PAD320

LOCAL GOVERNMENT
ADMINISTRATION

CHAPTER 1:
INTRODUCTION TO LOCAL GOVERNMENT
 Chapter Outline
1.1 Definitions of Local Government

1.2 Objectives of Local Government

1.3 Functions of Local Government

1.4 Characteristics of Local Government

1.5 Obligatory & Discretionary Functions

1.6 Sovereignty and Local Government

INTRODUCTION

 Local government is the grass-root in the government

hierarchy of Malaysia.
 There are three branches of government in Malaysia,
namely Federal, State and Local.
 The position of local government in Malaysia is stated
in Federal Constitution.
 By virtue of items 4 and 5 of Ninth Schedule of
Federal Constitution, local government within the
Federal Territories of Kuala Lumpur, Labuan and
Putrajaya (latest) is a subject under the State List.

 All local authorities outside the Federal

Territories directly under the exclusive jurisdiction
of States Government.
1.1 Definitions
Malaysian context:

“Local Government is subsystem operating within

or among a number of other subsystems. Higher
government gave its one body handled on local
issues that represent the power whether from
federal government or state government, which
have limited autonomy in terms of financial and
administration, have power to sue and sued by
others and have legal property”
Royal Commission of Inquiry
 Local Government as a system of district, territorial
unit, which has their own boundary, legal entity,
instructional structure, power and task, which is
subject to certain act, has a financial authority and
other autonomy
(Dilly M Hills).

 Local Government denotes the Government of urban

area, rural area or a combination of urban and rural
area, subordinate to the state government, but having
an independent legal existence / from the government

(Malcolm W. Norris).
 Concept of Local Government

 The status of the Local Government is much lower than

the state and federal government.
 The Local Government autonomy in administering aspect
is set by the state and federal government.
 It is their responsible to give service to the public that lives
in the area that is set by the federal and state government.
 Local governments are not sovereign unlike independent
nation-states. It is a subordinate government, which
derives its existence and power from law enacted by a
superior government. The nature and structure of
transactions or interactions between the three tiers of
government determine the degree of autonomy.
 In Malaysian context, report by Royal Commission
of Inquiry stated that local government could see as
below:
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 administration 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 Objectives of Local Government

1. National Unity
 National unity can be achieved since a local community is
made up of a number of races.
 This can help local government achieve racial integration at
the community level through community integration
programs such as Kongsi Raya, cultural and religious festivals
organized by the council.
 CONT
2. Democracy
 created to bring government to grassroot population, as
well as to give its members a sense of involvement in the
political process that controls their daily life.
 It has 3 essential features:
i. Pluralism - whereby political power is dispersed.
ii. Participation – refers to quality of democracy within
political system. There are two types of participation:
➢ Participation in expression of community views
➢ Participation in actual delivery of services
iii. Responsiveness – responsive to the needs and aspirations of
the community.
 CONT…
3. Freedom and Autonomy
 There are three aspects to autonomy
i. Financial autonomy
 Financial autonomy means that local government can
acquire their own financial resources and they have the
power to spend it.
ii. Administrative Autonomy
 What it means is that local government can hire and fire
their own staff, decide on their terms and conditions of
service and decide on all administrative matters regarding
their personnel.
iii. Functional Autonomy
 Functional autonomy relates to the functions of local
government and its powers.
 CONT…
4. Effectiveness and Efficiency of the Administration
 Local government has been seen as rational from an
administrative point of view as it allows for the efficient
provision of public services.

5. Social and Economic Development

 In most post colonial developing states, local
government has been used by the State to achieve the
national objectives of the nation.
 Another good case in point is the development of the
tourism industry by providing recreational and other
facilities for tourists to their area.
1.3 Functions Of Local Government
1. Service functions
 A wide range of people and property services, for
example:
➢ garbage collection
➢ water supply
➢ sewerage
➢ public toilets
➢ drainage
➢ roads and street lighting
➢ public and environmental health
➢ libraries
➢ recreation
➢ parks
➢ community services
2. Regulatory functions
 Control and administration of laws governing:
 building
 town planning
 environmental health
 subdivision
 parking
 noxious weeds
 animals
 advertising
 parks
3. Representation functions
 Local governments have a legal responsibility to their
constituents to carry out the obligations placed on them
by the Local Government Act 1993 and other legislation,
and act in the interests of the community and electors.

4. Community planning and coordination functions

 providing a focus for planning and coordinating services
and facilities provided by government agencies,
voluntary and community groups.

5. Participation functions
 Councils provide opportunities for community
participation in policies and decisions affecting the local
community.
1.4 Characteristics of Local Government

1. It is a body corporate – this means it has a seal,

perpetual succession and can sue and be sued.
2. It has a definite territory which is clearly delineated
by the state government.
3. It has autonomy in terms of finance, administration
and functional.
4. Financial autonomy – it can collect taxes, licences,
fees and use the revenue for its own purposes. It can
also get involved in business.
5. Administrative autonomy- it can hire and dismiss
its own staff
Cont…
6. Functional autonomy –refers to its competence –
whether it has Inherent Competence or whether it
follows the Anglo Saxon Doctrine of Competence.
7. Policy and decision making is decided by a Council
– the Council is either appointed or elected.
8. Local government units can make by laws which do
not contradict the parent laws.
9. Local government can also get involved in business.
It can be either through joint venture with the
private sector or on its own.
1.5 OBLIGATORY FUNCTIONS &
DISCRETIONARY FUNCTIONS
1.5 Obligatory Functions

 Local Government in Malaysia applied on the

principle of ultra-vires. In performing its functions,
Local Government obliged to fulfill its obligatory
functioned while the discretionary functions may
only be perform depend on the ability and capability
of local authorities.
 LG obligate to do functions as stipulated under Local
Government Act 1976;

1) Public amenities
2) Enforcement and license safe
3) Public health and cleaning
4) Social service and development
5) Environmental
Differences Between Obligatory &
Discretionary Functions
Terms Obligatory Functions Discretionary Functions


Functions Financial and Development function
administration function (beautification are,
(Public amenities, recreation park, garden,
Enforcement and license lampposts beautification)
safe, Public health and
cleaning, Social service
and development,
Environmental.
Financial Allocation Depend on allocation Depend on that local
setting by State authority if they have
Government and Federal extra or surplus financial
Government to expend
Supervision Direct supervision by Indirect supervision by
State Government and State Government and
Federal Government Federal Government
cause financial is allocate cause using surplus or
by Superior government. extra financial.
1.6 Sovereignty and Local Government

 Local government under the Ultra Vires principle do not have any
element of sovereignty and are only statutory bodies created by an Act
of Parliament.
 Only the Federal and State governments in Malaysia have sovereignty.
This is because the Constitution of Malaysia only specifies the powers of
the Federal and state government.
 Local government is under the jurisdiction of the State government in
Malaysia. Hence it does not have any sovereignty and can be abolished
by the Federal Parliament
End of Chapter