Determinants of the financial conditions of the local authorities in Malaysia

Local Authorities (LAs) in Malaysia constitute a significant backbone of the Government’s function towards becoming a highly competitive economy. Their presence in public administration is highly crucial in delivering public services efficiently to the people. Their immense contributions have coherently ranked Malaysia at 15th in the Ease of Doing Business 2019 ranking according to the World Bank. The LAs play an important role in providing goods and services to the public and the local community and serve as an important mechanism to facilitate the implementation of the federal and state governments’ objectives. The LAs act as intermediaries between the Government and the local community. Also known as ‘urban managers’, the LAs are not solely responsible for delivering public services; they also function to stimulate economic growth in their respective localities. Most importantly, the LAs must ensure that the community gets to enjoy public services and adequate modern infrastructures provided by the Government while continuously upholding local socio-economic stability.

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