Table of contents 1.0 Introduction to local government in Malaysia 1.1 Definitions 1.2 Features/Characteristics of local government 1.3 Objectives of local government 1.4 Functions of Local government 1.5 Criteria to determining the size and boundary of local authority 2.0 History of local government Malaysia 2.1 Important events in the History of Local government Malaysia 3.0 Local Government Laws 3.2 Practice in Malaysia 4.0 Relationship between Local government, state government and federal government 4.1 Relationship between Local government and Federal government 4.2 National Council of Local Government (NCLG) 4.3 Ministry of Housing and Local government (MHLG) 4.4 Relationship between Local government and state government 5.0 Representatives in Local Government 5.1 Definitions and Roles of Councilors 5.2 Types of Representatives 5.3 History of Local Government Election 5.4 Practice of Representatives in Malaysia
6.0 Malaysia local government personnel system 6.1 Definitions 6.2 Types of personnel system 7.0 Financial Administration 7.1 Introduction 7.2 Financial Sources of Local government Malaysia 7.3 Financial problems Faced by Local government 7.4 Ways to overcome the problems 8.0 Conclusion 8.1 Introduction 8.2 The impacts of urbanization on local authorities 8.3 Overcoming the challenges of urbanization by local authorities Bibliography
1.0 Introduction to Local Government Malaysia Local government or local authority, or “pihak berkuasa tempatan”, is the lowest level in the hierarchy of governance in Malaysia. There are two other branches of government in Malaysia namely, Federal and State. The position of local governments in Malaysia is stated in the Federal Constitution whereby Local government outside the Federal Territories of Kuala Lumpur, Labuan and Putrajaya is mentioned under the State List in the Ninth Schedule of Federal Constitution. This gives the State government the full authority to govern the local authorities outside the Federal Territories of Kuala Lumpur, Labuan and Putrajaya. 1.1 Definitions Local government can be defined as follows: An administrative body for a small geographic area, such as a city, town, county, or state. A local government will typically only have control over their specific geographical region, and cannot pass or enforce laws that will affect a wider area. Local governments can elect officials, enact taxes, and do many other things that a national government would do, just on a smaller scale. In Malaysian context, report by the Royal Commission of Inquiry, local government is defined as follows: a) Representing the third tier in federal structure b) Administered by state nominated councilors c) Geographically encompassing a portion of the country d) It is infra-sovereign e) Subordinate and subject to the control of the state ( Limited of financial and administrative issues)
f) It is a separate legal unit/ entity from higher government or other local authorities g) Has power to sue and be sued h) Provide obligatory and discretionary to provide goods and services 1.2 Characteristics of Local Government According to Phang Siew Nooi, the local government in Malaysia has the following characteristics: 1. Local government has its own territory according to the law. 2. Responsible of developing the given area and welfare of the people 3. It is an institution under special laws controlled by superior governments 4. Can be sued, can sue, have properties and can sign agreements 5. It is infra-sovereign, eligible to the local law. 6. Independent body 7. Representatives are elected by local people or appointed by higher authority 8. Yang Di Pertua (YDP) works with council members elected by State government 9. Responsible in maintenance such as cleaning, health services and security 10. Have powers to impose tax penalty, appoint staff and autonomy in terms of financial administrative body. 1.3 Objectives of local government 1. Maintain the national unity by conducting programs for the people to take part in local affairs and activities
2. Local government can promote democracy concept of the state in local level through decentralization 3. The scope of autonomy of freedom of local government in Malaysia
Financial: Can impose tax, collect, maintain and spend revenue Administration: Appoint and terminate their staff
4. Effectiveness and efficiency of the administration in fulfilling the demands and needs of people 5. Responsible in social and economic development according to the Local government act 1976 1.4 Functions of local government Local government of Malaysia’s functions depends on the following subjects: i) Environment Focus on road service, traffic control, lamppost, recreational park, proper draining and culvert system etc ii) Social Maintenance, garbage collection, industrial sewerage, sanitation, etc. Provide education facilities, health awareness programs, build shelter for handicap people and senior citizens iii) Public Service Planning and building recreational halls and spaces for the community. These buildings are considered as assets of the council, whereupon fees are collected to enhance the services of the buildings iv) Security Focuses on Police stations, fire stations etc...
1.6 Criteria determining the size and boundary of local authority 1. From district council to municipal council i) The annual income should be more than 10 million ii) Population should be more than 100,000 people iii) Infrastructure should be completed iv) They must have control over the administration v) Can manage own financial matters 2. From municipal council to city council i) The annual income must be more than 80 million ii) Population should be more than 300,000 people iii) Infrastructure should be systematic, organized and completed v) Have an infrastructure, population, political interference and income 3. Normal area to district area i) Based on state government opinion and view ii) Place to be upgraded is a district or not iii) Area is outside the town centre iv) Population must be less than 100,000 people v) Annual income should be less than 5 million Table 1, Types and size of local authorities Types City Councils Municipal
Number 10 34
Largest 1400000 4480000
Smallest 152310 230000
Councils District Council Total
101 145
162180
80000
Source: Ministry of Housing and Local Government (MHLG), 2006 2.0 History of Local government in Malaysia The evolution of the present local government Malaysia dates back to the colonial period by the British. It underwent chronological changes during the pre-independence, time of independence and post-independence period. Historical timeline says, the oldest local government systems existed in Penang and Malacca. The development of local government started from the year 1801 until the Royal Commission by Dato Athi Nahapan came into existence. Since then, it has become a fully-fledged system established in Malaysia. 2.1 Below are some of the important events in the history of local government in Malaysia:
1801 o The first elements of Local Government were established in Penang with the appointment of a Committee of Assessors.
1857 o A more solid Local Government was established in Penang and Malacca. The Local Government status of power was confirmed
by Straits Settlement Municipal Ordinance133/1913. 1893 o Ipoh City Council was established. 1897 o Seremban Municipal Council was established in 1897 as the Health Board providing only basic amenities to the Seremban dwellers. After the Second World War, Seremban grew rapidly and the Health Board was replaced by the Seremban Town Board until 1965
1907 o Sanitary Board was form in Kelantan. By the year 1914, Kota Bharu, Tumpat and Pasir Mas was under the authority of the Sanitary Board.
1910 o Johor Bharu Town Board was established. 1929 o Local Government Act was established by the British in Malaya 1931 o Local Government in Jesselton, Sandakan, Tawau and Labuan was formed. It was then known as Sanitary Boards.
1938 o Municipal Enactment was formed and Kota Bahru Town Board was established.
1948 o Local Authorities Ordinance 1948 was formed under the British rule in Sarawak 1950 o Local Government Election Ordinance 1950 that entrusted the local councils to organize elections for the office of the councillors—the people that governs local area.
1952 o The Local Government Ordinance 1952 was established, which empowered local residents to establish local councils in their area wherever necessary.
1957 o Independence for Malaya. All Local Government control was given to the State Government to be administered. 1965 o The Malaysian Royal Commission was formed to investigate the Local Government system. It was decided that all Local Government Elections to be abolished on 2nd March 1965.
1971 o The Royal Commission on Remuneration and Conditions of Service in Local Authorities and Statutory Authorities, more conveniently described as the Harun Commission, was eventually
appointed on June 10, 1971 and submitted its report on local
authorities in December 1972 1972 o By July, all local government elections had been entirely abolished in Malaysia.
1973 o A temporary provision of the Local Government Act was implemented.
1976 o The Local Government Act was finalized. The Local Government Act, 1976 empowers state governments to integrate old local authorities and, thus, create a new local authority large enough to make it an effective unit from both the administrative and financial perspective.
3.0 Local Government Laws The Local government act of 1976 provides local authorities in Malaysia with a very comprehensive set of functions and responsibilities. The two other main laws, Town and country planning act (1976) and the street, drainage and building act (1974) help the local government to perform their functions under the 1976 act. These acts help in reinforcing the local authorities with the developmental functions in the field of urban management and play an important role in national development. As Mohamed Afandi (1989:25) notes: "Under the provision of the related local government laws (..) Local authorities may carry out a whole range of functions, limited only by their own ambitions and resources". The major functions of Malay local authorities can be summarized as environmental public, social and developmental. 3.1 Practice in Malaysia
Local government act 1976 (171 Act) act as the legal framework in practicing the local government in Malaysia. Prior to the restructuring exercise and adoption of Local government act 1976 (171), the types of local authorities are as follows: a) City Hall b) City Council c) Municipal Council Table 2 Distribution of Local Authorities State/Territ ories Johor Kedah Kelantan Labuan Melaka Negeri Sembilan Pahang Perak Perlis Penang Putrajaya Selangor Terengganu Sarawak Sabah Kuala Lumpur Total
Cities 1 1 1
1
2 2 1 1 10
Municipaliti es
State/Territ Districts
ories Population
4 3 1
9 7 11
1
1
1314900 7871 634100
3
5
858900
2 4 1 2
9 10
6 2 3 2
5 5 20 19
34
101
1290000 1209700 204500 1307600 26713 4175000 899000 2071800 2656400 1379300 23300684
Source Ministry of Housing Local Government (MHLG), 2006 The act classifies local authority into two groups: Municipality for large towns
and district council for small urban centre. Under section 5 of the act, a local authority is the local planning authority that approves and controls all planning and development in that area. The Street drainage and Building Act 1974 is a Federal law that prescribes the procedure for controlling building development and ensures the building complies to all requirements as follows: a) Proper access to the building b) Possess roads and lanes where necessary c) Traffic circulation and car parks d) Proper system for sewerage and wastewater disposal e) Proper drainage system 4.0 Relationship between Local government, state government and federal government 4.1 Relationship between Local government and Federal government o The federal government has certain powers through the National Council for Local Governance which is considered the most powerful of the local government; the federal government can control the decisions taken by local government. 4.2
National Council of Local Government (NCLG)
o The National Council for Local Government, which is responsible for the coordination of the work of local councils, municipalities, city councils, and the call to the meetings of the local authorities, and to take decisions binding of both the state government and the federal government .
4.3
Ministry of Housing and Local government (MHLG)
o Is a federal ministry, given the task to co-ordinate the local governments in respect of legal and policy standardization as well as co-coordinating the channeling of funds from the federal government. 4.4 Relationship between Local government and state government o The state government is responsible for the local government to a large extent. It oversees the work of all the local government and its decisions State government is responsible for giving instructions to local government. 5.0 Representatives in Local Government It has the power to gather taxes (within form of assessment tax), to create laws and rules (in the form of by-laws) and to grant licenses and allow for any trade in its region of jurisdiction, further to providing simple amenities, collecting and managing waste and rubbish as well as planning and .developing the area beneath its jurisdiction 5.1 Definitions and Roles of Councilors In certain countries, the representative is taken into consideration as a main function whereby their council individuals of Local Government had been chosen on through the general elections. Representative may be defined as a person who is responsible to guide or represent others in certain subjects that need to be settled 5.2 Types of Representatives
Relationship: Closer to higher power.
Decision making: Fast choice making cause they gain assist from the
authority. Cost: Save cost. Favorable: Favorite of local authority. Time constraint: Save time cause no requirement for election process. Professionalism: More specialists in his / her field. More involvement in
local government sector. Interest: Determine the needs of local authority and advancement as
whole. Familiarization: Not generally acquainted with the area.
5.3 History of Local Government Election Elections in Malaysia exist at two sections: federal level and state level. Federal level elections are those for participation in the Dewan Rakyat, the lower place of Parliament, while state level elections are for enrollment in the other State Legislative Assemblies. The heads of official branch in both the government and state levels, the Prime Minister and Menteri Besar/Chief Ministers individually, are indirectly elected, typically filled by an individual of the dominant party/coalition in the particular legislatures While any state may break down its gathering autonomously of the Federal Parliament, the conventional practice is for most state assemblies to be dissolved at the same time as Parliament, except for Sabah and Sarawak, in spite of the fact that these two states had held elections at the same time with the rest of the country, as it is the situation for Sabah in the 2004, 2008 .and 2013 elections, and Sarawak in the 1969 and 1974 elections 5.4 Practice of Representatives in Malaysia Malaysia practices a board of trustees system whereby the committee .members are selected
Characteristics of the committee
1. Generally, the board is a body whereby the errands can be referenced to
from the other party and the board must be competent in actualizing their tasks.The other party is the government, state official, local individuals, and other department. 2. The board of trustees held obligation towards the body, which has established them and has given then authority or power. 3. The status of the board of trustees is relying upon the body, which has framed them. 4. The committee can be framed in different sorts. 5. The committee can likewise go about as a counselor. 6. The committee can be framed because of specific reasons temporary form until the case settled it implies that the advisory group can be disintegrated / abrogated once the case being settled. 7. The committees are framed to execute several assignments, which are identified with the association 8. The aggregate numbers of advisory group are contrasting between the board. The larger size of board, larger number of advisory group will be set up. 6.0 Malaysia Local government personnel system Every local authority is given the power to recruit personnel to carry out its functions. Local autthorities have discretionary to appoint their own staff, exercise, control and execute disciplinary action and undertake personnel functions as long as the State government gives their approval. A system which is established by an organization in administrating the process of selecting, recruiting, training, motivating, directing and co-coordinating workers is the function of a personnel system. As a result of the implementation of local government reform:
Local councils are appointed by State authorities
Chief executives, i.e. mayor for a city council, Yang di pertua (YDP) for municipal and District officer (DO) for district councils are appointed by State authorities
City of Kuala Lumpur is headed by Commissioner of the City Kuala Lumpur
The appointment of council members must not be less than 8 and not more than 24. Similarly, a president is also appointed for the full council of a local authority. Local authority posts in Malaysia can be divided into:
Permanent and pension
Permanent and non-pension
Temporary and contract posts
Local authority is responsible to appoint, confirm, decide, transfer and exercise disciplinary control over members working in their service and the promotion board conducts all the promotions based on merit. 6.2 Types of Personnel System a) Separate / close personnel system b) United personnel system c) Integrated personnel system Early 1981, Federal government and state government agreed that the functions have to be controlled by the Federal government agencies, Public Service Department (PSD). Therefore, scheme of service grades for the local government personnel is done by PSD only, the legislated scheme must be accepted and Local government can claim it as their own scheme later onwards. Public Service department through it's training division and the national institute of public administration (INTAN), is responsible for planning and conducting training programs for public sector personnel including those from the local government sector.
As part of the continuing efforts to produce local government personnel of higher caliber, many local authorities throughout Malaysia have adopted a number of internal as well as external training strategies. Individual local authorities recruit their own staff and have power to discipline and dismiss them as necessary. In some cases there is deployment of civil service staffs appointed as mayors to local government. Each council is required to have an executive mayor as chief executive officer. .0 Financial Sources of Local Government in Malaysia Malaysian local government expenditure is based n two factors:
Development expenditure Large sum of money spent on construction etc… Operating expenditure Money spent on short lived items such as maintenance
Local government revenue can be obtained from 2 sources:
Land based Revenue - tax, fine, charge parking, rental Non-Land Based Source of revenue- Apply for loan with the approval of state government
The sources of revenue are collected based on section 30 Local government act (171) 1976 as follows: 1. All taxes, rentals, licenses payment and chargers that are paid to the Local Authority based on Local government act (171) 1976 2. All charges or profit that is gained from any trading services or development that is done by the LA under their authorities 3. All interest on every investment that are made by the local authority and all revenue that is gained from the property or vice-versa of the Local authority 4. All revenue that are occurred to the local authority from the federal government or other state government or from any bodies or from other sources such as contributions, endorsements and so on. 7.2 Sources of Income
The Ministry of Housing and Local government, classifies the sources of income into the local authorities into 6 groups, namely
Assessment rates ( inclusive of contribution in-lieu-of rates) Licenses Rentals Government grants (inclusive of road grants) Car parking charges, planning fees, compounds, fines and interest Loans (from government and/or financial institutions)
7.3 Financial problems faced by Local government 1. 2. 3. 4. 5. 6.
Lack of financial/resources Less of development in the area Poor Management Status of the Local government Lack of skills and manpower Difficulty in applying for loan
7.4 Ways to overcome the problems
Increase the assessment rate Efficient in collection, on time Exercising the revaluation properties periodically (3-5 years) Government can increase the salary, come up with new rate of
charge Provide better public utilities for the growing population Local government must be alert when there is an over expand in
construction activities, increase charge Approve more licenses and permit less rigid procedures Create more parking slots and ensure parking places are secured Compound, fines and notices (increase fee/impose higher fine/
implement strict regulations) Interest and investment earnings must depend upon the capability
of local government itself Expand the economy and solve property crisis. Privatization o The act of reducing the roll of government or increasing the role of the private sector in an activity as for the local government
can privatize into 2: a) Local government service (sanitation system) –
Indah water consortium b) Local government projects (Recreation park) Re-zoning, change the status of the land usage Land polling (combining land for profitable development)
8.0 Conclusion By the year 2020, Malaysia will be a fully developed country; therefore it is a challenge for the local government authorities to overcome the problems faced due to urbanization. Urbanization is defined as the social process whereby city grows and societies become more urban. The process of urbanization has affected lives of people and has a great impact on the local authorities. 8.1 Impacts of urbanization on local authorities
Improvements and upgrading facilities creates problems to local
authorities especially it affects roads and other infrastructure Increased vandalism on public properties Increased number of illegal squatters Increased crimes and felonies Increased demand for quality life Spread of contagious diseases
8.2 Overcome the challenges of urbanization by Local authorities
“Work with people” approach helps to create a friendly environment Safe city initiative helps to fight crime and felonies in the city Healthy city concept improves the quality of life in any setting Urban poverty eradication program o Under ninth Malaysia plan, the government through Ministry of housing and local government launched this program to improve the quality of life and to reduce the challenges faced to the poor
people in urban settings due to rapid urbanization
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