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Malaysia

Open Budget Survey 2017

Downloads:
Country Summary Questionnaire
Transparency

46

out of 100
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Public Participation

22

out of 100
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Budget Oversight

35

out of 100
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IBP considers countries that score above 60 on the Open Budget Index as providing sufficient budget information to enable the public to engage in budget discussions in an informed manner. IBP considers countries scoring above 60 on participation and oversight as providing adequate opportunities for the public to participate in the budget process and providing adequate oversight practices, respectively.

Transparency (Open Budget Index)

46

out of 100

Malaysia provides the public with limited budget information.

How Has the Open Budget Index Score Changed Over Time?
Recommendations for Improving Transparency

Malaysia should prioritize the following actions to improve budget transparency:

  • Produce and publish a Pre-Budget Statement and a Mid-Year Review.
  • Increase the information provided in the Executive’s Budget Proposal by, for example, providing comprehensive information on government’s liabilities including contingent and future liabilities as well as the sustainability of the government’s finances in the long term.
  • Improve the information available in the In-Year Reports by providing more detailed information on actual expenditures by administrative, functional, and programmatic classifications.

Public Participation

22

out of 100

Malaysia provides few opportunities for the public to engage in the budget process.

How Does Public Participation Compare to Other Countries in the Region?

Global Average 12/100
Philippines 41/100
Indonesia 22/100
Malaysia 22/100
Timor-Leste 9/100
Thailand 7/100
Vietnam 7/100
Cambodia 4/100
Myanmar 0/100
Recommendations for Improving Participation

Malaysia should prioritize the following actions to improve public participation in its budget process:

  • Take concrete steps to receive input from vulnerable and underrepresented parts of the population on the implementation of the annual budget.
  • Hold legislative hearings on the formulation of the annual budget, during which members of the public or civil society organizations can testify.
  • Establish formal mechanisms for the public to assist the supreme audit institution in formulating its audit program and to participate in relevant audit investigations.

Budget Oversight (by Legislature & Audit)

35

out of 100

The legislature and supreme audit institution in Malaysia provide weak oversight of the budget.

To What Extent Does the Legislature Provide Budget Oversight?

Formulation/Approval 38/100
Execution/Audit 7/100

The legislature provides weak oversight during the budget cycle. This score reflects that the legislature provides weak oversight during the planning stage of the budget cycle and weak oversight during the implementation stage of the budget cycle.

To What Extent Does the Supreme Audit Institution Provide Budget Oversight?

Limited 56/100

The supreme audit institution provides limited budget oversight.

Recommendations for Improving Oversight

Malaysia should prioritize the following actions to make budget oversight more effective:

  • Establish parliamentary select committees that can examine the annual budget proposal.
  • Ensure audit processes are reviewed by an independent agency.
  • Consider setting up an independent fiscal institution to further strengthen budget oversight.

Learn More

The information on this page presents a partial country summary. For more detailed information, please download:


Open Budget Survey 2015

Downloads:
Country Summary - English Questionnaire

Transparency (Open Budget Index) 46/100 

The Government of Malaysia provides the public with limited budget information.

Public Participation 12/100

The Government of Malaysia is weak in providing the public with opportunities to engage in the budget process.

Budget Oversight 

By legislature 15/100

Budget oversight by the legislature in Malaysia is weak.

By auditor 67/100

Budget oversight by the supreme audit institution in Malaysia is adequate.

Recommendations

Improving Transparency

Malaysia should prioritize the following actions to improve budget transparency:

  • Produce and publish a Pre-Budget Statement, a Citizens Budget, and a Mid-Year Review.
  • Increase the comprehensiveness of the Executive’s Budget Proposal by, for example, presenting more information on issues beyond the core budget, such as extra-budgetary funds, contingent liabilities, and future liabilities.
  • Increase the comprehensiveness of the Year-End Report.
Improving Participation

Malaysia should prioritize the following actions to improve budget participation:

  • Establish credible and effective mechanisms (i.e., public hearings, surveys, focus groups) for capturing a range of public perspectives on budget matters.
  • Hold legislative hearings on the budgets of specific ministries, departments, and agencies at which testimony from the public is heard.
  • Establish formal mechanisms for the public to assist the supreme audit institution to formulate its audit program and to participate in audit investigations.
Improving Oversight

Malaysia should prioritize the following actions to strengthen budget oversight:

  • Establish a specialized budget research office for the legislature.
  • Ensure the executive receives prior approval by the legislature before implementing a supplemental budget.
  • In both law and practice, ensure the legislature is consulted prior to the virement of funds in the Enacted Budget, the spending of any unanticipated revenue, and the spending of contingency funds that were not identified in the Enacted Budget.

 


Open Budget Survey 2012

Downloads:
Country Summary - English Questionnaire

Open Budget Survey 2010

Downloads:
Country Summary Questionnaire

Open Budget Survey 2008

Downloads:
Country Summary Questionnaire



See more on budget work in Malaysia »