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Malaysia: Govt Management Labs to Assess Big Projects |
| Source: |
biz.thestar.com.my |
| Source Date: |
Tuesday, January 11, 2011 |
| Focus: |
Electronic and Mobile Government, Citizen Engagement, Internet Governance
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| Country: |
Malaysia |
| Created: |
Jan 18, 2011 |
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For the first time in the history of the five-year Malaysia plans, the Government is implementing a series of value management labs for projects worth RM50mil and above to ensure that these projects are effectively implemented and have positive impact for the economy.
These labs, whose results would be known by end-March, would start today and involve 160 participants from 20 ministries and agencies.
Broadly speaking, the role of the participants would be to make sure that these projects, 55 in number from the 10th Malaysia Plan (10MP) and continued projects from the 9MP, were “cangkul-ready” and that every ringgit spent would have the maximum output.
Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop said in a media briefing yesterday that the participants would have to look into factors such as whether these projects fit into the Government's development objectives and whether there were positive spin-off linkages for the economy.
This was in accordance with a late November 2009 Economic Planning Unit circular which stated that all projects worth RM50mil and above must go through a value management exercise.
“If there are projects found to be not effective, they may be replaced or postponed to the end of the 10MP period as the focus will be on projects that can be carried out fast,” Nor Mohamed said.
He added that the main objective of the value management exercise was not to reduce cost but to ensure effective implementation.
“The labs will work out the scope and final costs of the projects,” Nor Mohamed said, adding that the labs were to look into internal factors that would have an impact on costs rather than external factors.
According to the Economic Planning Unit (EPU), there were 197 new physical projects of RM50mil each in the 10MP. Besides the current series of labs, there would be another series starting in March for 99 other projects.EPU director-general Datuk Noriyah Ahmad said this practice of going through a value management exercise would be made mandatory going forward.
“We're trying to institutionalise such practices and make this mandatory for all projects. For now it's for those RM50mil and above,” she said.
Noriyah added that due to the large number of projects, the Government was starting with these 55 projects first as these were the ones deemed “cangkul-ready”.
The 55 projects that would undergo the value management exercise included nine infrastructure projects (roads, water and electricity), eight building projects (hospitals, courts and custom offices), five environmental projects, five agricultural and agricultural infrastructure projects, four education projects, five industrial sector projects, seven transportation sector projects, eight procurement projects and four funding and information and communication technology projects.
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Malaysia: Govt Management Labs to Assess Big Projects For the first time in the history of the five-year Malaysia plans the Government is implementing a series of value management labs for projects worth RM50mil and above to ensure that these projects are effectively implemented and have positive impact for the economy
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