Capacity of the planning agency and national development plan implementation effectiveness: a comparative study of Thailand and Malaysia

Abstract

The Economic Planning Unit or EPU of Malaysia and the Office of the National Economic and Social Development Board or the NESDB of Thailand play a major role in setting the direction of country development through national development plans. The objectives of this study were to study why the development outcomes of Malaysia are better than those in Thailand in many areas, especially after the 1997 financial crisis, and how organization theory contributes to development plan implementation and effectiveness evaluation.

This research was qualitative and used in-depth interviews and focus group discussion, document analysis, and participation observation techniques as tools. The analysis of the data employed ATLAS.ti version 8.4.19 in order to compare the case studies chosen for the study. The results are as follows.

The rationale for the development outcomes of Malaysia being better than for Thailand, especially after 1997 financial crisis, was that the EPU performed its plan implementation with clear planning regulations through long-established planning and implementation coordination machineries that connected the Malaysia Plan and development projects that were supported by political stability, continued public sector development, and government development expenditures-led strategy. Regarding how organization theory contributed to development planning implementation and implementation effectiveness evaluation, it was found that organization design such as the PEMANDU—a performance management and delivery unit—was able to close the gap in planning, budgeting, and implementation.

The NESDB capacity was weaker than the EPU, institutionally and individually, and this results in planning not being a viable or effective means for guiding and implementing government intervention; the NESDB has lost its position as the center of planning activities. Without the leadership of prime ministers and innovative organization design as in Malaysia, which helped to fill the gaps between plans and implementation, the NESDB’s five-year national plan remained a blueprint that is referred to by the implementing agencies but that was not consulted during program and project initiation.