Discuss the recommendation made by Athi Nahappan.

What are the

proposals accepted by the Government.
Local Gov:
Royal Commission of Inquiry on Local Authorities headed by Senator Athi
Nahappan was established in June 1965: to investigate the condition and
weaknesses of the local authorities in the peninsular Malaysia and make
suggestions to repair them.
The commission held hearings, sittings and it also received memoranda from all
over the country to complete a comprehensive report of the workings of West
Malaysian local authorities. The report which was completed in December 1968
has strong support on elected councils. It suggested the restoration of elected
local government but with a variety of administrative changes and a new set of
rules.
Problems:
1. The migration of rural people to the cities
2. Ineffective local administration
3. The weakness in term of financial. Financial condition of local authorities in
West Malaysia is not financially stable and need observation and
immediate assistant. Most local authorities suffered from deficit budget.
4. The changes of role played by local government, service oriented to
development oriented
5. The large size of local authorities, a hundred of local authority from
various types such as Town Council, Board Municipal, Local Council, Rural
District Council and so on. Big numbers with small financial source lead to
maladministration
6. Municipal committee problem, role of committee members, not experts,
hard to implement their role.
Some of the more important recommendations by the Nahappan report were:
1. Every state capital should be administered by a local authority and have
elective representation. This principle should also extended to all local
councils outside state capitals.
2. The should be one single law applicable throughout the country relating to
and governing local authorities, and every state should adopt and enforce
the law within six months after it has been passed by Parliament.
3. A local authority should be decentralized and should be an autonomous
body corporate consisting of fully elected members with financial and
administrative autonomy but subject to the control of the State
government on matters of national importance and interest.
4. Party politics should be allowed to continue despite its good and bad
aspects and those who wish to remain non-conformist should have the
right to stand as independents as in the past (before the Nahappan
Report).
5. A Local Government Tribunal should be constituted by the State Authority
of every local authority.

6. The election process to choose representatives for Local Government will

be maintained. Every local authority should have representatives that
called the council. The locals must choose or elect the members of the
council for every 3 years.
7. All bodies, councils and boards should be abolished and replaced by one
Management Board.
8. Introduce of the committee system which consist of administrative system
and advisory system.
9. Higher authority and the executive officers in local authority to act as
secretary. Local secretary will become as a Chief Executive and Chief
Administrator. This role to replace District Officer.
Local Government 1967 only allowed for establishment of 12 municipals and 90
district councils, members of these councils would be appointed and not elected
and the Chairman would be the District Officer or civil servant.

The report was completed in 1968, Recommendations / Suggestions:

1. Local authority should be set up throughout Malaysia, either in the urban
and suburban.
2. Every household in a Local Authority should be required to pay a nominal
contribution of not less than $1 per annum of poll tax.
3. There should be one single law applicable throughout the country on all
local authorities and every state should adopt and enforce the law within 6
months after it has been passed by the Parliament.
4. A local authority should be decentralized and should be an autonomous
body corporate consisting of fully elected members with financial and
administrative autonomy but subject to control of the State Government
on matters of national importance and interest.
5. Elections should be run on party basis.
6.

The Nahappan report lead to the restructuring of the local authorities in West
Malaysia :
1. The Local Government Act 1976 which replaced the Local Government Act
(Temporary Act) 1973 was established. One key allocation in this Act is
that the State Government has power to restructuring local authorities
with objective to establish only the two types of Local Government namely
Municipal Council and District Council. Categories of local authorities were
mentioned in the Nahappan Report 1968.
2. The administrative body of the local authority is an entity appointed or selected
by higher government authority. For instance, appointment by the State
Government for each State and Federal Government for each federation.

3. Finance : Local Government Act 1973 (Temporary Act) allocates for local
authority a financial power more autonomy to help them more
sustainable. Besides that, the Federal Government and State Government

also gave a financial allocation for the local authorities in Launching Grant,
Annual Grant, Loan and Projects Aid.
Restructuring process in Local Government helped the local authorities
more effective, practical and sustainable on its daily functioning. After
restructuring, its functions are not only focusing on services but more on
development. The local authorities have vital role in planning and
determining the achievement of national development alongside with the
aim and vision of the Federal Government.