Welcome to the Economic Planning Unit,

Prime Minister’s Department, Putrajaya

TO DELEGATES FROM ASIA-PACIFIC COMMUNITY OF PRACTICE ON MANAGING FOR DEVELOPMENT RESULTS

2009 ANNUAL MEETING23-26 NOVEMBER 2009

KUALA LUMPUR, MALAYSIA

DEVELOPMENT PLANNING OF 10th MALAYSIA PLAN USING OUTCOME

BASED APPROACH

Kalawathy Kathiraveloo

Development Budget SectionEconomic Planning Unit, Prime Minister’s Department

23th November 20092

3

MAIN FUCTIONS OF EPU

Formulate development policies and strategies

Formulate long and medium term plans

Prepare and evaluate development budget

4

BRIEFING OUTLINE

1. Introduction to development planning in Malaysia

2. Ninth Malaysian Plan - Planning Perspective

3. 10th Malaysian Plan Planning Perspective –Outcome Based Approach

4. Conclusion

1

3

4

2

5

1

Introduction to Development Planning

in Malaysia

6

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

PLANNING HORIZON

Major Policy Evolution

New Economic Policy

National Development

Policy

National Mission Policy

VISION 2020Balanced Development

Post-independence

Building a Resilient and Competitive Nation, 2001-10

Balanced Development,1991-2000

Growth with Equity 1971-90

• Laissez-faire / export-oriented• Economic and rural development

1957-70

DEVELOPMENT PLANNING MACHINERY

8

Cabinet Ministers

National Planning Council

National DevelopmentPlanning Committee

Inter-Agency Planning Group

Federal Ministries & Agencies State Governments Private Sector

National Economic Action Council (NEAC), National

Economic Consultative Council (NECC)

Economic Planning Unit

Draft Policy

Draft

Proposal

Proposal ProposalCirculars

Circulars

General framework

Consultations

Secretariat

National Development

Council

Implementation & Coordination Unit

Private Sector Dialogue

PARLIAMENT

9

Ninth Malaysia Plan -Planning Perspective

2

10

Ninth Malaysia Plan Planning Perspective

Five Year Planning Cycle

Single Plan Document

Macro economic framework, national & sectoral policies and strategies, projects and budget

Five Year Development

Budget

Limited scope for

reprioritisation and tendencyof over

commitmentProjects

approved for 5 years

Projects prepared & submitted in large numbers -bunching of project implementation

Private sector

participation

Private and NGO

participation limited at

policy level

Input-output based

Planning focus

on project implementation

- project outcomenot identified at

planning stage

Project Cost Total cost (DE + OE) not considered for

project approval

11

MP9 Mid-Term Review

An Outcome Based Approach for Planning, Monitoring and Evaluation of

Policies, Programmes and Projects

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

THRUST 1

To move the economy up the

value chain

THRUST 2

To raise the capacity for

knowledge and innovation and

nurture first class mentality

THRUST 3

To address persistent socio-

economic inequalities

THRUST 4

To improve the standard and

sustainability of quality of life

THRUST 5

To strengthen institutional and implementation

capacity

ST

RA

TE

GIE

S

Enhance productivity and competitiveness

Generate new sources of growth

Expand into new markets

Improve the quality of accessibility to education

Make national schools the preferred choice

Provide tertiary education of international repute

Nurture R&D and innovation capability

Foster a society with exemplary values

Reduce incidence of poverty

Improve income distribution

Reduce regional disparity

Restructure employment pattern

Restructure wealth ownership pattern

Develop BCIC

Improve accessibility to and quality of health care

Provide affordable housing and water and electricity to the poor

Improve transportation network

Improve public safety

Improve the environment

Address issues related to children and women

Integrate services across agencies

Increase confidence in electronic-based services

Pursues outcome-based planning, monitoring and evaluation

12

MP9 Mid-Term Review Policy & Strategy Framework

NATIONAL MISSION POLICY, 2006-2020

VISION 2020

POLI

CIES

13

3 Tenth Malaysian Plan Planning Perspective –

Outcome Based Approach

3

THE TURNING POINT

17 September 2008Government decided to formulate a

Rolling Plan Concept to move towards implementing outcome

based approach for 10th

Malaysia Plan.

14

ROLLING PLAN

15

Planning & implementation of programmes & projects on a continuous basis & reviewed annually..

Ensure seamless planning and implementation between current plan and next plan.

16

The Rolling Plan

MP10 and budget

for new projects

approved in 2010

5 Year Plan Document --Macro economic

framework, national policies, strategies, outcomes and KPIs

Public Sector InvestmentPlan every 2 years - list of

programmes, projects, outcome, KPIs and budget -

accommodate priority, technological and economic

environment changes

Mission Cluster Groups ( government, NGOs and

private sector ) identify Key Results Areas (KRAs) ,

Outcome, KPIs and Programmes

Identification & formulation of

programmes and projects using Logical Framework Approach

(LFA) to identify outcome, output and

KPIs clearly

Vertical and horizontal integration through programmes & project selection and approval based on national policies

and strategies

Outcome Based Programme Budgeting

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.

18

National Vision

National Mission

Policy Thrust 1

Strategic Thrust 1

Policy Thrust 2

Strategic Thrust 2

Policy Thrust 3

Strategic Thrust 3

Policy Thrust n

Strategic Thrust n

MP-KRA 1 Outcome 1

Strategy KPI

MP-KRA 2 Outcome 2

Strategy KPI

MP-KRA n Outcome n

Strategy KPI

MP KRA Ministry Outcome 1

Strategy KPI

MP KRA Ministry Outcome 2

Strategy KPI

MP KRA Ministry Outcome n

Strategy KPI

10MP – KRA (At National level)

10MP – KRA (At Ministry

level)

10MP Integrated Planning Framework

19

10MP IntegratedPlanning Framework

VISION 2020

NATIONAL MISSION

KRA 1, Strategies, Outcome

and Programme

KRA5 , Strategies, Outcome

and Programme

KRA 4, Strategies, Outcome

and Programme

KRA 3, Strategies, Outcome

and Programme

KRA 2, Strategies, Outcome

and Programme

KRAs Strategies, Outcomes

and Programmes

KRAs, Strategies, Outcomes

and Programme

s

KRAs, Strategies, Outcomes

and Programmes

KRAs, Strategies, Outcomes

and Programme

s

KRA s, Strategies, Outcomes

and Programme

s

Projects ProjectsProjectsProjectsProjects

EPULEVEL(MCG)

MINISTRY LEVEL

(OE+DE)

VERT

ICAL

INTE

GRA

TIO

N

HORIZONTAL INTEGRATION

THRUST 3THRUST 1 THRUST 2 THRUST 4 THRUST 5

20

Integrated PlanningFramework

VISION 2020

NATIONAL MISSION

KRA 1, Strategies, Outcome & Programme

KRAs Strategies, Outcomes and

Programme MINISTRY A

KRAs, Strategies, Outcomes and

Programme MINISTRY B

KRA s, Strategies, Outcomes and

Programme MINISTRY C

Projects ProjectsProjectsActivitiesProject

EPULEVEL(MCG)

MINISTRY LEVEL

(OE+DE) VERT

ICAL

INTE

GRA

TIO

N

THRUST 1

Activities

HORIZONTAL INTEGRATION

21

Programme-Based Budgeting

Programme - A strategic management tool to achieve outcomes at the implementation level;

Budget allocation linked with programme outcomes ;

Flexibility to review programmes and projects to achieve expected outcomes;

Eliminate redundancy -value for money;

Ensure optimal use of scarce resources.

• Integrating projects (Capex) /activities (Opex) within a programme and linking it to national outcomes ensure:

(i) Better programmes & projects selection to achieve outcomes;

(i) Opex aligned to national development planning policies and strategies as total cost implication is considered for project selection

22

PLANNING PHASEANALYSIS PHASE

identifying & characterising major stakeholders, target groups & beneficiaries, defining whose problems will be addressed by a future intervention

identifying the different strategies to achieve objectives; selecting the most appropriate strategy (ies); determining the major objectives (overall objectives and project purpose/outcome)

identifying key problems, constraints and opportunities; determining cause and effect relationships

developing objectives from the identified problems; identifying the means to ends relationships

defining the project/programme structure, testing its internal logic, formulating objectives in measurable terms, defining means and cost (overall)

determining the sequence and dependency of activities; estimating their duration, setting milestones and assigning responsibility

from the activity schedule, develop input schedules and a budget (both DE and OE)

Stakeholder Analysis

Problem Analysis

Strategy Analysis

Analysis of Objectives

Logframe

Activity Scheduling

Resource Scheduling

LOGICAL FRAMEWORK LOGICAL FRAMEWORK APPROACH (LFA) APPROACH (LFA)

23

Project Description(Intervention Logic)

(1)

KPI (or OVI)(Objectively Verifiable

Indicators)(2)

MOV(Method of Verification)

(3)

Assumptions

(4)Goal:

The broader development impact to which the Programme/project contributes at national and ministry levels.

Measures of the extent to which a sustainable contribution to the goal has been made. Used during evaluation.

Sources of information and methods used to collect and report it.

Purpose/Outcome:

The development outcome expected at the end of theProgramme/project.

Conditions at the end of the programme/project indicating that the Outcomes have been achieved and that the benefits are sustainable.

Sources of information and methods used to collect and report it.

Assumptions concerning the purpose/goal linkage.

Outputs:

The direct measurable results (goods and services) of the programme/project which are largely under programme /project management’s control

Measures of the quantity and quality of outputs and the timing of their delivery. Used during monitoring and review.

Sources of information and methods used to collect and report it.

Assumptions concerning the output/objective linkage.

Activities:

The tasks carried out to implement the project and deliver the identified outputs.

Inputs and ResourcesWork Plan, Equipment, Manpower,

and BudgetPre-Conditions

Logical Framework Matrix (LFM)

HORIZONTAL LOGIC

VE

RT

ICA

L L

OG

IC

BRIEFING OUTLINE

24

4. ConclusionConclusion

4

25

Managing Change

Project planning training for officers

in ministries & departments

Updating project monitoring and

evaluation system

Initiating institutional changes

Updating guidelines related to project

planning & implementation

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.

27