A NEW VISION FOR URBAN GOVERNANCE TRANSFORMING URBAN DEVELOPMENT

The urban governance in Malaysia is currently undergoing a period of change. These changes are necessary in response to the changing national environment. The urban continues to be the engine of growth. The role of the local government will continue to be the pacesetter and facilitator in order to establish a competitive, dynamic and resilient economy. What are the objectives of urban governance reforms in Malaysia? Firstly, we want to create a local government which is efficient, effective, dynamic, and innovative; secondly, we need to have a local government which is highly disciplined with the highest standards of integrity, and thirdly, we require a local government which is action-oriented, people-oriented, and customer focussed. In undertaking some of the administrative changes, we are mindful of the opinion or suggestion that the local government should become more like business.

There are similiarities between business and public administration, namely that officials or managers in both sectors are involved in organizational design, allocation of scarce resources, and the management of people. But the context of public administration significantly alters the work itself, and so there are differences between the two. Three differences are most apparent. The first difference between public administration and business lies in the purposes to be served. In most business, even those with service objectives - the bottomline - profit -is the basic measure for evaluating how good a job the organization is doing. In turn, the performance of individual managers, can, in many cases, be directly measured in terms of their units' contribution to the overall profit of the company What does "quality" mean with respect to the environment?

A second difference between work in public governance and corporate governance is the fact that in business, decisions can be quickly made from an individual or a small group, whereas in a public organization, inputs are required from many diversive groups and organizations. We call this the pluralistic nature of government decision-making. Thirdly, managers in public organizations seem to operate with much greater visibility than their counterparts in industry - we are subject to constant scrutiny by the press and the public. With this background, we have introduced changes in the local government which incorporate some of the principles of management in the business sector. However some of the structural changes, and the value-changes introduced are peculiar to the civil service. The Malaysian local government has embarked on a journey towards developing a quality culture. The ultimate objective is the evolution of a mindset premised on quality values that would permeate the entire public sector. They are to be market-driven and to institutionalise a distinct customer-orientation in the delivery of services. Service recovery based on customer feedback would also become an integral part of managing the performance of public sector agencies. The Malaysia Incorporated concept has been the impetus for greater and intense public-private sector collaboration in national development. The imperative has been to build a meaningful working relation-ship in order to forge ahead in an increasingly competitive global market place. Rules, regulations, procedures have been constantly reviewed to expedite work processes, and importantly, decision-making.

EFFICIENT GOVERNANCE GEARING TOWARDS BEING WORLD CLASS

The effectiveness and efficiency of the public service as well as its facilitating role has helped the country's economic development. This we have accomplished through the introduction of numerous administrative measures which are designed to provide high quality services to the private sector and the society at large. To be world class, and at par with the best, we have to continue the quality revolution in the public service. In fact I would suggest we think of two Qs: Quality and Quickness. One of the important attributes of quality is to be responsive to customer needs and this means Quickness of Response. Members of the public want speedy approvals of their house plans, certificates of fitness for occupation of their newly-built houses, quick service at the immigration counters, at hospital dispensaries etc. The business community want quick approvals for company incorporation, trade licences, manufacturing licences, duty drawbacks, patent rights, approval of industrial premises, crucial market information on their products and services, etc.

If speed is the essence in doing business, then systems and procedures, particularly those that ensure accuracy, reliability, consistency and simplicity will have to be put in place. The public service will be implementing ISO 9000 very soon. Malaysia will be the first country that will adopt ISO 9000 in its entire public service. Gearing ourselves to world class means that we will gear ourselves to implementing ISO 9000. Training of public servants should emphasise the sharpening of core competencies covering the three broad areas of conceptual, technical and interpersonal skills. However, the emphasis will vary depending on whether the officer is in the upper, middle or lower levels of management. The conceptual skills are skills related to `higher order activity' more relevant to the upper level management where the need is to see issues, recognise problems, strategise, and think systems.

On the other hand, the technical skills are the operational skills, the hands-on type of skills which are needed at the lower rung of management. The middle level management needs a balance of both the conceptual and the technical skills as they act as the interface between the top level management and the lower level of management. However, across all levels of management is the requirement for interpersonal skills. No one works alone in any organization; people will have to network and build relationships at all levels of management vertically as well as horizontally. World class also means the ability to command resources and operate beyond borders. In this regard, our public service should have the ability to support our private sector to effectively operate beyond our shores. There are many ways in which this can be done. Firstly, in business, the question of integrity and image are very critical elements.

In this connection, besides facilitating the business sector through enhancing the administrative processes, the public service must see itself as the custodian of Malaysia's good image overseas, and assist in the conduct of business with good ethics, to see that our businessmen conduct dealings with reputable partners overseas; secondly, the public service has to focus on establishing connections and networking; examine investment opportunities and facilitate the entry of Malaysian products and services to new markets. The country should never be allowed to suffer from a deep crisis of faith in the public service; the people must not criticise us as a faceless bureaucracy that is unable to accurately meet personalized services; the people must not be allowed to spend their precious time finding answers to their questions, after being bounced from department to department.

The new information technology appears to be the key enabler of public service transformation. The notion of an electronic civil service seem to spark interest. During the 9th Malaysia Plan period, the thrust of IT development will be to further develop IT infrastructure in order to create a strong foundation for building a knowledge-based industrial economy. We are on the threshold of an electronic civil service, an internetworked civil service, linking with the tax payers, suppliers, business customers etc; some institutions in the society such as schools, laboratories, mass media, hospitals and other nations around the world. To a certain extent, the public service has used the electronic system to deliver better quality services and products to the public more quickly, cost effectively, and conveniently. In other words, gearing towards world class must mean designing delivery of services around the needs of our clients, rather than just the old structures or the convenience of civil servants.

GOOD GOVERNANCE IN PUBLIC SECTOR

We believe that to be successful, we must always consider a systems-wide approach. Our actions, especially in the area of good governance and anti-corruption, should not only be aimed at instilling the right values and attitudes, but should go beyond that, to strengthening processes, institutions, as well as punitive measures. Integral to a public service of integrity is one with good governance. And as many of you may be aware, in the past years, we have vigorously pursued efforts to improve the public service delivery system to make it more efficient, transparent and accountable. The benefits of an improved public service delivery system are wide-ranging, encompassing positive effects on the economy through a reduction in the cost of doing business, through better allocation of resources, and through shorter time needed to complete a transaction. In enhancing the delivery of services, both big businesses and the man-on-the-street can benefit but equally, if not more important, it ensures a better functioning public service delivery system.

Today, customers demand fast, efficient and quality service in a conducive environment, when dealing with the Government. Effective and optimum use of information and communication technology (ICT) will definitely contribute towards improving the quality of the public service delivery system. Before we go any further, it would be useful to establish common ground in our understanding of the operative term, INTEGRITY, for the purpose of our discussion tonight. Integrity, can be defined as “continuous adherence to moral principles, honesty, wholeness, the quality of being unimpaired; soundness”. The Malaysian Integrity Institute or IIM defines integrity as wholesome attributes of an individual or organisation based on values such as honesty, trustworthiness, fairness, competence, transparency and accountability.

When we deliberate the topic of integrity, the general take is to link integrity to corruption. The level of corruption is a reflection of the state of integrity of a public service and the effectiveness of its delivery systems. But integrity is more than just fighting against corruption. Integrity lies in the conduct of both institutions and individuals. It can be reflected in the implementation of control mechanisms and level of compliance with prescribed rules as mandated by an institution. It is also evident in the conduct of public officers in the execution of their duties. Delivering services with a sense of urgency is as much a matter of integrity as it is to ensure the proper execution of a tender process for procurement of goods and services. Likewise the case of staff manning counters – providing services to our customers within the time and quality standards promised in the client’s charter, service with a smile, also reflects integrity. On the other hand not taking action to improve work processes when there is room for us to do so is a reflection of a lack of integrity. Therefore integrity, or the lack thereof, is demonstrated in all dimensions of our actions whether at the organisational or individual level. And, this applies to both civilian and military services.

THE MEANING OF EFFICIENCY IN GOVERNMENT SECTORS

The issue of efficiency in the use of resources is a critical factor for the whole of the public sector. As a considerable portion of national expenditure goes to the development and maintenance of the armed forces, it is only fair that citizens demand and expect the highest level of integrity within the military organisation. It is thus necessary to ensure that the allocated funds are used in a transparent, ethical and efficient manner. In this there can be no compromise. The government must ensure the highest level of integrity when utilising its financial provisions for its development and operations. As indicated earlier, integrity encompasses all processes and procedures. Careful planning and good governance is necessary in the procurement of military hardware and weaponry systems that may require long term funding commitments. The Government has the right to demand value-for-money.

There should be no repeat of the incidences of highly questionable procurement and maintenance contracts. The use of public funds within the context of a democratic platform demands that the necessary oversight and control mechanisms are put in place and are seen to be effective. Government must ensure systematic assessment of its programmes and projects to ensure results and cost-effectiveness. Maintenance and battle readiness of military equipment also require critical attention. We are referring here to the highly sophisticated and expensive equipment including fleet management. Naturally all of these call for a maintenance culture of the highest order encompassing systems, processes and people. When we do not pay sufficient attention to maintenance schedules, do not ensure personnel are trained on the correct use of equipment or are lackadaisical in the safe storage of equipment, it reflects an institutional environment that does not place enough emphasis on integrity.

All, regardless of whether in the government departments, need to consistently build the necessary support infrastructure for a maintenance culture that works with clockwork precision. In the constrained financial times that we are facing now, it is even more imperative that upkeep and maintenance be given priority to mitigate the difficulty in procuring new resources. Another area of importance is in the implementation of development projects. Our performance on the execution of development projects is often used as a yardstick to evaluate and measure the effectiveness and efficiency of the Government’s service delivery system. Issues such as project delays, cost over-runs and substandard quality of work are often cited when assessing the implementation of development projects.

The mechanisms for monitoring and control are in place. Rules and regulations have been prescribed. Personnel have been trained and exposed to good project management practices. Yet often the results show otherwise. In many cases they point to weak implementation and supervision. We need to be serious about monitoring and supervision. If we are not thorough and lack the stamina to follow through on agreed timelines and deadlines, it means that we have failed the integrity test yet again. Inculcating values, attitudes and behaviours based on the principles of integrity and justice is arguably the most important element in the fight against corruption. Values and attitudes are shaped by an individual's upbringing and his or her life experiences. In organisations, whether private or public or the military, leaders must be at the forefront against corrupt practices. They lead honest lives based on principles of justice and integrity, and in so doing lead by example.