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Decentralization and Local Governance in Malaysia 167

with further changes after that being more ad hoc and “muddling through” rather than incremental and purposeful. Since then, community participation has been viewed more as an exercise in public relations rather than political decentralization with direct citizen engagement in local government activities. It is still reminiscent of a “top-down” approach in public administration.

In recent years, the concepts of public participation and local autonomy have been seen as prerequisites for sustainable development especially with rapid urbanization. With the emergence of non-governmental organizations, associations, and pressure groups, there is a demand for involvement in matters pertaining to the local environment. Many international agencies and bodies have also contributed to awareness in community development and the importance of decentralization. At present, the general trend is recognition of decentralization as an important element of good governance and elected local councilors as empowerment of the civil society. Indeed, there is a profound shift in the manner and system of how local government should perform and its relationships with the public and supra level governments.

8.10 Conclusion

With so much that have transpired, it is apt that local government is assessed as to its worthiness and functionality now as Malaysia moves toward a developed status in 2020 and with high expectations from the general public. For the moment, the lack of direct public participation, transparency, and accountability makes the practice of good governance a mere rhetoric rather than reality. Thus far, local self-government appears a misnomer as local elections have been abolished and with it local autonomy, which is so closely associated with decentralization. Local government in Malaysia may be more appropriately termed local administration with political powers consolidated at the center. Local government powers are limited to within what the Local Government Act 1976 allows with most decisions needing the approval of state and federal governments. Compounded is the fact that local government also lacks finances and has to be financially supported by central and to some extent state treasury. With limited resources, local government needs to have professional staff seconded from federal government, which debilitates its organizational powers resulting in weak control over staff matters.

Centralization is further reinforced by the argument for national unity in a country that is divided along different ethnic groups with diverse religious and cultural beliefs. Under such fragile conditions, national stability is of utmost importance and central intervention is inevitable. Since the restructuring of local government in the 1970s, the central government has never veered from this stance. During this period, a committee that was formed to examine integration of the district councils stated that, “modern economics and technology clearly indicate that centralization of local government functions is both essential and necessary… The committee believes that centralization of local government functions will gradually remove the existing barrier between the urban and rural people, pave the way for unity and thus help hasten the process of achieving the primary objective of national unity [37].”

The existing barrier between the rural-urban sectors also requires strong policies to bridge the economic disparity between them. In any case, further widening of the urban-rural gap may threaten the future growth and political stability of the country. As such, any possibility of political chaos and disunity arising from such divergence has to be immediately addressed and obviously central control is favored. Certainly, the central government does adhere to the theory of decentralizing powers through devolution and de-concentration, but the federal system based on the existing constitution ensures that formal control and power belongs with central government.

© 2011 by Taylor and Francis Group, LLC

168 Public Administration in Southeast Asia

In a sense, what is displayed can be termed as “token decentralization [38]” as local government and the community are not involved in the decision-making process that takes place between state and federal government over local government matters.

By contrast, political, administrative, and fiscal decentralization have been happening in other developing countries augmenting the authority of local government and increasing community participation [39]. However, in Malaysia, it will be overly simplistic to assume that such events occurring outside the country may influence the transformation of its local government in the immediate future. But hope prevails and in this respect, the federal government should bring about change where necessary and the community itself should understand and consent to the changes where relevant and possible. For the moment, much work needs to be done to put a system in place that truly reflects decentralization and avoid the danger of further intrusion by the process of recentralization.

References

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©2011 by Taylor and Francis Group, LLC

Decentralization and Local Governance in Malaysia 169

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