THE AFTERMATH OF REFORM OF

LOCAL GOVERNMENT IN MALAYSIA

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At the end of this lecture, student should be able to:

• Identify the legal provisions relating to Local Government

• Identify the main provisions of the Act 171
• Identify the main provisions of the Act 172
• Identify the main provisions of the Act 133
• Understand the Local Government Ordinances for Sabah and Sarawak
• Explain by-laws in local authorities in Malaysia
• Define by-laws
• Discuss the challenges in enforcing by-laws

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 The 171 Act is the main Act controlling the powers and functions of LG in
Malaysia
 Local government also carries out functions as stipulated in the Town
and Country Planning Act, (172) and Street, Drainage and Building Act,
(133).
 The Local Government Act 1976 consists of 16 parts and 166 sub-
sections
 Act 171 – to revise and consolidate the laws relating to local government in West
Malaysia

 The main provisions of this Act relate to various aspects of local

government such as administration, finance, powers and functions,
personnel, by-laws and representation

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PART 1- PRELIMINARY

•An Act to revise and consolidate the laws relating to

local government. This Act may be cited as the Local
Government Act, 1976 and shall apply only to West
Malaysia.

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• Section 3- Declaration and determination of status of local authorities
• Section 4 - Change of name and status, alterations of boundaries
• Section 5 - Merger of two or more local authorities
• Section 6 - Succession of rights, liabilities and obligations
• Section 9 - Power of state authority to issue directions
• Section 10- Councilors to be appointed by state government – not less
than 8-24 term of councilors – 3 years
– In case of any disagreement between mayor and councilor, the matter
can be referred to state government.
– A councilor can also be paid salary or allowances as determined by the
state government.
• Section 13- local authorities to become body corporations
• Section 15- elections cease to have effect 5
• Section16- list of offices
– the local authority should prepare a list of offices which it needs to state
government
– the local authority can reduce in rank or dismiss such persons from office
except head of and deputy head of department whereby need approval of
state government.

• Section 17- power of local authority to provide for discipline of its

officers
• eg. Can suspend any employee for misconduct or breach of duty.

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• Section 19- local authority office
• Section 20- ordinary meetings to be held once a month.
• Section 21- special meetings
• Section 22- notice for meetings
• Section 23- meetings of local authority to be public
• Section 25- chairman of meetings shall be the mayor or deputy mayor
• Section 26- votes of majority decisive but in case of equality of votes- chairman
of meeting shall have a casting vote
• Section 28- appointment of committees – to be set up for a general/special
purpose and consisting of a chairman and councilors
• Section 33- exemption of councilors
• Section 34- disability of councilors
• Section 36- Contracts

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Section 39 - Revenue of local authority consist of:
a)all taxes, rates, rents, license fees, dues and other sums or
charges payable to the local authority.
b)all charges or profits arising from trade, service or undertaking
carried on by the local authority
c)all interest on any monies invested by the local authority and all
income arising from any property of the authority, movable and
immovable.
d)all other revenue accruing to the local authority from the federal
or state government such as grants, contributions.

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• Section 40- Local authority Fund
– Shall be deposited in any bank and may be invested in any securities
with the approval of the Minister of Finance.
• Section 41- Power of local authority to raise loans
1. for acquiring land for which it is empowered to acquire
2. the erection of any building which it has authority to erect
3. the execution of any permanent work or replacement of any vehicles and,
4. to pay off existing loans
• Section 42- Power of local authority to issue mortgages or debenture stock.
• Sec 46- Borrowing powers for special purposes
• Section 47- Loans by government
• Section 49- Advances by way of overdrafts
• Section 50- Sinking Fund
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 Section 53- accounts to be kept to be inspected by any councilor
 Section 55- local authority shall prepare an annual budget for
the approval of state government
 Section 57- no expenditure to be incurred unless included in the
estimates
 Section 60- audit of accounts at the end of the year by the
Auditor General and tabled in the State Legislative Assembly

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• Section 64- power to make new public places and
enlarge them

• Section 63- control, care & enlarge of public places

• Section 66- power to erect buildings in open public

places

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• Section 69- committing nuisances in streams

• Section 70- pollution of streams

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• Section 72- Powers of local authority
1. establish and maintain sanitary services for removal of rubbish, litter, dead
animals
2. to establish, maintain, control and manage market, lodging houses, stalls
3. to license temporary buildings, stalls, tricycles for the purpose of selling any
food or drink
4. to erect and maintain public lavatories
5. to erect and maintain and control abattoirs
6. to safeguard and promote the public health and to take measures
• for maintaining its area in a clean condition

• prevent occurrence of infectious disease

7. to erect and control and operate cold storage works for inspection of meat
8. to erect and control depots for inspection of milk
9. to control laundries

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PART IX- FOOD, MARKET, SANITATION AND NUISANCES

• Section 73- By laws

– A local authority can make, amend or revoke by-laws for the better carrying out of the
provisions of this Act and in cases such as
– To compel the use of any service or for the removal of any rubbish, dead animals
– To prevent occurrence of nuisances
– To preserve public health and outbreak of any disease.

• Section 74- Filthy (dirty) houses

• Section 75- Power to enter and cleanse such houses
• Section 77- closing and demolition of insanitary buildings
• Section 78- overcrowding of houses
• Section 79- when house to be deemed “over-crowed’.
• Section 80 - nuisances to be abated whether in public or private places
• Section 81- defines nuisances such as any premise to be in a state of nuisance, animal kept
to be a nuisance, workshop to be a nuisance.
• Section 83 - order for demolition of house unfit for habitation such as it is injurious to health
but needs a court order.
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• Section 94- local authority may provide burial grounds
and crematoria and issue licences for it.

• Section 95- penalty for unlawful burials.

• Section 96- power to close burial grounds and

crematoria

• Section 97- exhumation of corpses needs approval of

state authorities

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Section 101- a local authority shall have power to do the
following:
1.erect, maintain and keep in repair buildings
2.to plant, trim and remove trees
3.to construct, maintain, supervise and control public parks, gardens, esplanades, recreation
parks, open spaces, swimming pools, gyms, community centers
4.to erect and maintain public monuments
5.to erect and maintain public libraries, art galleries and museums.
6.to sponsor and contribute to bands for musical and theatrical performances
7.to arrange for lighting of public streets and places
8.to establish and maintain ambulance service
9.to erect and control with other bodies clinics and dispensaries and to prescribe fees.
10.to establish, acquire and maintain public transport services
11.to erect and maintain shops, houses and flats and to sell them off
12.to maintain land for purpose of industrial estates
13.to sell, lease or dispose any movable or immovable property
14.to acquire and purchase any land or any other property
15.to carry out any development either by itself or with others for the purpose of residential,
commercial or industrial undertaking.
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• Section 102 - general power to make by laws for
the maintenance of the health, safety and well-
being of the inhabitants or for the good order and
government of the local authority.
– Bylaws needs approval of state authority and penalties
can be prescribed for the breaches of by laws.

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Section 107- a local authority make grant licenses and
prescribe fees for such licenses and have the right to
revoke any particular licenses as it deems fit.

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• Section 127- power to impose rates
• Section 130 – basis for assessing rates
• Section 134- exemption from rates for public worship places, burial
grounds and public schools and charitable places
• Section 137- preparation of valuation list
• Section 142- objections to list
• Section 144- amendments to list
• Section 145- appeals
• Section 146- rates to be first charge by owners of property
• Section 148- proceedings for recovery
• Section 149- sale of property attached
• Section 151- if property cannot be sold via auction, then take legal
proceedings via court.
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 Section 165 – transfer of functions to state
government if it is desirable in the public interest.

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• In 1976, Malaysian Parliament enacted Act 172 to
introduce a uniform system of law and policy for
town and country planning in Peninsular Malaysia.

• TCP emphasized environmental management in

planning such as conservation of topographical
features and trees.

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• Provide structural and local plans according to the requirements
of the Town and Country Planning Act 1976 (Act 172 and Act
1129)
• Control residential, business and industrial development for the
entire local authority
• Plan council or government projects such as public housing,
trading centres, public markets and recreational facilities,
landscaping and grounds and park maintenance
• Undertake research studies to formulate planning policies and to
create a systematic and well planned Local Authority
• Provide planning feedback and advice to government and private
departments, agencies and the public.

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• Act 133 is applicable only to West Malaysia to control and
formulate regulations to cover most development and construction
activities such as street maintenance, soil removals
• Under Act 133, the local council is responsible to enforce the
building control laws in their administration area and ensure
development according to the conditions set by the Act 133 and
any building by-laws.
• Control, review and undertake investigation of all renovations and
additions made to building without approval
• Local council also responsible to issue Certificate of Fitness for
Occupation (CF) to certify that buildings are built according to
approved plans and safe to occupy.
• Advise other departments on matters related to building usage

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 Act 133 is a federal law that prescribes the procedure
and for controlling building development and ensuring
the building complies to several requirements:
– Proper access to the building
– Possess roads and lanes where necessary
– Traffic circulation and car parks
– Proper system for sewerage and waste disposal
– Proper drainage system

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• In Sabah, the local authorities were established through
provisions under the Local Government Ordinance 1961
• 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 the pre-independence law,
the Local Government Ordinance 1948.

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• 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 these
main laws.

• the local authorities in the Kuching 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 state Ministry of Environment and Public Health is responsible for overseeing the running of
local councils in the state.

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 Municipal by-laws are public regulatory laws which apply in a
certain area.
 By-law (sometimes also spelled by-law or byelaw) can refer to a
law of local or limited application, passed under the authority of a
higher law. It is a word used to denote laws passed and
enforceable by a local authority. For example, a zoning by-law.
 Common by-laws include vehicle parking and stopping
regulations, animal control, building and construction, licensing,
noise, zoning and business regulation and management of public
recreation areas.
By-law?? A law passed by a national/federal/regional/state body???
DIFFERENCES???

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What are by-laws?
 In the case of the Northern Territory in Australia, (under the
Local Government Act, 2009), “By-laws” are classified as
subordinate legislation which can be made by councils
under Part 13.1 of the Local Government Act (s188 – 192).
 In the case of Malaysia, by laws are made under section 73
and section 102 of the Local Government Act, 171.

 Section 73?
 Section 102?
 Section 103?
 Section 104?

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 Local government all over the world have made by-laws about these
matters:
 Animal Management and Control
 Behavior in public places
 Car parking
 Council meetings and procedures
 Fire control
 Garbage removal and dumps
 Litter
 Markets,
 Grafitti
 Markets
 Public libraries
 Swimming pools and spas
 Water pollution and control of lakes

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 (c)NursyahidaZulkifli,
UiTM(Kelantan)

 Council may make by-laws for the good governance of

their area
 By-laws set out rules for community which make the
community a better place to live
 By-laws can also set out the standards which are
expected of residents and visitors in the council area
 It is importance that the by-laws are clear and people
know what is expected by them

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1. A proposed by-law must conform to principles:
◦ it must not exceed the power under which it is made
◦ must not operate retrospectively
◦ must not impose a tax
◦ must not infringe (disobey/violate) personal rights in an
unreasonable way.
◦ consistency with other legislation applying in the area
◦ no unreasonable burdens imposed on the community
◦ no restriction of competition (unless benefits outweigh detriments)
◦ no duplication, or overlap, with other legislation
◦ consistency with the basic principles of justice and fairness
◦ plain expression and in gender neutral language

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• By-laws are one of the most powerful forms of local government
regulation.

• The power to make bylaws gives local authorities the flexibility to

respond to particular issues within their district and to respond to that
mischief in a manner which is appropriate for their particular community.

• A local authority may make by laws for its area for 1 or more of the
following purposes:
• protecting the public from nuisance:
• protecting, promoting, and maintaining public health and safety:
• minimizing the potential for unpleasant behaviour in public places.

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Making by-laws — procedural requirements
 Identifies an issue or problem.
 First, a local authority must consider whether a by-law is the
most "appropriate" way of addressing the perceived problem
and whether the proposed form of the by-law is "appropriate".
 Second, the local authority must consult the community
through a special consultative procedure when making,
amending or reviewing a by-law.
 Third, legal practitioner must certify that the council does have
the power to make those particular by-laws, and that they are
consistent with the principles prescribed in the respective local
government acts.
 Finally, after making a decision to adopt the by-law, the local
authority must give public notice of the date on which the by-
law comes into operation. 33
 The council should be prepared to enforce its own by-
laws.
 To do this, the council needs to appoint one or more
“authorized persons” under the Local Government Act
171.
 Elected or appointed members cannot be authorized
persons.
 The Police may be asked to assist an authorized
person, but are not bound to do so.

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 (c)NursyahidaZulkifli,
UiTM(Kelantan)

 Council must ensure that a register of all by-laws made or adopted by

the council is kept, maintained and accessible.
 The register must be accessible on the council’s website and available
for inspection at the council office
 Council should review their by-laws from time to time to make sure
that they are up to date and still satisfy community expectations and
standards
 Penalties also need to be reviewed
 Amendment process is the same process as making new by-laws
 A by-law (or any provision of a by-law) is invalid if it is:
 ultra vires
 contradicting to the general law
 uncertain & unreasonable

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 There is lack of cooperation by the public in supporting by laws. This
could be due to negative perception by the public that local government
is not an important institution.

 There are lack of enforcement staff in the council to enforce by laws.

 There is the issue of safety of the enforcement officers due to the

unruly behaviour of some of the residents. Some enforcement officers
have been hurt and victimised by those convicted of any by laws.

 Some by laws are outdated and irrelevant in the present age and there
is a need to amend them.

 There is also the perennial problem of back log of cases in the Courts
and this could hamper the effectiveness of having by laws in the first
place. 36
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