LLD21103: LOCAL GOVERNMENT

Sem II, Session 222/2023

haslizaghapa@unisza.edu.my
Topic 5
Relationship Between Local
Government, State Government And
Federal Government
Agenda 01 Introduction

:
02 Power of Federal Government

03 Power of State Government

04 Relationship between Federal,

state and Local Government
 Introduction

Federal It is subject to State government Local  Each of

government no other is one level of Government the
is a authority and government, is subjected to government
sovereign consequently, having its own both federal gains
national is independent sovereignty but in government powers as
government of any some matters is and state accorded
compulsion or subjected to the government by the
interference on federal laws and Federal
the part of government policies Constitution
other states
.
 Powers of the Government
Federal powers State powers
Art 74(1) Art 74(2)

List I of the 9th

Schedule. List II of the 9th
Schedule
Powers include:
defense, external
Powers include: Muslim
affairs, civil &
law, religion and
criminal law,
custom, agriculture,
federal citizenship,
local government, local
state and federal
services, state works,
election, finance,
water and local
trade, commerce
government
and industry
 Shared powers between Federal
Government and State Government

List III of the 9th Schedule

Social welfare, scholarship,

protection of wild animals, town and
country planning, squatters/illegal
settlement and drainage
 Local Government Powers
01 The obligatory and discretionary functions

02 The administration and nomination of

councilors

03 The manner for conducting business and the

sources of revenue

04 Valuation and assessment rates, staffing and

personal matters

05 Financial procedures, accounts, powers and

responsibilities of councilors
 Relationship
Between Fed-
eral Govern-
ment and State
Government
 The Relationship
State government has control over local
government since the power to regulate
matters on local government is given
under the Federal Constitution (refer to
item 4, List II of the 9th Schedule

Nevertheless, the Federal

government has certain control over
local government as the Federal
Parliament is given the power to
make laws for local government (for
the purpose of uniformity of laws and
policy – article 76)

Example: Local Government Act

1976
Relationship Be-
tween Local
Government and
State Govern-
ment
1. List II of 9th Schedule

Though the local

2. Act of Parliament

Thus, all laws made by the

government is under the
direct control of the State
government (List II of 9th
Relationship
between
Federal Legislature is
applicable and should be
complied with by the local

Local
Schedule), the Federal government
Government is given the
power by the Constitution

Government
to make laws for the local
government on the ground
of ensuring uniformity of

and State
laws in all local
governments in Peninsular
Malaysia

Government
3. Financial Autonomy 4. Control of State
Government Relationship
• The financial autonomy
is given to the local
government in the
• The control by the State
Government is seen to
have been limited by
between
sense that local
government is
independent in matters
the implementation of
Local Government Act
1976 but nevertheless,
Local
of expenditure or
revenue of financial
sources. This autonomy
some form of control is
still retained by the
State Government.
Government
is however limited.
Therefore, in some
other matters including
and State
financial matters,
consent from the State
Government is still
Government
needed.
The State Governments retain power to advise local government in
matters of implementing national policies.
At state level, the local
government
Though the local committees is
government has The state responsible to
Local Government
power to have their government coordinate activities of
needs to submit
The State Government own sources of can lend loans the local governments
proposals on
allows the Local financial, there might to local
annual budget
Government to amend be a need of local governments,
including
or terminate any by- government to with certain
recruitment of
laws legislated but the request grants from conditions
staff, salary and
latter cannot enforce it allowances to the state government
until it receives State Government
consent from the
former
Ministries for Local Government
Responsible for
local
Ministry
governments in
of
states
Federal
Territory.

Ministry of
Housing and
Responsible for Local
local government Government
in federal .
territories
 Functions of Ministries

As committees Responsible to As a supervisor To advice and To hold

of National develop local and coordinator in encourage local conferences,
Council of government channelling the governments in courses and
Local system to financial allocation terms of workshops for
Government achieve better from Federal expenditure of local
results in Government to budget and government’s
providing goods local authorities in managing staff
and services terms of grant, financial
loan and aid
 National Council for Local
Government
Amendment to the Federal Constitution in 1960

Article 95A of the Federal Constitution

Characteristics of NCLG
A body constituted under the Federal Constitution

A council with national status

Membership; chairman, secretary,

members, representatives from federal
government, Sabah and Sarawak
 Functions of National Council for
Local Government
1. 2. 3. 4. 5.

Contents Here

Acts as mediator Acts as advisor Legislate Consult with Shall call for a
between Federal and coordinator policies for Federal meeting at
Government and for the growth local Government least once a
State Government and government and State year
in any discussions development of Government
or meetings Local pertaining to
Government national policy
THANK YOU