Financial Decentralization in Malaysian Schools: Strategies for Effective Implementation

Abstract

This article presents findings on the essential strategies required at the school
site and the relevant people responsible for the effective implementation of
school-based financial management in Malaysia. Many lessons have been learned
since more than a decade of the school-based financial management reform in
Malaysia through the establishment of school as Responsibility Centre or Pusat
Tanggungjawab (PTj). The government of Malaysia has allocated an enormous
amount of money for the education sector during last the few decades to ensure
the highest quality of education for Malaysian society. Therefore school finance
has to be managed strategically to confirm the best educational outcome through
effective resource allocation. This study employed the qualitative approach using
the interview method with ten selected principals heading schools with financial
autonomy in Malaysia. The findings revealed a few essential strategies that need
to be focused by schools both at individual level and school level in order to
successfully manage school finances. The collaboration and mutual effort from all
stakeholders are expected to bring transformation toward effective school based
financial management in Malaysia..