SERVICE DEMANDS ON THE LOCAL AUTHORITIES IN MALAYSIA: BALANCING OBLIGATIONS AND BUDGET CONSTRAINTS

Abstract

Within the federalist framework that consists of the Federal government and the states, there exists a third level of administration, the local government, which administers the towns and cities as provided by federal law and serves the people in municipalities, providing services and amenities for conducive living.  Employing doctrinal methodology using a descriptive and critical analytical approach, the paper delves into the complex situation of the local authority (LA). On the one hand, it is expected to carry out its functions effectively. Nevertheless, it needs to be improved by overcoming financial constraints that limit its ability to undertake projects that benefit the people. The paper will specifically examine two aspects of LA’s power: the statutory mandatory and non-mandatory powers. These powers have profound implications on LA’s functions and duties, particularly from the perspectives of LA’s financial capabilities in fulfilling these mandatory and discretionary responsibilities. Statutory duties open LA to judicial control, while LA’s political and moral obligations to provide services open LA to public criticism. Indeed, it is a tricky balance, and the existing statutory and political framework may not provide a conducive environment for LA to prosper.