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-k)J.
Report No. 5886-MA

STAFF APPRAISAL REPORT
MALAYSIA
PRIMARYAND SECONDARYEDUCATION
SECTOR PROJECT
(EIGHTH EDUCATIONLOAN)
April 1, 1986
Projects Departmeuit
East Asia and Pacific Regional Office
This documenthas a restricteddistribution and mav be usedbv recipientsonly in the performanceof

their official duties. Its contentsmay not otherwise be disclosedwithout World Bank authorization.
CURRENCYEQUIVALENTS
Currency Unit = Ringgit (M$)
Average 1984 October 1985

US$1.00 = M$2.42 = US$1.00 = M$2.46
M$1.00 = US$0.41 = M$1.00 = US$0.40
GOVERNMENT OF MALAYSIA
FISCAL YEAR
January 1 - December 31
ACADEMIC YEAR
January 1 - December 31
ABBREVIATIONS
ADB - Asian Development Bank

DC - Development Committee (Ministry of Education)
DEO - District Education Office
DSD - Development and Supplies Division
EPC - Educational Planning Committee
EPRD - Educational Planning and Research Division
EPU - Economic Planning Unit (Prime Minister's Department)
ICB - InternationalCompetitive Bidding
ICU - Implementation Coordination Unit (Prime Minister's
Department)
LCB - Local Competitive Bidding
MOE - Ministry of Education
NIEM - National Institute of Educational Management
NPSC - New Primary School Curriculum
NSSC - New Secondary School Curriculum
PWD - Public Works Department
RC - Resource Center
SED - State Education Department
TTC - Teacher Training College
FOR 0MCIAL USE ONLY
MALAYSIA
PRIMARYAND SECONDARY
EDUCATIONSECTOR PROJECT
(EIGHTH EDUCATION LOAN)
Table of Contents
Page No.
BASIC DATA
LOAN AND PROJECT SUMMARY.....................................
1. INTRODUCTION............... 1
Socio-economic Background....................................
Development Objectives and Economic Performance.
Implications for Education. 2
2. THE SECTO.... 3
Overview. 3
General. 3
Enrollment Expanson. 4
Female Participation. 4
Teacher Training. 4
Educational Finance. 5
External Assistance for Education.......................... 6
EducationalManagement .... 6
Educational Development and Support Services . . . 7
Resource Centers.... 7
Major Issues in the Sector.... 7
Quality of Education.... 8
Efficiency of Educational Management . . .10
Access to Quality Education .... 10
Government's Objectives and Strategy . . .11
Quality of Education. . .....................................
11
Efficiency of Educational Management . . .14
Access to Quality Education .... 15
Government's Program. . .......................................
15
Experience with Past Bank Lending to Education and
Bank Objectives............... ,.,,,.... 17
Rationale for Bank Lending to Primary and
Secondary Education.18
This report is based on the findings of an appraisal mission in April/May 1985

comprising A. Salmon (senior general educator, mission leader), B. Masters
(training specialist), S. Cochrane (senior economist) and A. Nazareth
(educational planning consultant).
This documenthas a restricteddistribution andmay be used by recipientsonly in the performance

of their officialduties. Its contents may not otherwise be discloed without World Bank authorization.
Page No.
3. THE PROJECT ............................................ ....... 19
Objectives and Strategy ......................... ............. 19

Improving the Quality of Education ........................... 20
Increasing the Efficiency of
Educational Management ....................... ............. . 21
Expanding Access to Better Education ......................... 22
4. MANAGEMENT AND IMPLEMENTATION . . . 23
Government's Project Implementation Capacity . . 23

The Sector Approach ....... 24
Organization, Monitoring and Evaluation ..................... 24
Implementation Procedures . . . 25
Reporting .................................................... 25
.
Status of Project Preparation ............................... 26
Investment Program and Financing . . . 26
Procurement .................................................. 29
Disbursement ................................................. 31
Accounts and Audit . . . 32
Benefits and Risks . . . 32
5. AGREEMENTS REACHED AND RECOMKENDATION ....... 34
Tables in the Text
1. Investment Program Costs by Category of Expenditure .......... 27

2. Procurement Arrangements .. 30
Annexes
1. Comparative Education Indicators

2. Teacher Training System
3. Projections of Teacher Demand and Supply, 1985-1995
4. Basic Education Ratios (by District with Classroom:Student and
Classroom:Class Ratios below National Average)
5. Plan of Action on Policy and Institutional Development
6. Primary and General Secondary Education Enrollment Projections, 1983-1995
7. Estimated Cost of Education in 1990
8. Investment Program Costs by Program Component
9. Responsibilities for Program Management and Implementation
10. General Eligibility Criteria for Approval of Programs and Subprojects
11. Specific Criteria for Identification and Appraisal of Programs and
Subprojects
12. Guidelines and Criteria for Allocation of Loan Funds under Programs and
Subprojects
13. Investment Program Costs by Program Objective
14. Socia-economic Indicators by State
15. Appraisal Operations Carried out by the MOE Appraisal Committee
16. Implementation Schedule
17. Critical Implementation Dates
18. Key Performance Indicators
19. Investment Program Costs by ImplementationYear and Program Component
20. Overall Financing Plan
21. Estimated Unit Areas and Construction Costs for Project Institutions
22. Disbursement Forecast
23. Selected Documents and Data Available in the Project File
Charts
1. Structure of the Education System, 1984

2. Education Pyramid, 1984
3. Ministry of Education, Organization Chart, 1985
4. Operational Chart of Educational Planning
5. State Education Department, Organization Chart, 1985
6. District Education Office, Organization Chart, 1985
7. Procedure for Generating and Processing Subprojects
8. Ministry of Education, Educational Planning and Research Division,
Organization Chart, 1985
9. Ministry of Education, Development and Supplies Division, Organization
Cha.., 1985
10. Management of Subsector Investment Program, Organization and
Responsibilities
Maps
Malaysia - Primary and Secondary Education Sector Project

Primary Education: Peninsular Malaysia (IBRD No. A19300R)
East Malaysia (IBRD No. A19310R)
Secondary Education: Peninsular Malaysia (IBRD No. A19305R)
East Malaysia (IBRD No. A19315R)
MALAYSIA
PRIMARY AND SECONDARY EDUCATION SECTOR PROJECT
Basic Data (1984) /a
Total population: 15.2 million

Growth rate per annum : 2.4%
Per capita GNP (1983) : US$1,870 /b
x Teaching Fnrollment Age

Education level/type Enrollment girls staff ratio (Z) group
Primary (Grades 1-6) 2,149,000 49 85,800 97 6-11
Secondary (Grades 7-11) 1,223,700 49 55,500 72 12-16

Lower (Grades 7-9) 899,800 49 40,300 88 12-14
Upper (Grades 10-11) 323,900 49 15,200 49 15-16
Of which:
Academic 304,800 51 13,600 - -
Technical 5,500 33 300 - -
Vocational 13,600 27 1,300 - -
Postsecondary (Grades 12-13) 74,500 52 n.a. 11 17-18

Of which:
Academic (Form VI) 43,300 55 n.a. - -
Teacher training /c 16,600 55 1,620 - -
Polytechnics /c 4,400 25 440 - -
Technical 1,100 33 50 - -
Preuniversity/matriculation 9,100 47 700 - -
Higher (Grades 14-17) /d 50,900 38 6,200 4 19-22
Expenditures on Education
As % of GNP 6.1
As Z of total recurrent budget 16.7
As Z of total investment budget 6.5
/a Unless otherwise indicated.

7T World Bank Atlas, 1985.
7T Enrollment in the third year of the program excluded from 17-18 enrollment
ratio but included in the 19-22 higher education enrollment ratio below.
Id In local public institutes and universities only. An additional 49,700
students are overseas and 15,100 are enrolled in local private institutions.
MALAYSIA
Loan and Project Summary
Borrower: Malaysia
Amount: US$127.0 million equivalent
Terms: Repayable in 15 years, including three years of grace, at the

standard variable rate
Project
Description: The main objective of the project would be to assist the
Government in accelerating the implementation of policy reforms
and institutionalchanges aimed at improving the quality of
education and the efficiency of educational management as well
as at increasing access to better education.
In support of this objective, the project would help finance

the first five-year phase of a ten-year program to develop and
improve the primary and secondary education subsector under the
Fifth Malaysia Plan (1986-1990), including: (a) the provision
of 4,000 student places to replace the most inadequate teacher
training facilities; (b) the provision of about 3,300 primary
and secondary classrooms, and related boarding and staff
housing facilities in the most disadvantaged and overcrowded
districts; (c) an increase in educational resources through the
provision of about eight million school library books, and
equipment for 5,400 rural schools and 350 district resource
centers; (d) a staff development program for about 500 key
education officers, includin& fellowships abroad and local
training, and (e) studies on quality, efficiency and equity in
education.
Risks: Constraints on resources might slow down the implementation of

the proposed project and the number of additional staff needed
to implement the new activity-oriented curricula would result
in a substantial increase in recurrent coscs. However, the
project schools could be adequately staffed according to a more
modest teacher:class ratio than currently envisaged by the
Government, thus reducing the fiscal burden. No problem is
anticipated with regard to the staffing of the schools, which
is well within the training capacity of teacher training
colleges and universities.
Project Cost Local Foreign Total
--- US$ million
National Level Programs

Teacher training 24.8 16.8 41.6
Educational resources 14.5 20.4 34.9
Staff development 0.9 4.9 5.8
Studies 0.5 0.1 0.6
Subtotal 40.7 42.2 82.9
State Level Programs

Primary education 55.5 29.8 85.3
Secondary education 63.4 33.5 96.9
Subtotal 118.9 63.3 182.2
Baseline Cost 159.6 105.5 265.1
Contingencies
Physical 15.9 10.2 26.1
Price 10.3 11.3 21.6
Subtotal 26.2 21.5 47.7
Total Cost /a 185.8 127.0 312.8
Financing Plan Local Foreign Total

-- uS$ million-
Government/a 185.8 - 185.8

Bank - 127.0 127.0
Total /a 185.8 127.0 312.8
Estimated Disbursement
Bank FY 1987 1988 1989 1990 1991

…--------- US$ million
Annual 5.0 16.5 32.9 38.3 34.3

Cumulative 5.0 21.5 54.4 92.7 127.0
Rate of Return N.A.
a/ Including taxes and duties estimated at US$5.0 million equivalent.

MALAYSIA
1. INTRODUCTION
Socio-economic Background
1.01 Malaysia, a country of about 15 million people in 1984, is separated

by the South China Sea into Peninsular, or West, Malaysia and the East
Malaysia states of Sabah and Sarawak. In 1980 Peninsular Malaysia accounted
for 83Z of the population while approximately 72 of the population resided in
Sabah and 10% in Sarawak. Malaysia is still predominantly a rural country
with 60% of the population of Peninsular Malaysia and 80% of the popuLation of
Sabah and Sarawak living in rural areas. Malays constitute the largest ethnic
group (48% of the population), followed by the Chinese (30%), indigenous
ethnic groups (132), which constitute four-fifths of the population of Sabah
and one-half of the population of Sarawak, and the Indians (9%). Within
Peninsular Malaysia, ethnicity also differs significantly between urban and
rural areas with 73% of the Halays residing in rural areas, compared with 41%
of the Chinese and 552 of the Indians. AdministrativelyMalaysia is divided
into 13 st tes and the Federal Territory of Kuala Lumpur and Labuan, and 123
districts.-
1.02 Malaysia's resources and the benefits of its economic growth have
not been equally shared among all people and regions. Although the overall
incidence of poverty has decreased substantially since 1970, there are still
wide variations in poverty among regions. In 1980 approximately 38% of rural
households were in poverty compared with only 13% in urban areas. Ethnic
differences in income also persist: in the early 1980s, the mean annual
household income of Malays was M$3,550 per month compared with M$5,460 for
Indians and M$6,830 for Chinese.
Development Objectives and Economic Performance
1.03 The New Economic Policy articulated in 1971 set forth the develop-
ment goals for the next twenty years as being the eradication of poverty, by
raising income levels and increasing employment opportunities for aLl
Malaysians irrespectiveof race, and the restructuringof society so as to
1/ In Sabah and Sarawak, where the population is widely dispersed, the

"Division" is the third administrative level between the State and the
District.
- 2 -
reduce racial imbalance in economic functions. This policy has been implemen-
ted through economic growth and increased participationof the poorest
segments of the population in the benefits of development through selective
programs. Regional inequalities have also been alleviated through greater
regional decentralizationof economic activity, with priority given to
disadvantagedareas. These economic programs to eliminate poverty and
inequality have been combined with political and social programs to encourage
national integration and social change. Education has been accorded a crucial
role in this process.
1.04 The most dramatic economic progress occurred in the 1970s as a

result of strong external demand for Malaysia's commodity exports and a world
boom in their prices. The growth rate of GDP, which was 6Z in the 1960s,
increased to 7.8% for the period 1971-80. This, combined with the
Government's policies, led to substantial improvements in welfare, as measured
by the incidence of poverty and access to public services, including educa-
tion. The growth rate of employment reached 3.7% overall and the proportion
of the population below the poverty line dropped from about 50X in 1970 to
about 30% in 1983.
1.05 This period of rapid growth in the 1970s slowed down in the early
1980s. The recession in industrialized nations reduced exports and GDP growth
declined from 7.8% in the 1970s to 5.6% in 1982. The recovery in 1983 was
only mild and the prospects for the Malaysian economy over the next plan
period (1986-1990) are dependent on the economic recovery in developed
countries. The Government initially attempted to maintain growth by maintain-
ing its spending and assuming more responsibility for expansion: government
expenditures rose from 31Z of GNP in 1977-79 to over 45% of GNP in 1982.
However, as the recession continued and deficits grew, the Government cut its
expenditures in 1983 and 1984. The cuts were more severe in the capital than
in the recurrent budget and the 1985 budget, which is 7.8% above that of 1984,
follows the same trend: operating expenditures will increase while capital
expenditures will decline and represent only 20% of the total budget as
compared with 23% in 1984.
Implications for Education
1.06 Malaysia's economic circumstances and development goals have a

substantial impact on both the need for educational expansion and improvement,
and the ability of the economy to provide resources for yijesetasks. The
diversificationof the economy out of primary production- requires that the
labor force have an ability to acquire new skills. Education is essential to
such a labor force. In addition, several attempcs have been made to estimate
the economic benefits from schooling in Malaysia: while the private returns
to secondary education were estimated at about 33% according to one
2/ In 1970 the employment distribution was 47Z in agriculture, 23% in the

secondary sector and 30% in the tertiary sector. The corresponding
figures for 1980 were 36%, 29% and 35%.
-3 -
study,3/ another study on paddy farmers in the Muda River Valley indicated
that primary schooling was instrumental in helping farmers obtain higher
yields. Each additional year of primary schooling was reported to yieLd about
a 22% rate of return net of schooling costs. This rate of return to primary
schooling is si lar to that observed in Thailand and substantiallyabove that
found in Korea._ In general, it has been estimated that in Asian developing
countries the social rate of return (net of the cost of education to society)
is 27% for primary, 15% for secondary and 13% for higher education. Thus,
primary and secondary education remain high priorities on purely economic
grounds. The crucial issue is the ability of Malaysia to afford investment in
schooling to the extent it would like, given its related recurrent cost and
the recent constraints on resources.
2. THE SECTOR
Overview
2.01 General. Since independence in 1957, the Government's effort to

develop the education system has been an integral part of a wider national
policy. The Government has indeed regarded education as a key factor to pro-
mote national identity and integration, socio-economic development and employ-
ment. Education is also considered a major instrument of social and economic
mobility, a means of providing productive skills, raising the standard of
living, and lowering the gap in earnings among ethnic groups. It is, there-
fore, a major vehicle to achieve the New Economic Policy goals of eradicating
poverty and reducing racial imbalance in economic functions.
2.02 The establishmegy of a federal Ministry of Educ:ation(MOE) and a

unified education system,-' the introductionof a common curriculum and Bahasa
Malaysia (the standardized Malay language) at all levels of the education
system, and the inculcation of national values have helpea to integrate the
3/ G. Psacharopoulos,"Returns to Education: A Further InternationalUpdate

and Implications", Journal of Human Resources, 1985.
4/ D.T. Jamison and L. J. Lau, Farmer Education and Farm Efficiency,

Baltimore: The Johns Hopkins University Press, 1982.
5/ The education system comprises six years of primary education, three

years of lower secondary and two years of upper secondary education,
followed by two years of preuniversitycourses, or two to three years of
postsecondary vocational and teacher training, and three to six years of
higher education (Chart 1).
various ethnic communities, while preserving their specific cultural valueg
through the use of their own language of instruction in primary education.-
2.03 The Government has concentrated its effort on providing as many

children of the 6-14 age group as possible with access to at least nine years
of basic education. This is considered by the Government as the minimum
general education requirement for further training and productive life, as
long as universal access to the full five-year secondary course cannot be
achieved due to financial constraints. Basic education is provided through a
policy of free primary education and virtually automatic promotion from Grade
1 to Grade 9.
2.04 Enrollment Expansion. The above policy has resulted in a

significant expansion of education. Enrollments in government educational
institutionsgrew at an annual average of 3.3% between 1971 and 1984. In
1984. primary education was virtually universal; the secondary enrollment
ratio of 72Z was one of the highest in the region (Annex 1), while post-
secondary and higher education enrolled 11% and 4% respectively of the rele-
vant age groups, excluding enrollments in local private and overseas
postsecondary institutions and universicies (Chart 2).
2.05 Female Participation. The participation of girls in education is

high with 49% of enrollments in primary and secondary, 52% in postsecondary
and 38% in local public higher education. In technical/vocationaleducation,
girls are also substantially represented with 33% in technical secondary and
postsecondaryschools, 27% in vocational schools and 25% in polytechnics.
Women now constitute the majority of students in TTCs (55Z) and almost 60% of
teachers are women.
2.06 Teacher Training. The teacher training system (Annex 2) provides a

diversified and flexible range of programs. Primary, lower secondary and
vocational teachers are trained in 27 teacher training colleges (TTCs), and
upper secondary teachers in five universities. In 1984, the TTCs enrolLed
17,000 teacher trainees in three-year courses with an annual output of
5,500. In universities, 5,400 teacher trainees attended four-year Bachelor's
Degree and three-year Diploma courses, and one-year postgraduate Certificate
or Diploma-in-Educationprograms. The annual output was 1,700. Since 1983,
teacher trainees have been admitted to TTCs following completion of grade 11
with at least four mandatory major subjects including Bahasa Malaysia, and a
mandatory pass in mathematics. This selection at admission is expected to
improve teacher trainees' academic background. In addition, inservice courses
are provided through various full-time and part-time programs: a part-time
four-year program, with a final fully residential year in the TTCs, trains
6/ At the primary level, Bahasa Malaysia is taught in all schools, but the
main language of instruction in some schools is Chinese or Tamil. A one-
year extra course (remove class), following primary education in Chinese
and Tamil, is provided to non-Malays to upgrade their Bahasa Malaysia to
the working knowledge required in secondary education where it becomes
the sole language of instruction.
some 6,000 academicallyqualified teachers who lack teaching certification and
are hired on temporarycontracts; also about 500 specialized teachers and
1,700 remedial specialistsand guidance counselors are trained annually;
intensive language teacher training courses are provided to university
graduates wishing to teach English and Bahasa Malaysia; and about 10% of qual-
ified teachers, i.e. 8,000 primary and 5,000 secondary teachers each year, are
introduced to new teaching approaches and methods (including the use of
libraries and media) through intensive courses. In 1984, about 85X of primary
and secondary teacherswere professionallyqualified. However, the percentage
of university graduatesamong seconilary teachers (5Z of lower secondary teach-'
ers, in particular) is below the desirable proportion sought by the MOE.
2.07 EducationalFinance. These improvements in educational quality and

opportunitieshave resulted in a relativelyhigh share of GNP spent on educa-
tion. In 1984, this share was 6.1%, as compared with 2.1% in Indonesia, 2.8%
in the Philippines and 3.4% in Thailand, but was exceeded by Korea (7.7%).
Higher expendituresare due both to the wide 5 7verage of the education system
(para. 2.04) and t higher student unit costs- resulting from competitive
teachers' salaries and modest student:teacherratios (25:1 in primary and
22:1 in secondary education). As education is a federal responsibility in
Malaysia, the cost of education is borne mainly by the Federal Government.
Only about 5%, including fees, is met from private contributionsand local
authorities' levies. Typically, the MOE bears about 80% of all expenditures
on education and training. The remaining 20% is borne largely by other minis-
tries and by private agencies. Private schools enroll a negligible proportion
of primary students (0.3%) and only 6Z of secondary studenLs.
2.08 Over the period 1971-84, the MOE's high share of development
expenditures (around6.5%) was due to the Government's policy of increasing
educational opportunitieseven in the most remote areas. However MOE's share
of recuyrent expendituresdeclined during the same period from 24.iZ to
16.7% - as a result of the relatively fastec growth of other sectors. In
1985, budgetary estimates include US$290.0 million equivalent for investment
in education and US$1,510.0mfl ion equivalent for recurrent expenditure on
education, representing9.5% - and 17.5% of total government development and
recurrent budgets, respectively.
2.09 The distributionof recurrent expenditures over the three major

levels of education is about 39Z, 43% and 18% for primary, secondary and
7/ M$540 and M$770 for primary and secondary education, respectively, i.e.
11.5% and 16.4% of GNP per capita (Annex 1).
8/ Average teacher salaries in Malaysia are about 2.5 times the GNP per
capita.
9/ As compared with 20.3% in Thailand and 20.8% in Korea.
10/ 13.8% if expenditureson education and training incurred by ministries

other than MOE, are included.
higher education, respectively. With regard to capital investment, the
Government has gradually increased emphasis on vocational/technicaland higher
education during the Fourth Malaysia Plan in order to meet growing demand in
these subsectors resulting from the development of the country's economy and
the steady expansion of primary and general secondary education. This trend
is confirmed by the Fifth Malaysia Plan which allocates about 45% of its
investment in education and training to higher education and 16% to technical
education and vocational training, while primary and general secondary
education development is maintained with 39% of the funds.
2.10 External Assistance for Education. Malaysia receives external aid

for education in the form of technical assistance and investment programs. In
1983 technical assistance to education amounted to US$5.1 million. This
represented 19.5% of all technical assistance to the country. Over three
quarters of technical assistance came from bilateral sources (US$3.9 million)
with the United Kingdom contributing 65% of these bilateral funds (US$2.5 mil-
lion) and Australia an additional 24% (US$900,000). Belgium, the Netherlands
and New Zealand also made substantial contributions. Multilateral contribu-
tions mainly originate from UNDP and Unicef. As for capital investment, the
ongoing programs, which concentrate on skill training, come from the Asian
Development Bank (ADB), the Islamic Development Bank and IBRD in loans total-
ing US$180.2 million (of which US$113.9 million under Loans 2145-MA and 2601-
MA) and a grant of US$8 million from the Japanese InternationalCooperation
Agency.
2.11 Educational Management. Educational administration in MaLaysia is

highly centralized with a four-tiered line of authority including federal,
state, district and school levels. The MOE operates through its 14 profes-
sional and 12 administrative divisions and services (Chart 3). Decisions are
made th.ough a committee system (Chart 4) with the Educational Planning
Committee (EPC), chaired by the Minister of Education, being the supreme
educational policy-making and planning body. EPC coordinates the work of six
Specialized Committees, for curricula, textbcoks, scholarships and training,
higher education, finance, and development. The secretariat of EPC is the
Educational Planning and Research Division (EPRD) of the MOE. This secr!-
tariat (a) coordinates all inputs from MOE divisions and State Education
Departments (SED), universities, and other statutory bodies and agencies
relating to education, and (b) presents the MOE's plan to the Economic
Planning Unit (EPU) of the Prime Minister's Department. The EPU is responsi-
ble to the highest policy-making and planning body in the country, namely the
National Development Planning Committee, chaired by the Chief Secretary to the
Government.
2.12 Downstream, in each of the 13 states of the Federation, an SED

(Chart 5) is responsible for the implementation of the government educational
policy while providing the MOE with feedback on the issues specific to each
state and adjusting the national policy to local conditions. SED directors
are directly responsible to the Director General of Education in the MOE.
- 7-
2.13 The rapid expansion of the education system resulted in the need for
an additional tier of decentralized management and quality-control, between
SEDs and schools, to monitor and evaluate educational programs and school
activities, and upgrade teachers locally. To meet this need, 57 District
Education Offices (DEOs) were established in Peninsular Malaysia in 1982
(Chart 6). In Sabah and Sarawak, 13 Division Education Offices and 50 DEOs
already existed. A DEO is headed by a District Education Officer, directly
responsible to the SED director.
2.14 Educational Development and Support Services. The MOE provides the
education system with a diversified educational development and support net-
work including: (a) the Federal Inspectorate, compri ing 181 inspectors, in
charge of assessing teachers' and school managers' efficiency as weLl as major
educational issues; (b) the Curriculum Development Center responsible for
developing, testirg and monitoring implementationof new curricula and related
educational media programs and textbooks; (c) the Examinations Syndicate in
charge of (i)11eveloping,conducting, processing and evaluating national
examinations - as well as external examinations, administered on behalf of
over 30 foreign examination bodies, and (ii) cooperating with the University
of Cambridge Local Examination Syndicate to fix standards and awards; (d) the
Textbooks Bureau in charge of selecting, revising and distributing textbooks,
and managing the Textbook Loan Scheme of US$16 million p.a., which provides
free textbooks (1,000 titles), workbooks and readers to over 80Z of the school
population (1.8 million primary students and 1.1 million secondary students);
(e) the School Library Unit of the Schools Division, responsible for compiling
the recommended list of library books, planning and monitoring the utilization
of books, and training librarians; and (f) the Educational Media Service
responsible for developing, broadcasting and monitoring over 100 series of
radio and TV programs covering most of the primary and secondary grades, and
distributing radio and TV sets. All the above bodies are adequately staffed
and highly dedicated and efficient.
2.15 Resource Centers (RC). Four State RCs in Peninsular Malaysia

(established under the Fourth Education Project, Loan 1329-MA), 15 Division
RCs (eight in Sabah and seven in Sarawak) and 117 District RCs (57 in Penin-
sular Malaysia, 24 in Sabah and 36 in Sarawak) provide referral support in
educational technology and staff upgrading in their own facilities. About 230
complementaryDistrict RCs are established in selected central schooLs to
serve 15 to 20 satellite schools each.
Major Issues in the Sector
2.16 Despite the above achievements, there are several problems affecting
the quality of education, the efficiency of educational management, and access
to quality education at both primary and secondary levels.
11/ The primary Grade 5 assessment test, the lower secondary Grade 9
examination and the upper secondary general, commercial and vocational
examinations completing Grade 11.
-8-
Quality of Education
2.17 The Government is concerned over the quality and relevance of

education in view of: many primary students' inability to read and write
properly after six years of primary education; the high percentage of primary
students in need 1 remedial instruction, as shown by the primary Grade 5
assessment test;- and the substantial differences in students' achievements,
with students from predominantly poor rural districts generally performing
more poorly.
2.18 Studies have identified two main sources of problems with the
quality of education: (a) unsuitable curricula and teaching practices in the
context of the present socio-cultural needs of Malaysia, combined with a
rather rapidly modernizing economy; and (b) the shortage of educational
resources and adequate facilities required to encourage active teaching/
learning processes.
(a) Curricula. Until 1983, curricula focussed on the acquisition of

overly academic knowledge overloading students' minds with uncoord-
inated subjects and topics, particularly in sciences and mathema-
tics. Insufficient emphasis was given to the acquisition of basic
skills, practice in the classroom and homework. These curricula
were mostly unrelated to local environment, irrelevant to the modern
life and economy, and disconnected from surrounding communities. In
addition, the curricula lacked continuity between educational
levels. Also, the shift in the medium of instruction to Bahasa
M4alaysiahas resulted in a general lack of interest in English among
students, teachers and parents, particularly in rural areas. Defi-
ciencies in Bahasa Malaysia have mainly involved students in primary
schools where Chinese or Tamil are the media of instruction, in
areas where Bahasa Malaysia is not the first language and where
local teachers are not proficient in the language.
(b) Teacher Training. Curricular deficiencies in schooLs were

aggravated by the training and attitudes of teachers. Until 1982,
most teacher trainees were admitted to training programs in TTCs
without passing mandatory tests in English, mathematics and some
other major subjects at the upper secondary examination completing
Grade 11. Teaching practice within the training programs was also
found insufficient. Due to the lack of guidance and models, gener-
ally teachers tended to adopt formal teaching methods, with insuffi-
cient attention being paid to interaction in the classroom, and to
students' aptitudes and motivation. In addition, more attention
should have been given to remedial instruction, testing and
evaluation techniques, which could help offset students' cumulative
loss of learning due to automatic promotion. In secondary
12/ In 1982/83, the percentages of students scoring below the standards were
as follows: Bahasa Malaysia 25%, English 52%, Mathematics 44Z, Physical
and Social Sciences 30X.
- 9 -
education, although most teachers are professionallyqualified, less

than a quarter of them are university graduates. While 75% of upper
secondary teachers are degree holders, only 52 of lower secondary
teachers are graduates. The latter is particularly insufficient to
achieve the normal academic standards in secondary education sought
by the MOE. Over one third of teacher trainers (600 out of 1,600)
are nongraduates and have no postsecondaryqualifications. Head-
masters lack training in managerial and leadership techniques, which
could boost teachers' commitment and motivation.
(c) Educational Resources. Teachers' deficiencies have been compounded

by the shortage of learning and teaching materials and equipment,
particularly for language, mathematics and science teaching. There
is on average only one library room for three primary schools and
most school libraries are not properly equipped and accommodated.
Moreover, the 5,400 rural primary schools are poorly equipped to
teach the new curriculum and to benefit from the educational media
programs (para. 2.14f). Most District RCs are also too poorly
equipped to provide these schools with the required educational
support.
(d) Facilities. The rapid expansion of education (para. 2.04) has been
achieved through the intensive utilization of schools and teacher
training facilities: With regard to schools, there is still a
serious shortage of adequate facilities resulting in a large number
of oversized classes. About 19,000 primary classes (30% of the
tctal) and 7,000 secondary classes (21Z) enroll over 40 students.
Some 10,000 classes average 48 students and 1,000 classes even
exceed 50 students (Maps). In addition, the shortage of classrooms,
reflected in the respective classroom:class ratios of 73% and 602 in
primary and secondary education, results on average in more than
half of primary classes and 80% of secondary classes being schooled
in double shifts. This results in a reduction of instruction time
by 10%; precludes extracurricular activities which are an integral
part of the regular school programs; and generates commuting
hardships and hazards to students living far from school. Double
shifting has reached a critical level in secondary education due to
the students' heavier instruction program. On the other hand, 10%
of primary students (over 200,000) are enrolled in 2,400 dispersed
underenrolledprimary schools (37% of the total number of schools),
with enrollments below 150 each, and uneconomically small classes of
about 18 (14 in Sabah). As for TTCs, there is a demand for more
teachers as the Government (a) is increasing the primary teacher:
class ratio from 1.2:1 to 1.5:1 and the number of teachers with
special functions, and (b) plans to reduce class size to a maximum
of 40 students and alleviate double shifting in all specific cases
when it critically affects education programs and students'
learning. This will gradually raise teacher demand by an estimated
25% over and above the needs resulting from enrollment increase and
teacher attrition. This, together with continuous retraining of
inservice teachers (para. 2.06), is taxing the TTCs. In addition,
eight TTCs do not have adequate facilities, as they were not
- 10 -
originallymeant for teacher training. Extension of daily operation

time in a number of TTCs has made it possible to increase their
capacity from about 17,000 in 1984 to 20,000 in 1985. This process
will be expanded, despite resulting hardships for evening session
students, in order to cope with growing teacher demand (Annex 3).
Efficiency of Educational Management
2.19 The management of the education system is affected by major issues

relating to staff constraints and insufficientmonitoring and evaluation
capacity.
(a) Staff Constraints. The rapid growth of the school population,

combined with the increased scarcity of resources, is presenting new
problems for planning and administrationof the education sector.
As a consequence, in MOE divisions, the staff's practical qualifica-
tions need to be upgraded to ensure cost efficient formulation,
implementation,management and evaluation of educational policies
and programs. At state and district levels, a number of newly
appointed education officers still lack relevant exposure and train-
ing. At school level, only one fourth of headmasters (about 2,000)
have been able to attend the basic training course in managerial and
leadership skills, provided by the National Institute of Educational
Management (NIEM), established in 1979 and provided with adequate
facilities in 1983 under Loan 1657-MA.
(b) Monitoring and Evaluation. Although MOE and the universities carry
out valuable monitoring and evaluation activities, these activities
are insufficientlycoordinated and systematic in the establishment
of their objectives, priorities and methodology, and in the process-
ing of their findings. Among the major fields of investigation
affected are teachers' attributes (para. 3.12) and effectiveness;
the utilization of facilities; progress in the distribution of new
facilities and resources, particularly in Sabah and Sarawak;
improvement in the quality and efficiency of education; national
integration through education; and the evaluation of educational
media, textbooks, examinations and testing,and students' employment
following skill training.
Access to Quality Education
2.20 The issues relating to access to quality education are imbalances in

the distribution of adequate academic facilities and insufficient provision of
student and staff accommodation:
(a) Distribution of Academic Facilities. The average classroom:student

ratios are 1:46 and 1:61 in primary and secondary schools, respec-
tively. Low as these averages may be, particularly in secondary
education, they conceal wide variations (Maps): in 59 of the 123
districts, the ratio at the secondary level is below the national
average and, in many instances, reaches critical levels beyond
1:100; the situation is similar for primary education in 44
- 11 -
districts. This cJmpounds the double shifting problem (para.

2.18d), particularly in the districts where the classroom:class
ratios are below the already low national averages, namely 55 dis-
tricts for primary and 59 districts for secondary education
(Annex 4). This situation affects both poorer states and states
where labor migration results in dense populations.
(b) Student and Staff Accommodation. In 1984, while a minimal 2Z of

primary students were boarders (mainly in Sarawak, because of the
extreme dispersion of population), 10% of secondary students were
accommodated at school. Although the cost of boarding is high, it
is required to (i) ensure universal primary education, (ii) enroLl
in secondary education able students from the poorest segments of
the population, who otherwise could not have access, and (iii)
recruit teacher trainees on a national basis according to the
Government's policy. Staff housing is provided to about 10,000 out
of 86,000 primary teachers, most of whom serve in the 5,400 rural
schooLs (out of a total of about 6,600 primary schools). Shortage
of staff housing in disadvantaged areas results in a high turnover
of qualified teachers. Although providing rural teachers with
decent accommodationwould tax the investment budget, the benefits
would be increased commitment and efficiency of teachers in the most
remote areas of Malaysia where communications and living conditions
are extremely poor.
Government's Objectives and Strategy
2.21 The Bank has received a letter of policy for primary and secondary
education development, stating the Goverment's objectives and strategy, and a
plan of action on policy and institutionaldevelopment (Annex 5). These
documents, agreeable to the Bank, precisely address the problems described in
the above paragraphs. They aim to improve the quality of education and subse-
quently students' achievement; increase managerial efficiency at all levels of
educational administration;and expand access to improved education equitably
throughout the country.
2.22 Quality of Education. To address the issues described ir.paragraph

2.18, the Government's strategy calls for qualitative improvements in curri-
cula, teacher training, educational resources and facilities.
(a) Curricula. A New Primary School Curriculum (NPSC) was introduced in

Standard One in 1983 and will be taught in all primary grades by
1988. The NPSC aims at the overall growth of an individual, and
emphasizes mastery of reading, writing and arithmetic, and the
acquisition of knowledge and skills through attractive and meaning-
ful activities, relevant and useful to the students. To avoid the
previous subject dispersion, the NPSC is based on subject integra-
tion under broad headings, namely basic skills, man and environment,
moral and spiritual values and citizenship, art and recreation,
manual skills, and extracurricular activities to improve students'
responsibility for the upkeep of their schools, and the insertion of
schooling into the community at large. To improve continuity
- 12 -
between levels of education, a New Secondary School Curriculum

(NSSC), to follow upon the NPSC lines, will be introduced in 1988.
The NSSC will be oriented towards general education and teaching/
learning strategies focusing on citizenship qualities ard national
unity as well as relevant knowledge, creativity, moral and religious
values, and integrated living skills suited to modern living,
including manual and business skills, and computer literacy.
(b) Teachers. Since the late 1970s, positive steps have been taken to
make teacher training techniques and approaches more effective and
interesting. For instance, practice teaching has been increased,
the contents of teacher education curriculum have been constantly
reappraised, and extensive use of micro-;.eaching,language
laboratoriesand audio-visual equipment has been made. Presently
primary and secondary teacher training programs are being reoriented
to the new educational requirements,namely: integrated subjects,
multigroup teaching based on students' aptitudes, remedial
instruction, specialized training to teach Bahasa Malaysia as a
first language and English as a second language, activity-oriented
teaching methods, student achievement evaluation techniques, and
teaching/learningmaterials development and production. The objec-
tive is to supply primary and secondary schools with a better quali-
fied and creative teaching force by 1995. The teacher:classratio
is being gradually raised from 1.2:1 to 1.5:1 to allow teachers
sufficient time to prepare their courses, correct students' assign-
ments, lead extra-curricular activities, and provide remedial
instruction under the new curricula. A number of studies indicate
that more time spent by teachers on class preparation ane close
evaluation of students' assignments resul;s in improved quality of
instruction and students' achievements.131 It is intended that all
schools will be staffed by teachers with special functions, to
improve remedial instruction in primary education; and guidance
counseling, library services, sports and media in secondary educa-
tion. The main objective of these teachers is to take care of
students' needs outside academic instruction. With regard to the
improvement of academic standards in secondary education, the
academic qualifications of the teaching force are being progres-
sively upgraded through the provision of a higher proportion of
university graduate teachers so that eventually all upper secondary
teachers and 40% of lower secondary teachers will be university
degree holders. All teacher trainers will be university degree or
postsecondary specialized diploma holders by 1995. The 600 present
trainers who have no post-secondary qualifications will be upgraded
through overseas fellowships or local training (para. 2.18b).
Studies conducted in several countries, and in Malaysia in
particular, indicate that teachers' total years of schooling and
13/ B. Fuller, "Raising School Quality in Developing Countries: What

Investments Boost Learning?", Discussion Paper, Education and Training
Series, World Bank, 1985, pages 51, 52 and 79.
- 13 -
postsecondary instruction and teacher training will raise verbal

skills and teWXing effectiveness leading to higher students'
achievements.
(c) Educational Resources. As the new curricula, based on teachers' and

students' creativiry, require the availability of teaching/learning
materials, the Government's policy is to provide all primary schools
with resource facilities by 1995, including a library, audiovisual
equipment and media facilities, so that these schools can fully
benefit from the programs produced by the Educational Media Service
(para. 2.18c). District RCs (para. 2.15) would also be adequately
equipped to provide educational technology and staff upgrading
support to individual schools. It is generally recognized that
availability of texts, reading materials and instructional media,
the presence and active use of libraries, and better physical
facilities provide more motivating conditions for learning and raise
students' achievements.
(d) Facilities. With regard to schools (para. 2.18d), the Government's

policy is to adjust class size to the educational requirements of
the new curricula, and to alleviate double shifting, particularly in
secondary education, whenever it is crip,cally detrimental to
instruction or students' achievements.1 ' With regard to class
size, the two prongs of the government strategy for 1995 are:
(i) to reduce class size in crowded schools to 40, considered as a
maximum for efficient class management using aultigroupteaching
methods under the new activity-oriented curricula; and (ii) to
consolidate underenrolled schools to the extent possible into more
economical units with a minimum enrollment of 150 students each, so
that the average class size in these schools rises from 18 to about
24. It is assumed that by 1990, only the size of the 10,000 classes
averaging 48 students each, will have been reduced to 45, and that
the average class size in underenrolled schools will have reached
20, as a first step towards the 1995 targets. The Government
originally planned to virtually eliminate double shifting from
primary education and considerably reduce it in secondary education,
with respective classroom:class ratios reaching 95% and 85% by
14/ B. Fuller, pages 44 and 45.
15/ In "The Production Surface for Academic Achievement: An Economic Study

of the Malaysian Secondary Education", University of Wisconsin, 1972,
H. Beebout's findings are that (a) fewer students per teacher will
improve the quality of interaction and raise students' achievement, and
(b) more than one shift of classes per day will strain the effectiveness
of resources and lower achievement. Bridge, Judd and Moock (1979) also
indicate that more total hours spent in school on instructionaL activi-
ties will boost achievement. In Malaysian schools, rhe instruction time
normally required to deliver the curricula, has to be reduced due to
double shifting (para. 2.18 d). See also B. Fuller, pp. 36, 76 and 79.
- 14 -
1995. However, because of resource constraints and increasing

enrollments, this objective has been modified. The Government will
concentrate on expanding facilities only in those schools, mainly at
the secondary level, where double shifting is so widespread as to
prevent normal delivery of the curricula and cause hardships for
commuting students, detrimental to their learning process. With
regard to TTCs, the Government's strategy is to reach a total output
of about lG,000 new teachers annually to cope with the demand for
college-trained primary and lower secondary teachers, which will
peak in the late 1980s (Annex 3). This would require about 30,000
student places in the late 1980s, as compared with 20,000 in 1985.
To reach this goal and improve the quality of teacher training, the
Government plans to replace the eight inadequate TTCs as a priority
and expand a number of existing colleges, while extending daily
operation time in TTCs to the extent possible. By the same token,
this will help the Government implement its policy to establish TTCs
in all states. However, inadequate TTCs will be kept in operation
as long as teacher shortages prevail and then will be converted into
the type of schools which they were meant originally to be. The new
TTCs will be provided with boarding in order to recruit teacher
trainees on a national basis and to ensure the higher quality of
training generally provided through residential courses. The
secondary teacher training capacity of the universities will also be
expanded from the present 5,500 student places to about 6,800, to
increase the output from the present 1,800 to about 2,000 in the
early 1990s and meet the growing needs for graduate teachers
(para. 2.18b).
2.23 Efficiency of Educational Management. To address managerial issues

(para. 2.19), the Government has initiated a comprehensive staff development
program; cost efficiency measures; and better coordination of monitoring and
evaluation activities.
(a) Staff Development Program. So far 5,000 education officers and

headmasters have been trained at NIEM which has also been instru-
mental in launching quality control circles throughout the educa-
tional management structure. The Governmert plans to expand this
into a comprehensive program to improve the quality of educational
development, management and evaluation in MOE divisions, SEDs and
DEOs, RCs and schools. Key officers will be selected for a variety
of training programs ranging from master's degree to short courses
abroad and locally. The key staff development program during the
1986-95 period will include an estimated 2,000 participants. A
priority list of about 140 fellowships abroad and 400 local fellow-
ships has been established. It includes key positions at NIEM, and
in ministerial divisions, SEDs, DEOs and resource centers, which
should be filled by adequately trained officers by 1990. NIEM, in
conjunction with the MOE Scholarships Division, will play a key role
in implementing all training programs which will address a total of
116,000 education officers and clerks, of whom 12,000 would be
headmasters, during the 10-year period 1986-1995.
- 15-
(b) Cost-EfficiencyMeasures. The Government has initiated action to

reduce the number of underenrolled primary schools through consoli-
dating and gradually phasing out small schools with enrollments
below 70 students; to improve multigrade teaching to maximize the
utilization factor of underenrolled school facilities and teachers;
to develop more cost efficient school construction designs and
standards without lowering school quality or increasing maintenance
costs which will be kept minimal; and to increase the utilization
rates of secondary school facilities to no less than 80% for
classrooms and 75% for workshops and laboratories.
(c) Monitoring and Evaluation. The Government's monitoring and evalua-

tion capacity will be better coordinated and strengthened (para.
2.19). EPRD will be reinforced to provide leadership to, and
coordinate, the monitoring and evaluation activities carried out by
ministerial divisions (para. 2.14), universities, and private
educational agencies in Malaysia and abroad. The EPRD, in conjunc-
tion with universities and MOE divisions, will focus on assessing
progress in (i) provision of facilities, resources, qualified staff,
programs and methods, over the various districts, and (ii) policy
changes, institutional development, quality improvement and cost
efficiency. This will include research and evaluation studies
concentrating on the most cost efficient combinations of educational
quality inputs, and equity in the distribution of educational oppor-
tunities.
2.24 Access to Quality Education. To alleviate the present imbalance in

educational opportunities (para. 2.20), the Government plans to: (a) provide
adequate school and educational resource facilities by priority to the dis-
tricts where their number and adequacy are below the national average, and
raise this average gradually, as equitably as possible throughout the country;
(b) achieve nine years of universal schooling (para. 2.03), and reach a
secondary enrollment ratio of over 80% by 1995, with primary and secondary
enrollments respectively totaling about 2,500,000 and 1,400,000 in 1990, and
2,800,000 and 1,700,000 by 1995 (Annex 6); (c) provide boarding to primary
students in rural areas, wherever it is the only feasible action to maintain
universal education and consolidate uneconomically small schools, and to able
secondary students from the poorest segments of the population, who otherwise
could not benefit from secondary education; (d) provide staff housing to
teachers in rural areas to improve their living conditions and thereby slow
down the rotation of qualified and experienced teachers in these areas; and
(e) expand the textbook loan scheme (para. 2.14) proportionaLly to the
increase in school population.
Government's Program
2.25 To carry out the above strategies, the MOE proposed a 10-year
primary and secondary education subsector investment program (1986-1995)
amounting to US$3.5 billion equivalent, including contingencies, of which
US$1.7 billion was proposed for the first five-year phase (1986-90) which
would coincide with the fifth Malaysia Plan period. However, during
discussions between the Government and the Bank, this program was scaled down
- 16 -
to focus on alleviation of the most serious deficiencies in line with expected

resources. The investment in primary and general secondary education under
the MOE, approved by the Cabinet for the first phase (1986-90) of the 10-year
program, amounts to US$757 million equivalent. Parliament'sapproval is
expected by late March 1986. The above subsector investment represents 35% of
the five-year allocation for the provision of new facilities for education
amounting to US$2.1 billion equivaLent. An additional US$261 million
equivalent for upgrading of existing facilities, US$63 million equivalent for
research and US$130 million equivalent for vocational training under
Government agencies other than the MOE, are also included in the comprehensive
education and training development program which amounts to a total of
US$2.6 billion equivalent. This represents 152 of the total investment
program under the federal budget for the Fifth Malaysia Plan period, and ranks
second after land development (15.2%). This reflects the top priority given
by the Government to education and manpower development at large. The first
investment slice of about US$313 million equivalent, to be financed by the
project, would specifically focus on the provision of new facilities for
primary and general secondary education under the MOE. It would be followed
by two overlapping slices of about US$175 million equivalent each, which could
be initiated in 1988 and 1989, respectively, and for which Bank financing has
been requested by the Government. An additional US$94 million equivalent have
been earmarked for the remainder of the Fourth Malaysia Plan program to be
completed independently,along with the first slice of the new program.
2.26 Assessment of the Program. The Government's policy for the next ten
years is educatioially sound and the Government's plan of action gives
substance and meaxiingto this policy. However, as the scope of the original
investment program had to be reduced, the Government's ambitious quality-
oriented reform of primary and secondary education, requiring more staff and
facilities, will have to be slowed down. The original ten-year program
targets will therefore need to be rephased over a 15-year period, to end in
the year 2000, in order to remove the remaining shortcomings,unless the
current economic outlook changes significantly. However, the scaled-down
program, which prioritizes the MOE's objectives for 1986-90, remains
substantial and important. It calls for: (a) expanding school facilities in
the districts where shortages of facilities are most acute; (b) replacing the
most inadequate TTCs; (c) providing the necessary educational resources to
implement the new curricula on which the whole qualitative reform of primary
and secondary education is based; (d) training key education developers and
managers; and (e) studying major issues affecting the sector.
2.27 The increase in the teacher:class ratio, in the number of teachers

with special functions and in teachers' academic qualifications,and the
reduction of class size to a maximum of 45 in crowded schools, together with
the additional requirements for educational materials, are expected to
increase the share of education in the total government recurrent budget by an
estimated 24% in 1990. The variouc strategies will have the following impact
on the increase in real cost: In primary education, increases in enrollment
will account for 212 of the cost increases; the addition of remedial teachers
7%; increases in the teacher:class ratio 24X; the reduction of class size 3%;
additional materials 29%; and real salary increase 16%. In secondary educa-
tion, the increase in enrollments will account for 37% of the increase in
- 17 -
cost; the addition of teachers with special functions 24Z; the increased
proportion of graduate secondary teachers 15%; the elimination of classes over
45 2%; and real salary increases 22Z (Annex 7). Under these conditions, the
MOE recurrent budget in 1990 would represent 21Z of the total federal recur-
rent budget, as compared with the recent 17Z. This increased share is within
the historic budgetary limits (26Z in 1972). Moreover, the Government
considers the proposed development of the primary and secondary education
subsector as one of the top priorities of the Fifth Malaysia Plan and is
prepared to meet the above recurrent budgetary implications of its policy and
investment in the subsector. Therefore, the MOE is likely to be able to
implement its overall policy, although it may have to slow down its strategy
to increase the teacher:classratio and the number of teachers with special
functions.
Experiencewith Past Bank Lending to Education and Bank Objectives
2.28 The Government's present overall education policy and strategies are
the re3ult of a long-term continuing process which the Bank has already sup-
ported through seven education loans since 1969 for a total amount of US$230.2
million. This lending program has aimed to expand and improve basic educa-
tion, and provide trained manpower for industrial development through support
to primary and secondary education and related teacher training, and tech-
nical/vocational training at secondary and postsecondary levels. The proposed
project follows more specifically upon the Third, Fourth and Fifth Education
Projects (Loans 974-MA, 1329-HA and 1657-MA) which aimed inter alia to: (a)
improve the quality and e'ficiency of education through the development of the
curricula which are being implemented presently; teacher and managerial staff
training; and expansion of educational resources, radio and television; and
(b) equalize educational opportunities and reduce double shifting throughout
the country through the provision of 850 primary and 83 secondary schools,
including laboratories and workshops, boarding and staff housing.
2.29 Significant Bank support has also been given to institution build-
ing. The manpower, authority and management skills of MOE's Development and
Supplies Division (DSD), which has been in charge of planning and implementing
the seven education loans, was strengthened through the implementation of the
Fourth and Fifth Education Projects. The improvement of DSD has been reflect-
ed in the implementation of the newer projects largely on schedule. DSD's
efficiency is expected to be further increased shortly through computerization
of its operations under the Government's own resources. Also, the establish-
ment of NIEM has already started improving efficiency in the management of the
education system. The capability of the Faculty of Education of the
University of Malaya to produce high caliber evaluation of completed Bank
projects has been instrumental in improving the design of new projects, and
the University of Science Malaysia, is now being contracted by the MOE to
prepare the project completion report of the Fifth Education Project (Loan
1657-MA) along similar lines. The Bank has also assisted the MOE's Curriculum
Development Center and Educational Media Service which are now among the best
in the region.
- 18 -
2.30 The OED audit report and project completion reports,16/ prepared for
the first four education projects, concluded that these projects were success-
fully implemented overall, despite delays, and their educational objectives
were achieved. Other points of interest were the need for: (a) strengthening
the staff and authority of the project implementationunit, and (b) acquiring
sites at an early stage in project processing. These lessons were incorpo-
rated in the design of the following three education projects and the Fifth
Education Project was recently completed on schedule.
Rationale for Bank Lending to Primary and Secondary Education
2.31 Primary and secondary education are the subsectors where the need
for improvement in quality and efficiency is the greatest because they involve
the majority of students (97% of total enrollments) and education costs (80Z
of the MOE budget), and because they are the foundation on which the effi-
ciency of the whole education structure depends. In addition, the Government
has embarked on a major program to industrializethe country, looking to
Korea, Japan and other developed countries where higher enrollment ratios and
quality of education were instrumental in reaching high levels of industrial
diversificationand technology. In Malaysia, comparable education deveLopment
might result in some unemployment among secondary school graduates and educa-
tional cost overruns. However, this risk is offset by Malaysia's economic
orientation which provides a strong rationale to improve and strengthen the
education base. In addition, the Government has worked in close cooperation
with the Bank to establish its policy and strategies, and the realistic and
balanced scaling down of the original 1986-90 education development program
also constitutes a positive outcome of the dialogue maintained with the
Bank. The proposed project would encourage the Government to continue this
collaborationwith the Bank. The overall size of the project and the respec-
tive weights of its inputs are consistent with the most urgent needs and
government priorities in the education sector. Also, the MOE's increasing
efficiency in program implementationhas been demonstrated by the most
recently completed project, tiheMOE's performance d-ring the Fourth Malaysia
Plan period (para. 4.01), and the careful and expeditious preparation of the
proposed project (para. 4.08). This augurs well for the success of the
project, the scope of which is well within the MOE's implementationcapa-
city. Through the project, the Bank would also take advantage of its long-
term involvement in the development of primary and secondary education in
Malaysia to further its fruitful dialogue with the Government on the stra-
tegies and institutional changes for the sector, which would reconcile the
need for a stronger education base and its fiscal implications.
16/ Project Performance Audit Report No. Sec M79-408 of June 1, 1979 (First
Education Project), Project Completion Report No. 4471 of October 1981,
revised March 1983 (Second Education Project), and draft Project
Completion Reports of SeptemLar 24, 1984 and October 1985 (Third and
Fourth Education Projects, respectively).
- 19 -
3. THE PROJECT
Objectives and Strategy
3.01 The proposed project would constitute the first subsector investment
slice, under the Fifth Malaysia Plan, of the Government's 10-year program to
improve the quality of education, increase the efficiency of educational
management and expand access to better primary and secondary education oppor-
tunities, with priority given to areas of greatest need (para. 2.25). To
achieve this goal, the project would help accelerate the policy and institu-
tional changes described in the Government's letter of policy which sets out
the Government's perception of the issues affecting primary and secondary
education, and states its objectives to alleviate the deficiencies
(para. 2.21). Mu. specifically,the project would assist in carrying out the
Government's plan of action on policy and institutional development (Annex 5).
3.02 To assist with the above policy and institutional development objec-
tives, the proposed project would include four national level programs (one
each for teacher training, educational resources, staff development and
studies) and 13 state Level programs, comprising primary and secondary schools
and related boarding and staff housing facilities (Annex 8). The national
level programs would address educational needs of the whole Federation of
Malaysia, whereas the state level programs would address specific educational
needs of the various states. The national level programs would be implemented
under the responsibilityof central education authorities and the state level
programs under the responsibility of state authorities, although in both
cases, central and local authorities vould operate in close cooperation
(Annex 9). The national and state level programs would each include a number
of subprojects as follows: Among national level programs, (a) teacher train-
ing would include three subprojects, one for each of the three TTCs, the
implementation of which would be supervised by three respective state Public
Works Departments (PWD); (b) educational resources would include two subproj-
ects to be monitored by two different agencies, one for schGol library books,
the other for equipment and materials for schools and district resource
centers; (c) staff development would include two subprojects to be managed
separately, one for fellowships abroad, the other for local training, includ-
ing specialist services; and (d) stuidieswould include six subprojects, one
for each of the implementationagencies involved. The HOE Appraisal Committee
has identified 26 subprojects,namely 13 for primary and 13 for secondary
education within the state level programs. Each subproject would include a
variable number of district components, each of which would in turn comprise a
number of school, boarding and staff housing facilities. Primary and second-
ary education subprojects would be monitored respectively by the primary and
secondary school sections of DEOs and SEDs.
3.03 The Government, in close cooperation with the Bank, has established
general eligibility criteria for approval of programs and subprojects
(Annex 10), and specific criteria for identificationand appraisal of programs
and subprojects (Annex 11). These criteria which have been applied by the
Government to the development and appraisal of the proposed project, ensure
that project objectives would be met. The specific criteria 'or each type of
program and subproject have been established on the basis of the following
- 20 -
common considerations: relevance to the priority needs to be met during the

Fifth Malaysia Plan; timely land acquisition; local implementation capability;
technical feasibility within approved norms and standards; and efficiency
(facilityutilization rates, unit costs, staff resources and recurrent
budgetary allocacions). Also, guidelines and criteria for allocation of loan
funds (Annex 12) would ensure that these funds are distributed over the
various programs and subprojects according to their specific features, degree
of sophisticationand cost, and the emphasis placed on them. The following
paragraphssummarize the Government's action plans to achieve its subsector
development objectives. The Government's inves:ment program funds, including
contingencies,would be allocated as follows: (a) improving quality:
US$93 million, or 30% of the total program; (b) increasing efficiency:
US$8 million, or 2%; and (c) expanding access: US$212 million, or 68%
(Annex 13).
Improving the Quality of Education
3.04 Teacher Training Program. Three new TTCs would be provided to

replace the most inadequate teacher training facilities presently located in
primary and secondary schools. The new TTCs would enroLl a total of 4,000
students of whom about 80% would be boarders. The TTCs would be located so
that the remaining 20% could be accommodated within the local communities.
The new TTCs would also enroll about 600 professionally unqualified teachers
on temporary contracts during the final residential year of their upgrading
program (para. 2.06). The capacity of the new TTCs wouLd represent 20Z of the
1985 teacher training capacity and over 13% of the planned capacity required
to cope with the college-trainedteacher demand (para. 2.22d). The 280
trainers required will be recruited from among the most experienced graduate
teachers and specialized diploma holders within the education system. In
order to ensure adequate complementarity betsweenTTC training and graduate
teacher training within the universities, during negotiations, agreement was
reached on performance indicators for the training of certificate, diploma and
graduate teachers for primary and secondary education for the period 1986-95
(para. 5.01a).
3.05 Educational Resources Program. Financing would be provided for:

(a) about 8 million library books for the 6,600 primary schools; (b) bookcases
for the 4,700 most underprivilegedrural schools; and (c) audio-visual and
educationalmaterial production equipment for the 5,400 rural primary schools
and the 350 District RCs (para. 2.22c). Inservice training for primary teach-
ers in the use of library books and audiovisual aids is provided through
regular inservice upgrading courses (para. 2.06).
3.06 The thrust of the program is to improve the standard and quality of
universal primary education for nearly 2.5 million children by 1990, with
particularregard to the most disadvantaged rural schools where reading mate-
rials and educational radio and TV programs (well developed and effectively
used in many areas) are rare. Therefore, a major objective is to provide each
primary schooL with a minimum of five library books per child by 1990 through
supplementingthe school libraries of the 1,900 larger schools (over 350 stl-
dents), where two to three books are already available per student, and esta-
blishing new libraries in the 4,700 smaLler schools.
- 21 -
3.07 The 5,400 rural primary schools would also be provided with a basic
set of audiovisual aids and equipment to benefit from the high quality
programs produced by the Educational Media Service of the MOE (para. 2.14).
This would be part of the classroom "resource corners", the use of which is
emphasized by the NPSC in its active group learning approach.
3.08 Each District RC would be provided with complementary equipment to

give the teachers from 15 to 20 surrounding satellite schools, the opportunity
to produce a greater range and variety of teaching-learningmaterials than in
their own schools. The RCs would also be provided with more elaborate
equipment to be borrowed for use in the satellite schools. The RCs would also
serve as decentralized inservice training locations for teachers to attend
orientation and awareness training sessions to improve their day-to-day
service.
3.09 School Facilities. The provision of adequate school facilities to

improve the quality of education would also serve the policy objective to
increase access to improved education described in paragraph 3.14 below.
Increasing the Efficiency of Educational Management
3.10 Staff Development Program. The program would finance the

fellowships required to fill urgently needed key positions at federal, state,
district and school levels by 1990 (para. 2.23a). This would include:
(a) about 40 Master's Degree fellowships abroad for NIEM instructors, the
Teacher Education and Schools Divisions (including SED staff), and the Curri-
cul§'.un Development Center; (b) about 100 intensive study fellowships abroad for
the above units (including SED and DEO staff) and for the Federal
Inspectorate, the Educational Media Service, EPRD and DSD, and State RCs;
(c) about 400 three-month intensive local training fellowships to be provided
at NIEM; and (d) 45 man-months of specialist services for 15 specialized
instructors to assist for three months each with the delivery of the local
training programs at NIEN. Thirteen to 14 candidates for Master's Degree
fellcwships would be sent overseas each year between 1986 and 1988; 20 to 30
candidates for intensive studies abroad would start their fellowships each
year between 1986 and 1989; and about 80 MOE officers would be trained locally
and nine man:.'mathsof specialist services would be utilized annually over the
five-year program period. During negotiations, agreement was reached on terms
of reference, procedures and timetables for the proposed overseas and local
training fellowships and specialist services (para. 5.01b). In addition, the
Government provided assurances that adequate operational funds would be made
available for: (a) NIEM to carry out the local training programs included in
the program; and (b) the MOE Scholarships Division to implement its fellow-
ships program through 1990 (paras. 5.02a and b).
3.11 The Staff Development Program would focus on: (a) managerial
sub,ects including statistics, planning and school mapping, education finance,
administration and supervision, and project development, implementation and
evaluation; (b) general methodology areas such as educational research,
curricuLum development, educational technology, testing and measurement,
remediaL instruction, and guidance and counseling; and (c) specific subject
methodology relating to educational psychology, sociology of education,
- 22 -
languages, business and technical education,mathematics and sciences,

computer science education, physical and health education, music, education
for the deaf and the blind, automotive, engineering and landscaping. For SED
and DEO staff, the courses would concentrate on educational planning, school
mapping and management at state and district levels, education finance, media
techniques and evaluation, and project development, implementation and
evaluation.
3.12 Studies Program. The program would finance five research studies to
refine the analysis of major issues affecting the quality, cost efficiency and
equity in education. They would be part of the Government's efforts to
improve educational development planning and qualitative assessment of the
education system, and further increase the efficiency of investments in
education. They would also contribliteto preparing future Bank loans in the
sector. The studies would include: (a) an analysis of the relationship
between teachers' attributes (including qualifications, experience, salary,
inservice upgrading, career development, etc.) and teachers' effectiveness;
(b) an analysis of the management and effectiveness of school facilities,
particularly laboratoriesand workshops, and also the RCs, to assess the
linkage between the Level of sophisticationof specialized facilities and
equipment, the curricula and the educational outcomes; (c) school mapping for
Sabah and Sarawak, similar to that recently completed for Peninsular Malaysia,
to assess the specific features and needs of these two states where
substantial educational development will be required in the foreseeable future
in view of the dispersionand diversity of population; (d) an analysis of the
interactions among educational inputs and ratios, socio-economic and environ-
mental factors, and students' achievement and employment, to assess their
degree of linkage, the thresholds at which inputs have a sizeable impact, and
the most cost efficient mix of educational inputs in the various social,
ethnic and economic contexts of the country; and (e) an analysis of the
national integration process in the education setting. In addition, the
Government would evaluate the quality and effectiveness of the educational
media service, the textbook loan scheme, and the evaluation and testing sys-
tem. Tracer studies on graduates from polytechnics, and technical and
vocational schools would also be undertaken.
3.13 The program would provide 24 man-months of specialist services to

assist universitiesand EPRD, whenever convenient, in the three-year period
(1986-1989) during which the studies are planned to be carried out. Although
this program is minor in financial terms, its impact would be essential to the
Government's search for improved cost efficiency and to strengthen the coord-
inating role of EPRD in monitoring and evaluating the quality of education.
During negotiations,agreement was reached on terms of reference, procedures
and timetables for the proposed research studies (para. 5.Olc}.
Expanding Access to Better Education
3.14 Schools Programs. The programs would finance the construction,

equipping and furnishingof about 3,300 classrooms and related boarding and
staff housing facilities(depending on the types and standards of construction
elected in the various areas concerned) in the districts where availability of
educational facilities is below national average (para. 2.24). These
- 23 -
districts are located in poorer states such as Kedah or Kelantan, in states

where labor migration has resulted in dense populations such as Johore,
Pinang, Selangor and the FederaL Territory, or in Sabah and Sarawak where
educational needs are still among the costacute in the Federation
(Annex 14). About 1,100 primary classrooms and related facilities would be
completed annually in CY1987 and 1988 and about 400 secondary classrooms and
related facilities would be completed each year between CY 1987 and 1989. The
program would provide about 92,000 new student places in primary eaucation and
about 40,000 new places in secondary education benefiting (because of double
shifting of some facilities) over 120,000 primary and about 60,000 secondary
students. These state level programs would accommodate about 5Z of the
primary and secondary students planned to be enrolled in 1990, and would
alleviate the most critical shortages of school facilities. Extensions would
be added to existing schools to establish more cost efficient consolidated
primary schools, and relieve the pressure in crowded secondary schools.
Critically dilapidated classrooms would also be replaced. Administrative and
specialized facilities (e.g. multipurpose rooms and libraries) would be added,
as required. Boarding, particularly for secondary education, and staff
housing, mainly for primary schools in rural areas, would be included
(para. 2.24). The estimated 100 headmasters required to manage the new
schools, -ould be hired from among the most experienced teachers, and the
7,500 teachers required to staff the new schools, would be provided by exist-
ing TTCs and universities.
4. HANACEMENT
ANDIMPLEMENTATION
Government's Project Implementatior capacity
4.01 The proposed project was prepared and would be implemented by the
MOE, with selective review of national level programs and sample state level
programs by the Bank. The project would be well within the implementation
capacity of the MOE whose construction program would comprise the 3,300 class-
rooms and related boarding and staff housing facilities, and the TTCs under
the proposed project; five pol-technics under the First and Second Industrial
Training Projects (sixth and seventh education loans Nos. 2145-MA and 2601-
MA); and 18 ADB-financed secondary vocational schools, which are already well
underway. As a comparison, during the first four years of the Fourth Halaysia
Plan (1981-85), the MOE completed about 15,000 classrooms while being simul-
taneously involved in the construction of nine secondary vocational schools,
three TTCs and one polytechnic. It is estimated that the MOE capacity for the
primary and secondary education subsector during the Fifth Malaysia Plan
period could be about 20,000 classrooms. Moreover, DSD, the MOE project
implementationunit, has increased in size and efficiency since it started
operations in 1969 (para. 2.29). While the first four education projects were
completed two to three years behind appraisal schedules, the Fifth Education
Project (Loan 1657-MA) was closed on schedule on June 30, 1985.
- 24 -
The Sector Approach
4.02 The proposed project was developed and prepared with a sector
approach stemming from the long-term dialogue and cooperation with the Bank in
relation to policies and programs for the education sector at large
(para. 2.28). The sector approach is based on a general agreement on the
Government's letter of policy and related plan of action for the 10-year
period 1986-95 (para. 3.01). The MOE has already appraised in detail most of
the proposed subprojects on the basis of agreed criteria (para. 3.03). The
sector approach is also recommended as the most efficient way to cope with the
diversity and wide coverage of programs and subprojects, spread throughout the
country, which could not all be appraised and supervised by Bank missions. Tn
addition, this approach would permit faster and more flexible financing based
on global program expenditures and not on individuaL project items. It is
also a desirable way of further strengthening the program management capaciry
in governmerntagencies. Moreover, the present project is likely to be the
first of a sequence of sectoral operations in the next ten years, guided by
the same agreed policy and plan of action, with possible adjustments over the
years.
4.03 The sector approach is also based on the Government's capability to

manage comprehensive education sector development programs. In this respect,
the proposed project would continue and improve past educational achievements
in the education sector (para. 2.04), assisted by successful Bank-financed
projects (para. 2.28), which have demonstrated the Government's ability to
prepare, monitor, implement and evaluate sectoral projects through its own
institutions (para. 2.29). This has been confirmed by the comprehensive
preparation and appraisal tasks (Annex 15) carried out carefully and expedi-
tiously by a MOE Appraisal Committee established in 1984 under the chairman-
ship of a Deputy Director General, and its six specialized subcommittees in
charge of teacher training, schools, school libraries, resource equipment and
materials, staff development, and studies. The project has been prepared and
appraised in cooperation with SEDs and in conformity with the procedure for
generating and processing programs and subprojects (Chart 7), and guidelines
and criteria (para. 3.03) acceptable to the Bank. During negotiations, agree-
ment was reached on further appraisal and implementationof the project
according to these agreed criteria, procedures and guidelines (para. 5.01d).
Organization, Monitoring and Evaluation
4.04 The proposed project wouLd be implemented under the responsibility

of the Development Committee (DC) of the MOE (para. 2.11). The DC would be
assisted in its tasks by a Joint Secretariat including MOE staff from EPRD
(Chart 8) and DSD (Chart 9), operating in conjunction with the Economic
Planning Unit of the Prime Minister's Department, the Ministry of Finance
(Treasury), the Public Works Department and other government agencies (Chart
10) generally operating through the specialized subcommittees referred to in
paragraph 4.03. These subcommitteeswould manage, monitor and evaluate the
program they had appraised (Annex 9). Through these subcommittees, the proj-
ect would promote practical cooperation between MOE divisions and other
government agencies. The staff of the agencies in charge of project implemen-
tation are sufficient, dedicated and competent. The Joint Secretariat would
- 25 -
liaise with the efficient trouble-shootingState and District Action

Committees, which include representativesfrom all government agencies
involved, and are in charge of monitoring development programs at their
respective levels, under the chairmanship of the state Chief Ministers and the
District Officers; and with the Implementation Coordination Unit (ICU) within
the Prime Minister's Department, in charge of moritoring physical and finan-
cial progress of national projects at the central level. DSD would be gener-
ally in charge of physical and financial program implementation,including
general supervision and procurement of equipment, furniture and materials,
while detailed supervision of civil works would be carried out by PWD at the
district and state levels in cooperation with MOE district education officers.
4.05 Progress in policy changes, institutional development and quality

improvement would be generally assessed by EPRD in conjunction with appropri-
ate universities, MOE divisions and specialized subcommittees. EPRD would
establish performance indicators to monitor and evaluate progress in the dis-
tribution of educacion facilities and resources by district; improvement in
education quality and cost efficiency; and the level of related education
expenditures. The project-financed studies would contribute to this assess-
ment which would be the basis for the joint Government-World Bank annual
project implementation review (para. 4.07). Performance indicators were
prepared by the Government on the basis of key targets selected from the
Government's Letter of policy and plan of action (para. 3.01). These
indicators relate particuLarly to physical implementation and related capital
and recurrent expenditures, and qualitative improvements such as the reform of
curricula, progress in teacher and managerial staff training and upgrading,
reduction of class size, expansion of multigrade teaching, and increased
utilization of educational resources. During negotiations, agreement was
reached on the above performance indicators (para. 5.01e).
Implementation Procedures
4.06 Procedures for implementationof the civil works component and for
equipment procurement and technical assistance, acceptable to the Bank for
previous similar project components, would be applied to the proposed
project. The project would be implemented in four years between June 1986 and
June 1990 according to the implementation schedule given in Annex 16. The
Completion Date would be June 30, 1990 and the ul>sing Date June 30, 1991.
The critical implementationdates are given in Annex 17.
Reporting
4.07 Following district and state periodic reviews, the Joint Secretariat
(para. 4.04) would report progress on a semi-annual basis to the Development
Committee. These reports would assess quantitative physical progress as well
as quality and cost efficiency improvement, as compared with agreed key per-
formance indicators (Annex 18). They would be sent to the Bank for comments
by March and September of each year, and would form the basis of annual
project implementation review meetings to be held between the Government and
the Bank by October of each year, during which targets for the subsequent year
would be established. An in-depth mid-term review of progress towards the
- 26 -
targets of the government education investment program would also take place
with the Bank about October 1988. During negotiations. agreement was reached
on the above annual and mid-term review meetings and reports to be implemented
according to the above schedules (para. 5.01f).
Status of Project Preparation
4.08 A comprehensive survey of educational needs was completed in

November 1984 for the preparation of the Fifth Halaysia Plan. In May 1985 the
SEDs established a detailed priority list of school facilities by district, to
be implemented under the project, in conformity with the draft appraisal
guidelines and requirements agreed with the Bank (para. 4.03), including,
above all, availability of sites. The list was reviewed by the MOE Appraisal
Committee and adjusted to the amount of funds allocated to the subsector.
Sites have already been acquired for the TTCs and most of the schools, and are
at various stages of acquisition for a few remaining schools. The designs for
one TTC are completed and those for the other two TTCs are being revised
according to more cost-efficientstandards suggested by the Bank. Contractors
are being prequalified for TTCs. Standard school designs will be used for
primary and secondary classrooms. Standard equipment lists for the schools
and TTCs are being adjusted to the new curricula, and lists of library bc-ks
are being completed. Bidding and contract documents for books, equipment and
civil works are being prepared. The commercial terms in the bidding documents
utilized for previous Bank education loans with similar project components
would continue to be used. The fellowship program is being finalized;
advertizing for prospective candidates for the proposed fellowships is being
prepared; and contacts with foreign educational institutions for the
fellowship program have been made. Draft terms of reference, procedures and
timetables for the proposed studies have been completed. The proposed pro-
grams, as appraised by the MOE Appraisal Committee, were approved by the MOE
Development Committee (para. 2.11) in September 1985. At the time of negotia-
tions: (a) tender documents were 90% completed for one TTC and construction
documents were about 70% completed for the other two TTCs; (b) civil works had
started for an estimated 102 of the schools; the tendering process had started
for another 60Z of the schools; and designs for the remaining schools were
underway; (c) tenders were called for school library books and the bidding
documents for equipment and materials were under completion; (d) contractual
arrangements with overseas institutions for the first group of fellowships and
selection of specialists for the first local training courses were being
finalized; (e) the terms of reference for the agencies and specialists in
charge of studies were completed. During negotiations, agreement was reached
on space standards for school classrooms (para. 5.01g).
Investment Program and Financing
4.09 The project is estimated to cost US$312.8 million equivalent,

including US$265.1 million baseline costs and US$47.7 million contingencies.
The project would be implemented over the five years of the Fifth Malaysia
Plan as shown ;n Annex 19. The funds would be distributed by category of
expenditure as follows: 78Z of baseline costs for civil works; 20% for
equipment, furniture and books; and 2% for technical assistance, as shown in
Table 1. Baseline costs have been adjusted to prices in March 1986, the date
- 27 -
Table 1: INVESTMENTPROGRAMCOSTS BY CATEGORYOF EXPENDITLiRE
Foreign
exchange
M$ million US$ million as Z
Category Local Foreign Total Local Foreign Total of total
Civil works 309.1 166.4 475.5 125.6 67.7 193.3 35

Land 13.7 - 13.7 5.6 - 5.6 0
Professional services 13.2 2.3 15.5 5.4 0.9 6.3 15
Furniture 16.8 5.7 22.5 6.8 2.3 9.1 25
Equipment 7.0 63.0 70.0 2.9 25.6 28.5 90
Library books 29.3 9.8 39.1 11.9 4.0 15.9 25
Technical assistance:
Specialist services:
NIEK4 0.1 1.3 1.4 0.1 0.5 0.6 90
Studies 1.2 0.3 1.5 0.5 0.1 0.6 20
Subtotal 1.3 1.6 2.9 0.6 0.6 1.2 55
Fellowsh±ps abroad 1.2 10.6 11.8 0.5 4.3 4.8 90

Local training 0.9 0.2 1.1 0.3 0.1 0.4 20
Subtotal 3.4 12.4 15.8 1.4 5.0 6.4 78
Baseline Cost /a 392.5 259.6 652.1 159.6 105.5 265.1 40
Contingencies:
Physical 39.1 25.3 64.4 15.9 10.2 26.1 39
Price increase 25.3 27.9 53.2 10.3 11.3 21.6 52
Subtotal 64.4 53.2 117.6 26.2 21.5 47.7 45
Total Program
Cost 456.9 312.8 769.7 185.8 127.0 312.8 41
/a Including taxes and duties estimated at US$5.0 million equivalent.

- 28 -
of negotiations. Costs include duties and taxes on building materials

amounting to an estimated US$5.0 million equivalent, representing about 1.6%
of total project costs. Equipment and teaching materials imported under the
project would be exempt from duties and taxes.
4.10 The Bank loan of US$127.0 million equivalent would finance the
foreign exchange component of the project cost, excluding duties and taxes.
The Government would finance the remaining costs of US$185.8 million equiva-
lent. The overall financing plan is indicated in Annex 20.
4.11 Basis of Cost Estimates. Construction costs for the primary and
secondary schools have been estimated at US$170 per square meter and those for
the TTCs range from US$240 for ancillary facilities to US$660 for the lecture
theatre which includes air-conditioning and insulation. The average unit cost
per square meter for most TTC facilities is US$350. Site works have been
estimated to cos: from 10% to 20% of building costs. These estimates are
consistent with the recent costs of similar schools and colleges in Peninsular
Malaysia. In addition, based on MOE's past experienyE primary and secondary
school construction costs in a number of districts,- and in Sarawak and
Sabah would be significantly higher due to higher labor costs, the need for
more extensive site works, lesser competition in bidding and, above all,
costly transportation. Furniture and equipment costs are estimated on the
basis of standard MOE master-lists and the experience of previous similar
project components, adjusted to the new curricula. Unit costs for overseas
fellowships are estimated at about US$2,000 per man-month for long-term and
US$4,500 per man-month for short-term fellowships, all inclusive, on the basis
of the recent experience of the MOE Scholarships Division. Local training
costs are estimated at US$370 per man-month. Unit costs for specialist
services are estimated on the basis of recently negotiated contracts and
include external and internal travel, accommodation and subsistence.
4.12 The unit areas and construction costs for schools and TTCs are
generally between recent Bank median and high values for comparable facilities
worldwide (Annex 21). In primary schools, unit areas are high because of the
specialized facilities needed to implement the new activity-oriented curri-
cula. In TTCs, the high unit areas and costs reflect the Government's desire
to adjust facilities to the new curriculum requirements and provide a high
standard of training. Utilization rates for classrooms (80 to 85% in second-
ary schools and TTCs, and over 90% in primary schools) and workshops and
laboratories (70 to 75%) would be cost efficient.
4.13 Foreign Exchange. The foreign exchange cc-ponent of US$127.0

million, representing41% of the total project cost, excluding duties and
taxes, has been computed on the basis of 35% for civil works; 15% for profes-
sional services; 25% for furniture and books; 90% for equipment, fellowships
abroad and specialist services; and 20% for studies and local training.
17/ Terengganu, Kelantan, Perlis, Pahang, and Johore.

- 29 -
4.14 Contingency Allowances. Physical contingencieshave been computed

on the basis of 5% for technical assistance and 10% for all other cate-
gories. Price contingencies,which are equivalent to about 7% of base costs
plus physical contingencies,were calculated in accordance with the implemen-
tation schedule and the following expected average annual price increases: 5%
for 1986 through 1990 for domestic price inflation, and for foreign costs,
7.2% for 1986; 6.8% for 1987 and 1988; 7.0% for 1989; and 7.1Z for 1990.
4.15 Incremental Recurrent Cost. The estimated incremental annual

recurrent cost generated by the proposed project, when all schools and colle-
ges are operating at full capacity, would be abo-t US$84 million equivalent at
1990 prices. This would represent about 3% of the MOE operating budget,
assuming that this budget grows at about 11% p.a., including real growth and
inflation (para. 2.27).
4.16 Maintenance. Previous Bank financed facilities have, with few

exceptions, been well maintained. The Government provides adequate budgetary
allocations for acceptable annual maintenance.
Procurement
4.17 Civil works contracts for the three TTCs (estimated to cost a total
of US$41.1 million including contingencies) would be awarded on the basis of
ICB in accordance with Bank guidelines. The primary and secondary education
facilities are dispersed over 80 districts and are unlikely to draw interest
from international firms. Therefore, contracts for these facilities would be
awarded on the basis of competitive bidding advertised locally in which for-
eign firms would be allowed to participate in accordance with the government
procurement procedures which have been acceptabLe to the Bank in previous
similar projects. This is justified because contracts would be small and
locations scattered; Malaysia's construction industry is large and efficient;
and all civil works in the first five projects relating to primary and secon-
dary education have been awarded to local contractors even though foreign
firms were allowed to tender. The project procurement arrangements are shown
in Table 2.
4.18 Equipment and furniture would be grouped to the extent possible into
attractive bid packages to facilitate bulk procurement. Packages estimated to
cost US$200,000 equivalent or more would be awarded on the basis of ICB in
accordance with Bank guidelines. In bid comparison, domestic suppliers would
be allowed a preferential margin of 15% of the c.i.f. costs of competing
imports or the actual customs duties, whichever is lower. Below this thres-
hold, equipment and furniture packages which, because of content, are not
expected to interest foreign suppliers, would be awarded on the basis of
competitive bidding advertised locally in accordance with government procure-
ment practices which are acceptable to the Bank. The aggregate of such
packages would not exceed US$13.1 million and would represent about 15% of
equipment and 70% of furniture costs. Miscellaneous items in packages not
exceeding US$35,000 in value and aggregating US$5.0 million, i.e. about 10% of
furniture and equipment costs, would be purchased on the basis of at least
three price quotations or through Treasury contracts for bulk procurement, as
agreed with the Bank in previous projects. Books and instructionalmaterials
- 30 -
Table 2: PROCUREMENT ARRANGEMENTS

(in US$ million)
Category of Total cost

expenditure including
(X of FX) ICB LCB Other contingencies
Civil works and related

profssional services 43.8 189.4 - 233.2
(35X) (15.3) (66.0) - (81.3)
Land - 6.2 6.2

(0x) - - -) ()
Furniture 2.1 7.8 1.2/a 11.1

(25X) (0.5) (2.0) (0.3) (2.8)
Equipment 26.4 5.3 3.8/a 35.5

(90%) (23.8) (4.8) (3.4) (32.0)
Books - 19.2/b 19.2

(25%) - - (4.9) (4.9)
Specialist services - - 1.4/b 1.4

(90%/20Z)/c - - (0.8) (0.8)
Fellowships - - 6.2/b 6.2

(90%/20%)/c - - (5.2) (5.2)
Total 72.3 202.5 38.0 312.8

(39.6) (72.8) (14.6) (127.0)
/a Miscellaneous items procured on the basis of three price quotations or

Treasury contracts for bulk procurement.
/b Negotiated contracts.
/c 90% for overseas and 202 for local specialist services and fellowships.
Note: Figures in parentheses refer to loan allocations.

- 31 -
would be procured in accordance with normal government procedures which have

been acceptable to the Bank for previous projects. All specialists would be
selected in accordance with Bank guidelines for the use of consultants, and
fellowships abroad and local training would be arranged according to agreed
criteria for fellowship selection (Annex 11) and through negotiated contracts
acceptable to the Bank. Contracts awarded under ICB would amount to about
US$72.3 million, i.e., 23% of total project cost including contingenciesand
31% of the loan would finance this type of procurement.
4.19 Prior Bank approval of sketch plans, bidding documents and contract
awards would be limited to the three TTCs, in view of the adequate capabili-
ties of DSD (para. 2.29) and PWD, responsible for survey, design, tendering
and supervision of projects. In all other cases, the Government would con-
firm, without submitting designs, bidding documents and contracts, that this
documentation would conform to agreed schedules of accommodation, construction
standards and guidelines. Contract awards for furniture and equipment, valued
at US$200,000 or more each, would also be subject to prior Bank review. This
review would cover an estimated 30% of the contracts and over 60Z of their
value according to recent contract profiles for similar project components.
Disbursement
4.20 The proposed sector investment loan of US$127.0 million would be

disbursed over a period of five years (July 1986-June 1991). Disbursements
would be made on the basis of: (a) 40% of the cost of civil works and profes-
sional services; (b) 100Z of the c.i.f. cost of imported equipment, furniture
and books; (c) 100% of the ex-factory cost of locally manufactured equipment,
furniture and books; (d) 70% of the cost of imported equipment, furniture and
books procured locally; and (e) 100% of the cost of specialist services and
fellowships. For disbursements relating to miscellaneous items such as small
furniture and equipment, teaching materials, specialist services and fellow-
ships, and a few primary school construction contracts, costing below
US$200,000, statements of expenditures (SOEs) would be used. In this case,
supporting documents and contracts would be retained by DSD and made available
for review by visiting Bank missions. All other disbursements would be made
against full documentation.
4.21 The disbursement forecast (Annex 22) indicates that the proposed
loan would be disbursed at a faster pace than the Bankwide and regional aver-
ages for education projects and the most recent general education project in
Malaysia (the Fifth Education Project, Loan 1657-MA). This is feasible
because of the improved efficiency and implementation capacity of DSD
(para. 2.29), the advanced status of project preparation (para. 4.08), the
routine character of most operations, and the fact that the total project
works are well within the MOE's implementationcapacity (para. 4.01) due to
the limitation imposed by constraints on resources.
4.22 Special Account. To ensure that funds for the project would be made
available as soon as needed, a Special Account, operated by DSD, would be
established in a bank in Malaysia with an initial deposit of up to US$8.5 mil-
lion, approximately equivalent to the Bank's share of four months of estimated
- 32 -
expenditure during the first four years of project implementation. Applica-

tions for replenishment of the Special Account would be submitted when the
balance of the Special Account reaches about 50Z of the initial deposit or
US$4.0 million. These applications would be supported by documentary evidence
or SOEs, whichever is applicable, of payments made from the account for goods
and services eligible for Bank financing under the project. A matching
revolving fund for counterpart funds is not required as such funds are
committed and readily available within the Treasury as soon as the project
budget is approved by the Government.
4.23 Retroactive Financing. In view of the advanced state of project

preparation (para. 4.08) and to ensure a prompt start-up of project opera-
tions, expenditures on civil works and related professional services, con-
struction materials and equipment, books and technical assistance, incurred as
from January 1, 1986, would be financed retroactivelyup to a totaL of US$6.0
million equivalent (para. 5.03).
Accounts and Audit
4.24 Separate accounts for all project activities would be maintained by

DSD in accordance with sound accounting practices satisfactory to the Bank.
DSD would submit to the Bank within nine months of the end of the Government's
fiscal year, i.e. by September 30 of each year, starting in 1987, statements
reflecting the financial performance and position of the project together with
independent auditors' reports, including separate audit accounts relating to
disbursement against SOEs and Special Accounts. Six months after the Closing
Date (June 30, 1991), the Joint Secretariat of the Development Committee
(para. 4.04) would send to the Bank for comments a project completion report
assessing attainment of project objectives, project implementation and initial
operation, its cost and the benefits derived, the performance of the Govern-
ment, the Bank and other agencies involved, and the significant lessons
learned. During negotiations, agreement was reached on the above requirements
for annual expenditure and performance audit reports and a project completion
report (para. 5.01h).
Benefits and Risks
4.25 Benefits. The project would improve instructionalquality,

managerial efficiency, and equity in the distribution of educational oppor-
tunities, while asserting the importance of the nine-year Sasic education
program. The project would replace substandard facilities impeding effective
learning and would provide about 130,000 new student places in primary and
secondary education, benefiting about 180,000 students, in order to either
centralize primary education into more economical units, or relieve the
pressure on secondary schools in which overcrowding results in excessive class
size and double shifting detrimental to the teaching/learningprocess. This
would also help expand educational opportunities in areas of greatest need,
and establish more cost efficient practices and quality standards for school
construction. The provision of staff housing, moscly in rural areas, would
promote teachers' commitment and efficiency where they are particularly cri-
tical. The teacher training component would benefit 4,000 prospective
- 33 -
teachers who would be trained in high quality facilities which would improve
the trainees' status and motivation. The provision of educational resources
in rural areas would strengthen educational support to the poorest segments of
the educational system. They could thereby benefit from educational media
enhancing the quality of education and the motivation of students and teachers
where it is most needed. The staff development program would benefit over 500
education officers who would be responsible by 1990 for key educational and
managerial functions. The proposed studies would enhance the knowledge of
major issues affecting the educational system and would assist in further
improving the quality and ef.iciency of education.
4.26 The project would also yield significant educational outcomes: the
emphasis placed in the NPSC on basic skills would enable students to master
reading, writing and basic calculation better than in the past, as expected by
parents. The practical orientation of curricula and availability of educa-
tional resources would enhance students' creativity, initiative, ability to
analyze critically, problem-solving skills and constructive interaction in the
classroom. Enrichment materials and media would be used to give students a
taste and skills for self-instruction,thus preparing them for life-long
education. Extra-curricularactivities would contribute to making students
more conscious of their role and responsibilitywithin the school and society
at large, and also to teaching them how to make positive use of recreational
time. Manual skills in the curricula would prepare students for the modern
technological environment while developing their psychomotor skills as part of
a well-rounded personality. These expected improvements would be reflected in
the positive results of the continuous students' achievement evaluation system
which will replace the present Grade 5 assessment test. The practical orien-
tation of teacher training and inservice upgrading programs, and the improve-
ment of teacher trainers' and secondary teachers' qualifications would enhance
teachers' class management skills, resourcefulnessand creative interaction
with students, while raising the academic standards of their teaching. This,
combined with improved managerial and leadership skills among headmasters and
education officers through the staff development program, would resuLt in more
effective use of school facilities and resources, and greater staff
motivation.
4.27 Risks. The educationally justified but demanding reform of primary

and secondary education coincides with a time of resource constraints which
may slow down the implementationof the subsector development program, as
originally planned. The investment allocation to the subsector under the
Fifth Malaysia Plan will not enable the MOE to reach its original targets to
dramatically reduce the shortage of educational facilities and double shifting
throughout the country. This would have required over 20,000 new classrooms
to be built by 1990, as compared with the 7,000 to 8,000 classrooms possible
under the revised investment program. However, this program w-ll alleviate
the most critical needs, and the qualitative inputs will compensate for the
modesty of the quantitativedevelopment program which may have to be extended
to the end of the century.
4.28 The increase in recurrent costs resuLting from the increase in

teacher needs and qualificationsrequired to implement the new activity-
oriented curricula, is likely to represent a heavy fiscal burden. Therefore,
- 34 -
it may be necessary to maintain some traditional methods and thus slow down
the implementationof the ambitious reform of curricula and teaching methods,
as initially envisaged. However, this is not a major risk since primary and
secondary schools could be acceptably staffed according to a more modest
teacher:classratio than presently decided by the Government,and the improve-
ment in teacher training, educational management and resources under the
project would compensate for the smaller number of primary teachers which the
country could afford.
4.29 There is also the risk that the new integrated educational programs
and active teaching methods may be rejected by older, more conservative
teachers and also by younger teachers resenting the additional burden deriving
from increased class preparation, correction, extracurricularand remedial
duties. However, the recent evaluation of the NPSC in the first two grades by
the MOE in cooperation with the University of Malaya and the University of
Science Malaysia, provides strong indications that headmasters,teachers,
students and parents generally react positively to the NPSC, as it does meet
their expectations (para. 4.26).
5. AGREEMENTS REACHED AND RECOMMENDATION
5.01 During negotiations, the Government and the Bank agreed on the
following:
(a) performance indicators for the training of certificate,diploma and

graduate teachers for primary and secondairyeducation (including
Form VI) for the period 1986-95 (para. 3.04);
(b) terms of reference, procedures and timetables relating to overseas

and local training fellowships and specialist services (para. 3.10);
(c) terms of reference, procedures and timetables for the proposed

research studies (r a. 3.13);
(d) further appraisal and iLplementationof the project according to

agreed criteria, procedures and guidelines (para. 4.03);
(e) performance indicators to monitor and evaluate: (i) progress in the

distribution of education facilities and resources by district,
(ii) improvement in education quality and cost efficiency; and (iii)
the level of education expenditures (para. 4.05);
(f) annual project implementation review meetings to be held between the

Government and the Bank by October of each year, on the basis of
semi-annual progress reports to be sent to the Bank for comments by
March and September of each year, and an in-depth mid-term review of
progress towards the targets and government education investment
program, would take place with the Bank about October 1988
(para. 4.07);
(g) space standards for school classrooms (para. 4.08);

- 35 -
(h) annual expenditure and performance audit reports and a project

completion report to be submitted to the Bank according to agreed
procedures and schedules; (para. 4.24).
5.02 During negotiations, the Government provided assurances that ade-

quate operational funds would be made available for: (a) the National
Institute of Educational Management to carry out the local training programs
for educational and managerial staff included in the project (para. 3.10); and
(b) the MOE Scholarships Division to implement its fellowships program through
1990 (para. 3.10).
5.03 Expenditures on civil works, construction materials and equipment,

books and technical assistance, up to a total of US$6.0 equivalent, incurred
as from January 1, 1986, wouLd be financed retroactively (para. 4.23).
5.04 Subject to the provisions in paras. 5.01 through 5.03 above, the
proposed project would constitute a suitable basis for a Bank loan of US$127.0
million equivalent to the Government of Malaysia, with a term of 15 years,
including a grace period of three years, at the standard variable rate.
- 36 -
~~~~~~ ~~~~AtinC I
T.s. 3 01 2
CINPAIAIVE SUctION inOICWOR.
Pebn'rp 34. l396
co_sALu._
cxrEcurrunc CDucAr lOgt eDlfLcr mmr *reUxLV I
oN mcArlnos unmhrw ADULT urct pop Don manr vrmesnml
clsp PER AS PERCENT EXPSrDIYU9gE LruER1Cr PRIMARYPEINAtY PRIMlA" PItHA38 |XE FUN S1I3DA0' SCC061UAZS
HIOCRC
BASE POP. CAPITA PERCET asP mT*A Cuss L. ALWACMEDTOs RACE LnLL. avoIs tUUcW ION P3116S l0 EISLL. SSUD
SUu ERUIaLL.
Cs
t
YEAR HILLS. (USS) DiVOrTE TO 00VEid3N PBt SEC RI CZ) RArlo CYCLE rER AS rEcln SEOrxDABT mAilo rmC AIn
c11q) cuenI umco m m inmnun (2) (1976) C2) (1) P.ACECh GNP/CAPITA l 2) TE)ACE (t2)
(
_W1W1 (2 (3) (4) ( 5) (6) (71 (a) (9) (In) ((I (32) 133) (34)
acvEton cntzxUllEs
3
Atsr tALIIL so Gb 70 6.14 13.6 7 b .- I -
032 -IO 21 - 99 73 13 2 .4n
CANADA 93 21.76 96)06 7.7- lH.s 30-t 33-3 23-t lUb- 30b
R0D 21 39.9'? 10n 92- In 22.6os
CEAN" r.m. 79 63.2 12.2nn 4.6 9.9 - - - 9qb a" IOO. - - too- 945 - 12.1D
-NrrEUtLMDS 74 34.0 30I490 7.9 LI 20 15 2s 99b? 96 95 Is Is.% qq I2 I3 2.40
hCEI 2EALAND 9o 3.26 6 ptsb 5 3 37 31 29 99b 300 ton 26 11.6 o10 I2 Is 25.905
SWEDs 79 Nt.J 32 .2) 9.0 10.2 i3 in 30 q,b 99' Ion 3I6 39.9 ino 79X wGMY 1gsnCm
sAwrm AFRICA
IYsuNA nIt I.Ob 9206 n.0 22.0 43 14 22 40 3o0 77 32 30.0 An 21 21 I.9n
SUWNDI at 4.2 235 2.1b. 19.0 43 29 27 25 29- 35 37 20.2 12 1- 17 3.00
WODUUS 94 0.46 i*5 3.6" Z8.0 *9 29 22 49 76 40 39 - 45 36 29a 0.64
DsJIDrl 84 1.4 480 1.0 31.9 73 2 ... 30 42 66 4n 67.0 40 to I9 0.60
TntIoPIA 93 32.9b 3441, 2.9P 31.3 45 25 20 D3 42 30- 61 39.3 9*1 34 44 1.4 5
KENtA 82 7.4b 4206b j.*gb 20.3b 65 I6fi11 46b 133 5J9 56 34.4 35 In 26 -
LESYO 92 1.4' 35b .5 16.9 in 32 26 3b li3s 43 49 9.6 46 23 23 3.30
SADAGASCAL 77 N.5 3in *.r- 24.0 53 29 19 0n 9Gb4 33 55b 9.0 JR 14 23 1.34b7
MALAWI r3 6.1b 2306 3.5 31.4 39 14 25 25b 62 21 65 5.9 32 4 23 0.40
PlAlShalus r3 I.ob jyb
II 4.3 14.0 46 36 7 Nob 93 72 23 11.0 ino 50 22 *.0o
rm3DA 93 5.,b 227b 3.6 27.4 71 16 33 37b 61 0 4) 16.n 9 5 36 0.40
SKYOiL3.ES 79 0.0 1.770 5.9 22.4- 34- 11- 3W - _ - 25 - -- - -- -
solAL1A Itl 4.5 2zoo 3.5 In.s 5b 44b 66b 5b 22b 9ob 29b ,.oh rnb 3zb 22 1.00
s53m anl 1.,b26 1606 1.0 - 66 39 ... 32 5l-" 68 14 3.4 44 l3 16
SWAZL3AND 93 0.7b 94nb 3.8pb 20.4 5 34 15 6*b 93 30 31 33.0 9g 29 IN 1.00
TANZAIA 9n 119.5 260 5.9 17.7 47 in 36 9b 986 Nt7 43 33.0 job 20' 0.30
UGADA an 12.6b 340b - 14.3' 23b 37b 206b Am 5& 6 34 - 37 ¶ 23 0.60
ZAIRE 9l 29.9b 210b 7.7 26.4 - - 10 54b 74 25 310 21.0 40 In 2r 2.40
XADMIA 90 57b 546b 4.9P 11.1 46 23 22 4*b 9s so 4. 32.9 19 16 22 1.50
ZIIASUR 93 7.71 700b 5.1 19.5 62 32 6 44b 90 55 39 245.0 5s i5 231 9.50
MISTEM AFRICA
11m 79 3.4b 20b 6. 315.0 43 23 5 3lb 42 30 44 34.0 3n II 43 I.OOC
BUINA 93 6.) 2lnb 2.1- 23.7 43 29 29 9 16 25 57 24.1 16 1 24 0.03
GAIEIO 71 9.2 son 2.97 16.07 33- 43- 20W - 74? 459 50r 33.94 20' 347 24 1.307
C.A.t. 79 2.2 260 3.9'Y 20.647 - - - - - - 6YJ7 - - - - 0.70'X
dAD 76 4.4 120 2.46b2 2 .7b - - - i5 25 - 77 - - 337 23 0.207
GR3m 79 1.5 670 9.0'W 2U7.7 - - - - - _ 56b - 30 - a3bq 4.00&7
GAWN 77 0.6 3.420 3
. lS 914, - - - - 446b - _3 - - 2.50'y
GA4IA 77 0.6 220 3.5" 6.3 b 46 259 64 16b sob? 9D0 27b6 44.7-' 40 2b37 37 _
SANA 7b 33.3 400 4.0? 15_.5 - -_ - - 73br6 - 2717 - - i6bxi 23 -
GOINEA 79 5.3 290P 4.60P - 25x 29' 29 20 3' 36 38 20.0 95
A I6 29 7.00'
ivar oaAsT of 3.2b 1.o70b 30.0 4 3.4 33 46 13 30W s0 Bh 43 26.0 47 353y 26 1.90'?
LeURIA 0o 1.9 520 4.6 19.6 43 23 24 30 52 32 35 20.0 76 22 20 2.90
NALI SI 7.ob I9o 4.2' 21.75 38 21 11 10 20 60 44 IS.7 6 3 11 0.90'?
5ADRIrAMIA 78 1.6b 320b 3.5 16.9 33 43 25 j7b 32 60 44 52.0 30 9 25 0.37
NICER 79 5.2 30 4.3'? 16Js'7 52' 43- 59 m 3? 56' 431 35.75 A0 2 24b 0.207
NICGERA *3 93.6b 760b 7.47 16.0 - - 12.9 36 93 70 36 39.5 46.7 22.5 30 2
SEGAL 77 5.5 450 5.0 23.0 46 34 20 10 3Obx - 43b6 - 20 30 21 2.20by
SIELRALUW 77 3.4 230 6.0o 16.0b - - - I5b 37'X - 35 2s5.n 94 35. 22 D.o67b
WCoG 78 2.4 400 4.5W 26.59 30' 29' 23' l8 74 60 54by 59.0 52 32b63 46b 3.60by
LArIN AIPRICA ANDTTiC CARIBBEAX

ArEJlTINA 'J 27.3 2.210 2.7 30.9 43- 31- 3m' 93b 89 52 17 - r7 31 9 23.00
BANANAS ' 0.2 2.770 5.7 19.1 36 34 33 93b 99 97 24 - 97 75 19 -
UARCADs 79 0.2 2.680 B.57 22.13 43- 31- 16' 99 100? 99' 277 39.9 99 7Jay 20J -
SLIVIA s0 5.4 550 4.3-' 30.5' - - - 63 74r - 207 - - 35? - 12.607
tAUIL 79 316.) 3.770 3.9 6.2 53 - 4 76 73'? - 23? 4.76b 6 1 3597 34-' 32.62b
c033. 76 10.9 I.890 3.26? 133.ob - - - li-bs36 - 34t? - - 55b3 zoby6 zI.oby
ao0o5r11 Bo 26.7b 3.36Ob 3.3 25.0 35 24 20 glb 78 36 32 6.6 - 47 20 10.02'7
cOusA 2ICA an 2.2b 1.810b 8.4 31.1 60 27 33 90 93 77 33 5.5 77 40 21 14.00
CmuA 78 9.8 - 8.0 3l.0 - - - 94 112b6y 98 3by - 98 7
1 b- 35 19.02b6
TI)IICAN UP. so 5.3 1.030 2.4 13.0 39 23 22 68b NO 33 59 3.2 91 30 33 16.00
CdAiN No 9.4,b 1.310 h.OP 36.7 45 31 16 61 105 - 36 17.6 16 47 16 29.00
EL SALVADOE 77 4.4 640 3.46b 23.1J7 64 8 27 62 82bx7 32 39 - 43 26b63 276? 7.90ob
cUSRDI1IL1 79 6.9 1.030 1.75Y 12.6b - - - - 69b67 - 3 67 - 69 1*37 396b 5.s5)
CGUANA 76 0.9 630 .bl6 133.b9r - - - - 9bxy - 32b? - - 593b7 - 3.0a67
BAIrT NO 5.0b 230 3.4 7.9'r 65 9 6 23b 50 20 43 19.0 R &- 27 0.80
RollD114 74 3.6 520 3.s7? 34,3b7 62' 15 39' 60 A9bx3 30' *1b6 12.91- 68' 2337 is s.oo7
iSAICA so 2.1 3.130 6.5 13.7 37 43 20 90 98 98 40 2.3 95 93 22 8.00
NaOD so 65.5 39800 4.7 17.00 46 39 15 92 99 53 44 9.5 96 36 37 10.30
NICARAUA 79 2.6b 6106 3.ob6 1a.0 --- -b - J 5bx 24 3 7b - - 26b% 3Db -
PANAMA 78 ,5b 1.350b 53 5b 21.b6 42' I3- 13 1*b 9*7 - 2*? 11.6 BlY 50?b 2*? 20.40Qb
PARA'DAY 79 3.0 1.140 3.4" 34.2 42 17 20 94 93 32 29 3 .lr 76 22 12 0.7C
PM No 16.6 3,000 3.6 34.3 53 15 19 so 83 56 39 9.9 39 39 22 13.407
Ir1D21D 4TON. 77 1.1 3I910 A7 s.6b7 48 32 20 95 in 91 30 30.57 49 62 24 -
SSGUAT 79 2.9 2.500 2.5 g.9b - - - 94 103o# - 24b - - 64b - 17.805?
VENZU1LA 78 34.4 3.460 5.1? 39.9b - - - 92 106t - 28 - - 35b6 17 21.10?
- 3n -
AIN
ekrea'sy 24. 21*r6
_ ~~~cowEsaL_
cmrma 1 I
E.2 UIDWOUA DDZATR oNLEIIO

SWt RRr
cDRRUT
N ErIIATI ERWES? aur ReTE PDn mIT CDiT PUcREE3IOE
CGPP ro Ar PIN= UXDrltIS LTERACY PRINKY PRINA P1n3 T PlENAR URAEPMt RWDAY
E AaEOrO NRYNRIER
rArE POP. CAPITA PIr CT mP TOTAL CW AL ALUWC0U TOe RATE MOFLL. S5002L miuwrur EI2cCATiD PRIaR To MDLL. grIlaIrs Eb'DLL.
YEARMILLS. (UPS) DEWnrED TO COYE2Wc r PR? seC RI (I) Rato CYCLE PEr As rP rT EcNmDARY RAnTo PrE SAwTo
l7pUoDrroDs
(1979) (2979) macsm (2) (197) (t7) tE) rrAER cUrPcArnA (2) (2) EACIRE (2l
(_I (2) (13) 14) (3) (6) (7) (C) (9) (10) (113) (2) (21) (14)
r^sr ASIA aRD TNC PACIVIC

OUna Nl 31*0
fS.l 110i 3.1 7.1 SR 40 22 776 77 62 2 3.e.0 65 27 4.3
DIDNCUSIA Rl 3M..b 520 2.1 9.3 70 24 4 32 I 61 3M
17 11.0 74 27 34 3.70
WItrhA 23 39I3kb 1.41, 7.7 20.3 34 34 32 94 99 93 43 19.0 93 34 13 21.1
MALAYSIA 34 2326 I.701 6.1 36.7 39' 4- 2o- 70b 97% 97 26 l3.9 (9 72 22 4.0n
PAPIAP.C. RI 1.O' 920 5.4 19.0 41 17 22 - b0 7l 12 I 5.o 15 I3la 21' 2.00
21L3PP12es
4E49 4.3' egOb 2.1r 34.0 64 3o- 7h R_ 65 31 7.3 39 1" 34 21.D0
SINCAPORE RO 2.4 4,42n 2.7 6.7 19 40 16 *3 92 82 11 5.a 94 M5 32 3.10
r LWMIt5L. 85 n.2b 1441 6.h W 20.0 Al 34 20 35 79 sO 27 20.5 40 22 14 2.%n
TnAILMaD 32 49.nb 300b 1.4 20.1 9 14 2n Sea loe 6 22 9.1' 4 46 23 4.1J
WIDTH ASIA
RAiCLADCSH 79 92.54 90 2.21 10.1? 531 27 20 226 61? - S S.6 - r4 21 1.41
MINTAS no 2.2 rto 3.4 12.0 - - l0 22 _ - _
InDIA 17 6.4 6 210 2.." *.9 - - - 16 79M - - - 22 -. 1A'
10W
NEPAL r2 I o I .b
14 - _- - 19 7n 1n - - 23 71 3.72W
6AV2rAP 32 i7. 26 linb 2.0 7n.0 I 20 24 22 11 4l 20 I.1 If 22 Is 1.00
NwOPE. MIDDLE RA r AND NOUN AFRICA

APSISrATS 77 I tS - 1.7 3.7 47 19 15 12 331 hqb
6b
9 _ b2 2 22br I J0
ALCERIA 19 12.1 1.770 5l.8 12.1 34- 26' 212 i5 83T 4*p 31 7.0? 531 291 26 1.70?
eYTrr 32 41.1' bID' 4.4 7.9 11' 59 24' 44 759 An 34o 91' aid 41' 129 17.00
GREEcrE 7 0.1 424n 2.? In2.6 137 6 22 - 97b$ - 296 4.27 ?lb. 77b6 t373bv
Ir 19 36.9 - 3.7' 24.1' - - - ID 03l-' - 32- - --- 44" 24 .90"
IrA 7 1 2.4 2 710 4.1-' 4.9'? - - - - ln0 - 25 - - 49? 29' 9.10"r
tIELAID 33 13,4k 4*430 6.3'? 11.8-R - - -- 9 93 94 29 - 9A l 24 22.00
.2032 a2 2.Zb 1.420b 4.9. 20.2 19 44 ' p7u 37 83 32 1 .2 - 57 la 1.90
LECINEM n Z.1 - - IS.h-6 - - - - 90? - 19 - -- ta - 27.Wk
:3DCC U84 21 .1 66*?O . n 22.9 13 41 19 3 375 9 31 1
2.2 .4' 13 R.9sn
oHS 32 o.9b 5.920b 2.5-y 22.7' - --- _ wb7 712 65 25 - 36 11 124 .
FORTUIMAL 79 996S 2.060 1.6 22.2 5o 23 12 7R 97 20 I9a 12.3 ARS4 I7Y. .10,
tHetA iR 22.1 2,200 3-94' 4.21 - - - 9 06' - 2 53 - 9g 444b. 22b 10.41*
SPADE 74 37.0 6.920 2.37 26.3 - - - - 9qbv - 29b -_ 7b4 - 24.21b*
SYRIA la 6.6 I I17 4.41 20.3 39 25 24 51 37b? 30 3b - 6A 42i4 22b 12.40
TEMISLA re 6.4 13130 7.0P 14.0 42 39 26 62b 2o00 30 39b 122 1e0 3Bi 30 6.00
TIIrEEY RI 47.5 1.230 '.1 24.2 50 22 24 73, ItO 27 31 4.0 51 26 1 *.on
INCH A.R. 20 4.3 420 5.0W 22.0 96 7 7 21 17 12'2- 3? 37.2 1s 3 20 2.20
ThES P.D.3. 32 2.0b 4206 7.h 9.7 63' 14- 3' . h6l 14 25 22.0- 44 17 20 2.50
SMWAT FOR DEVELO7PNtGODUmTIIS;

11abur of CoawtrlT-. A4 91 70 69 47 Re 92 61 95 6s 75 92 an 35
R'out (2.4- (3.7- (23- (3- (5- (1- (22- (22- (17- (1.4- (10- (1- (R- (0.03-
10.0) 34.1) 946 46) 33) 99) 119) 99) 77) 67.0) 20n) 34) 43) 29.0)
Qsrcile.: ap_: 5.4 21.7 51 16 22 32 98 RD 41 20 67 47 26 11.0

KoAla-:o4.0 24.1 41 28 19 M 33 42 35 11 h5 26 22 3.7
L_r: 3.0 11.0 i6 21 13 25 60 35 23 9 40 24 19 2.0
O-,riI . DuwI'tlIn: 1.1 5.4 4.5 7.5 6.5 23.0 19.0 22.3 7.0 5.4 21. S 135 3.1 1.0
sn. 4.4 17.0 64 2 23 3 76 59 36 34 42 31 23 6.9
Stc_d.rd D-l-ct 1.9 C.7 12 3D 7 29 27 24 22 13 27 23 7 7.4
edian: 4.0 16.0 43 23 19 M 33 43l 35 11 h5 26 22 3.7
SMDLS: FeoTES:
- DATUR IA AILACLE A- D0T2IPRIOR rO RARETER S - NIEISTIRTOF E!DCATIDOI (ICE) ONLT
nAaTNC NIL OR DNCLICIRLE * - DAWTE PORE l C[ ? TNS EASE TYR T - IDE AIM STATEGOMIEIET WIsLT
I DAE OOCM TWNAUL * - CISTR PRICES U - PUELIC I2PU!DIrtUNEONLT
INCLUDESPAWT-T7IC STDSTS CZ- "Er BCLUELrE RaID I - UNCLUDDSOW-WE STOOTS
P- CSS DLDtT tATlO T - mOES) EUDOQS
P - COP
9Dso s, Co.N.. I and 2I World Rank Atla. or Education ector fI.ld d..ao,a.
Cola,s 3 to 124: lrld Rank dnucation actor rumloa... Coer_uewt soures tad/or the De'eo Statietical Yearbook.
CePoratlve Ed''ctioo Dts am ntfol In tbiw a-tlio of erls. aductlon Vy.tou and a Bnas of relatie scm.o of sdoctla l d.OlogO.t btcoun wrna_
eo_tria.. NIlor _ tn basis of tin proset data, cross-actlon'l ewparlto 3mnDldbe approcbhd 1tb grest cetto. D. ta preomted in thi 'bto tb2' k.u
boor collacted I raNly by Rouk d.eao. (roe bowornrot marca.: tb. ruuaodor am staff 'stlnt.. or dca frou eso. CEtfrt, hky b._- oat. to acndordiaa
defIltias. and. itdhis luit', to cheuk cti mccrsty of tha dot. Ronrteibulo, such dats mrs still lterfect In oevrel rtumcts and tin Roak le ortikx to
SwwO tine poerso.oI'Iy s- tin oceasion of Its opuratoe.l sor. 1u tin .m ot tinee date, the fella-lon oalftcoto staid to taet to Indr
(1) deat im *a dltload t. tin table Iaelude. all .duc.tIon a.d trel.1.s. both fnral ad son-foma l.
(2) fr1lar'r uducatioo tutr. to edoctclo at thi firut leel and cadrr educatlon rf.r, to al Idctio at tinbemcudery lowl rlg'rdlou of c'"
(-.s. m-mral. tehdIcal. rlultcral).
(3) Literacy racer (col. 6) are ofte okta±e d trm eantry eommo. to aosy countries tit oreon&ly *pprosl_.tlo mod It 1. doubtful that an suior.
duflulttl of -lt1rte- ham beo- folle_d caosiotestly.
(4) hicblc u deits"u 1i edcatiso (mcl.. a ad 5) reer. to l1 capit-l and rcurraot epdtre. d-evted to d.ctlon, b pbeklIc ad qa-blic
(5) froll t ttoCe (cola. 7. 12 and 14) rfer to school roar and ae tib prcutne of 1Risibl. chIldren -roilld full-tim 1. tin aoproprStat school
peblIc sod erivate by _l. Tbhe amr ofte abj.ct to . ode u.rin" of error In thu de.lopU.s countries aoIn to vsrlatoeo 1. thu recurecy of bhaue
date (IS.. sue-acltlc poelation and orolletoe). E rollnet flree frequo.t.y are khahr tha- tcF r_b r of .tudent* actually is chool.
Our-ed tudsnta -y be locludd 1- t._a flusru' ad can lotlte tin ratio..
ANNEX 2
- 38 - Page 1 of 2
MALAYSIA
PRIMARYAND SECONDARYEDUCATIONSECTOR PROJECT
Teacher Training System
1. Organization. In 1984, about 17,000 primary, lower secondary and

vocational teacherswere enrolled in a three-year course provided in 27
teacher training colleges (TTCs). This enrollment, which represents the nor-
mal capacity of the TTCs, was increased to 20,000 in 1985 through the exten-
sion of daily operation time in TTCs. Teacher trainees are admitted to TTCs
upon completion of Grade 11 with at least four mandatory major subjects
including Bahasa Malaysia, and a mandatory pass in mathematics. This
selection was introduced in 1983 in order to improve teacher trainees'
academic background. Upper secondary and poy secondary teachers are trained
through four-year Bachelor's Degree courses _ at the University of Malaya,
the University of Science Malaysia and the National University Malaysia;
three-year Diploma courses in Science with Education at the University of
Agriculture and the University of Technology; a one-year course preparing for
the postgraduateDiploma in Education at the University of Malaya; or a one-
year course prepiring For the postgraduate Certificate of Education in TTCs.
In addition to the above preservice programs, inservice training is provided
throug: (a) iull-time one-yeiy Certificate courses in specialized educa-
tion - and language teaching,- enrolling about 500 trainees per year in four
TTCs; (b) eight-week vacation programs, annually enroLling about 1,200
trainees in remedial instruction and 400 trainees in guidance counseling,
followed by full-time six-month higher qualification courses for the best
graduates (about 70 in remedial instruction and 40 in guidance and
counseling); (c) part-time vacation courses of one to two weeks' duration pro-
vided by TTCs, resource centers and MOE divisions, to upgrade about 10% of the
qualified teaching force each year (i.e., 8,000 primary and 5,000 secondary
teachers) in specif'c subjects, and to introduce them to the new curricula and
related teaching methods; (d) three months' intensive language courses (to be
extended to six months shortly) provided to university graduates electing to
teach Bahasa Malaysia or English; and (e) a part-time four-year program,
including a final fully residential year in TTCs, to train academically
qualified teachers without professional certificati,n, hired on temporary
contracts. This program started in 1984 to train 6,000 teachers over a five-
year period on the basis of 1,200 per year.
1/ Bachelor of Arts (Education), Bachelor of Science (Education) and

Bachelor of Education.
2/ Physical education, guidance and counseling, education technology, music,

Library science, home science, special education for the deaf and blind,
remedial instruction,agricultural science, and arts and crafts.
3/ Bahasa Malaysia as a first language or English as a second language.

ANNEX 2
- 39 - Page 2 of 2
2. Outcomes. In 1984 about 90% of primary teachers and virtually all

secondary teachers were professionally qualified. Moreover, most of profes-
sionally unqualified teachers had an adequate academic background (e.g , 6,000
out of 9,100 in primary education). However, the proportion of universa.-v
graduates among secondary techers (5% in lower and 75% in upper secondary edu-
cation) is still insufficient to achieve the normal academic standards sought
uy the MOE. In 1984, unqualified teachers were distributed as follows:
Level of Total no. Percent

education Graduates Nongraduates Total of teachers unqualified
Primary - 9,096 9,096 85,800 10.6

Secondary 118 791 909 55,500 1.6
Total 118 9,887 10,005 141,300 7.1

- 40 -
ANNEX 3
IWlAYSI Page 1 of 2
PRINMAY
ANDSECDIDARY
EDUCATION
SECTOR
PROECT
Projectionsof Teacher
Demand
andSupply, 1915- 1995
PrimaryEducatimo
19B4A/ 1905 19 2997 19B9 1999 19O 1991 1992 1993 194 m5
(I) Total staff dmnd 95,800 92,700 99,300 107,100 112,100 114,100 117,900 121,400 125,000 129,700 132,500 136,600
(23Total staff supply 76,700 79,500 91,600 B3,500 90,000 97,500 104,900112,000 119,100 126,000 131,600137,000
131 Deficit B/ 9,100 13,200 16,500 23,600 22,100 17,300 13,100 9,400 5,900 2,700 900 1400)
Sourcesof Deficit
143Additionalneeds:
- Increased demd 6,900 5,400 9,000 5,000 2,700 3,100 3,500 3,600 3,700 3,800 4,100
- Replacement of
attrition 1,500 1,600 1,600 1,700 1,900 1,900 2,200 2,200 2,400 2,500 2,600
(53 Total additional

staff needed 9,400 7,000 10,600 6,700 4,500 5,000 5,700 5,900 6,100 6,300 6,700
(63 lhe supplyfro TTC 4,500 3,600 3,600 8,100 9,300 9,300 9,300 9,300 9,300 8,100 3,100
17)hm deficit LI 13,000 16,600 23,500 22,200 17,300 13,000 9,500 5,900 2,700 900 (500)
by Source
Al Actual
RI Deficit (3) = Total staff demand(11 minusTotalstaff supply 123. (Surplusesare shownin parenthbeisi
C/ hioDeficit by Source(7) = Deficit fromprevious yew plus Total additional staff neededIS)minusheusupply frm TTCs463
of deficit maydiffer slightly due to rounding

NOTE: The two estimates
1. 1.5:1teacher:class ratio introduced, together with thenewcurriculum,

Assumptions:
in gradeone in 1983(previously 1.2:1)
2. All schools are staffed with a headmaster

and a remdial teacher in addition to teachers
- 41 -
..LavsIA ANNME3
Page 2 of 2
PRIHARY
VAI SEOIDN EJUICATIE PONECT
SECTOR
Projectinmsof TeacherDmandandSupply,
1915- 1995
SwondaryEducation
1984A/ 195 196 17 1991 1999 1m 1 1992 1993 1994 1995
(11Total staffdmand
- Collegetrained 33,000 34,600 36,500 35,700 36,600 39,900 41,400 42,700 44,000 45,20046,60047,900
- Graduts 22,900 21,400 23,200 27,000 2B,100 29,400 31,600 32,900 34,100 35,500 36,900 38,400
(2)Total staff supply

- Colege trained 39,000 37,500 30,000 38,500 39,200 39,800 40,50041,100 41,800 42,400 43,000 43,600
- Graduates 14,900 18,900 20,500 22,200 24,200 26,700 29,600 32,700 35,900 39,100 42,300 45,500
(33Dficit Bi
- Collegetrained 16,000) (2,9001 (1,500) 12,800) (2,600) 100 900 1,600 2,200 2,800 3,600 4,300
- Graduates 9,006 2,500 2,700 4,800 3,900 2,700 2,000 200 11,700) (3,6001 (5,400) (7,100)
TOTAL 2,000 (4003 1,200 2,000 1,300 2,800 2,900 1,800 500 (800) 11,8001(2,900)
ofDeficit
Sources
(4)Additional needs:
- Collegetrained 2,400 2,700 1100) 1,700 4,100 2,!00 2,200 2,100 2,100 2,200 2,200
- -:radutes 1.900 2,200 4,200 1,600 1,900 2,600 1,900 1,900 2,100 2,200 2,400
(5)NeMsupply
- Collegetrained 1,800 1,200 1,300 1,300 1,400 1,400 1,300 1,200 1,000 900 g00
- Gradutes 1,800 2,000 2,100 2,300 1,900 2,000 2,000 2,000 2,000 2,000 2,000
(6)Deficit by Source
C/
- College trained (2,9003 (1,400) (2,900) 12,400) 100 1,000 1,900 2,500 3,300 4,100 5,000
- 6radutes 2,500 2,700 4,800 4,100 3,900 3,300 1,900 100 (1,600)
(3,400) (5,0003
TOTAL (4003 1,300 1,900 1,700 4,000 4,300 3,700 2,600 1,700 700 0
A/ ctual
R/ Deficit (3)= Demnd(1) sinus Supply(2) - [A negative deficit is a surplus].
Cl Deficit bySource (6)= Previous Years
Deficit plus Additionalneeds(4)minus kmesupply 15).
NOTE
= FIGURES
II PARENTHESES
ARE
NEGATIVE
FIGURES.
Assumptions: 1. 1.5: teacher:class ratio introduced, together with the am curriculum, in grade
seven (Form1) in 1989(previously 1.4:13
2. By 199, in addition tD teachers, all schools wi11be staffed with thefollowing administrative
and specialized personnel: No. of classes 20 21135 36+
Headmaster I I I
Senior Assistant I 1 2
Aftrnoon Supervisor I I I
guidanceCounselor 1 2 3
Sports/ledia/Library 1 2 3
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- 46 - A1NX5
Page I of £
MALAYSIA
Plan of Action on Policy and Institutional Development
Status and/or Action to be

Objectives action taken by Hay 1985 completed during the period 1986-95
1. Ouality Improvemnt
1.01 Improve curricula and A New Primary School Curriculum (NPSC) uws The NPSC will be implemented In the *Sx
teaching methods alued at introduced In Standard One in 1963 and is standards of primary educntion In 1988.
the overall growth of gradually being implemented. In 19A5 the The University of Science. Malaysia (eil)
bhmn personality NPSC is taught in Standards One to Three. will evaluate the wbole new primary course
The Ministry of Education (OE) experiments after It Is fully implemented.
with the NPSC in trial schools* together
with revised or new educational radio and
TV programs, textbooks, workbooks and
readers. New manual skills progra a re
being tested In Standards One and Two In 74
schools. The MOE monitors and conducts
continuous evaluation through specialized
evaluation uncts at central end state
levels as the NPSC is Introduced into a new
standard. In addition, eumotive test are
performed every year with students.
A New Secondary School Curriculum (NSSC) In 1986. a computer literacy program for
is being developed along the NPSC lines. Form IV vill be experlmented tn 20 trial
schools and manual skills will also be
tried out aong Form IIT students in 71
Lower Secondary Schools with Industrial
arts workshop facilities. 'he experimen-
tation and Initial evaluation of the draft
NSSC are planned to start In 19R7. The
NSSC will be introduced in 1988 starting
with Form I and will reach Form V in 1992.
1.02 Redesign teacher training The teacher trainIng curriculum nov Incor- The lower secondary teacher training curri-
along the lineo of the porates the practical subjects required to culu in Teacher Training Colleges (TTCs)
activity-oriented new develop the resourcefulness and know-how to and the upper secondary teacher training
curricula teach the NPSC. Subject Integrstion, curriculum in teacher training faculties of
instructional system technology to develop. the Universities will be adjusted to incor-
produce and utilize resource materials, porate the practical subjects and sethodol-
student schi'vement evaluation, multitroup ogy required to teach the "SSC. The re-
teaching and remedial Instruction methods vised teacher training curricula will he
have been Introduced. Art and craft and Introduced in 19R6 in TTCs and In 1987 in
.nguage proficiency have been empha- UJnivers ties so that secondary teachers
sized. In addition, inservice teachers will be prepared for teaching the NSSC when
planning to teach the NPSC are given an it is Introduced into Form I In 1988 and
eight-day Intensive orientation session, Into Form IV in 1991.
1.03 Increase the teacher: The teacher:clans ratio is being progres- The 1.5:1 ratio will be applied In all six
class ratio to provide sively Increased from 1.2:1 to 1.5:1 in primary Standards In 1988.
teachers with more time primry schools. The new ratio was in-
to prepare and discharge troduced into Standard One, together with
their academic and extra- the "PSC, in 1983. In 1985, the new ratio
curricular assigmnents, is spplied in Standards One to Three.
as required by the new
curricula
1.04 Increase the proportion About 752 of upper secondary teachers and By 1990, 852 of upper secondary teachers
of university graduate only 52 of lower secondary teachers are and 152 of lover secondary teachers are
teacbers in secondary gradustes. expected to be graduates. By 1995 the
education to raise the respective percentages are expected to be
academic standards of InOZ and 40U.
econdary education
1.05 Provide secondary schools The secondary school headmaster, the senior By 199n, all secondary schools are expected
with teachers with spe- assistant and the afternoon supervisor (In to be provided with at least one guidance
cial functions to take double shifting schools) are generally counselor and one teacher specialized in
care of students In areas assisted by a variable number of teachers sports, media and/or library services, By
outside academic teaching with special functions. 1995, secondary schools are expected to be
staffed with teachers with special
functions as follows:
No. of claases 20 21135 36+
Headmaster I I I
Senior Assistant I 1 2
Afternoon Supervisor I I I
Guidance Counselor 1 2 3
Sports/Media/Library I 2 3
- 47 -ANE
Pag. 2 of 4
Status and/or Action to be

Objectivee action taken by Hay 1935 completed during the period 1986-95
1.06 Upgrade teacher trainera' About 600 of the exiattng 1,600 teacher New teacher trainer. will be recruiteu
qullficatcion. trainer. (over 372) are nongraduates or among graduates or poeteeondary epeieal-
have no poatsecondary qualification. mzed diplom holder.. The 600 insuffi-
ciently qualified teacher trainer. will be
provided with poetmecondary qualtficatton.
through fellovwhip, or short-term study
couree. abroad, or at the National lomti-
tute of Educational hNn0AeMEnt (MIEN) or
through the Teacher Zducation Divition'a
coursea. By 1990, 20O of theme teacher
trainera vwil have been upgraded, fy
1995, all teacher trainer. are expected to
be graduates or poetsecondary diploma
holders.
1.07 Provide all echools with Noat secondary achools but only 3n1 of By 1Q90, all primary achoole will be
educational resources to primary schoola have a library/resource equipped with resource factitties
improve students' and center, including a ltbrary and other resource
teachers' creativity materials along the lines of the NPSC.
along the MPSC activity-
oriented linee Four State Resource Center. (PC.) in The 350 Diatrict RCa. which are not pro-
Penineular Malaysmia 15 Division RCe end perly equipped, will be provtded with ade-
117 District RCa provide echool. with quate reaource equipment and material, by
referral support in educational technology 199n.
and *taff upgrading. About 230 comple-
mentary Diatrict RCa are eatablished in
aelected central schoola aerving 15 to 20
satellite achools each.
1.08 Reduce the number of The enrollments of about 19,000 primary Clans aizes of over 40 vwil be progrem-
overcrowded claeses and 7,000 aecondary closaea range from 40 sively reduced, through provision of new
(above 40 studente) for to over 50. facilitiea, starting with the mot crowded
efficient class manage- ao that class size does not exceed 45 in
ent under the new 1990 and 40 In 1995.
curricula
1.09 Reduce double shifting Shortage of classroonm results In about Every effort will be made to limit double
which to detrimental to 551 and Rnt of primary and aecondary shifting (a) In achoola, whenever it
implementation of the new classes. respectively, being schooled In critically reducea Instruction time and
curricula double shifts. precludes extracurricularactivities. and
Cb) In rural areas, wherever it generatee
co umtinR hardships and hezard, to
atudenta living far from echoole.
1.10 Increaae teacher training The 27 TTCe in operation have a normal Utilization of teacher tratning facilities
capacity to cope with the capacity of about 17,000 *tudent plac-e will be further expanded to cater for a
incresee In ataff re- for an annual output of about 5.50. total enrollment of about 29,n00 In
quired to implement the Nowever, daily operation tim has been 1957. An output of about 9,5n0 new teach-
new curricula In primary extended In a number of TCa. As a era will thu. be made available to schools
and secondary education result. enrollments In 19R5 have reached from 1988 onward, (8.100 for primary and
and to upgrade teachers' about 20,000. 1,400 for lover secondary education). An
qualificatlona (Objective additional capacity of 4,000 atudent
1.04) placea will be provided by 19R9 in order
to reach a total training capacity of
about 30,000 atudent places. for an annual
output of about 10n0oo. while replacing
3,000 atudent places In imadequate TTCa
(former primary and secondary schoola).
Theae will gradually be converted into
schools.
Part-time inaervice courses of one to two The permanent upgrading of about 101 of
weeka' duration are provided by TTCa, re- the qualified teaching force annually vwll
source centers and MCEDivisiona to up- be continued.
grede about 10 of the qualified teaching
force annually and to introduce then to
the new curricula end related teaching
methods.
About 6,000 academically qualified primary The first and the last groups of 1,200 uo-
teacher. without professional certifica- graded primary teacher, will graduate in
tion, hired on temporary contracta, are IqRR and 1992, respectively.
being gradually upgraded to qualified sta-
tus on the ba,i, of 1,200 p.m., through a
part-tine inservice four-year course vwhch
ha. atarted In 1984.
Five universtties are training about 5,500 The teacher training capacity of the uni-
graduate teacher trainees for an annual vereities will be expanded to train about
output of about 1,800. 10,000 teacher tratiee for an annual out-
put of about 3.000 graduate teachere from
1990 onwards.
- 48 - AmEX 5
Page 3 of 4
Statue and/or Action to be

Objectivea action taken by Nay 1985 completed during the period 1986-95
2. Efficienty of Educational
Managewent
2.01 Implement a comprehensive The Government hba eatabliehed the A comprehenaive staff development program
ateff developmant program National Institute of Educational Nenage- during the 1986-95 period will include
to improve the quality of ent (NIEN) to train key educational and about 2,000 participanta. A priority liat
educational development. managerial staff at the four levela of of 140 fellowahips abroad ia being estab-
management and evn- educational admintetration (ministerial, liehed and an additional 400 ataff will be
luation. state, diatrict and achool). So far, trained locally through ahort-term couraes
NIEN, still in ita initial phaee, haa during the 1986-90 period. The program
trained about 5,000 education officero includea trainers' poaltiona at the NIEN
through ahort-term courses and ceminars, end key educational and managerial poai-
and three one-month basic couraee for tions in mejor miniaterial divisiona,
improved management and effective profes- State Education Departments and Resource
aional leadership in which about one Centers, and Diatrict Education Offices.
fourth of headmeatera (2.000) participa- Theae poaitiona should be filled by ade-
ted. NIEN hba also been instrumental in quately trained officera by 1990. As for
launching quality control circlea at the 31M1, it will train 4.000 profeaesonal and
various levels of*educational management adminiatrative ataff annually from 19R5
and couraea for achool clerks. onwards.
2.02 Coneolidate underenroAled Small dilapidated or dispersed achoola are The nusber of underenrolled primary
achools to make prinary being gradually phased out. There are schoola will be kept constant or will
education more cost about 2,400 underenrolled achoola. decline through echool coneolidation. The
efficient average claaa aize in underenrolled
achools will be gradually brought up froe
an average of 18 presently to 20 in 1990
and 24 by 1995.
z.n3 Improve multigrade Multigrade teaching techniques have been Training and retraining of teachers for
teaching techniques in introduced into the peauervice and multigrade teaching eituations will be
rural primary achoola inaervice teacher training curricula, expanded and intenaified. As a result. it
is expected that oultixrade teaching will
be utilized in 602 of the achools with a
total enrollment below 120 by 1990, and in
all cuch achoole by 1995.
2.04 Improve the coat effi- Emergency (kilat) and celf-helf (gotong Decigns of reduced sire (e.g., 600 eq ft
ciency of school con- royong) construction methods, based on the for classes of 4n or less) will be uti-
atruction designs and intensive use of proceceed wooden struc- lized, and the utilization factor of each
atandards. and the utili- tures, wherever timber ia readily avail- classroom will be no lesa than 801 and
ration rate of echool able, have been introduced in rural are-. that of each laboratory or workahop will
facilities be no leas than 751.
2.05 Develop renitoring and Monitoring and evaluation of the quality The Educational Planning and Researeh
evaluation of the quality and efficiency of education are presently Division (EPRD), in conjunction with
of education to maximize performed on a regular baais within the appropriate universities and ministerial
the impact of educatlonal MYE by the Federal Inspectorate. the Exem- divisions, will eutabliah proceduree and
inputs on student inations Syndicate* the Curriculua Devel- indicators to asceas annual progreas in
achievements opment Center, the Schoola Diviaion, the the provision nf educational inputs in-
Textbooke Bureau, the Tescher Education cluding facilities, resources, qualified
Division and the Educational Planning and staff, proRram and setboda, and improve-
Reaearch Division, the University of ments in atudents' achievements and teat
Science, Malayaie, and the Faculty of Edu- scores. On this baais, it will produce an
cation of the University of Nalaya. Ad annual evaluation report on the quality of
hoc reports are published, education, in conjunction with a statiati-
cal report on the education cector.
IPRD will coordinate and monitor the

research and evaluation studies on the
quality, management and cost-efficiencyof
education in YIlaraia included in the pro-
posed World Bank-financed primary and sec-
ondary education sector project.
- 49 - ANNEX5
-~~~~~~~~~~ ~~~~Fags of 6
State and/or Action to be

Objectives action taken by May 1985 completed during the period 19B6-95
3. Access to Improved
Educeation
3.0l PaIntain universal Ulniversal primary education has been It In planned to enroll a total of about
primery education achieved through intensive utilization 2.5 killion primary atudents in 1990, i.e.
and, in _ny cases, overcrowding of an increase of about 300,0nn atudents over
facilitiea. The average clsasroom:atudent present enrollments (or 60.000 p.M.).
retio is 1:46 and over half of pri_mry according to projected population growth,
classes have to double shift. Moreover, in order to m_intain universal primtry
the claseroowsttudent ratio is below education. In addition, priority for
national average in 44 districts end the school construction will be given to
classroom:cIaas ratio ts below national districts below national average in the
average in 55 dietricts, provision of school facilities so that
these districts catch up with the national
average by 190.
3.02 Expand lower secondary The lover secondary enrollment ratio has It is planned to enroll a total of 1.0
education towards univer- reached about 882 with about 900,000 stu- million lover secondary students In 1990.
saltartion dents in Form I to III out of a total of i.e. an increase of 100.000 students over
about 1.3 million secondary students, present enrollments (or 20n000 p.-.). in
This achievement haj txend secondary order to raise the relevant enrollment
school facilities. The average classratio to 922. In 1995, lover secondary
room:student ratio is 1:61 and there is an enrollments will reach 1.2 million in
average proportion of 6 classroome for 10 order to achieve univer'ac lover secondary
classes, resulting in ROE of secondary education, as planned. The aboe action
classes having to double shift. Moreover, will result in 1.5 rill on and 1.7 million
the classroon:otodent and classroom class students being enrolled in secondary edu-
ratios are below national averages in 59 cation at large in 1990 and 1995,
districts, respectively. This will raise the overall
secondary enrollment ratio from the
present 72Z to 772 and 8lX In 1990 end
1995, respec-tively, according to
population growth projections.
3.03 Provide boarding facili- Boarding is provided to students who can- The present policy will be continued.
ties to students living not commte easily from home to school and However, every effort wlll be _de so that
beyond daily reach of to enable secondary sc aol students from no more than 10o of total secondary
schoola or who otherwise the most underprivilegd areas who other- enrollment io accommodated in boarding
could not equitably wise could not benefit from secondary edu- schools.
benefit from secondary cation. There are presently 27 fully
schooling, residential secondary schools and 23n par-
tial day-school hostels accomeodating
about 10 of the secondary school popula-
tion. Provision of boarding to primery
students is mainly cnncentrated in Sarawak
and is mdnimel for Malaysia as a whole.
3.04 Provide staff housing to Staff housing io provided to teachers in In the period 1986-95, rural primary
improve teachers' living the most remote areas. These benefits are teachers will be provided with additional
conditions in rural areas gradually extended to all teachers in stari %nusing on the baais of needs deter-
areas where cc umnitctions and living con- rined by district educstion offices.
ditions are poor. Presently about 10,no0
primry teachers out of 83,000 are pro-
vided with accommodstion.
3.05 Continue the textbook This scheme costs about I(40 million per The scheme will be expanded -ropor-
loan scheme year (USS16 million equivalent) and tionstely to the increase ': school
includes about 1,000 titles. It provides population.
free textbooks, workbooke and readers to
about 1.8 million primary students and
textbooks to about 1.1 million secondary
students (over ROEof the school popula-
tion).
NALAYsIRA
PRIIIIY
AMDSECONDARY tECYON
EDUCATION PROECT
AD 6EIERAL
PRIMARY SECODARYEDUCATION
ENROLLIENT
PRECTIOI
195 - 1995
INTHOWISAI0
PRIMARY I 1993/I 1994I/ 1995 1996 1987 199I 1999 I99O I9I 1992 1993 I"4 I5
GRADE
I 380 390 390 390 400 420 430 450 440 470 480 500 510
6RADE
2 1 384 370 370 380 390 400 420 430 440 460 470 480 500
GRADE
3 1 360 340 370 310 370 390 400 420 430 440 450 470 400
6RADE
4 1 340 360 340 370 370 370 380 400 420 430 440 450 470
GRADE
5 1 340 340 350 340 370 370 370 380 390 410 430 440 450
GRADE
6 I 340 340 340 350 350 360 360 370 380 390 410 420 440
I
TOTAL
PRIAY 1 2,120 2,150 2,170 2,220 2,250 2,310 2,360 2,450 2,520 4400 2,610 2,740 2,850
LOVER
SEC.
REIOVECLASS i 90 90 90 90 90 90 100 90 90 100 100 110 110

FORI 11 290 280 290 300 300 310 310 330 330 340 3S0 370 3;0
FMR2 1 260 270 270 290 260 290 300 310 320 320 330 340 310
FORM3 250 260 260 270 280 290 290 300 300 320 320 330 340
TOTAL
LOIER
SEC. 1 BlO 900 910 940 950 990 1,000 1,030 1,040 1,0I0 1,100 1,150 I2,90
- - -- - - - -- - - - -- - - - -- - - - -- --- - - -- - - -- - - - -- - - - -- - - - -- - - ----- --- -- - - - --- - - -------
WKRSEC. I
FOR4 1 150 150 160 170 170 190 l1o 190 190 190 210 200 210
FOUN
5 140 150 ISO 160 160 170 190 10 190 190 190 200 200
TOTAL
FOR1S
4t 5 1 290 300 310 330 330 350 360 370 370 380 400 400 410
TOTAL
FORIS
I TO5 1 1,170 1,200 1,220 1,270 1,280 1,330 1,360 1,400 12410 1,460 1500 1,50 2,600
FORI&LOER I 20 20 20 30 30 30 30 30 30 30 30 30 30
FORM
6 WRER I 20 20 20 20 20 20 30 30 30 30 30 30 30
TOTALFORMI6 40 40 40 50 SO 50 60 60 60 L0 60 0 60
TOTAL
UPPER
SEC. I 330 340 350 380 380 400 420 430 430 440 460 460 470
* …………………
-..-- ..- - - - - - - - - - -_-- - - - -__- -
SEC.
TOTAL I 1,210 1,240 1,260 1,320 1,330 1,380 1,420 2,460 1,470 2,520 1,560 1,610 1,460
PRIMARY
* SEC. I 3,330 3,390 3,430 3,540 3,580 3,690 3,790 3,910 3,990 4,120 4,240 4,370 4,510
I/ ACIUAL
ANNEX 7
-51- Page 1 of 2
MALAYSIA
PRIMARYAND SECONDARYEDUCATIONSECTORPROJECT
Estimated Recurrent Cost of Education in 1990 /a

(in M$ million at 1990 prices)
Primary Education 2,672

Secondary Education 2,070
Teacher Training 294
Administration 174
Student Welfare 295
Educational Planning 30
Higher Education 970
Technical/VocationalEducation 80
Total 6,585
Z of Federal Budget 21%
/a Assumptions: (a) Enrollments 1990: Primary 2.45 million, Secondary 1.46

million, Teacher Training 30,000.
Cb) 5% annual inflation between 1984-90; and 2% annual

increase in real salaries.
The increase in cost in primary educationbetween 1984 and 1990 is

expected to be MS1,504 million. This representsan increase of M$826 million
in constant prices and M$678 million due to 5% annual price increase. Of the
real increase, 21Z is due to enrollment increase; 7% to the addition of
remedial teachers; 24% to an increase of the teacher:classratio to 1.5:1; 3X
to the reduction of class size to a maximum of 45; 29% to increased require-
ments for educational materials; and 16% to real salary increases.
The increase in secondary education costs between 1984 and 1990 is

M$1,058 million. This is an increase of 14$533million in real terms and M$525
due to a 5% annual price increase. Of the real increase, 37% is due to
enrollment increase; 24% to the addition of teacherswith special functions;
15% to an increase in the proportion of graduate teachers; 2% to the reduction
of class size to a maximum of 45; and 22% to real salary increases.
- 52 - ANNEX 7
Page 2 of 2
MALAYSIA
Cost of Primary Education
1984 1990
(1984 prices) (1990 prices)
M$1,168 MS2,672
Increase of M$1,504 million
of which: M$678 m due to price increases

M$826 m dve to increases in real terms:
of which: 177 due to enrollment increase
56 due to additional remedial teachers
201 due to increase teacher class ratio to 1.5
26 due to reduction of class size
235 due to increased educational materials
131 due to increase in real salaries by 2% a year
Cost of Secondary Education
1984 1990
(1q84 prices) (1990 prices)
M$1,012 MS2,070
Increase of MS1,058 million
of which: M$525 m due to price increases

M$533 m due to increases in real terms:
of which: 199 due to enrollment increases
124 due to additional specialized teachers
82 due to increase in proportion of graduate
teachers
10 due to reduction of class size
118 due to increase in real salaries by 2Z a year
ANNEX B
-53 -
MALAYSIA
PRIMARY AND SECONDARYEDUCATION SECTOR PROJECT
Investment Program Costs by Program Component
M$ million US$ million Foreign as

Local Foreign Total Local Foreign Total Z of total

Teacher training 61.1 41.3 102.4 24.8 16.8 41.6 40
Educational resources:
School library books
and shelving 31.1 10.3 41.4 12.7 4.1 16.8 24
Equipment and materials 4.4 40.0 44.4 1.8 16.3 18.1 90
Subtotal 35.5 50.3 85.8 14.5 20.4 34.9 59
Staff development:
Specialist services 0.1 1.3 1.4 0.1 0.5 0.6 90
Fellowships abroad 1.2 10.6 11.8 0.5 4.3 4.8 90
Local training 0.9 0.2 1.1 0.3 0.1 0.4 20
Subtotal 2.2 12.1 14.3 0.9 4.9 5.8 85
Studies 1.2 0.3 1.5 0.5 0.1 0.6 20
Subtotal National
Level Programs 100.0 104.0 204.0 40.7 42.2 82.9 51

Primary education 136.6 73.2 209.8 55.5 29.8 85.3 35
Secondary education 155.9 82.4 238.3 63.4 33.5 96.9 35
Subtotal State
Level Programs 292.5 155.6 448.1 118.9 63.3 182.2 35
Baseline Cost 392.5 259.6 652.1 159.6 105.5 265.1 40
Contingencies
Physical 39.1 25.3 64.4 15.9 10.2 26.1 39
Price increase 25.3 27.9 53.2 10.3 11.3 21.6 52
Subtotal 64.4 53.2 117.6 26.2 21.5 47.7 45
Total Program Cost 456.9 312.8 769.7 185.8 127.0 312.8 41

- 54 - ANNEX9
Page 1 of 3
MALAYSIA
Responsibilitiesfor Program Management and Implementation
Activity Responsibility
Overall Program Processing
Preparation of policy guidelines and Joint Secretariat (EPRD and DSD) of

comprehensive program targets the MOE Development Committee (DC)
Approval of policy guidelines and DC (chaired by the Minister of

comprehensive program targets Education)
Identification and preparation of:

(a) National programs MOE divisions and SEls (for fellow-
ships only)
(b) State programs SEDs (through DEOs) and State Land
Offices (for sites)
Appraisal of programs MOE Appraisal Committee, chaired by

Deputy Director General 1, through
its six Appraisal Subcommittees
(teacher training, schools, school
libraries, resource equipment and
materlals, staff development, and
studies)
Approval of programs DC and the National PWD (in its

advisory capacity for physical
implementation)
Confirmation of approval of programs EPU (Prime Minister's Department),

and authorization to proceed with Treasury and, in their advisory
program capacity, the National PWD (for
physical implementation)and the
National Land Office (for site
acquisition)
Notification to relevant agencies to Joint Secretariat of the DC

implement programs
ANNEX 9
~
55 - Page 2 of 3
Program Execution
Civil Works
Preparation of annual budget /a SEDs and DSD
Approval of budgetary allocation/a EPU and ICU (Prime Minister's

Department) and Treasury
Identification of land SEDs
Intention to acquire land DSD
Land acquisition Federal and State Commissioners of

Land
Decision to allocate acquisition DSD

funds
Project brief preparation and dis- DSD

patch tc national PWD (with
copies to SEDs, State PWD and
District/Division PWD)
Site survey State PWD
Site plan State or National PWD
Approval of consultants (for ICU

survey)
Approval of site plan SEDs
Preparation of tender documents District, State of National PITh /b
Approval of tender documents, ten- State or National PWD /c

der processing and contract
awards
Implementation Contractors
Supervision District or State PIT
Monitoring progress in physical SEDs and DSD

implementation
Financial implementation /a DSD

- 56 - ANNEX9
Page 3 of 3
National physical and financial

monitoring: /a
Overall national coordination ICU
Budgeting Treasury
Economic and social implementa- EPU
tion
Payment Accountant General
Educational monitoring and Joint Secretariat of the DC (in

evaluation /a cooperation with SEDs, MOE divi-
sions and MOE Appraisal Subcommit-
tees, as indicated below)
Equipment and Materials

Preparation of lists and bidding DSD and MOE Schools Division (school
documents, and monitoring and equipment), MOE Educational Media
evaluation Services, and MOE Resource Fquip-
ment and Materials Subcommittee
(resource equipment)
Tendering process and implementa- DSD

tion
Library Books
Preparation of lists, tender pro- MOE Schools Division and School
cessing, implementation, and Library Subcommittee
monitoring and evaluation
Staff Development
Preparation of fellowship program NIEM, MOE Scholarships Division, and
and specialist serv'ces (includ- Staff Development Subcommittee
ing terms of reference), and
monitoring and evaluation
Selection of candidates MOE divisions and SEDs
Selection of specialists NIEM
Studies
Preparation of terms of reference FPRD and MOE Research and Evaluation
for studies, executing agencies Subcommittee
and specialist services, selec-
tion of specialists, and moni-
toring and evaluation
Implementation lTniversitiesand MOE Divisions
/a Applicable to all program operations.

7W For contracts below M$50O000, below MS5.O million and above MS5.O million,
respectively.
/c For contracts below and above M$5.0 million, respectively.
ANNEX 10
- 57 Page 1 of 3
MALAYSIA
General Eligibility Criteria for Approval of Programs and Subprojects
All programs and subprojects should comply with the following

conditions in order to be eligible for Bank financing:
(a) relevance to the priorities of the Fifth Malaysia Plan for primary
and secondary education, namely improved quality, managerial
efficiency, and equity in the distribution of schools in the
perspective of a universalized nine-year basic education program;
(b) technical feasibility with regard to management capacity, norms and

standards, availability of sites, availability of staff to run
programs and subprojects and to apply for training, and adequacy of
capital and recurrent financing; and
(c) efficiency in impLementationwith regard to unit costs, utilization

rates for facilities and equipment, utilization of staff, and
monitoring and evaluation.
A. Relevance to Quality, Efficiency and Equity Objectives
Applications have been evaluated to determine the degree to which

they meet overall program objectives aimed to alleviate identified
deficiencies. The analysis has covered the following:
(1) Curricula. Whether the proposed changes would alleviate past

deficiencies. Following an analysis of the causes of such
deficiencies,new curricula and related teaching methods would be
assessed to determine whether they are expected to improve the
acquisition of basic skills; increase students' problem-solving
skills, creativity, resourcefulness,eagerness to learn, moral
values; and involvement in classroom, school and community
activities.
(2) Teachers. Whether the new training and upgrading programs are
suitable to increase teachers' academic and professional
qualifications, including resourcefulness,initiative and
leadership, and whether this will result in a more effective use of
facilities, resources and media, and higher students' achievements.
(3) Educational resources. Whether the proposed school library books

and resource materials and equipment are adequate to improve
teachers' efficiency and students' achievements under the new
activity oriented curricula, taking the conditions of their
utilization (facilities and staff) into account.
- 58 -
ANNI . 10
Page 2 of 3
(4) Facilities. Whether the proposed schools with specialized

facilities (e.g. multipurpose room and library/resourcecenter) are
suitable to ensure effective delivery of the new curricula; whether
the reduction of class size towards a maximum of 40 and of double
shifting wiLl improve the delivery of the new cur7icula and
students' learning process; and whether new teacher training
facilities will be suitable to improve teacher training in line with
the new curricula and active teaching methods, and to increase
teacher trainees' commitment.
(5) Staff development program. Whether the overseas fellowship and

local training programs are suitable to improve managerial and
leadership skills to make education administrationmore innovative,
dynamic and cost-efficientat central, state, district and school
levels.
(6) Cost-efficiencyoriented measures. Whether measures supported by

the proposed programs, such as consolidation of small, uneconomical
schools, wherever possible, improvement of multigrade teaching, and
alternative designs for classrooms of reduced size, wherever classes
do not exceed 40 students, will result in more cost efficient
utilization of facilities and staff.
(7) Studies. Whether research and evaluation studies on the major

educational issues are suitable to refine the analysis of their
causes and to find adequate ways and means to further improve the
cost efficiency of educational inputs.
B. Technical Feasibility
Each program and subproject has been evaluated on the basis of the
extent to which it can actually be implemented. In general, the analysis has
considered:
(1) Management. Whether central, state and district government agencies

are able to manage and evaluate progress in program and subproject
implementation through adequate organizational structures,
communication mechanisms and procedures; and whether qualified local
agencies are available to carry out the planned local training
programs and studies.
(2) Norm and standards. Whether construction, maintenance, furnishing

and equipping standards can be normalLy implemented.
(3) Sites. Whether adequate sites will be available by the time

implementation of programs and subprojects is planned to start.
(4) Staff. Whether qualified managers, teachers and trainers will be

available to run program and subproject institutions to implement
the local training program and to carry out the studies; whether
adequate numbers Qf staff with appropriate qualifications will be
available for fellowships abroad and local training programs; and
- 59 - ANNEX 10
Page 3 of 3
whether conditions and regulations will ensure retention of trained

instructors and managers in functions relevant to their training
under the staff development program.
(5) Finance. Whether the required capital outlays are included in the
Fifth Malaysia Plan and whether the Government is able and committed
to meet the recurrent cost implications of the investment, in order
to maintain the physical and educational operation of the programs
and subprojects at high levels of quality.
C. Efficiency of Implementation
Efficiency has been the third criterion to assess whether programs

and subprojects can be implemented and operated at reasonable cost. This has
included the following aspects:
(1) Unit costs and areas. Whether the capital and recurrent costs and
areas per student will be reasonable.
(2) Utilization rates. Whether facility utilization and equipment use

will be sufficiently intensive. For educational resources, priority
will be given to library books ane equipment with the greatest
frequency of use.
(3) Staff utilization. Whether staff wiLl be efficiently utilized; and

whether the staff trained through the staff development program will
be utilized to maximize their improved qualifications.
(4) Monitoring and evaluation. Whether the monitoring and evaluation

mechanisms utilized by the Joint Secretariat (EPRD and DSD) of the
MOE Development Committee, the specialized Appraisal Subcommittes,
PWD and SEDs will be adequate to efficiently assess progress in the
physical, educational and financial implementationof programs and
subprojects.
- 60 -
ANNEX 11
Page 1 of 8
MALAYSIA
Specific Criteria for the Identificationand Appraisal

of Programs and Subprojects
The MOE Appraisal Committee, through its six Appraisal

Subcommittees,has appraised and the MOE Development Committee (DC) has
approved programs and subprojects on the basis of the general eligibility
criteria for approval of program and subprojects (Annex 11). Further specific
criteria have been applied to each program and related subprojects as follows:
I. National Level Programs and Subprojects
A. Teacher Training Program
(1) The subprojects should be instrumental in improving the training of

primary and lower secondary teachers along the lines of the NPSC and
related activity-orientedteaching methods based on teachers'
resourcefulnessand creativity as described in paragraph 4.26.
(2) Land should be of sufficient size to permit extra-curricular

activities as well as to build academic, administrative,boarding
and staff housing facilities for over 1,300 students, of whom 80%
(over 1,000) would be boarders;
(3) The location should allow easy access to a sufficient number of

well-equipped primary schools for observation and practice teaching;
(4) The location should be readily accessible;
(5) The area should have the necessary infrastructure (roads,

electricity, water);
(6) The subprojects should be located each in a different state;
(7) The subprojects should replace the most inadequate TTCs,

characterized by the following:
(a) having an inadequate, cost inefficient small capacity;

(b) requiring constant high cost maintenance;
(c) having no or inadequate space for sports and activities;
(d) being origir:allymeant for other purposes (primary or secondary
school-); and
(e) being 15 or more years of age.
- 61 -
ANNEX 11
Page 2 of 8
(8) The subprojects should be identified and prepared by the MOE Teacher
Education Division in cooperation with the national PWD and
consultants approved by the MOE and PWD.
(9) The subprojects should be appraised by the MOE Appraisal Committee

through its Teacher Training Subcommittee including representatives
from the Teacher bducation Division, the Development and Supplies
Division and the Educational Planning and Research Division. The
Subcommittee should see that the above criteria are applied.
(10) The Joint Secretariat of the DC (EPRD and DSD), in cooperation with
the Teacher Training Subcommnitteeand State PWDs (in the three
states where the TTCs will be located), should monitor and evaluate
the implementationof the subprojects on the basis of the above
general and specific criteria.
B. Educational Resources
(1) The subprojects should be instrumental in increasing resourcefulness

and creativity among teachers and students to implement the new
curricula; and in enabling schools throughout the country to benefit
from the high quality programs produced by the Educational Media
Service, in order to bring about the educational outcomes described
in paragraph 4.26.
(2) School Libraries
(a) The library book:student ratios should be 5:1 and 10:1 in pri-
mary and secondary schools, respectively. However, in primary
and secondary schools with respective enrollments below 400 and
800, the minimum stock of library books should be 2,000 and
8,000 respectively.
(b) No more than 5 copies per title should be provided in order to

maximize the number of titles.
(c) For schools with 400 or more students, half a teaching post
should be allocated for a resource librarian, and for enroll-
ments over 1,000 one resource Librarian should be appointed on
a full-time basis, finances permitting.
(d) Bookcases with adequate provision for security should be provi-

ded to rural schools in which such f;acilitiesdo not exist (an
estimated 4,700).
(3) Educational Resources
(a) Rural primary schools (5,400) should be provided with a

standard set of audio-visual aids and equipment for production
of teaching materials and utilization of educational media.
- 62 -
ANNEX 11
Page 3 of 8
(b) Schools without electricity (3,400) should be provided with

power-generatingequipment and battery-poweredaudio-recorders
and tapes of school broadcasts.
(c) Schools located outside Educational Television reception range

(300) should be provided with videocassette recorders and a
minimum set of 12 prerecorded video cassettes.
(d) Priority should be given to disadvantagedrural schools in the

allocation of audiovisual materials.
(e) RCs should be provided with equipment and materials for audio-
video and graphic material production and training.
(f) The 117 existing District RCs should be provided only with
complementaryequipment and the 230 or so District RCs
established in selected centrally located primary schools,
should serve 15 to 20 surrounding satel. -e schools and should
have a suitable room to house the audiovisual aids and
equipment to be provided.
(4) The subprojects should be identified, prepared and appraised in

accordance with the above criteria by the MOE Schools Division,
together with DSD (for school equipment), the MOE Education Media
Services and the Resource Equipment and Materials Appraisal
Subcounittee (for resource equipment), and the School Library
Appraisal Subcommittee (for school library books).
(5) The subprojects should be monitored and evaluated on the basis of

the above general and specific criteria by the Joint Secretariat of
t.-eDC, in cooperation with the Resource Equipment and Materials
Subcommittee (for resource equipment) and the School Library
Subcommittee (fo: library books).
C. Staff Development Program
(1) The subprojects should improve the practical, technical and

leadership skills of educational mandgers at central, state,
district and school levels, resulting in a more innovative, dynamic
and commitment-generatingadministration.
(2) Long-Term Fellowships
For fellowships relating to trainers' training aLhdeducationaL

development and management training, the following points should be
considered:
(a) Priority should be given to existing, underqualified staff.
(b) Candidates should be first degree holders or post-secondary

diploma holders in specialized fields.
- 63 -
ANNEX11
Page 4 of 8
(c) Candidates should satisfy all admission requirements including

language proficiency.
(d) The fields of study should be selected so that:
{i) no more than three officers from the same ministerial,

state or district institution or office are overseas at the
same time;
(ii) priority should be given to fields where courses are about

to be redesigned and to be implemented in the following two
to three years; and
(iii) no more than two officers from the same teacher training
college are overseas at the same time.
(e) Candidates should agree to return to the same post (or

equivalent post in a different institution or office) for which
the study was undertaken and be contracted to do so for at
least 3 years.
(3) Short-Term Fellowships
For short-term observation and intensive study programs:
(a) Candidates should be in post or selected to take up a position

directly relevant to the fellowship.
(b) Emphasis should be given to learning specific, practical new

techniques in training and administration,such as program
evaluation, media techniques and evaluation, educational
finance, district or state management techniques.
(c) Whenever possible, two or more candidates should undertake the

same program at the same time.
(d) Priority should be given to those ineligible for long-term

study.
(e) At least one person should be selected from each state.
(f) At least one district officer should be selected from each

state.
(4) The fields of study selected for fellowships abroad should not be
available within Malaysia.
(5) Specialist Services

I
For the overseas consultants (for studies) and specialist instruc-

tors (for NIEM), individual terms of reference should specify
whether and to what extent he or she would be:
- 64 -
ANNEX11
Page 5 of 8
(a) involved in the preparation of the study or course content;
(b) required to instruct with or without an interpreter;
(c) required to prepare his or her own teaching aids and materials;
(d) expected to write a report or any other document relating to

his or her participation in the study or course; and
(e) able to bring his spouse and family and what accommodationand
internal travel (official and personal) are available.
(6) The subprojects should be identified,prepared and appraised in

accordance with the above criteria by NIEM, the MOE Scholarships
Division and the Staff Development Appraisal Subcommittee. The
preparation should include draft terms of reference, comprising
qualification of candidates, selection procedures, description of
craining programs, arrangements with recipient institutions and
management of the overseas and local training programs.
(7) The implementationof the subprojects should be monitored and

evaluated by the Joint Secretariat of the DC in cooperation with the
Staff Development Appraisal Subcommitteeincluding representatives
of NIEM, MOE ScholarshipsDivision, Schools Division, Educational
Media Services, Curriculum Development Certer, Federal Inspectorate
and Teacher Education Division.
D. Studies
(1) The subprojects should support the development of sector policies,

and should be instrumental in designing practical actions for policy
implementationand improvement in quality and cost efficiency of
education and equity in the distributionof educational
opportunij)es, and also in preparing possible future Bank-financed
projects.-
1/ Five research studies have been identifiedin the following Lreas:

(i) the relationship between teachers' attributes (including inter alia
an analysis of salary and promotion structures) and teachers' effective-
ness, (ii) management of school and resource center facilities,
(iii) school mapping in Sabah and Sarawak, (iv) relationshipsbetween
educational inputs, socio-economicand environmentalfactors, and stu-
dents' achievements and job opportunities,and (v) the process of
national integration in the education setting. In addition, the Govern-
ment would complete its evaluation of the quality and effectivenessof:
(i) school curriculum content and methods, (ii) educational media ser-
vices, (iii) the textbook loan scheme, and (iv) the evaluation and test-
ing system. Tracer studies on graduates from polytechnics and technical
and vocational schools would also be undertaken. Only a limited number
of high caliber specialist services should be required for specific
assignments (e.g. qualitative data analysis).
- 65 -
ANNEX 11
Page 6 of 8
(2) The subprojects should be implemented to the extent possible by

local agencies, such as universities,with MOE Divisions acting as
facilitators
(3) The number of subprojects should be based on the number of agencies

responsible for their implementationand should be reduced to a
minimum.
(4) The subprojects should be identified, prepared and appraised

according to the above criteria by EPRD and the MOE Research and
Evaluation Appraisal Subcommittee in cooperation with the five
universities which have been identified to be commissioned for
subproject implementation.
(5) The implementationof the subprojects should be monitored and

evaluated by the Joint SecreLariat of the DC in cooperation with the
Research and Evaluation Appraisal Subcommittee.
II. State Level Programs and Subprojects
From within the school construction program identified and prepared

by State Education Departments, the following should be considered for
e-cension, replacement or new school construction,furnishing and equipping:
A. Ceneral
(1) The school programs should:
(a) improve the balance in the distribution of educational

opportunities in favor of the districts below national average
in terms of availability of school facilities;
(b) improve the teaching/learningprocess, in line with the new

activity oriented curricula, by reducing: (i) the level of
double shifting whenever it critically reduces instruction
time, precludes extracurricularactivities and generates
unusual commuting hardships and hazards for students, and
(ii) class size towards a maximum of 40, wherever possible;
(c) consolidate small, dispersed school facilities into more

economical units, wherever possible;
(d) improve teachers' commitment and efficiency through provision

of adequate staff housing; and
(e) provide educational opportunitiesand improving learning

conditions for students living beyond reach of schools or
belonging to the most underprivileged segments of the
popuLation, through provision of boarding.
- 66 ANNEX 11
Page 7 of 8
(2) For primary and secondary schools, the standard classroom size
should be 600 sq. ft. for 40 students or fewer.
(3) The state programs should be identifiedand prepared by the SEDs

through their DEOs, and have been appraised by the MOE School
Construction Program Appraisal Subcommittee including representa-
tives from DSD, EPRD, the Schools Division, SEDs and PWD, in line
with the above general and specific criteria.
(4) The monitoring and evaluation of the state programs should be

carried out by the Joint Secretariat of the DC in cooperation with
the School Construction Frogram Appraisal Subcommittee, and SEDs and
DEOs at the various levels of implementationand responsibility.
B. Parchools
(1) Priority should be given to identifieddistricts in which the

classroom:studentand classroom:classratios are below the national
average, beginning with Lhe most disadvantageddistricts;
(2) Deconcentrationof schools with enrollments of over 1,000 pupils

where establishmentof a new school could absorb excess enrollment
from the catchment area into a new unit of at least 150 students;
(3) Where local conditions permit, consolidationof underenrolled

schools in a given catchment area where the total enrollment in a
consolidated new school, or extension to the most adequate existing
school, could result in a total enrollmentof at least 150 students;
(4) Location of the school should take into consideration access road,
rivers and means of communication, the terrain, the students' age,
number of daily sessions and the time required to cover the distance
from home to school, so that students should not have more than
about 3 miles to walk under safe conditions.
(5) The utilization factor of school facilitiesas a whole should be no

less than 80%.
(6) Special criteria developed by the Ministry of Education are applica-

ble to rural areas (e.g. establishmentof a new class for a minimum
of 15 students). However, in underenrolled schools, the minimum
class size should be progressively brought to 24 and the 40-student
classrooms should be fully utilized through multigrade teaching to
the extent possible.
- 67- ANNEX 11
Page 8 of 8
C. Secondary Schools
(1) Priority should be given to identified districts in which the

classroom:studentand classroom:classratios are below the national
average, beginning with the most disadvantageddistricts.
(2) Deconcentrationof schools with an enrollment of over 1,600 students

where the establishmentof a new school could absorb excess
enrollment from the catchment area into a new unit of at least 240
students;
(3) Establishmentof flexible design standards for secondary school

laboratories and workshops so that, whatever the new curriculum
being developed, these facilities could be adjusted and their
utilization factor would be no less than 75Z.
(4) The utilization factor of classrooms should be no less than 80%.

Lockers would be included in school equipment so that students could
keep their belongings in a fixed place.
(5) Location of the school shoutd take into consideration the points
mentioned in paragraph II-B(4) above, so that students should not
have more than about 5 miles to walk under safe conditions.
- 68 -
ANNEX 12
Page 1 of 2
MALAYSIA
Guidelines and Criteria for Allocation of Loan Funds

under Programs and Subprojects
General Objectives
1. Loan funds would be used according to the objectives of the primary

md secondary education subsector development program under the Fifth Malaysia
Plan (January 1986-December 1990), namely: (a) improving the quality of edu-
cation through implementation of new curricula and availability of qualified
teachers, educational resources and adequate facilities; (b) increasing the
efficiency of educational management through staff development, cost
efficiency oriented measures in relation to the utiLization of facilities and
staff, and studies; and (c) expanding access to better education through
provision of primary and secondary school facilities in areas of greatest
needs.
2. Loan funds would be used for disbursement of the whole or part of

the expenditure on: (a) civil works; (b) furniture, equipment and books; and
.c)technical assistance, including specialist services for staff training and
studies, fellowships abroad and local training. Studies would contribute to
preparing future projects.
3. Loan funds would be used for: (a) national level programs and
subprojects which would benefit the whole subsector and also the education
sector at large, namely; (i) teacher training; (ii) educational resources;
(iii) staff development; and (iv) studies; and (b) state level programs and
subprojects which would address the specific needs of states and districts,
namely: (i) primary schools; and (ii) secondary schools.
4. Loan funds would be used for the above programs and subprojects in
accordance with general eligibility criteria for approval of such programs and
subprojects; and specific criteria for identificationand appraisal of
national and state level programs and subprojects,as stated separately in
Annexes 11 to 12.
5. The present guidelines and .riteria for allocation of loan funds

under programs and subprojects are subject to amendments and modifications
from time to time, after the Government and the Bank have reached agreement on
such amendments and modifications.
Specific Criteria and Guidelines
6. By Objective. Overall allocation would not exceed US$46 million

(i.e. 36% of total loan funds) for programs and subprojects addressing
improvement in the quality of education; US$6 million (5Z) for increasing
educational management efficiency; and US$75 million (59%) for expaniing
- 69 -
ANNEX 12
Page 2 of 2
access to better education. Of the aLlocation to quality at least 452 would

address teacher training and no more than 55% educational resources. Of the
allocation to management efficiency, at least 97% would cover the expenditure
on staff development and no more than 3% that on studies. Of the allocation
to access, no more than 47% would address primary education and at least 53%
would go to secondary education. The distribution of loan funds reflects the
emphasis placed on the various program objectives as well as the bulk, degree
of sophistication and cost of the respective subprojects.
7. By Program. OveralL allocation would not exceed US$52 million (i.e.

41% of total loan funds) for national level programs and US$75 million (59%)
for state level programs. This distribution gives an indication of the decen-
tralization process in educational management.
8. Regional Distribution of Funds. At least 90% of Loan funds under

state level programs and subprojects would be allocated to school facilities
outside the Capital area (Federal District). This reflects the emphasis
placed on assistance to disadvantaged rural districts.
9. Concentration of Funds. Within the above ceiling for state level

programs, to avoid dispersion of funds, it is expected that there would be no
more than 26 subprojects for primary and secondary schools, i.e. two subproj-
ects (one for primary and one for secondary education) in each of the
13 states.
ANNEX13
- 70 -
MALAYSIA
PRD4ARY AND SECONDARYEDUCATIONSECTOR PROJECT
InvestmentProFram Costs by Oblective
Foreign
M$ million USS million as Z of
Local Foreign Total Local Foreign Total total
ImprovingQuality
Teacher training 61.1 41.3 102.4 24.8 16.8 41.6 40
Educationalresources 35.5 50.3 85.8 14.5 20.4 34.9 59
Subtotal 96.6 91.6 188.2 39.3 37.2 76.5 49
IncreasingEfficiency
Staff development:
Specialistservices 0.1 1.3 1.4 0.1 0.5 '0.6 90
Fellowshipsabroad 1.2 10.6 11.8 0.5 4.3 4.8 90
Local training 0.9 0.2 1.1 0.3 0.1 0.4 20
Subtotal 2.2 12.1 14.3 0.9 4.9 5.8 85
Studies 1.2 0.3 1.5 0.5 0.1 0.6 20
Subtotal 3.4 12.4 15.8 1.4 5.0 6.4 78
ExpandingAccess
Primary education 136.6 73.2 209.8 55.5 29.8 85.3 35
S&condaryeducation 155.9 82.4 238.3 63.4 33.5 96.9 35
Subtotal 292.5 155.6 448.1 118.9 63.3 182.2 35
BaselineCost 392.5 259.6 652.1 159.6 105.5 265.1 40
Contingencies
Physical 39.1 25.3 64.4 15.9 10.2 26.1 39
Price increase 25.3 27.9 53.2 10.3 11.3 21.6 52
Subtotal 64.4 53.2 117.6 26.2 21.5 47.7 45
Total Program Cost 456.9 312.8 769.7 185.8 127.0 312.8 41

1- - AXWRX 14
MALAYSIA
PRIMARY AND SECONDARY EDUCATION SEC-OR PROJECT
Socio-Economic Indicators by State
Incidence Infant Percent Over 5 Enrollment

Per Capita of Poverty Mortality Who Never Ratios
States Income (ITSS) x Rate Attended School Primary/Secondary
1980/a 1982/b 1981/b 19RO/c 19R1
High Income
Federal Territory) 14 19 14 100 76

) 3,176
Selangor ) 24 16 19 q9 66
Middle Income
Johor 1,726 33 iq 22 Q6 71
Melaka 1,469 36 16 21 93 69
Negeri Sembilan 1,R17 31 19 20 11in R
Pahang 1,486 43 24 22 Q6 68
Perak 1,583 43 22 19 95 75
Pulau Pinang 2,357 31 17 22 96 77
Sabah 1,847 29 33 (1980) 41 Q1 60
Sarawak 1,382 31 31 (1980) 39 97 66
Low Income
Kedah 1 101 54 25 27 112 73

Perlis } * 50 24 25 95 80
Kelantan 842 50 26 36 Q5 74
Terengganu 1,316 51 24 31 95 68
Malaysia 1,836 - - 25 q8 72
Sources:
/a Table 5.1 - Fourth Malaysia Plan 1981-85.

T7 Table 5.7 - Mid-Term Review of the Fourth Malaysia Plan 1981-85.
T7 Table 6.5 - General Report on the Population Census, 1980.
Note: Enrollment ratios above 100% indicate that enrollments include overaged students and/or
reflect the effects of population migration from one state to another.
ANNEX 15
-72 -
MALAYSIA
Appraisal Operations Carried out by the HOE Appraisal Committee
For each program and subproject, the MOE Appraisal Committee has concentrated
on the following:
1. Objective(s) as compared with policy, strategies and targets;
2. Brief background analysis: past trends in enrollment, local

conditions, special features;
3. Brief analysis of item: land status and size, type of item with
.pecial characteristics (boarding, staff housing, subject
specialization), capacity of item, and specialized features;
4. Justification for inclusion of item: appraisaL criteria, local

requirements, implementationcapability, administration and
monitoring;
Enrollment projections and catchment area;
6. Boarding capacity, justification, and criteria for admission;
7. Staffing requirements by specialization,number and qualification;
8. Schedules of accommodation,areas and costing;
9. Education worksheets;
10. Equipment and furniture Lists with cost estimates and specifications;
11. Overall cost summary (with foreign exchange and contingency allowance
estimates) by category and project items;
12. Proposed timetable for implementation,broken down by ca egory (civil

works, equipment and furniture procurement, staff development, studies
and technical assistance);
13. Proposals for monitoring and evaluation; and
14. Estimate of recurrent expenditure.

Pa4
L° z~ __>E_______X_X_
- P |__-|_-__ll_
I-
~I ta __ .___ m
L_ __. _ .11
§|
1§- - 3 E lI Ill I 11 I!
| 0_r
IMIi |II
ii 'i IlJbu u
i
[ t t sX }8 B S | Si; j ts 0i } g 3} it § X g }| t] | I
ANNEX 17
- 74 -
MALAYSIA
PRIMARYAND SECONDARYEDUCATIONSECTORPROJECT
Critical ImplementationDates
Implementation
Start Complete
Construction, Furnishing and Equipping

Teacher training colleges October 1986 June 1989
Primary schools July 1986 December 1988
Secondary schools July 19R6 June 1989
Furnishing, Equipping and Library Books

Resource centers October 1986 June 1989
Technical Assistance
Staff development program:
Fellowships abroad September 1986 June 1990
Local training July 1986 June 1990
Specialist services July 1986 June 1990
Studies July 1986 June 1989

ANNEX 18
75 - Page I of 3
MALAYSIA
Key Performance Indicatots
1. Objectives. The principal objectives of the Government's Plan of

Action (Annex 5) are:
(a) to improve the quality of education through: (i) expanding the new
curricula graduaLly to the whole primary and secondary subsector;
(ii) training an adequate number of new qualified teachers and
upgrading the qualificationsof inservice teachers; (iii) providing
schools with adequate educational resources; and (iv) reducing class
size and double shifting whenever they critically affect the deliv-
ery of the new curricula and the students' learning process.
(b) to increase the efficiency of educational management through:

(i) implementing a comprehensivestaff development program; (ii)
taking cost-efficiencyoriented actions to keep constant or reduce
the number of underenrolledschools; expand multigrade teaching; and
reduce the unit areas and costs of school construction;and (iii)
maximizing the quality and output of the subsector through careful
monitoring and evaluation, and pertinent studies.
(c) to expand access to better education through provision of adequate

facilities for students (academic and boarding) and teachers (staff
housing).
For monitoring progress with regard to these changes, the Government and the
Bank have agreed on the following key performance indicators. They will form
the basis of progress reports and be jointly reviewed by the Government and
the Bank on an annual basis and on the occasion of the mid-term review.
2. Monitoring of Physical Implementation and Related Expenditures
(a) Teacher Training:
- Number of new student places and enrollments in TTCs
(b) Schools:
- JNumber
of primary classrooms built annually by district
- Number of secondary classrooms built annually by district in
Peninsular Malaysia and by division in Sabah and Sarawak
- Number of additional primary and secondary enrollments by
district and/or division on an annual basis
ANNEX 18
- 76 - Page 2 of 3
(c) Educational Resources:
- Number of primary schools annually provided with educational

equipment and material packages
- Number of p. .iaryschools annually provided with library book
packages
- Total number of library books provided annually
- Number of district resource centers equipped annually
(d) Staff Development:
- Number and type of overseas fellowships awarded and completed

annually
- Number and type of local training fellowships awarded and
completed annually
- Number of man/months of specialist services utilized annually
by type of assignment at NIEM
(e) Studies:
- Number of studies commissioned and completed

- Number of man/months of specialist services utilized by study
Cf) Education Expenditures:

- Total annual investment outlays on primary and secondary
education and teacher training (by State for primary and
secondary schools)
- Share of such annual investment outlays in the overall
educat-on investment budget
- Share of such overall education investment budget in the total
government investment budget and in GNP
- Total annual recurrent expenditure on primary and secondary
education and teacher training (by State for primary and
secondary education)
- Share of such annual recurrent expenditure in the overall
education recurrent budget
- Share of such overall education recurrent budget in the total
government recurrent budget and in GNP
- 77- ANEX is
Page 3 of 3
3. Monltoring of Achievemnts of Program Oblectives Monltoring of the major outcome. will include the following:
Achievement of program objectives Base year 1985 Midterm year 1988 Target year 1990
IMPROVINC THE QUALIM OF EDUCATION
Curricula
Primary (NPSC) EPSC implementation in NPSC implementation in
Grades I to 3 all aix primary trade
Secordary (NSSC) MSSC Implementation
in Crades 7 and R
Teacher.
Preservice Training Output
TTC 6,100 9,500 10,000
Universitiea 1.800 2,500 3.000
Inservice Training Output

Qu liled
Primry
Long-term (one year) 2,000 2,000 2,000
Short-term (below one year) 8.000 9,000 9,000
Secondary (belov one year) 5.000 6,000 6.00n
Profeumionally unqualified - 1,200 1.200
Fro rtion of Graduates

Lover secondary (2) 5 1n 15
Upper secondary (1) 75 80 85
Number of Nongraduate Teacher Trainers

Upgraded (cumulative) 10 90 zoo
Educational Resources
Number of title. read by each atudent accord-
ing to the following levels of reading
Nlgh n.a. 60 60
Median n.a. 30-60 30-60
LOW n.a. n-1n 0-30
Percentage of teachers by district borrow-

Ing materials and equipment from
resource centere (2) n.a. 10 20
Percentage of teachers by district attend-

Ing courneas in resource centers (2) n.e. 5 10
Facilities
Reduction of number of classes exceeding
45 students 10,OJO 6,000 0
INCREASING THE EFFICIENCY OF EDUCATIONAL

MANAGEMENT
Profeessonal and daministrative staff trained 4,000 16,000 20,000

No increase in r mber of underenrolled schoola 2,400 2,400 2,400
Increase of Lvecsale class size in underen-
rolled schools Is 19 20
Percentage of schools below a total enroll-
ment of 120 (1,900) utilizing multigrade
teaching (2) 30 50 60
INCREASING ACCESS TO IMPROVED EDUCATION
Maintain Universal Primary Education (enroll-

ment ratlos, 2) 98 98 98
Increase lower secondary enrollment ratio (2) 88 90 92
Raicing to the 1983 national average the
classroom:claam ratio In districts below
this average
Primary (Z) S4 69 73
Secondary (Z) 51 55 60
- 78 - ANNEX 19
MALAYSIA
Investment Program Costs by ImplementationYear and Program Component

(M $ million)
1986 1987 1988 1989 1990 Total

Teacher training 11.7 38.7 38.6 13.4 - 102.4
Educational resources:
School library books and
shelving 4.1 12.4 23.2 1.7 - 41.4
Equipment and materials 3.0 1R.2 19.9 3.3 - 44.4
Subtotal 7.1 30.6 43.1 5.0 - 85.8
Staff development:
Specialist services 0.3 0.2 0.3 0.3 0.3 1.4
Fellowships abroad 2.6 3.5 3.3 2.0 0.4 11.8
Local training 0.2 0.3 0.2 0.2 0.2 1.1
Subtotal 3.1 4.0 3.8 2.5 0.9 14.3
Studies 0.5 0.8 0.2 - - 1.5
Subtotal National
Level Programs 22.4 74.1 85.7 20.9 0.9 204.0

Primary education 88.4 111.0 10.4 - - 209.8
Secondary education 98.9 107.5 31.9 - - 238.3
Subtotal State
Level Programs 187.3 218.5 42.3 - - 448.1
Baseline Cost 209.7 292.6 128.0 20.9 0.9 652.1
Contingencies
Physical 20.8 29.0 12.6 2.0 0.0 64.4
Price increase 4.9 23.7 19.5 4.8 0.3 53.2
Subtotal 25.7 52.7 32.1 6.8 0.3 117.6
Total Program Cost 235.4 345.3 160.1 27.7 1.2 769.7

ANNEX 20
- 79 -
MALAYSIA
Overall Financing Plan
Government IBRD Total x IBRD

-- (US$ million) financing
Civil works 125.6 67.7 193.3 35

Land 5.6 - 5.6 0
Professional services 5.4 0.9 6.3 15
Furniture 6.8 2.3 9.1 25
Equipment 2.9 25.6 28.5 90
Library books 11.9 4.0 15.9 25
Technical assistance:
Specialist services:
NIEM 0.1 0.5 0.6 90
Studies 0.5 0.1 0.6 20
Subtotal 0.6 0.6 1.2 55
Fellowships abroad 0.5 4.3 4.8 90

Local training 0.3 0.1 0.4 20
Subtotal 1.4 5.0 6.4 78
Basell--eCost 159.6 105.5 265.1 40
Contingencies
Physical 15.9 10.2 26.1 39
Price increase 10.3 11.3 21.6 52
Subtotal 26.2 21.5 47.7 45
Total Program Cost 185.8 127.0 312.8 41
o0
ANNIEX21
- 80 -
MALAYSIA
EDUCATIONSECTORPROJECT
Estimated Unit Areas and Construction Costs for Project Institutions
Gross area per student Construction cost per student

place or housing unit place or housing unit /a
Bank-wide Bank-wide
FY81-83 FY81-83
projects projects
This Upper This Upper
project Median decile project/b Median decile
---- (sq m) --- - - (US$)
Primary
Academic & communal 2.9 2.4 2.9 580/c 690 820
Secondary
Academic & communal 5.4 5.9 8.6 1,140/c 2,880 3,900
Teacher Training
Academic & communal Il.6/d 8.6/e 15.2/e 4,750/d 4,900/e 6,100/e
Boarding 16.0/e 9.6/d 23.'n!d 5,260/e 3,850/d 5,580/d
Staff housing 118.5 86.0 128.0 37,820 31,240 49,510
/a Unit costs exclude contingency allowances and professional fees.
/b All costs in 1983 US$.
/c In Johor, Terengganu, Kelantan, Perlis and Pahang, costs are 15% higher due to higher
transportation costs. Similarly, costs are 40% higher in Sarawak and 60% higher in
Sabah.
/d Exccluding dining facilities.
/e Including dining facilities.

ANNME 22
- 81 -
MALAYSTA
PRIMARYANDSECONDARY
EDUCATIONSECTORPROJECT
Disbursement Forecast
Disbursement profiles
Disbursements Malaysia AEP regional Bank-wide
IBRD Amount per Cumulative 5th education education education
fiscal year semester Amount % project /a projects lb projects Ic
and semester - (USs million) - (%)
1987
1st 2.5 2.5 2 0 0 0
2nd 2.5 5.0 4 1 2 1
1988
lst 5.1 10.1 8 3 4 4
2nd 11.4 21.5 17 10 8 7
1989
Ist 14.0 35.5 28 20 12 11
2nd 18.9 54.4 43 33 18 16
1990
Ist 19.1 73.5 58 46 26 22
2nd 19.2 92.7 73 58 34 29
1991
Ist 18.0 110.7 87 70 42 36
2nd 16.3 127.0 100 82 51 43
/a Most recent general education project in Malaysia (loan 1657-MA),closed on schedule

on June 30, 1985, under MOE's exclusiveresponsibility.
Jb Based on 29 Drojectsand representingthe initial five years of an average

disbursementperiod of 10 years.
/c Based on 117 projects and representingthe initial five years of an average

disbursementperiod of 10 years.
ANNEX 23
- 82 - Page 1 of 2
MALAYSIA
Selected Documents and Data Available in the Project File
A. Reports and Studies ReLated to the Subsector
A.1 Proposal on a Sectoral Investment Program for School Development

(Primary and Secondary) 1986-1995, Government of Malaysia, July 1984.
A.2 Education in Malaysia, A Review of Expenditures and Discussion of

Issues, Peter R. Moock, EDT, World Bank 1984.
A.3 Malaysia. The Reinforcement of Education and Manpower Development,

UNESCO, November 1977.
A.4 The New Primary School Curriculum, MOE, 1982.
A.5 Statistical Yearbook, Primary and Secondary Education, January 1984,

MOE.
A.6 Cabinet Committee Report on Education, Recommendations,Government of

Malaysia, 1979.
A.7 Teacher Education in Malaysia, MOE, 1983.
A.8 The Examination Syndicate, MOE, 1983.
A.9 The Educational Media Service, MOE, 1984.
A.10 School Resource Centers, MOE, 1984.
A.11 Economic Report 1983/84, Ministry of Finance Malaysia, 1983.
A.12 Economic Report 1984/85, Ministry of Finance Malaysia, 1984.
A.13 Belanjawan Persekutuan, 1985; Anggaran Perebelanjaan, 1985 (Budget

Book), Ministry of Finance Malaysia, 1984.
A.14 Belanjawan Persekutuan, 1986; Anggaran Perebelanjaan, 1986 (Budget

Book), Ministry of Finance Malaysia, 1985
A.15 Mid-Term Review of the Fourth Malaysia Plan, 1981-1985, Government of

Malaysia, 1984.
B. Working Papers and Data
B.1 Estimated Program Costs.

- 83 -
ANNEX 23
Page 2 of 2
B.2 Analysis of Project Cost Estimates for Primary and Secondary Schools.
B.3 Schedules of Accommodationand Architectural Worksheets.
B.4 Analysis of the Staff Development Program.
B.5 Analysis of the Studies.
B.6 Analysis of the Educational Resource Component.
B.7 Primary and Secondary Enrollments, 1982-1995.
B.8 Primary and Secondary Teacher Demand and Supply, 1984-1995.
b.9 Educational Data and Ratios by District, 1983.
B.10 Tentative Allocation of Classrooms by Type and by District.

MALAYSIA
ANDSECONDARY
PRIMARY EDUCATION SECTORPROJECT
Structureof the EducatlonSystem
1984
PRIMARY i SECONDARY
LOWER SECONDARY
UPPER POST
SECONDARY HIGHER I
I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ s VToCholo
Higher MARA ilrtu d Tctiology
A t R (T CsCercrelrrvC LwSeca I
ITesiI sH3 TeelmcdTeocheTi

e
I Itill Mo o Ieo)~on MCS Troing nte dning C'e Op%r n
Pil1ID I
SP| -Sjl Ieaaa I Edblnl l
l | | ~~~~~~~~~~~~~~~~~HighW
LVI - Love hr V Vocatior sp2M
M - Mtricultion i Poiihn Ic
MYCS - Mhnistrof Youibl tAR
_ Cdoleg
SW -SjlrnQ
Cu4ur a Spfns I MARATrinn rislThfd
PUJ - Prr>Uhyft
R - Rerno (Transition)Clo-
TAR~~kdlRha Tu* Cotfct IE{|Aclr Ccd
Periekalahon
56AI Ab-Standard 5 hewnentI r
I ~
~~~~~~~~~~~~~~~~~~~~~~~~~~ lfdflTO Trinn ItIutm
sc - Skil CFodfA
SPM -S9111 Peb omn MntvZs_'i _ SC Cente 5
MYCSTrrainingl
VWM -90I Peoaoro Vokmkonol
Makb,s1a
SRP -9i1i Rondoh Pobiporo
STP -Silil ringgi SC-----1 MARATraining urWtutzeI
tAR -Tunku AbdX Pohffxnn II

UM' LlppmeFormVM,I r.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I
. {
.~~~~~~~~~~~~~~~~~~~~~~~~S HIcndushtria raiNg rlontutesr
eQ6 7 B 9 10 11 i2 12`13 i13 414

M15 i 5-16 i&`17 1 17-18 '1-19 1 19-20 20-2i 21-22 22-23 23-24
dVf Pionk-26MS ^
MALAYSIA
PRIMARY
ANDSECONDARY EDUCATION SECTOR
PROJECT
Education Pyramid(1984)'
AS%OF
AGE GRADE MALE FEMALE TOTAL' AGEGCOP
23-24 V 940 1046 2985

22-23 IV 5 940 1L 3205 9145
21-2 1 15 3 Ms 11.040
IU 4
20-21 11 8.580 4,020 13200
122.v- :n1 9513 22.129
POS19
SCONDAY 30.251 b2S) 22.248(38S) 5649-9(25)
18-9 13 IS 661 17 934 335-5
17.1812 Ib.751 16.551 33.306
wwn SEC0OIDAW 32.412(43

1) 34.488(52%) 660.9M(2S)
6017 11 788a8 r 76.506 155.314
15$16 0 8834 |..... . 9D 496.9
LOCWI ECOND0NI 1654442

(51%) 159.426(49%) 3238 (9%)
14-15 9 14t
iaom sX3500 J B B E . Si4 1~~~~~~~~~~~~~~~~~~~~~03 2 I 25f.612-
560
13-14 8136.073 1 aahfa.x8>¢§:§>;>;,6;;>il 127513 243566 U
12-13 7 146132 '1_ ee 2U8813 'ju
12 I7 .47762 47.011i 94 773
KM APV 462.4Z76(511.) 437308(49%) 8eg7?A(26%)
<~~~~~~~ 7
?Z3.J3 ||E|Er 163.656 337D29
10 |5 150 .. .. ...... 16
i5925 341.022
914 7182.810 . 172. 0K 35.514 9n
8 136.186 I 176.676 363.062

192270 182.340 374610
194.067?16
i04.0 r(511.) 528
1.045.029(491
377.595
2148832(41%)
]
TOTAL 1 799m.4(51%) 1698.499(49%) 3.497J03('0(o)
I Ii I I I I IIIII ii I
I II1 I Ii II I I I I ~I I I 1I 1 , , I
200C'O 000 100w0 500 0 50s
MDO iO 150O 2000DO
Nola
inCkude ervolments n pubiC itlttutom 021v
FKKoei.n pcirertimie ." eot shore n lotcero &n0Imwh
'Icftude eWfonmcmsin uOwenilwe,(1983/84 higame) to highsercolWes 8 Year IIId teacthertrcimrg c(1ag9s & P0Ichn'cs
'i etVIlmcetsn aOcadecic & rrct
atudeS iCdFoamVl Ye oeachter tra,rw cdoege & precmics
A I10ot
& pre-lvW tV cCIe prosrdd w¶thii uriwulas & cdlgw V Sr&-26984
l?emoe Crcte Transtion class povlding remredid nstrucItcn
MALMAI3
ANDSECONDORY
PRIMARY EDUCATION PROJECT
SECTOR
Mh kvd Education
Oq0AnM Chad (1955)
,~ ~ ~~- ------- ----
1111
liiiI I .. 1 1
Ed 111111
j
1111' XII'
Ud~~~~~~~~~~~~~~~~~~~W
W4*Wo Sao W N
W
IiYy _I d Ii a d I~ . Ia
tM ~~ a W G o
_s1 d s C1 rd
ld WOP Awylow
momW
km1 rd bl_
MALAYSIA
PRIMARY
ANDSECONDARY EDUCATION SECTOR PROJECT
OperatlonalChartof EducatlonalPlanning
Ministew
ofEducatbcn
CABW
Notbnal Development
Plarwng Commee (NWPC)
Educatinal Planning Committee Ecomlc Planning UnH(EPJ)

-EPC) Prire Miniders Departmnt
Membership MinisterofEducation _
TwoDeputy Ministers
Secretary-General
Director-Generol
TwoDeputy SecretarlesGenerol
TwoDeputy Directors-General
d Education
Dimstrv _ Directorof EPRD Pannin Ccnmittes
1. Devopenwt 0Canmnitee
Univ"ties Educational Planning& Research 2. HIgherEducation PlanningCommirttee

(EPRD)
vDMsion
(as Secretariat) 3. Central CurIculum Committee
State EdLucatbon
Deportn-ents__
4. TextbooksTechnicalCoTvrrttee
5. inance Committee
OtherAgencies Related internatb ial Agencies
to Education Related to Education 6. Scholrships & TrainingCownittee
Source: Ministryof Education WorldBanr-26956

MALAYSIA
PRIMARY
ANDSECONDARY EDUCATION SECTOR PROJECT
StateEducation Depadment (SED)
OrganizatkonChad (1985)
FState
Directorl
odEducation|
Deputy Director I DOputy Orkotor 11 DngDsrdDvso

Ecatlonal Stuies Edckictionl Services Prevention (EduOt)o
PAD PAD PAD PAPPDDA
Curlculum durationcil Evaluation& Coicuffl- lam Sce & Student Panning Uaison& Secor PrlmaV
technoxogy Examinatk%ns culum Education Administration' DeTprnt RTgstration c
Ac-tivities Supy
A A A AD/S
AS AD/S
A AD/S
A AD/S
C)3
PAD = PrricipalAssistantDirector
AD/S = AssstantDirector/SupeMsor
Notes 'Includes fnance & accounts
Includeshostels,health& discipline
N
b
CS Clercol Staff
Source:Ministryof Education WorldBnrt-26957
MALAYSIA
ANDSECONDARY
SECTOR
DlstrictEducationOfflice
OrganizationChar (1985)
DistrictEducationOfficer
DistrictEducation
Assistant lAssstant DistrictEdLcation
Officer- Secondary Schools Off|cOr- Primary Schools
Schools
Sutevsors-u Secondary Supeisor-Ps xay ISchoos J
f EducationlCleical Officr
Supporting Staff
(Typt OfficeBoy.GeneralLoborer)
Source Ministryof Education ./odd Bar*-26960

MALAYSIA
PRIMARY ANDSECONDARY EDUCATION SECTOR PROJECT
Procedurefor Generalingand ProcessingProgrms and Subprojects
DwmorrAl Cornm"oo
Socrstak rxep om OC
l tQtoros b, RubcVIOOc
'dtfitatl & pIep4aan
OC aRobnt
ton o %f
l 006~~~~~~~oeno
& pnae Ye %f
~~~~~~~~~~~NO
r~~~~~cco. to tc ,, D Cm gUd
ed o* D _ _ _&gttegto Canty -… ______
&progom lo fOKfl
W4'0OgVc19& ' sg,'
cIokled I , ~~~~~No
D r-S's guo .itWedtodQ'YW0gtfl '|No
S ED.Skw /
A afek t ntOfl -i- - - -.- - - - - - -
' 7
or modrcation AgwicieWmcwrwAgwlcy
WO SE bpADmm&S.
-St eAnepahd
& progroD
to-2b95 doIa& / -
s -Ds
DC
toDCmet
DC - Desormn
t Coiwnifteew
Dwe4opiWflCom*tIeSec,la
DC.S- ~ 1 D olStoto % ys 9
prog
- ttTV0 to 00AgtyMng m
StateEducation
S~~D - ment f Cepcu pWdBc*-t
MALAYSIA
ANDSECONDARY
SECTOR
Ministryof Education
EducationalPlanningand ResearchDMsion
OrganizationChart(1985)
[ Oirectlo
Deputy Director
| Administrative Unit Planmnin Unil ReseCootdnoio valuation Umlit

Enl Policy Unit Data Unlt
S| nkxExcu1tive Oficef Chiet Education Officer Chef Education Ofic Chef Education Office Chie Educatin Ofem (2) j [ Chie Education Ofticr
l Il l
F_ _ Iz]z mim
GraphicDosgneos(2) SeniorEducalion SensoEducation SoniotEducation SeniorEducation SenlorEducatIon
SeniorClericalOffces (2) Officers(3) Officors(5) Otfcers(4) Officers(5) Otricers(2)
Clerical Officers(110) Grocauate Educalion GiroduateEducaton Groduate Education Groduate Education Gordatre Fducation
JuniotClercol Officemss(5) Otlicess(i8) Officers(7) Oficers (23) Offtcrrs(3) Officers(13)
Technician Non Groduate Ed6cagtin Non-Grduate Education Non.GraduateEducation Non-GraduateEducation Ubrartn
Personnel Assistant Otficers(5) Officers(S) Officers(4) Officen(4) Non-GraduateEdutcaion
Stenographers (3) Ofcers (7)
Typists
(121 Prograrnmer(2)
OffsetMachine Opeatos ._ Senir Clrical Officer
OfficeBovs(6) Crkic Officers (8)
Dnvers(2) UbasyClerIcal
Ofcems(2)
UbraryAttendants(2)
Wcrd Bank-27552
MALAYSIA
ANDSECONDARY
SECTOR
Ministhyof Education
De'elopmentand SuppliesDMslon
OrganizationChart (1985)
Sacrotaiy
[ 0ntmDlo nt Unrt Supies Unit Ad ttoton Unit Frgn LoromUnit
nincipmiAsastont PtmritpaiAssistant PnrI-d Assot

Socilourv S .c_ _o._ SevenwY
12 Assistair | 10 Awstont Ass1Iront 1 2 Asstsnt |

Socretalios Socictanos Socsetrvy Secreatr ro
~~~~~~~~.__.____
1Statisticin I SeniorExocut,veOffce 1 EngQWt
1 EXocutrIqOrficor I Executrve Co oe I QuantitySiiw
I ArchMect
2SeniorTechnicdAufants
Accounlin Oftcr
2 EXbCUIIH
i EmmAhmOffMce
I Technicd Aastant - Gnoral

1 Chet CletIO 1Tchrh Anstant - Electriol Erglnpeer
4 CbhIs I Techna hSmnt - chtectum
I Supeor I Tertv*ot Assistont- Qantlt Sswho
I5 Typists
5 OffcePersons
4 FileSacMns
Operora
1 rTeleq*orn
2.Chief..ls I Offset Mochin Operator
23 Clmks 2 CnIocCurrIys 1 I Chief C*te
2 BookKeepel 42Clerics 3 .6 .C_lr. eft .
WorldBmBo-27(63
- 93 - CURT 10
MALAYA
PRIMARYAND SECONDARY EDUCATIONSECTOR PROJECT
Management of Subwector Investment Program
Organization and Responsibilities
APPOV11
or#ti
RrKg
siPt
MW*ydOf rf
EducatfionRr
MlrlsiPolc
Minh" ofMin
~~~~~~~~~~~~Econoxmic
r
UnitAecesDpMw
Pbi oc
Appwa at Mini ster O

Mhiaby Leel Education
Coordination & Minste

mR4w d Chncnn he,
Recond Den H
PKWogrCo&rnmittse
Jdnt Secretaiat of
Pi-cn & the Development Comrmitee
i.e.. Development &
APPmlud & Supplies DWviion & EPRD
Financial Control ASsstd bv ExPeis torn
Unveskiy & Other Agencies
Whenever ReQuired
---~~-- 1- - - - - - -- - - - -- - - - - - - -
Rogrom a I State Education Depornents
IsfltEloiIOf OfficesOfoe
2. DistliC Ediucotlan
11 rPllkalodn 3. Mini" or Education Divisions
_ _- -- -- - - - - - - - - - - - - - - - - - - - -
Proect 1 Development & Suppies DMvwson
Irnmeirrenttion 2 State Educstion Depontments 1 Distr PNO
h Procueent 3. DisTict Education Offices
Depamrnent
Ke: PWD - Public WoVks
EPRD - Educational Plarning & Reseorch Divison
SouFce, Mnisr of Education wodd Bar*-26958

IBRD A19300R
1 do00° 1020 ALEAUfSIA 1040

PRlMARYAND SECONDARYEDUCATIONSECTOR
STUDENTS PER CLASSROOMBY DISTRICT
PRIMARYEDUCATION,1983
'lxi PENINSULR U UYSI
, ~~THAILAND
Standard Deviatkns * Students
'>2 W 64- 81
Q
1- 2 v 54-64
60 V 44 54 60
ok -1 - 0 34 -446
Timur _~lu
LauHuiu
D'stri
Perak
-Shod BounoanMes
VŽ&KK
~~j~'ur~4 ~~~ - N * MeanValueEquals43.76
- StateBoundaries
K. T.ren§Pnu - .nternational Eoundaries
Ulu Keaunits t Trngau an
.... .. ,....
... . ..
; .tu Te - eng
-. A Bn
~
*___
6g
;-q , * . -, hJ LZps
.,Kuala
- er
-404
KILO~~~~~~~~~~~CMETRSn (a; - -.
SOUTH
___mSet*ao CH f NA
0 20 40 60 80 100
KILOMETERS ~~~~~~-s - - - - - - - - - -..>s
-s SIF4GAPORE
5 a { 5 'V -I M JrERX ...
Je KAM PC H~ EA -/ ? . I...~/
\
DEMOCRATIC -
KAMPUCHEA/
,~VIET NAM MiI~T
PsSC NINSULAR .* Pt fl. nw tC' P --
1'-fd
PHILIPPINES 2-2~ 20
THAILAND NN
I 100 ESIA10"14
BRN~ Sabah
PENINSULAR
MALAYSIA MALAYSIA
Sarawoak INDONESIA 7SNAOE

(,,,sirNGAP0RE \_ ' ISUMA TERAJ
102" 18
104,~~~~~~DcI~
10°o 112° 114° 116° 11°iIe E
MALAYSIA
PRIMARY AND SECONDARY EDUCATION SECTOR .s
STUDENTSPER CLASSROOMBY DISTRICT Kmjl,
PRIMARY ED)UCATION,198,3 /'
EASTiVAIAYSIA ^ ,,tsEing
StandardtDevict.onsi Studensnl-KtBtU$;X ''<
>- 2 98S - 1i40 >; ;.. !

C) I
1^ 2 74 - 98 p,,w:;9*n6.,.fi '',acoene
] _1_o H~~~~~I 24-49 p,,, u P , ' s ^
iJaaf
MG 6
wi Equs 4&- BRUNEI hJ.l..;. g"%% ;
-' - ~o';.l!
B .....
datl,-e1 ..X {!;st5--'S.t>V. Sernlparna
\ \;s
0 40.^ 0., i'. 160 20(1 .: t~>Lihi^ Ef N | ... :o+

4 I L;Oil.1E T E R S
F.~~~~~~~~ t , .,4 t
|~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I, "' NIAM "ET PHILIPPIN ES
2 ~ ~ ~ ~ i*r, ,tLpi ;Alli**LYI AASs

- INDONESIA Sar3t,tt /~~~~~~~~~~~~~~20
~ ~ ~ ~~~~~~~~T
thUAL/t1ANTANI~ ,. ., A A.SNC) GP ,-
INDONESIA. ; . NOrsSx s;o!Es
lin 112 11t4°

0tstrJE (Ka/liniarTtan)
IBRD A19305R
r- o it
loop 102°"YSIA
t0
1040
PRIMARYAND SECONDARYEDUCATIONSECTOR
__ STUDENTS
PERCLASSROOM
BY DISTRICT
1983
EDUCATION,
SECONDARY
THAILAND PENNSULARMALAYSIA
j. ;< THAILAND
0 1-^:;.)-. Standard DeviatLons Students
eXP.Lak -_ >- 2 88 - 109
1 - 2 74- 88
o jr 1 s iNgX0-
60- 74
6 X So Sk rv --
~~~~~~~~~~~~~~~~~~~~~~~h-2
Mm -1 --0o-1 31-
45-_60 4 6-
Kuala
tcha x < -2 17 - 31
.imur u N Mean Value Equals 59.70
Timur
lu Pkala Schovl District Boundaries
B aratD aV a State Boundaries

EtaratDayaD o It<! 8~ 5 / (I t K. Terengganu _ International 'oundaries
Kerian | _ E } Ulu KCelantanl

Ulu Kelansan 1 Ulu Tercnqqanu r
Kuala Kanqsar
-Dan .
M:an >r-=--- Dunqun
Kinta Carneron
Dirlding Perak _ h ds
Jerantu t Kemanan
Pe Batanq 40
-4° , . ' .. , HiliFitr Padang......... 1,S?'3t4
..- * : Raub 7~~~~~~~~ < K~uantan
Eternam iu Selangor- Temerloh
\ uala{e(8n°9
ea
0 20 40 60 8C \l Gombak
KILOMETERS put
ual < Kuala Pilah t~

Lan
*r-
-S CQuD .ma
D-V-fl
a bO-Oel/ , ID
-
. _ - d_
- Serenbu .Jempo __Rompin
_'I'_d_~t_nS_>_y<OtW*-s srt>Rerr Tampin7_l

100 DIClc5son5 _ } . Segarnat
DEMOCRATIC I telakaU c
j KAMPUCHEA JMersng
1,_ VIET NAM M r uar
/ PHILIPPINES '-- lu 20
THAILAND N a at
,. sa°r_ Kota Tinggi

PENINSULAR
MALAYSIA r MALAYSIA J ,-
- Ponti3n JolorBahru'~- r
Sawk INDONESIA
{,,SINGAPORE S_, (SUM4ATER;A- fSINGAPORE-,
INDONESIA
102" E1040
DECEMBER
1985
IGRDAl931313R
0 10~~~~~~~~~~~~~~~~~~~~
110 112' 1140 l16 1a° Iosa
DECWEUER
MALAYSIA
PRIMARYAND SECONDARYEDUCATIONSECTOR ** .>
STUDENTS BY DISTRICT
PER CLASSROOM KuIo:. '
SECONDARY 1983
EDUCATION, /p:
EASTMAlAYSIA
StaindardDeviations Students
>= 2 . 186- 289

0
- 1 - 2 131-16 1 B6nIrn '°
O - I 77 - 131 PlaplllO1t; ac3a
-1 - 0 22 - 77 KPl.ll PoiyT . ..
0-22 ~~~~~~~~~~L
1~
il)ti,iil A,I );flgn,w K i'abl;a1pqpr
Usan ValueEquals77.35 BRUNEI
School District Bounclarios ,pW, 6 .L Il(aD,lu
Internationa:lUBuI3rildIIOfl.IlSnudaries l Pi . .. . \ prnu
0 40 80 120 160 200 L imtwn''

0
KIKLOlOMETERS 4-
~
Miitti/Diir ~ Nii~~
kah~ ~ M;nSuis
~~~~~Rirn
Ma1UJ/D,iro ; Mukah i:.|............... 1180 o ::^, ,j .. !

DEMOCRATir.
Sar'i 81 || K AMP C 'VIET NAM PHILIPPINES
B *,~~~~~~~~*. ~~~~. . . . . . . .
2 ~. .ll . 1sl 2}Ci!t;tkpWlt t,ln ru *9i;§Sg'SclTHAILAND

>~~~~~-Ar<\
'uIa >{i E^. . q 0. ,;,,,, ; ., C1
._ t MALAYSIA
|| I _l_ B NI
.I.. .,. ,,, I.M
.; '.;\ ;, ' xINDONESIA INDONESIA 4

l 1O° 1 t20 1140 . .(;D. '' . KalinSantanw _

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Public Disclosure Authorized

Report No. 5886-MA

STAFF APPRAISAL REPORT

This documenthas a restricteddistribution and mav be usedbv recipientsonly in the performanceof

Currency Unit = Ringgit (M$)

Average 1984 October 1985

ADB - Asian Development Bank

STAFF APPRAISAL REPORT

(EIGHTH EDUCATION LOAN)

LOAN AND PROJECT SUMMARY.....................................

This report is based on the findings of an appraisal mission in April/May 1985

This documenthas a restricteddistribution andmay be used by recipientsonly in the performance

3. THE PROJECT ............................................ ....... 19

Objectives and Strategy ......................... ............. 19

4. MANAGEMENT AND IMPLEMENTATION . . . 23

Government's Project Implementation Capacity . . 23

5. AGREEMENTS REACHED AND RECOMKENDATION ....... 34

Tables in the Text

1. Investment Program Costs by Category of Expenditure .......... 27

1. Comparative Education Indicators

1. Structure of the Education System, 1984

Malaysia - Primary and Secondary Education Sector Project

PRIMARY AND SECONDARY EDUCATION SECTOR PROJECT

(EIGHTH EDUCATION LOAN)

Basic Data (1984) /a

Total population: 15.2 million

x Teaching Fnrollment Age

Primary (Grades 1-6) 2,149,000 49 85,800 97 6-11

Secondary (Grades 7-11) 1,223,700 49 55,500 72 12-16

Postsecondary (Grades 12-13) 74,500 52 n.a. 11 17-18

Higher (Grades 14-17) /d 50,900 38 6,200 4 19-22

/a Unless otherwise indicated.

PRIMARY AND SECONDARY EDUCATION SECTOR PROJECT

(EIGHTH EDUCATION LOAN)

Loan and Project Summary

Amount: US$127.0 million equivalent

Terms: Repayable in 15 years, including three years of grace, at the

In support of this objective, the project would help finance

Risks: Constraints on resources might slow down the implementation of

National Level Programs

Subtotal 40.7 42.2 82.9

State Level Programs

Subtotal 118.9 63.3 182.2

Baseline Cost 159.6 105.5 265.1

Subtotal 26.2 21.5 47.7

Total Cost /a 185.8 127.0 312.8

Financing Plan Local Foreign Total

Government/a 185.8 - 185.8

Total /a 185.8 127.0 312.8

Bank FY 1987 1988 1989 1990 1991

Annual 5.0 16.5 32.9 38.3 34.3

Rate of Return N.A.

a/ Including taxes and duties estimated at US$5.0 million equivalent.

PRIMARY AND SECONDARY EDUCATION SECTOR PROJECT

(EIGHTH EDUCATION LOAN)

1.01 Malaysia, a country of about 15 million people in 1984, is separated

Development Objectives and Economic Performance

1/ In Sabah and Sarawak, where the population is widely dispersed, the

1.04 The most dramatic economic progress occurred in the 1970s as a

Implications for Education

1.06 Malaysia's economic circumstances and development goals have a

2/ In 1970 the employment distribution was 47Z in agriculture, 23% in the

2.01 General. Since independence in 1957, the Government's effort to