The local government in Malaysia is the lowest tier of government in Malaysia administered under the states and federal territories which in turn are beneath the federal tier. Local governments are generally under the exclusive purview of the state governments as provided in the Constitution of Malaysia, except for local governments in the federal territories. The federal Ministry of Local Government Development plays a role in co-ordinating and standardising the practices of local governments across the country.
Local government has the power to collect taxes (in the form of assessment tax), to create laws and rules (in the form of by-laws) 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 governments are usually referred to as local authority (, abbreviated PBT), headed by a civil servant with the title President (Yang Di-Pertua) for rural districts and municipalities, and Mayor (Datuk Bandar) for cities, though there are a few exceptions in the form of "special and modified local authorities". Councillors are appointed by the state governments.
Local government areas are distinct from the districts, which are mainly for land administration purposes. In rural areas, the jurisdiction area of local governments largely correspond to the district boundaries. However, in urbanised areas, local government areas may not be consistent with the district boundaries and may overlap with adjoining districts, as municipal or city boundaries usually do not conform to district boundaries.
State controlled
Local government in Malaysia is an exclusive "power of the states or territories" and therefore the precise nature of councils referred to as local government can differ between each state or territory. Despite this, they occupy a similar role in each state.
The remaining territories are not divided into territory and local government.
State-based departments oversee local council and often intervene in their affairs.
Local governments by type and state
Historical background
The government system in Malaysia was a legacy of British colonisation, with many of its laws derived from and modelled on English laws. 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, charged with the role of planning and developing the municipality area, and was the basis of local government in the then Malaya (present-day Peninsula Malaysia). After Penang, local councils were established beginning with Malacca, followed by the Federated and the Unfederated Malay States, finally extending to the Kingdom of Sarawak and North Borneo. 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 in 1957, there was a total of 289 units of local council in Malaya. The constitution of the new country 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 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.