it is the responsibility of every government servant to observe the rules and regulations that govern the performance of their service.

Every government servant, no matter at what level, is entrusted with a task by the Government elected by the people. As such, it is his responsibility to perform that task with honesty and perfectness and thus uphold the trust that has been placed on him. Each government servant must feel proud that he has been chosen to serve the country from thousands of others who are also striving to get the same job.

Although each government servant is a chosen person, qualified and trusted but in carrying out his duties he often comes up against situations or temptations which lure him to put into effect matters which are not beneficial and result in losses to the public. In this sort of situation he must be given guidance and attention. Guidance and encouragement can spur a person to give excellent service. This book is named ‘Guide to Excellent Service' because it gives guidance, attention and encouragement which are required for achieving an excellent level of service. The Seven Principles or Rules of Service which are the measure of 'excellent service' are compulsory to be followed by all government servants.

It is this truth which must be realised and remembered by every government servant. As a chosen person because of his qualifications, not only he is given the trust to perform his duties but is paid an adequate remuneration and an opportunity to serve and do his duty. A person who is strong mentally will certainly not abuse the confidence or trust that has been placed on him. •

As has been stated earlier, our aims are clear i.e. to form or create a society which is united, dynamic and progressive, which is for the benefit of the country — a society based on Rukunegara and NEP, a just and prosperous society and noble and considerate. These sincere aspirations can only be achieved with the cooperation of the whole society. On the side of the government servants the battle is in the direction towards the achievement of these aspirations by various level of government servants, from the lowest to the highest level, with the present administrative system.

If this book is received in the right spirit as stated, then surely it will be beneficial to all the staff of the civil service, irrespective of at what level they are. It is obvious that this book is directed towards all government staff — not only for reading and keeping but putting into practice.

It is the duty of all of us to serve with honesty and integrity, efficiently and effectively — all these based on the slogan (theme) "Serve the Country".

Tan Sri Abdullah bin Mohd Salleh,

Chief Secretary to the Government.

I. OBJECTIVES

The objectives of the book 'Guide to Excellent S^vice' are:

1.To improve the quality of service from fime to time.

2.To perpetuate and nurture the trust which has been given to carry out the duties with which he has been entrusted.

3.To cultivate joint responsibility in the civil service.

4.To create a healthy and efficient atmostphere in the service.

5.To tighten relations between all groups of government staff.

6.To establish attitudes and the responsibility of government staff in conforming with the spirit of Rukunegara.

II: PRINCIPLES OF SERVICE

1.To make up one's mind to improve the quality of service.

2.To work with full responsibility.

3.Strive to eradicate the attitude of self-importance.

4.Serve with goodwill and in a friendly manner.

5.Working towards promoting the thinking of citizens and the development of the country.

6.Cooperation in combating the weakness and enemies of the nation.

7.To hold firm towards religious teachings.

III: EXPLANATION THEME:

"SERVE THE COUNTRY"

Government service appears to be a part of the basic duties of a citizen towards the nation. This means that at least a certain group of citizens must be involved in govern­ment service. As a result, anyone who has been entrusted with carrying out of these responsibilities in government jobs must understand clearly all the desired policies and objectives of the government. Besides this each government servant is required to carry out his duties to help and ensure the success of the desires, policies and objectives with initiative and responsibility.

To accept the responsibility to serve the nation must be accompanied with the spirit of integrity, willingness and loyalty towards the nation. Integrity represents a heart free from malice or deceit, willingness represents freedom to choose government service without being forced by someone and loyalty represents a strong will or deter­mination together with the intention that is undivided to be devoted towards the nation.

The attributes of integrity, willingness and loyalty in carrying out his task to serve which have been fixed will become the milestone for the progress and development of the country.

The Malaysian nation requires government servants who are ready to be devoted to­wards the nation. Any form of service which gives benefits to the other parties which oppose the policies of the nation can be regarded as a deviation. This will certainly binder the achievement of stability in the country and can be regarded as an act of sabotage.

Serve the Country is a sincere duty of which we should be proud of or cherish.

PRINCIPLE OF SERVICE I

"To make up one's mind to improve the quality of service".

It is the responsibility of each worker to improve his quality of service by improving his skills through special training, reading, discussion amongst each other regarding various aspects of work, and other ways. The desire of a worker to overcome his weaknesses without being told to do so by his boss is an attitude which deserves the highest form of praise.

An efficient worker knows his job well. He possesses the necessary skills to carry out his work. He also has the right attitude in carrying out his job. When all the members of an organisation have all the three requirements as mentioned earlier, there is a strong possibility that the organisation will achieve excellent level of quality service. Therefore, it is important for a worker to be fully dedicated towards improving his quality of service. Indirectly the quality of civil service will generally be raised further.

A particular worker naturally can help in raising the quality of service of his department with positive action. A particular worker, no matter at what level, can generate or formulate ideas to overcome the problems faced by the department. He must have the mind to think of new ways or methods which are better for performing a certain task. What must be kept in mind is that there are a number of ways of overcoming a problem and there is always a better way or method than the present one.

A particular worker must cultivate an innovative attitude with the aim of raising the quality of his service and that of his department. This innovative quality is not necessarily found in a group of workers at a higher level of authority. It must merge slowly with all the groups of workers in a particular department. When there is this innovative attitude there will emerge new ideas which can be used to improve the quality of civil service.

Innovations in the methods or ways of carrying out a job and the system of work can be thought or pondered upon by all groups of workers in a particular orgnaisation. The issue of modernising the administration in various ways can also be accomplished collectively.

When there are efforts being made by all groups of workers in these aspects, then there is a strong possibility that the quality of service can be raised. Directly a particular department can give more efficient and effective service to the country. As a result each worker must be dedicated in finding ways and means to raise the quality of his own.service and the service of his organisation.

PRINCIPLE OF SERVICE II

"To work with full responsibility"

Every government servant on employment is given a letter of appointment which states his pay scale and conditions of service. This is a contract binding the employee with the Government of Malaysia as the employer. It is clear that many of the clauses and references to the General Orders and rules and regulations are designed to give guidance as to what a government servant can or cannot do in the process of performing his duty at a particular post.

The responsibility, in other words, to carry out the tasks of the department in a particular organisation is given to a worker when he reports to the head of the organisation. A duty list is normally given to a worker to show roughly his daily duties which must be performed.

This responsibility can be carried out in different ways and attitudes. A particular worker can possibly utilize his office by performing his task or duties at the minimal level. Another worker will carry out his responsibility with full dedication and with the attitude that he wants to contribute more of his energy, so that he can not only carry out the tasks with which he has been entrusted as laid down in the duty list, but also is willing to work harder for the betterment of his organisation.

These are just two ways as to how a worker can face up to his responsibilities.

There are other possibilities. If two workers carry out the same responsibility in a particular organisation, for example two clerks, then it is certain that their perform­ance can be shown differently with respect to one another. Also their productivity will be different but they are paid the same wage. Due to the fact that all workers are paid wages by the Government using public money (by raising taxes), the public will not be happy if government servants do not discharge their responsibilities efficiently and effectively.

A person who is fully dedicated to his responsibility will feel guilty and unhappy if he does the minimum workload. He will strive hard to complete all his work and solve all the problems, even if it amounts to working after office hours. Such a dedicated person is always careful not to waste any useful time and works hard to fulfill all his promises. A person who has the attitude of full dedication will always take the initiative to discuss any problem that may exist and try to solve it. He will not wait for orders or directives from above. He will use his initiative and resourcefulness to find solutions or alternatives so that a particular decision can be made speedily and fairly.

All these qualities should be found in all government servants, irrespective of the position they hold, i.e. it does not matter whether he is a driver, office-boy, secretary or the head of the organisation. At each level of position there are specific duties and responsibilities that need to be attended to.

The many problems that may face an organisation must be settled quickly and efficiently so as to give the best possible service to the public. The government will not wish to see problems not being attended to or settled in a just and fair manner. Hence, each government servant must face his daily task with full dedication and responsibility so that the organisation for which he works is able to report high performance in providing efficient and effective service to the public and the country. In short, he must realise that if a particular task is not responsibly discharged, this will reflect badly on the image of the country. Therefore, it is important that the principle of working with full responsibility must be adhered to by all government servants at all the levels.

PRINCIPLE OF SERVICE III

"Strive to eradicate (overcome) the attitude of self-importance"

A high level of interest to serve with honesty is one of the main attributes (qualities) of each government servant. Honesty is embodied in the attitudes and actions which are in line with the aspirations and ambitions of the country and the public. Each government servant is required to demonstrate qualities of leadership leading the society towards greater progress, not using his position to derive benefits for himself. Proud and arrogant qualities must be totally given up and replaced with modest, respectful and considerate feeling or impression.

Each government employee has his specific responsibilities and power or authority. A major portion of the responsibility and authority is related to financial affairs, whether directly in carrying out his daily tasks or indirectly in carrying out his other duties. The authority and money represent big trusts which have been entrusted upon responsible officials and must be utilised with great care and fairness. As a result every government servant must be fully responsible for all the power or authority exercised by him and also for every cent spent. He should not use his position as a government servant to achieve his own selfish desires and ambition. Any government servant who abuses his authority for his own ends is deviating from his responsibility.

All government servants should realise that they are civil servants and are paid wages from public sources. Hence, it is the main responsibility of all government servants to provide service wholeheartedly to the public and the country, bearing in mind the slogan 'Serve the Country'.

PRINCIPLE OF SERVICE IV

"To serve with goodwill and in a friendly manner".

The smoothness and harmony in our daily lives depend to a large extent the manner in which we are treated by government servants in the performance of their duties.

Malaysia is a multiracial country composed of people of different origins, culture, religion, language and habits. The government servants must accept this reality and in the performance of their duties they mus^ demonstrate a versatile, flexible and accomodating behaviour towards the multi-racial public. Difficulties will arise if a government servant does not take into consideration the plural nature of our society. Control of feelings and tolerance in dealing with the public are important in^ensuring harmony in society. Unfriendly and intolerant behaviour on the part of government servants in the performance of their duties will not be in the interest of the public and the country, and is also not likely to be conducive for development.

An atmosphere of goodwill and friendliness amongst government servants should not be restricted to times only when carrying out official duties. On the other hand, it must be a quality demonstrated to society all the time so that it will be a good example to set and follow and will be of benefit to society as a whole.

Nearly all officers in this country are visited by people either to make enquiries or conduct official affairs. There are nearly half the offices whose main function is to entertain all types of requests or demands by people for service. Human beings with very diverse characteristics are dealt with by government servants in the performance of their duties. Under such circumstances, the basic qualities of patience, consideration, sympathy, courage in meeting challenges, friendly and smiling and an understanding of the feelings of other people who want to be attended to promptly, are essential qualities that must be cultivated and put to practice by all government servants.           ,

Government servants should give a warm and fitting or appropriate reception to those who come to them for assistance, not taking into account their rank, status or position. Government servants must respond to people who come to see them courteously by saying "Can I help you, sir?" A hostile and unfriendly attitude towards the public will not be mutually beneficial. It is easy to make people dislike you, but if you geniunely try to help someone it will be greatly appreciated. It may be sometimes that circumstances are such that it is not easy and convenient to help someone in need, but every effort must be made to please the public.

PRINCIPLE OF SERVICE V

Working towards promoting the thinking of the public and thereby helping the development of the country"

Government servants are those citizens who have been selected to perform certain duties because of their ability and qualifications. Hence because of their special position in the government service they should provide the right example and leader­ship to the public.

It is the duty of each government servant to help the public understand government policies and programmes which are implemented. He needs to make the public realise the purpose and importance of the various government schemes and projects. It is important that government servants realise that no development can really take place without cooperation and participation by the people. It is therefore, the responsibility of a government servant to promote right thinking amongst the members of the society, whenever he gets the opportunity to do. When the interest and energy of an individual in a society can be set in motion in the right direction, it will also help to develop his thinking for advancement and progress. Given this there is a possibility that the efforts to develop the country will be realised or achieved. It ought to be realised that development of the country can only take palce if there is development of the individuals that make up the society.

It is therefore the responsibility of the government servants to make the people realise the fact that they have to develop their way of thinking, and also give them guidance and the lead in their efforts to raise their standard of living.

PRINCIPLE OF SERVICE VI

'Cooperation in overcoming the weaknesses and enemies of the nation'

The civil service must direct its efforts towards wholehearted commitment and high levels of efficiency in meeting its obligations. The responsibility for achieving this objective is too heavy for any one particular organisation to achieve. It requires the cooperation and understanding of all the member groups of the whole civil service. The same is true in respect of the effort necessary to get the government machinery running. Cooperation is very important. Without cooperation it will not be possible to overcome certain difficulties and achieve coordination. Given cooperation the civil service can become an efficient and effective system in achieving national objectives. However, an efficient and effective administration cannot be considered a clean organisation if there are deviations and corruption is rampant. Any efficiency achieved must be based on clean administration free from corruption.

It is the duty and the responsibility of the society to direct its efforts to overcome the problems of poverty, ignorance and corruption. Cooperation within and between all sectors — public, private, specific groups — is important to set the nation into motion towards achieving greater development.

The development and growth of cooperation amongst the various sectors is also a powerful and useful tool in fighting the enemies of the nation. Subversive elements and communist ideology will not be acceptable by the society because it would be against the national ideology, the Rukunegara. Hence, it is important that we watch and fight militant communism and subversion by anti-national elements which pose a major challenge to our democratic way of life and the timely achievement of national goals.

PRINCIPLE OF SERVICE VII 
'To hold firm towards religious teachings'

One of the, principles of Rukunegara is 'Belief in God'. In the service this principle is further stressed or emphasised with the aim ,that it be well known and felt by all government servants that holding firm towards religious teachings is a very important aspect in carrying out any form of service. This belief in God and religion, it is felt, will further increase the confidence and morality of government servants, especially in the Malaysian society where' religion plays an important part in the lives of the people. Any attitude that leads away from religion can be considered as an attitude that opposes the desires or wishes of the Malaysian government service. More clearly, Malaysia is assumed to be a nation that will not accept communist ideology as it is against the teachings of Islam, the official religion of the country. So holding on to one's religion is very important because communist ideology leads a person away from one's religion. Islam and other religions practised in the country continue to provide a strong bulwark against insidious communist propaganda.

The smoothness of the government machinery depends to a great extent upon its workers who uphold certain firm values. If there are governments who do not firmly uphold pure and moral values, then it will only make the task easy for anti-religious influences to creep into their minds. At that point in time when this happens, the government administrative" machinery will be paralysed and with it will result the failure of the Malaysian government service to achieve its aim of bringing into operation an administrative front capable of strengthening the government of this country.