Local government in Malaysia
Encyclopedia
The local government or local authority ( or ) is the lowest level in the system of government in Malaysia—after federal and state
Politics of Malaysia
The politics of Malaysia takes place in the framework of a federal constitutional monarchy, in which the Yang di-Pertuan Agong is head of state and the Prime Minister of Malaysia is the head of government. Executive power is exercised by the federal government and the 13 state governments. ...

. It has the power to collect taxes (in the form of assessment tax), to create laws and rules (in the form of by-laws
Bylaw
By-law can refer to a law of local or limited application passed under the authority of a higher law specifying what things may be regulated by the by-law...

) and to grant licenses and permits for any trade in its area of jurisdiction, in addition to providing basic amenities, collecting and managing waste and garbage as well as planning and developing the area under its jurisdiction. Local authorities in Malaysia are generally under the exclusive purview of the state governments and headed by a civil servant with the title Yang Di-Pertua (President).

Historical background

The government system in Malaysia was a legacy of British colonisation
British Empire
The British Empire comprised the dominions, colonies, protectorates, mandates and other territories ruled or administered by the United Kingdom. It originated with the overseas colonies and trading posts established by England in the late 16th and early 17th centuries. At its height, it was the...

, with many of its laws derived from and modeled on English law
English law
English law is the legal system of England and Wales, and is the basis of common law legal systems used in most Commonwealth countries and the United States except Louisiana...

s. However, with the passing of times, many local unique social and cultural characteristics have influenced the working of the local governments in Malaysia.

Early development

The British in 1801 established a Council of Assessors in Penang
Penang
Penang is a state in Malaysia and the name of its constituent island, located on the northwest coast of Peninsular Malaysia by the Strait of Malacca. It is bordered by Kedah in the north and east, and Perak in the south. Penang is the second smallest Malaysian state in area after Perlis, and the...

, charged with the role of planning and developing the municipality area, and was the basis of local government in the then Malaya
British Malaya
British Malaya loosely described a set of states on the Malay Peninsula and the Island of Singapore that were brought under British control between the 18th and the 20th centuries...

 (present-day Peninsula Malaysia
Peninsular Malaysia
Peninsular Malaysia , also known as West Malaysia , is the part of Malaysia which lies on the Malay Peninsula. Its area is . It shares a land border with Thailand in the north. To the south is the island of Singapore. Across the Strait of Malacca to the west lies the island of Sumatra...

). After Penang, local councils were established beginning with Malacca
Malacca
Malacca , dubbed The Historic State or Negeri Bersejarah among locals) is the third smallest Malaysian state, after Perlis and Penang. It is located in the southern region of the Malay Peninsula, on the Straits of Malacca. It borders Negeri Sembilan to the north and the state of Johor to the south...

, followed by the Federated
Federated Malay States
The Federated Malay States was a federation of four protected states in the Malay Peninsula—Selangor, Perak, Negeri Sembilan and Pahang—established by the British government in 1895, which lasted until 1946, when they, together with the Straits Settlements and the Unfederated Malay...

 and the Unfederated Malay States
Unfederated Malay States
The term Unfederated Malay States was the collective name given to five British protected states in the Malay peninsula in the first half of the twentieth century. These states were Johor, Kedah, Kelantan, Perlis, and Terengganu...

, finally extending to Sarawak
Sarawak
Sarawak is one of two Malaysian states on the island of Borneo. Known as Bumi Kenyalang , Sarawak is situated on the north-west of the island. It is the largest state in Malaysia followed by Sabah, the second largest state located to the North- East.The administrative capital is Kuching, which...

 and North Borneo
North Borneo
North Borneo was a British protectorate under the sovereign North Borneo Chartered Company from 1882 to 1946. After the war it became a crown colony of Great Britain from 1946 to 1963, known in this time as British North Borneo. It is located on the northeastern end of the island of Borneo. It is...

. Laws were promulgated to govern the establishment of local authorities and the organisation of local council elections. One of the important laws was the Local Government Election Ordinance 1950 that entrusted local councils to organise elections for the office of councillors—people that govern local areas. Another law was the Local Government Ordinance 1952 which empowered local residents to establish local councils in their area wherever necessary. Prior to Malaya's independence from the British
Hari Merdeka
Hari Merdeka is a national day of Malaysia commemorating the independence of the Federation of Malaya from British colonial rule in 1957, celebrated on August 31 each year. It is not to be confused with the formation of Malaysia...

 in 1957, there was a total of 289 units of local council in Malaya. The constitution of the new country
Constitution of Malaysia
The Federal Constitution of Malaysia, which came into force in 1957, is the supreme law of Malaysia. The Federation was initially called the Federation of Malaya and it adopted its present name, Malaysia, when the States of Sabah, Sarawak and Singapore joined the Federation...

 after independence from Britain gave the power to control local governments to the states.

The 1960s was a challenging time for local authorities in Malaya. They faced many problems regarding internal politics and administration. In addition, the Indonesian confrontation
Indonesia-Malaysia confrontation
Indonesia–Malaysia confrontation during 1962–1966 was Indonesia’s political and armed opposition to the creation of Malaysia. It is also known by its Indonesian/Malay name Konfrontasi...

 against the formation of Malaysia in 1963 has forced the federal government to suspend local council elections in 1965. The suspension was made by means of emergency law namely the Emergency (Suspension of Local Government Elections) Regulations 1965 and its amendment on the same year. Since then, local governments in Malaysia have not been elected.

Royal Commission of Inquiry 1965

Problems faced during the early 1960s were further aggravated by a plethora of local government entities in the country at that time. To make matters worse, there were many laws governing local authorities since every state had their own laws. Until early 1970s, the proliferation of local councils reached staggering numbers—374 in Peninsula Malaysia alone. Hence, the federal government saw the need to reform local governments in Malaysia in order to improve its working and standing. A Royal Commission of Inquiry to investigate the working of local governments in West Malaysia was established in June 1965 for this purpose. The commission was headed by Senator Athi Nahappan while its members were D. S. Ramanathan, Awang Hassan, Chan Keong Hon, Tan Peng Khoon and Haji Ismail Panjang Aris—all were prominent politicians of the Alliance
Alliance Party (Malaya)
The Alliance Party was a political coalition in Malaysia. Formed in 1951, it successfully gained the majority of seats available for contest in the first election for the Federal Legislative Council held in 1955 in what was then the British protectorate of the Federation of Malaya.The Alliance...

, the ruling party of the country. The commission organised many meetings and discussions as well as received many memoranda from various organisations and managed to finish a complete investigation four years later. The commission sent its report to the federal cabinet in December 1969 but its report was only released to the public two years later.

Restructuring

Although not all of its recommendation were followed by the cabinet, some of its finding became the basis for the restructuring exercise in the next two years. Ong Kee Hui
Ong Kee Hui
Tan Sri Datuk Amar Ong Kee Hui was a Malaysian Chinese politician and founder / leader of the Sarawak United People's Party ....

, the Minister for Housing and Local Government at that time through a cabinet committee started the restructuring process by introducing the Local Government Act (Temporary Provision) 1973. This Act empowered the federal government to review all existing laws relating to local governments, including state enactments and ordinances. Eventually, three main laws were passed which changed the system of local government in Malaysia. They were Street, Drainage and Building Act 1974 (Act 133), Local Government Act 1976 (Act 171) and Town and Country Planning Act 1976 (Act 172).

Some important changes were enforced under the Act 171 alone. One of them was, the restriction of the number of local governments in the peninsula. More importantly the abolishment of local government elections. Under this act, local councillors were no longer elected but appointed by the state government. The local government roles have had rapidly changed as well. In early 1960s, a local government was considered as another channel in exercising one's democratic right - apart from electing representatives to the parliamentary
Dewan Rakyat
The Dewan Rakyat is the lower house of the Parliament of Malaysia. All bills must usually be passed by both the Dewan Rakyat and the Dewan Negara , before they are given Royal Assent by the Yang di-Pertuan Agong...

 and state assemblies
Dewan Undangan Negeri
A state legislative assembly is the legislature of each of the 13 Malaysian states. Members of a state legislative assembly comprises elected representatives from single-member constituencies during state elections through the first-past-the-post system....

. However, it has now taken up the role of speeding up and encouraging development projects for better economic environment.

Provision in the Constitution of Malaysia

The constitution of 1957 gave the exclusive power to govern local governments to the state except those in the federal territories. However, a constitutional amendment was made in 1960 that provides for the establishment of a consultative committee called the National Council for Local Government. Membership of this council consist of a federal cabinet minister as the chair, a representative from each state governments as well as no more than 10 representatives of the federal government. Although its role is to be consulted in the matters of law governing local authorities, this 1960 constitutional amendment also provided the chair a casting vote thus gave the federal government a big clout on local government.

Acts of Parliament

Constitutional provision aside, there are many laws passed by the parliament to control the operation of local government in Malaysia. The most overreaching piece of law is the Local Government Act 1976 (Act 171). This act of parliament outlines the form, organisational structure, functions and responsibilities of a local authority. At the same time, the Town and Country Planning Act 1976 (Act 172) was promulgated to overcome the weaknesses in the planning of land use in local area. This Act 172 puts the primary physical planning responsibility at local level to the local government. Additionally, the Street, Drainage and Building Act 1974 (Act 133) explains several other role of local authority regarding drainage, maintenance of municipal roads as well as public buildings. In addition to the three main laws, several other laws and regulations including by-laws were created and enforced to help the running of local government.

Sabah and Sarawak

Article 95D of the Malaysian Constitution however bars the Parliament to create laws pertaining land and local government for the states of Sabah
Sabah
Sabah is one of 13 member states of Malaysia. It is located on the northern portion of the island of Borneo. It is the second largest state in the country after Sarawak, which it borders on its southwest. It also shares a border with the province of East Kalimantan of Indonesia in the south...

 and Sarawak
Sarawak
Sarawak is one of two Malaysian states on the island of Borneo. Known as Bumi Kenyalang , Sarawak is situated on the north-west of the island. It is the largest state in Malaysia followed by Sabah, the second largest state located to the North- East.The administrative capital is Kuching, which...

. Furthermore, article 95E excludes the states from following laws formulated by the National Council for Local Government. However, both state governments still send their representative to the consultative meetings of the committee as observer without any voting rights.

In Sabah, the local authorities were established through provisions under the Local Government Ordinance 1961. This ordinance also outlines the responsibility and function of local councils in Sabah. A state ministry, the Ministry of Local Government and Housing, created for the first time after the state election in 1963, governs the operation of local authorities in the state.

In Sarawak, local authorities were established under the Local Authority Ordinance 1996. This ordinance is the successor of pre-independence law, the Local Government Ordinance 1948. Other laws regulating the running of local authorities in Sarawak include Building Ordinance 1994, Protection of Public Health Ordinance 1999 as well as by-laws formulated under this main laws. Meanwhile, the local authorities in Kuching
Kuching
Kuching , officially the City of Kuching, and formerly the City of Sarawak, is the capital and most populous city of the East Malaysian state of Sarawak. It is the largest city on the island of Borneo, and the fourth largest city in Malaysia....

 area were established under the provision of Kuching Municipal Ordinance 1988 and City of Kuching North Ordinance 1988. Under these ordinances, there are currently three local authorities in Kuching area, namely Kuching North City Hall, Kuching South City Council and Padawan Municipal Council. The latter two however were later governed under the Local Authority Ordinance 1996. The state Ministry of Environment and Public Health is responsible for overseeing the running of local councils in the state.

Types of local government

In total, there were 6 types of local government prior to the 1973 restructuring exercise. The total number of local councils in Malaysia then was 418. The types were:
  • City Council
  • Municipal Council
  • Town Council
  • Town Board
  • Rural District Council
  • Local Council


The enforcement of Local Government Act 1976 established in essence only two types of local council - one for municipality and one for rural area. However, a city status can be conferred to a municipal council by the Yang di-Pertuan Agong
Yang di-Pertuan Agong
The Yang di-Pertuan Agong is the head of state of Malaysia. The office was established in 1957 when the Federation of Malaya gained independence....

 with the consent of the Conference of Rulers
Conference of Rulers
The Conference of Rulers in Malaysia is a council comprising the nine rulers of the Malay states, and the governors or Yang di-Pertua Negeri of the other four states...

 once it reached the necessary criteria. Apart of that mentioned by the Act 171, there are many other agencies established and charged with the role of a local council. These so-called modified local authorities were established under newly created, separate and special Act of Parliament or state enactments or ordinances. In total there are currently four type of local governments in Malaysia, and they are:
  • City - called City Hall or City Council (e.g. Kuala Lumpur City Hall
    Dewan Bandaraya Kuala Lumpur
    Kuala Lumpur City Hall is the local authority charged with the administration of Kuala Lumpur. It is an agency under the Federal Territories Ministry of Malaysia....

    )
  • Municipality - called Municipal Council (e.g. Ampang Jaya Municipal Council
    Majlis Perbandaran Ampang Jaya
    Majlis Perbandaran Ampang Jaya or Ampang Jaya Municipal Council is a local authority which administers Ampang, Ulu Klang and other areas. This agency is under the Selangor state government...

    )
  • Rural area - called District Council
  • Special and modified local authority - called Corporation, Development Board, Development Authority or simply Pihak Berkuasa Tempatan.


Currently there are a total of 151 local authorities in Malaysia and their breakdown are as follows:
  • 12 City councils
  • 39 Municipal councils
  • 98 District councils
  • 5 modified local authorities.
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