This document defines and discusses types of decentralization, specifically devolution and deconcentration. It also examines decentralization in the Malaysian context, including the role of district officers and the controls exercised by federal and state governments over local governments. Key entities that oversee local governments in Malaysia are discussed, such as the National Council for Local Government and the Ministry of Housing and Local Government. The administrative and financial controls that federal and state governments have over local authorities according to Acts 171 and 172 are also outlined.

1. © Fairuz Hidayat Merican, 2017

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3. 4.1 – Definition & Types of Decentralization
4.2 – Decentralization from Malaysian context
4.3 – Role of District Officer in LG
4.4 – Federal & State Controls over LG
Contents:

5. The policy of delegating decision-making
authority throughout an institution, relatively
away from a central authority.
Central
Authority

6. Maddick (1966)
Fesler (1965)
Smith (1985)
Defines decentralization as having two
types: devolution & deconcentration.

7. Devolution Deconcentration
Fesler (1965)
Distribution/redistribution
of authority to make
decisions and to take
action by local govts
independently of central
administrative oversight.
Local entities act largely
as the local agents of
central govt, manage
personnel, & expend
resources allocated
to them by central govt
authorities.

8. Devolution Deconcentration
Maddick (1966)
Central govt’s transfer of
administrative & financial
decision making
authority to local govts
that have clear & legally
recognized jurisdictions.
Delegation of authority
adequate for the
discharge of specified
functions to staff of a
central department who
are situated outside
central headquarters.

9. Devolution Deconcentration
Smith (1985)
Authority to make certain
decisions in some
spheres of public policy
is delegated by law to
subnational territorial
assemblies.
Delegation of authority to
make administrative
decisions on behalf
of the Central admin to
public servants working
in the field responsible
for govt policies within
their territories.

11. Devolution:
Consists of both devolution & deconcentration.
Transfer of formal powers through an act of
parliament to bodies created by law.
Deconcentration:
Delegation of authority to agents of central &
state govts at the local level.

12. Prefectoral deconcentration:
Two types of deconcentration.
District Officer is a provider of various types
of services to the people as requested by the
State govts.
Functional deconcentration:
Fed & State govt agencies that provide very
specific service to the people.

13. Prefectoral & Functional decon have limited power:

15. Responsible for development of the district;
Coordinates various development activities;
Development:
Chairs the relevant committees.
1

16. Represents the State govt at the district level;
Overseeing & coordinating the implementation of
district programmes;
Representative:
Link btwn different sectors in the community with
the State govt.
2

17. Cooperates with police & other public/private
institutions;
Assist the poor among the district’s population.
Social security & welfare:
3

18. Collect taxes from land use;
Can act as a Magistrate (2nd Class);
Administration:
Can be appointed as a committee member in the
police force.
4

20. Federal
Controls
State
Controls
NCLG
MHLG
Act 171
Act 172

21. Mediator for discussions & meetings btwn the Fed
& State Govt;
Advisor & coordinator towards growth &
development of LG;
National Council for Local Government:
To legislate the LG policies;
Consult with Fed & State Govt from time to time
pertaining to national policy to enhance, develop
& control LG and to administer the laws relating
LG issues.

22. Law & field of authority;
Financial stability;
Actions taken by NCLG:
Adequate manpower;
Involvement of society.

23. Established in 1964;
Now known as the Ministry of Urban Wellbeing,
Housing & Local Government;
Ministry of Housing & Local Government:
Responsible for all local govt matters except those
in the Federal Territories.

24. As a secretariat in the NCLG;
Functions of MHLG in relation to LG:
Monitor the efficiency of the local authorities;
Encourage the efficiency of LG systems;
Advise & assist local authorities in planning their
budget;
Provide seminars/courses to improve the local
authorities.

25. Act 171
Admin Control
• Section 3
• Section 4
• Section 5
• Section 9
• Section 102
• Section 165
Financial Control
• Section 39
• Section 41
• Section 47
• Section 55
• Section 60
• Section 130

26. Act 172
• All local authorities must prepare a Structure Plan
once every 5 years;
• Will show the land use in the area;
• The Plan must be approved by the State
Authority;
• Must also be publicly displayed for one month.