Aligning with global trends: Assessing executive and fiscal reforms in Malaysia's public sector

Authors

  • Muhammad Aiman Asyraf Hanafi Centre for Foundation Studies in Science, Universiti Malaya, 50603 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia.
  • Norzarina Md Yatim Accounting Department, Faculty of Management, Multimedia University, 63100 Cyberjaya, Selangor, Malaysia.
  • Abdullah Sallehhuddin Abdullah Salim Department of Accounting, Faculty of Accountancy and Management, University of Tunku Abdul Rahman, 43000 Kajang, Selangor, Malaysia.

DOI:

https://doi.org/10.24200/jonus.vol10iss2pp182-202

Abstract

Background and Purpose: Due to Barisan Nasional (BN) governance issues, corruption, and financial scandals, Pakatan Harapan (PH) sought institutional reforms in Malaysia. International Public Sector Accounting Standard ( IPSAS) and Malaysian Public Sector Accounting Standard (MPSAS) improved financial reporting and transparency.  New accounting regulations' costs and benefits, especially in honesty and fairness, are difficult to weigh.  Therefore, the article examines how these reforms affect Federal Statutory Bodies and honest and fair view reporting.

Methodology: Malaysian Federal Statutory Bodies' accounting staff self-administered a quantitative survey questionnaire. Senior financial reporters with three years of experience participated. For clarification, a Malay and English five-point Likert scale poll had 99 valid responses. A questionnaire encompassed cost-benefit evaluations, social ideals, and honest reporting. We performed descriptive and inferential statistical tests, including factor and bivariate analysis.

Findings: Accurate financial reporting requires cost-benefit analysis, highlighting strategic accounting reform decision-making. Accrual accounting procedures justify the high initial costs with openness, uniformity, and financial monitoring. Social values favourably promote true and fair perspective reporting, however they lack statistical significance in the Malaysian public sector due to its stringent regulatory system.

Contributions: This study illuminates financial reporting complexities and suggests employing qualitative methods to improve findings and overcome limitations.

Keywords: True and fair view, reporting, societal values, balancing cost-benefit concern, public sector.

Author Biographies

  • Muhammad Aiman Asyraf Hanafi, Centre for Foundation Studies in Science, Universiti Malaya, 50603 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia.

    Muhammad Aiman Asyraf bin Hanafi, active researcher and emerging academic in accounting, management, and social sciences, currently serves as a Lecturer at the Centre for Foundation Studies in Science, Universiti Malaya. His research focuses on public sector financial reporting and the transition to accrual accounting. He has presented her work at academic conferences and contributes to cross-campus teaching, including at the Universiti Malaya campus in Xi’an, China. He holds an MPhil in Management (Accounting) and is actively involved in advancing research that supports public sector reform.

  • Norzarina Md Yatim, Accounting Department, Faculty of Management, Multimedia University, 63100 Cyberjaya, Selangor, Malaysia.

    Norzarina Md Yatim is a Lecturer at the Faculty of Management, Multimedia University, Malaysia. She specialises in public sector accounting, forensic accounting, and corporate governance. An active young researcher with publications in Scopus and WoS-indexed journals and supported by national grants. She has received multiple awards for innovation and academic excellence. Norzarina is also a Certified Enterprise Design Thinking Practitioner and a member of MIA.

  • Abdullah Sallehhuddin Abdullah Salim, Department of Accounting, Faculty of Accountancy and Management, University of Tunku Abdul Rahman, 43000 Kajang, Selangor, Malaysia.

    Abdullah Sallehhuddin is an Associate Professor in the Department of Accounting at the Faculty of Accountancy and Management, Universiti Tunku Abdul Rahman, where he also serves as the Head of Programme for MBA and MBA (Corporate Governance). He has successfully supervised numerous postgraduate students and regularly serves as an external examiner for Master's and Ph.D. candidates at both local and international universities. His research interests span ESG, corporate social responsibility, ethics, corporate governance, societal well-being, and institutional reform.

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Published

2025-07-31

Issue

Vol. 10 No. 2: Journal of Nusantara Studies(JONUS)

Section

Articles

How to Cite

Aligning with global trends: Assessing executive and fiscal reforms in Malaysia’s public sector. (2025). Journal of Nusantara Studies (JONUS), 10(2), 182-202. https://doi.org/10.24200/jonus.vol10iss2pp182-202