Critical Success Factors Towards Performance of Critical National Infrastructure in Malaysia

ABSTRACT

This study evaluates the current practice from owners/ operators of Critical National Infrastructure (CNI) installations throughout Malaysia to ensure the best practice will be taken by owners or operators of CNI to protect CNI from security threats and underline the best performance. Previously, there is no study focusing on success factor as guidelines to all owners and operators of CNI in managing their own installation. The aim of this research is to identify the priority of key success factors towards the performance of CNI installation in Malaysia that focus on three CNI such as water supply, telecommunication and power electricity sectors among all thirteen sectors. The other ten sectors are waterworks, finance, transportation, broadcasting, oil, gas, chemical, radiation, weaponry and security printing. Since there is a high dependency among three sectors to the national security and resilience, this study identifies the critical point on what is the most important way in managing the CNI installation. The main research model includes four key success factors: CNI’s owners and operator’s commitment, business continuity management, physical security protection and partnership dependency/ interdependency towards the performance of CNI. The data were collected by questionnaires and the results were analyzed with SPSS software. Analysis obtained from mean analysis, pearson correlation and multiple regression. The mean analysis is to highlight the current performance of CNI. The pearson correlation is to examine the relationship of four success factors towards the CNI performance and multiple regression suggests that owners and operator’s commitments is the most critical success factors to maintain a good performance in their own CNI installations. This research also discusses the huge implication to the CNI owners and operator’s daily practices and also the policy that can improvised the CNI performance of security and resilience as a whole.

ACKNOWLEDGEMENT

Bissmillahirrahmanirrahim, Alhamdulillahirobbilalamin. A great thankful to Allah S.W.T for everything and give me this opportunity, strength and rahmah to finally complete this research. This research was prepared for Faculty of Administrative Science and Policy Studies, Universiti Teknologi Mara (UiTM), basically for student Executive Master Administrative Science (EMAS) program.

Firstly, I would like to extend my deepest gratitude to                                           Associate Professor Dr. Jasmine binti Ahmad, my great supervisor who always give full support and guidance to accomplish my research. I also would like to thank          Professor Hazman Shah Abdullah for his guidance during my research proposal preparation. My sincerest thanks to my Deputy Director General (Operation Sector),    Mr. Capt. Rusli bin Abd Rahman (rtd.), PCIP as my mentor to teach me about the importance of CNI protection and resilience. I would also wish to extend my thanks to my classmates, interviewees and the people who giving me a very good cooperation during this accomplishment.

Very special thanks to my parents, my family especially my wife for her spirit, encouragement, patience, constructive suggestion and full of support during my research completion.

Finally, thank you to my department Chief Government Security Office (CGSO), Prime Minister Department as the Secretariat of Critical National Infrastructure for giving me opportunity and support.

TABLE OF CONTENTS

CHAPTER         PAGE

CONFIRMATION BY PANEL EXAMINERS    i

AUTHOR’S DECLARATION      ii

ABSTRACT         iii

ACKNOWLEDGEMENT       iv

TABLE OF CONTENT       v – vii

LIST OF TABLES        viii

LIST OF FIGURES        x

LIST OF ABBREVIATION      xi – xii

CHAPTER ONE:  INTRODUCTION     1

1.1  Introduction 1 – 3

1.2  Problem Statement 3 – 6

1.3 Research Questions 6

1.4 Research Objectives 6 – 7

1.5 Scope of Study 7

1.6 Significance of the Proposed Study 7

1.7 Definition of Terms, Terminology and Concepts 8 – 9

CHAPTER TWO:  LITERATURE REVIEW  10

2.1 Background of Critical National Infrastructure (CNI) 10

2.1.1  Malaysia Perspective on Critical National Infrastructure 11 – 16

2.1.2  United States Views about Critical Infrastructure Protection 16 – 20

2.1.3  Critical Infrastructure protection in Netherlands  21 – 22

2.1.4  Australia Critical Infrastructure Protection   22 – 23

2.1.5  Canada View About Critical Infrastructure Protection 24 – 25

2.1.6  South African Key point or Critical Infrastructure

Protection       26 – 28

2.2 Critical Success Factor for CNI Performance 29

2.2.1  Owners and Operator’s Commitment    29 – 32

2.2.2  Business Continuity Management    32 – 36

2.2.3  Physical Security Management    36 – 40

2.2.4  Partnership        40 – 46

2.3 Gaps in The Research 46 – 48

2.4 Review of Critical Success factors or Key Success Factors

In General 48 – 50

2.5 Conceptual Framework 50 – 53

2.6 Hypothesis 53 – 54

2.7 Summary 54

CHAPTER THREE: RESEARCH METHODOLOGY 55

1.            Introduction 55
2.            Research Design 55 – 56
3.            Unit of Analysis 57
4.            Sample Size 57
5.            Sampling Technique 58
6.            Measurement /Instrumentation of Variables 58 – 61
7.            Data Collection 61
8.            Pilot Test 61 – 63
9.            Reliability Test 63
10.        Data Analysis 63

CHAPTER FOUR: FINDINGS AND ANALYSIS 64

4.1    Introduction        64

4.2 Data Screening and Cleaning      65

4.3 Data Reduction and Factoring     65 – 68

4.4 Test of Data Accuracy      68

4.4.1 Reliability Test      68 – 69

4.4.2 Normality Test      69 – 70

4.4.3 Data Outlier       70 – 71

4.5 Testing The Assumption of Multicollinearity and Singularity,

Assessing Linearity, Normality and Homoscedasticity  71 – 72

4.6 Demographic Profile of Respondents     72 – 75

4.7 Data Analysis by Objectives      75 – 80

4.8 Summary of Findings       80 – 81

CHAPTER FIVE: DISCUSSION AND CONCLUSION   82

5.1 Introduction        82

5.2       Mains Findings Revisited      82 – 88

5.3 Recommendation to Increase the Level of Performance of Critical

National Infrastructure      88 – 91

5.4 Research Implications       91 – 92

5.5 Limitations and Suggestions for Future Research   92

5.6 Conclusion        93

REFERENCES 94 – 104

APPENDICES 105

LIST OF TABLES