Despite the disagreements and diverse interpretations of globalisation impacts on state capacity in governance, the dominant view is that globalisation has not only weakened the power of the state, but has also led to the end of the state (Zheng, 2004). It is against such a context that a growing number of modern states are beginning to rethink their governance strategies in coping with rapid social and economic changes. In order to enhance their global competitiveness, new forms of governance and new governance philosophies have emerged, which has inevitably affected the way the public sector and public service delivery are managed. Believing that modern states have undergone a metamorphosis, there has been a massive proliferation of tools and policy instruments such as a dizzying array of loans, loan guarantees, grants, contracts, insurance, vouchers, etc., as policy devices instead of relying solely upon government bureaucracies in terms of delivery of goods or services. Despite the fact that “governance” is a contested concept, political scientists and public administration scholars generally agree that postmodern societies require a shift in the state’s function from a “rowing” to a “steering” role.