1. TO DELEGATES FROM ASIA-PACIFIC COMMUNITY OF PRACTICE
ON MANAGING FOR DEVELOPMENT RESULTS
2009 ANNUAL MEETING
23-26 NOVEMBER 2009
KUALA LUMPUR, MALAYSIA
Welcome to the
Economic Planning Unit,
Prime Minister’s Department, Putrajaya

2. DEVELOPMENT PLANNING OF
10th MALAYSIA PLAN USING OUTCOME
BASED APPROACH
Kalawathy Kathiraveloo
Development Budget Section
Economic Planning Unit, Prime Minister’s Department
23th November 2009
2

3. MAIN FUCTIONS OF EPU
 Formulate development policies and
strategies
 Formulate long and medium term plans
 Prepare and evaluate development
budget
3

4. BRIEFING OUTLINE
1.
1 Introduction to development planning
in Malaysia
2.
2 Ninth Malaysian Plan - Planning
Perspective
3
3. 10th Malaysian Plan Planning
Perspective –Outcome Based
Approach
4
4. Conclusion
4

5. 1
Introduction to
Development Planning
in Malaysia
5

6. PLANNING HORIZON
 LONG TERM PLANNING
 Vision 2020 (1991-2020)
 First Outline Perspective Plan (OPP 1) – 1971-1990
 Second Outline Perspective Plan (OPP 2) – 1991-2000
 Third Outline Perspective Plan (OPP 3) – 2001-2010
 MEDIUM TERM PLANNING
 Five Year Development Plans
 Mid-Term Review (MTR) of Five Year Plan
 SHORT TERM PLANNING
 Annual Budget
6

7. Major Policy Evolution
VISION 2020
Balanced Development
Building a Resilient and
National
Mission Policy
Competitive Nation,
2001-10
National
Development Balanced Development,
Policy 1991-2000
New Economic Growth with Equity
Policy 1971-90
• Laissez-faire / export-oriented
Post-
independence
• Economic and rural development
1957-70

8. DEVELOPMENT PLANNING MACHINERY
PARLIAMENT
Cabinet
Ministers
National Planning Council National
National Economic Action Development
Draft Policy
Council (NEAC), National Council
Economic Consultative National Development
Council (NECC) Planning Committee
Secretariat Draft
Implementation &
Economic Planning Unit Coordination Unit
Private Sector Proposal General framework
Dialogue
Inter-Agency Planning Group
Circulars Proposal Proposal Consultations
Circulars
Federal Ministries & Agencies State Governments Private Sector 8

9. 2
Ninth Malaysia Plan -
Planning Perspective
9

10. Ninth Malaysia Plan
Planning Perspective
GO Macro economic
a nd N ed at
Private n limit framework, national &
tio sectoral policies and strategies,
part icipa el
poli cy lev projects and budget
Limited
ctor
Planning Pri v at e s e n Single Plan scope for
atio
focus particip Document reprioritisation
Five Year and
on project Input-output Five Year
Development tendency
implementation based
- project
Planning Cycle Budget of over
commitment
outcome Projects
Projec
not identified at t Cost approved for 5 years
planning Tota
stage l cos Projects prepared &
t (DE
OE + submitted in large numbers -
cons ) not
i
proje dered fo bunching of project
ct a p r implementation
prov
al
10

11. MP9 Mid-Term Review
Efforts to measure project outcome unsuccessful as project
outcome not identified & defined at planning stage
Close monitoring of selected project implementation indicated
the importance of stakeholder participation and horizontal &
vertical integration in project planning and implementation
An Outcome Based Approach for
Planning, Monitoring and Evaluation of
Policies, Programmes and Projects
11

12. MP9 Mid-Term Review Policy
& Strategy Framework
VISION 2020
NATIONAL MISSION POLICY, 2006-2020
POLICIES
THRUST 1 THRUST 2 THRUST 3 THRUST 4 THRUST 5
To move the To raise the To address To improve the To strengthen
capacity for persistent socio- standard and institutional and
economy up the knowledge and economic sustainability of implementation
value chain innovation and inequalities quality of life capacity
nurture first class
mentality
 Enhance  Improve the quality  Reduce incidence  Improve accessibility  Integrate services
productivity and of accessibility to of poverty to and quality of across agencies
competitiveness education health care
STRATEGIES
 Improve income
 Increase
 Make national distribution  Provide affordable
confidence in
 Generatenew schools the housing and water
 Reduce regional electronic-based
sources of preferred choice and electricity to the
disparity services
growth poor
 Provide tertiary
 Restructure
education of  Improve  Pursues outcome-
employment
 Expand into new international repute transportation based planning,
pattern
markets network monitoring and
 Nurture R&D and  Restructure wealth evaluation
 Improve public
innovation capability ownership pattern
safety
 Develop BCIC
 Foster a society with  Improve the
exemplary values environment
 Address issues
related to children
and women 12

13. 3
3Tenth Malaysian Plan
Planning Perspective –
Outcome Based Approach
13

14. THE TURNING POINT
17 September 2008
Government decided to formulate a
Rolling Plan Concept to move
towards implementing outcome
based approach for 10th
Malaysia Plan.
14

15. ROLLING PLAN
Planning & implementation of
programmes & projects on a
continuous basis & reviewed
annually..
Ensure seamless planning and
implementation between current
plan and next plan.
15

16. The Rolling Plan
Outcome Based
Programme 5 Year Plan Document --
Mission Cluster Groups Macro economic
( government, NGOs and Budgeting framework, national
private sector ) identify Key policies, strategies,
Results Areas (KRAs) , MP10 outcomes and KPIs
Outcome, KPIs and and budget
Programmes
for new
projects Public Sector Investment
Identification & approved Plan every 2 years - list of
formulation of in 2010 programmes, projects,
programmes and outcome, KPIs and budget -
Vertical and accommodate priority,
projects using Logical
horizontal integration technological and economic
Framework Approach
through programmes environment
(LFA) to identify
& project selection changes
outcome, output and
and approval based
KPIs clearly
on national policies
and strategies
16

17. Integrated Development
Planning
 Systematically link outcomes at all levels of planning and
implementation ;
 Integration of outcomes achieved by cascading Key Result
Areas (KRAs) at national and sectoral levels to the
implementation levels.
 For each KRA, one or more national outcomes will be
identified and for each national outcomes, a set Key
Performance Indicators (KPIs) will be established;
 National Development Planning Framework developed to
identify national priorities and targets systematically.
17

18. 10MP Integrated
Planning Framework
National Vision
National Mission
Policy Thrust 1 Policy Thrust 2 Policy Thrust 3 Policy Thrust n
Strategic Thrust 1 Strategic Thrust 2 Strategic Thrust 3 Strategic Thrust n
MP-KRA 1 Outcome 1 MP-KRA 2 Outcome 2 MP-KRA n Outcome n
10MP – KRA
Strategy KPI Strategy KPI (At National level)
Strategy KPI
MP KRA Ministry MP KRA Ministry MP KRA Ministry
Outcome 1 Outcome 2 Outcome n
10MP – KRA
Strategy KPI Strategy KPI Strategy KPI
(At Ministry
level)
18

19. 10MP Integrated
Planning Framework
VISION 2020
NATIONAL MISSION
THRUST 1 THRUST 2 THRUST 3 THRUST 4 THRUST 5
VERTICAL INTEGRATION
EPU KRA 1, KRA 2, KRA 3, KRA 4, KRA5 ,
Strategies, Strategies, Strategies, Strategies, Strategies,
LEVEL Outcome Outcome Outcome Outcome Outcome
(MCG) and and and and and
Programme Programme Programme Programme Programme
KRAs KRAs, KRAs, KRA s,
KRAs,
MINISTRY Strategies, Strategies, Strategies, Strategies,
Strategies,
Outcomes Outcomes Outcomes Outcomes
LEVEL Outcomes
and and and and
and
(OE+DE) Programmes Programme Programme Programme
Programmes
s s s
HORIZONTAL INTEGRATION
Projects Projects Projects Projects Projects
19

20. Integrated Planning
Framework
VISION 2020
NATIONAL MISSION
THRUST 1
VERTICAL INTEGRATION
EPU KRA 1, Strategies, Outcome
LEVEL
(MCG)
& Programme
KRAs Strategies, KRAs, Strategies, KRA s, Strategies,
MINISTRY Outcomes and Outcomes and Outcomes and
LEVEL Programme Programme Programme
MINISTRY A MINISTRY B MINISTRY C
(OE+DE)
HORIZONTAL INTEGRATION
Projects Activities Project Activities Projects Projects
20

21. Programme-Based
Budgeting
Programme - A strategic management tool to
achieve outcomes at the implementation level;
• Integrating projects (Capex)
 Budget allocation linked with /activities (Opex) within a
programme outcomes ; programme and linking it to
national outcomes ensure:
 Flexibility to review
programmes and projects to (i) Better programmes & projects
achieve expected outcomes; selection to achieve outcomes;
(i) Opex aligned to national
 Eliminate redundancy - development planning policies
value for money; and strategies as total cost
implication is considered for
 Ensure optimal use of project selection
scarce resources.
21

22. LOGICAL FRAMEWORK
APPROACH (LFA)
ANALYSIS PHASE PLANNING PHASE
Stakeholder Analysis Logframe
identifying & characterising major defining the project/programme
stakeholders, target groups & structure, testing its internal logic,
beneficiaries, defining whose problems formulating objectives in
will be addressed by a future measurable terms, defining means
intervention and cost (overall)
Problem Analysis Activity Scheduling
identifying key problems, constraints
and opportunities; determining cause determining the sequence and
and effect relationships dependency of activities;
estimating their duration, setting
Analysis of Objectives milestones and assigning
developing objectives from the responsibility
identified problems; identifying the Resource Scheduling
means to ends relationships
from the activity schedule, develop
Strategy Analysis input schedules and a budget
identifying the different strategies to (both DE and OE)
achieve objectives; selecting the most
appropriate strategy (ies); determining
the major objectives (overall objectives
and project purpose/outcome)
22

23. Logical Framework Matrix
(LFM)
HORIZONTAL LOGIC
Project Description KPI (or OVI) MOV
(Intervention Logic) (Objectively Verifiable (Method of Assumptions
Indicators) Verification)
(1) (2) (3) (4)
Goal: Measures of the extent to which a Sources of information and
The broader development impact to sustainable contribution to the methods used to collect
which the Programme/project goal has been made. Used during and report it.
VERTICAL LOGIC
contributes at national and ministry evaluation.
levels.
Purpose/Outcome: Conditions at the end of the Sources of information and Assumptions
The development outcome expected programme/project indicating methods used to collect concerning the
at the end of the that the Outcomes have been and report it. purpose/goal linkage.
Programme/project. achieved and that the benefits
are sustainable.
Outputs: Measures of the quantity and Sources of information and Assumptions
The direct measurable results (goods quality of outputs and the timing methods used to collect concerning the
and services) of the of their delivery. Used during and report it. output/objective
programme/project which are largely monitoring and review. linkage.
under programme /project
management’s control
Activities: Inputs and Resources
The tasks carried out to implement Work Plan, Equipment, Manpower, Pre-Conditions
the project and deliver the identified and Budget
outputs.
23

24. BRIEFING OUTLINE
4
Conclusion
4. Conclusion
24

25. Managing Change
Project planning Updating guidelines
training for officers related to project
in ministries & planning &
departments implementation
Updating project Initiating
monitoring and institutional changes
evaluation system
25

26. Conclusion
 Integrated outcome-based approach to better plan,
implement & evaluate development planning.
 Require an holistic approach and commitment &
cooperation from many to succeed to achieve
development goals towards becoming a developed
nation.
 Results-oriented public service delivery to realize value
for money.
 Government commitment to achieve high standards of
good governance, improved accountability and
transparency.
26

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