Budget 2025: Govt announces public service reforms to boost governance, productivity

KUALA LUMPUR (Oct 18): The Madani government is implementing public service reforms in Budget 2025 to promote good governance and boost productivity, Prime Minister Datuk Seri Anwar Ibrahim said.

To support these reforms, the government has allocated RM25 million to the Special Task Force on Agency Reform (Star), aimed at reducing bureaucratic red tape across all government agencies.

“This initiative will review regulations to speed up approval processes, making it easier for the people, traders and investors,” the Prime Minister  said when tabling the 2025 Budget in the Dewan Rakyat today.

He added that Star, led by the Chief Secretary to the Government will address key public issues, such as improving schools and clinics, reducing congestion in hospitals and immigration counters and ensuring smooth business operations.

In addition, the Prime Minister revealed plans to enact the Public Administration Efficiency Bill, which focuses on three key areas: reducing bureaucracy, speeding up processes, and improving service efficiency.

The Prime Minister also said that the Madani government is dedicated to expediting government services and to achieve this, a centralised channel will be established at Urban Transformation Centres (UTC) to assist those in need in applying for aid from various agencies.

“Government counter services will be further enhanced through the Ikhtiar Kiosk Sentuhan Madani initiative which aims to consolidate various government service kiosks in high-traffic areas like shopping malls, allowing people to access services outside of regular office hours,” he said.

Starting in 2025, the iPayment system, developed by the Accountant General’s Department of Malaysia, will be used for cashless payments at all government counters.

In addition, RM100 million has been allocated to expand mobile services, making it easier for rural communities to access essential services without having to travel long distances.

Meanwhile, government entities with similar roles have been merged for greater efficency. This includes the consolidation of InvestKL Corporation with the Malaysian Industrial Development Board (MIDA) and the merger of the Malaysian Aviation Commission (Mavcom) and the Civil Aviation Authority of Malaysia (CAAM).

Regarding the governance of Federal Statutory Bodies (BBP), the Prime Minister announced that Management and Governance Guidelines have been developed  to ensure these bodies meet their intended goals and remain focused on their original purposes.

“The BBP Rationalisation Coordinating Office has been established to assess the direction of BBPs, their financial capabilities and any overlapping roles. About 544 entities within the BBP ecosystem are involved, including Companies Limited by Guarantee (CLBG),” he said. – Bernama