Local Authorities In Malaysia Research Articles

Cash Holdings Determinants: The Case of Malaysian Local Authorities

This paper investigates the determinants of cash holdings by Malaysian local authorities. The researchers seek understanding on the motivation/intention behind the pattern of cash holdings and the theory that may be able to explain why the local authorities hold such amount of cash. Extensive research affirms that organizations in the private sector possess reasons to maintain cash, encompassing transactional, precautionary, and speculative objectives. The pecking order theory, trade-off theory, and free cash flow theory are also significant frameworks that explain why individuals, businesses, and institutions hold cash. However, there has been limited investigation into the factors influencing cash holdings in the public sector, particularly among local authorities in Malaysia. Therefore, relationship between the local authorities’ size, growth opportunities, financing deficits, liquidity, leverage, capital expenditure and access to credit market and cash holdings in Malaysian local authorities is examined. The sample in this study is 37 districts in Malaysia and data is collected from financial statements of the studied districts between 2015 and 2019. Thus, the total observations in this study are 185 districts-years.

STRENGTHENING TRUST TO REINFORCE ORGANIZATIONAL PERFORMANCE OF LOCAL AUTHORITIES IN MALAYSIA

This study explores the imperative of fostering Trust to enhance the organizational performance of local authorities in Malaysia. Recognizing Trust as a pivotal factor, the research delves into strategies for strengthening interpersonal relationships and institutional credibility. By addressing trust deficits, the study aims to provide actionable insights that can contribute to the overall effectiveness and efficiency of local governance in Malaysia. The primary focus of this research is to put into practice the idea of Trust, precisely honing in on the effectiveness of local authorities (LAs) in Malaysia. In this instance, the study employs the Community Integrity Building (CIB) concept, emphasizing the pivotal roles played by community monitors, contractors, and LAs in collectively navigating toward improved performance. It offers a continuous feedback mechanism that enhances understanding and improves Trust in services provided by the LAs. The paper objectively explores the measuring of Trust, therefore linking the vacuum between conceptualization and realization, which is hardly seen in LAs. Finally, it concludes by reflecting some insights on the potential of the CIB approach regarding the trust agenda towards building a more progressive and dynamic new public management ecosystem in a Malaysian organization setting.

Malaysia's Climate Change Framework and Local Government Response

Climate change is a significant global challenge affecting our planet's ecosystems. Addressing this challenge requires a concerted effort from all stakeholders, including businesses, academic institutions, and government at all levels. This paper examines Malaysia’s national policy on climate change and its legal framework at national and international levels. It also aims to consider the response by local authorities. The discussion adopts the doctrinal legal research analysis. The findings of this paper can provide the policymakers, governments, and local authorities in Malaysia to expedite their climate change mitigation effort.

Malaysian Local Authorities: Are They Transparent?

Transparency among the local authorities is crucial as local authorities are expected to perform their stewardship roles to meet the demand of their stakeholders. Due to information asymmetry between the local authorities and citizens, there is a tendency for citizens to have unfavourable perceptions towards local authorities’ activities. Literature suggests that transparent information will mitigate this issue. Thus, the study seeks to investigate the level of transparency of Malaysian local authorities by examining 19 of them covering the periods from 2015 to 2019. Available information from the website and the local authorities annual reports were obtained. Adopting agency theory and stewardship theory, the study suggests that the level of transparency in the form of non-financial information transparency, citizen transparency and transparency easiness among the Malaysian local authorities is regarded to be high. It indicates that the information asymmetry between the local authorities and the stakeholders is generally minimised. However, this study highlights that the transparency level in the form of financial information still needs to be improved, and local authorities should be more transparent in disclosing such information. Besides providing insights into local authorities' transparency, this study is beneficial to local authorities and regulators in establishing policies; and citizens and stakeholders in assessing the transparency level of local authorities. Future research should consider factors that influence transparency among local authorities in Malaysia. A comparison between local authorities should also be made to find the best practices for stimulating transparency in local authorities.

Property tax reassessment among local authorities: the implementation and its key challenges

PurposeThe role of local authorities is crucial in addressing the essential needs of communities, and they possess the right to impose property taxes on all properties within their territory. Property taxes are levied on all properties, contributing to approximately 60% of the local authority’s finances. However, their role in this policy is not frequently understood, primarily in executing property tax reassessment. Hence, this paper aims to reveal property tax reassessment implementation and identify its key challenges.Design/methodology/approachThe latest tone of the list record was extracted from the local government division, Ministry of Housing and Local Government Malaysia, to answer the research objective. The data were received on November 2021 by email. Furthermore, through the literature review, the most significant challenges in property tax reassessment were identified, compared and presented.FindingsThe results highlight that property tax reassessment implementation in West Malaysia is at the level of concern where only two councils have the latest tone of the list. However, larger councils have a higher performance compared to smaller councils. The findings also reveal various challenges in property tax reassessment, such as insufficient human resources, inadequate property systems and software and lack of financial capacity. Others include a shortage of competent assessors, lower public education, political interference and socioeconomic uncertainty.Practical implicationsThis study offers practical implications to policy and decision-makers in the West Malaysian local authorities. Despite inferior performance by West Malaysian local authorities, there is a need for conducting property tax reassessment activity to ensure the quality and uniformity of the assessment. This study suggests that local government stakeholders and managers should devote more attention to formulating long-term plans and promoting the property tax reassessment practice. The property tax reform could solve the current situation of substandard reassessment activity.Originality/valueThis study explains, compares and interprets the actual statistical data through the figures and summarises the challenges of property tax reassessment activity among local authorities.

Sustainable Cities and Communities from Malaysian Local Authorities Perspectives

Perspectives of Malaysian local authorities on the development of sustainable cities and communities (SCC) are examined in this study, with a focus on the effects of cost-benefit analysis (CBA), private finance initiatives, and risk management. Additionally, the challenges faced by local authorities in developing SCC are presented. A qualitative method was used, involving face-to-face interviews with local authorities. Content analysis was conducted, and the results show that CBA, private finance initiatives, and risk management have a significant impact on the development of SCC. The primary challenge in implementing SCC is the limited funding available to support their implementation. This study sheds light on the importance of considering CBA, private finance initiatives, and risk management in developing SCC from the perspective of Malaysian local authorities. The findings also highlight the need for more funding and resources to support SCC implementation in Malaysia.

Smart government: role of e-government in local government

The concept of a smart city has become a popular topic among researchers over the last decades. The concept of e-government and smart city are interconnected with each other. E-government focuses on using information and communication technology (ICT) to provide better services. Similarly, a smart city also focuses on utilizing the data on a larger scale to foster innovation. This paper provides an overview and initial understanding of egovernment roles in the local authority in Malaysia. Local authority plays a prominent role in providing government services to the people in the cities and in realizing the smart city concept. This paper contributes to the existing literature on smart city and e-government by providing insight into the roles of e-government as a part of smart city projects.

Intellectual capital and property tax reassessment performance of local authorities: The interrelationships analysis.

Malaysia's property tax reassessment practices have recently revealed a previously hidden phenomenon that insufficient numbers of local authorities had undertaken a revaluation. The situation raises the question of what causes variations in property tax reassessment performance and which factors contribute to these variations. Hence, this study investigates the role of intellectual capital (IC) and its components in property tax reassessment performance among Malaysian local authorities. Data were collected using structured questionnaires from a sample of 155 officers from local authorities operating in West Malaysia. Structural equation modelling (SEM) was employed to examine the hypotheses using the SmartPLS 4.0.8.2 version of the partial least squares technique. The analysis results demonstrate that only relational capital significantly affects property tax reassessment performance, whereas human and structural capital have no equivalent relationship. Intriguingly, significant interrelationships were observed among the components of IC. The research model adds theoretical value to the discourse of organizational psychology, knowledge management, and property tax reassessment management. The significant positive relationship on relational capital resulting from this research indicates that the multiple stakeholder's behaviours impacted reassessment work. This study offers practical managerial implications for the related parties: local authorities, public institutions and other stakeholders. The findings will change the manager's behaviour in realizing the importance of IC and making effective strategies to improve their property tax reassessment performance.

Content Analysis of Sustainable Development Goals Information on Malaysian City Councils' Websites

Purpose: The objective of this paper is to examine: 1) the type of Sustainable Development Goals (SDGs) information (financial and nonfinancial) and 2) the extent of SDGs information disclosed on Malaysian city councils’ websites. Design/Methodology/Approach: The Sustainability Development Goals Disclosure Index (SDGDi) consists of 150 items used as the instrument for content analysis to achieve the objective. Findings: The analysis of websites revealed that more non-financial sustainable development goals information is disclosed compared to financial information. On average, 28 out of 150 items of SDGDi were disclosed, which suggests a ‘fair’ level of SDGs information disclosure. Of all the SDGDi categories, SDG 9 (industry, innovation, and infrastructure) score was the highest, while SDG 14 (life below water) was the lowest. Practical Implication: This paper contributes significantly to the literature on the disclosure of SDGs information, particularly in the local authority context. It is also useful for the local authority to improve its disclosure practices to promote better sustainability. Originality/Value: This paper is among the first papers that used a newly developed Sustainability Development Goals Disclosure Index (SDGDi) to measure the readiness of Malaysian local authorities to advance the sustainable development agenda via disclosure practices. Keywords: Sustainable development goals, local authority, disclosure, website.

A SPATIAL ANALYSIS OF SUBSIDISED BUS ROUTE CATCHMENT FEASIBILITY IN AN URBAN AREA IN MALAYSIA

This paper focuses on subsidized bus services provided by a local authority in Malaysia to determine the route's feasibility. This case study explores the catchment area of the designated bus stops in its route, the distance between the bus stops, the passengers' boarding, and alighting points, and the level of service. A Global Positioning System (GPS) device was used for an onboard survey to identify the boarding and alighting points, and the service catchment area was explored with the Geospatial Information System (GIS) tool. Findings indicate that the service level lacks sufficient facilities, proper accessibility, comprehensive information, and signage at bus stops. Furthermore, relatively poor performing bus service in passengers loading and timely arrival during peak periods. Next, an analysis of forty-one (41) catchment areas revealed that only 37% of the bus stops are within a catchment area. Recommendations for bus services include timely and accurate information to ease users to plan their journey and providing comfortable bus stops.

Development of Crisis Management Competencies: Factors Dominating It. A Case Study of Local Authorities in Malaysia

Performance improvement in an organisation can be achieved if all competency elements can be strengthened, employees perform their roles efficiently, and services meet the expectations of the management and customers. The competency development process requires continuous supervision and evaluation in order to produce an effective and integrated management system. The research used a qualitative method, in which eight informants participated in this study to discuss the comprehensive development and factors dominating the process. The themes of the study are derived based on participatory observations, document analysis, and interview sessions that have been conducted. The discussion topic is focused on the components that influence the development of crisis management competencies according to their perspectives. The three themes are 1) Enhancement of the transparency of governance and integrity in organisational human resources, 2) Empowerment of organisational learning to drive organisational excellence, and 3) Strengthening the efficiency of organisational governance. Integrity governance with high expertise requires continuous training and development to increase the knowledge, skills, and abilities of employees from time to time. It also assists in enhancing the talents and expertise of employees in related fields as well as improving self-confidence and personality to achieve the objectives of the transparency of governance.

The Commitment of Local Authority Offices toward Sustainable Energy Practices

Globally, there is a strong trend among local authority offices towards focusing on energy sustainability. This movement is vital as they faced challenges in managing their assets due to financial constraints and declining resources. This study aims to investigate the commitments of the local authority offices in Malaysia towards sustainable energy practices. The objective of this study was to identify the sustainable energy initiatives implemented within the selected local authorities in Malaysia as a case study. For this research context, ‘the commitment’ refers to the extent of information found concerning sustainable energy initiatives undertaken to manage their assets. Eight (8) semi-structured interviews with FM practitioners representing the eight local authorities from the City Hall and Municipal Council categories were conducted. Generally, the commitment of the local authority offices in Malaysia towards sustainable energy implementation was still at an initial stage, with seven (7) related initiatives identified. However, the introduction of energy-saving techniques, energy-saving technology, energy-saving equipment, and encouraging the involvement of officers and staff in energy-saving was the most significant initiatives identified. Therefore, given this perspective, the proactive role of local authorities is needed towards sustainable energy implementation. Indeed, this organisation have to take the lead in achieving sustainability goal.

A Phenomenology Study on Misappropriation of Assets and Corruption in Malaysian Local Authorities: A Reality Check

Year on year, the Auditor General’s Report had reported on the inefficiencies and weaknesses in the government administrative system. Accordingly, this research aims to identify why misappropriation of assets and corruption are still occurring despite the elaborated preventive measures in place. Due the sensitivity of the area, a phenomenological study is the most appropriate method to approach the objective. This research used the evidence collected from both the semi-structured interviews and open-ended survey from local authorities in Malaysia. Information and data from face-to-face interviews served as the primary source of information while responses received by postages served as a secondary support to the primary research instrument. Based on the responses, inefficient leader becomes the centrepiece of the other ten challenges, namely, attitude, weak enforcement, lack of internal strengths, ineffective training, lack of authority, opportunity due to lack of control, burden of proof due to bureaucracy, favouritism/ excessive discretions, organisational culture, and public perception. This research contributes to the literature by investigating a commonly proposed subject but underexplored methodology by incorporating phenomenology and open-ended survey simultaneously in data collection to understand a holistic view of the discussed issues. While detailed research of whistle-blowing programs is outside the scope of this research, future research should acknowledge the importance of whistle-blowing programs in the Malaysian public sector which move beyond the compliance of established policies and procedures.

FAKTOR-FAKTOR YANG MEMPENGARUHI AMALAN PENGASINGAN BAHAN SISA PEPEJAL DALAM KALANGAN ISI RUMAH: KAJIAN KES DI SELANGOR

Malaysia, as one of the countries committed to achieving the 17 Sustainable Development Goals (SDGs) set by the United Nations (UN), has set out to achieve those goals by 2030. One of the efforts undertaken is through the Resource Allocation Initiative (SSI) under the Solid Waste Management and Public Cleansing Act 2007 (Act 672) was launched and came into effect in September 2015 in which Malaysian households are encouraged to participate by practicing solid waste segregation at home. Although there are various negative effects on unstructured waste management, many past studies have only discussed factors of intention and recycling practices among households as opposed to solid waste segregation practices. Therefore, the objective of this study is to highlight the role of intrinsic motivation in influencing solid waste segregation behavior by using the Theory of Planned Behavior (TPB) as a framework. A survey of questionnaires was conducted among the residents of residential units in the state of Selangor, and a total of 361 questionnaires were returned. Smart PLS software is used to analyze the data. The results showed that all variables including attitudes, subjective norms, and behavioral control had significant relationships in predicting solid waste segregation behavior. Based on the results of this study, recommendations are made to encourage solid waste segregation behavior among households. In addition, this study makes a significant contribution to the knowledge of household behavior in practicing solid waste segregation. From a practical point of view, this study is very important for local authorities in Malaysia and around the world to encourage the involvement of households to segregate solid waste to protect and safeguard the environment and reduce pollution.

Public procurement in Malaysian local authorities: Antecedents of procedural rationality in decision making

The Malaysian public sector is oversaturated with comprehensive procurement procedures. These measures aim to deter unwarranted behaviours from public officers. Nevertheless, there have been recurring irregularities over the past decade in Malaysian local authorities, including work delays, non-compliance with regulations, wasteful purchasing, substandard workmanship etc. This study aimed to investigate factors undermining rationality in public procurement decision making from the cognitive perspective. The cognitive and behavioural science literature was reviewed systematically, focusing on procedural rationality to develop a predictive model of procurement irregularities. This research adopted a quantitative approach. A total of 289 datasets were collected from the procurement officers of Malaysian local authorities and analysed using the Partial Least Square Structural Equation Modelling technique. The empirical findings showed that work experience, prior knowledge, and accountability correlate directly with procedural rationality in procurement decision-making, which would impact the procurement outcome. The research offered insights into the decision-making behaviour of procurement officers from the cognitive psychology perspective. From the managerial standpoint, public procurement procedures should incorporate the elements of accountability, experience, and prior knowledge as part of the quality assurance and control measures.

Pruning Urban Trees without Skill: An act of unintentional vandalism

Tree pruning provides various benefit but also a source of multiple types of tree damage due to unskilled pruning practices. Cohen's vandalism typology state that persons who have similar characteristics to those present in poorly skilled work (i.e., unintentional act; maintenance equipment damaging a tree structure) perform "vandalism". This study aims to explore the relationship between unintentional vandalism and unskilled pruning practices in tree maintenance by analysing qualitative and quantitative data from the tree workers contracted by selected Malaysian local authorities and tree care experts. Results showed that insufficient tree pruning knowledge leads to unintentional vandalism in tree pruning practices.

Development of a Sustainable Development Goals Disclosure Index (SDGDi) for Malaysian Local Authorities

Purpose: The objective of this paper is to describe the development of a sustainable development goals disclosure index (SDGDi) for Malaysian local authorities. Design/Methodology/Approach: The paper presents an inclusive examination of international and national guidelines relating to both financial and non-financial sustainable development goals information in disclosures with the aim of developing the above-mentioned index. Findings: The final 23 categories and 150 items under review have been developed into an instrument, which is the proposed SDGDi for measuring the commitment undertaken by local authorities in advancing the SDG agenda. Practical Implication: This paper contributes to the development of an SDG disclosure index that may be most appropriate for local authorities to use in developing countries. It addresses the issues related to best practices for local authorities in achieving the SDGs. Originality/Value: The paper presents the first index to be developed for Malaysian local authorites to use. It could serve as the model for adoption by local authorities in other developing countries. Keywords: SDG, disclosure index, local authorities, developing countries.

Strategizing for grand challenges: economic development and governance traditions in Malaysian local government

This qualitative study provides empirical knowledge and develops theory about the role of strategic management in Malaysian local government. As the country addresses the grand challenge of economic growth amid enduring national aspirations of moving from developing to fully developed status, the analysis identifies six approaches to strategic management across nine Malaysian local authorities. Rather than presenting a linear story of progression, the six models of strategizing in Malaysia illuminate the governance traditions that co-exist in this setting. The study examines the assumptions about public management that underpin the different approaches and relates these to the country's inheritance of classical public administration and centralized government, the introduction of New Public Management, and the subsequent emergence of features of New Public Governance. It contributes to theory by providing an analysis of the role of strategy in each of the three governance traditions and connects debates about local governance with scholarship on strategic management. It also contributes to the emerging literature on strategizing for grand challenges and the limited repository of such studies located in a public sector context. The article ends by identifying the implications for policy and practice and suggesting areas for further research. Points for practitioners This study highlights the need for collaboration to address strategic meta problems, manage economic pressures and deliver public services. The six approaches to strategy development presented provide a set of models and frames through which practitioners may assess their local environment. Our typology offers a basis for cross-sectoral learning and reflection, including ways of diagnosing contextual variables and developing strategic knowledge. The Malaysian case shows how the context of strategy formation has been affected by the shift from local government to governance, as well as by interacting colonial legacies.

Analysis of Socio-demographic Factors Influencing Households Participation in Sustainable Food Waste-management in Malaysia

Most local authorities in Malaysia spent as much as 60-70 percent of their annual budget to dispose food waste together with other municipal solid wastes to landfills. It is time for Malaysians to start reducing food waste through sustainable method, as it is becoming an uphill task to manage food wastes generated in Malaysia. When households reduce the amount of food waste generated in a sustainable way, it could help reduce cost, and other related bills for households, and as well in running their other daily activities. The main objective of this study is to assess how sociodemographic factors of households in Selangor and Terengganu influence their behaviour towards participation in sustainable food wastes management program. The study applied purposive nonrandom sampling consisting of 333 respondents, 257 were from Selangor and 76 from Terengganu. Primary data was collected through structured questionnaire. Descriptive and logistics regression model analysis were used to analyze the data. Findings have shown 48.7 percent of Terengganu respondents spent not more than RM100 on food per week, while Selangor had 41.2 percent within the same period who spent such amount. 35.4 percent of Selangor respondents spent between RM101-200 compared to Terengganu which spent same amount at 30.3 percent within the same periods. The survey shows 43.2 percent of Selangor households disposed 1-3kg food wastes, while Terengganu on the other hand had 51.3 percent who disposed same quantities of food wastes per week. Respondents with higher education, those on government jobs, small family size and ethnicity have significant impacts on the respondents' behaviour towards participation in sustainable food waste management program. Note: US$1=RM4.09

Do external benchmarking mechanisms facilitate performance management in Malaysian local authorities?

PurposeThis paper investigates the extent to which externally led benchmarking may have facilitated performance management design and use in Malaysian local authorities.Design/methodology/approachA longitudinal qualitative study of local authorities in Malaysia was undertaken, comprising interviews with key officers during the introduction of process-based key performance indicators (KPIs), and following the imposition of benchmarking (i.e. relative performance evaluation) on local authorities. Complexity theory was used in the analysing and theorising of data.FindingsExternal benchmarking mechanisms facilitated only operational performance management, with strategic performance management merely ceremonially adopted. As the focus was on mainly operational KPIs, strategic goals were not translated into detailed action plans and outputs at departmental level. In addition, operational and strategic performance management packages were decoupled. Thus, the efforts of external actors resulted in operational controls suppressing rather than facilitating strategic processes.Research limitations/implicationsThere is a need to transition from purely externally led benchmarking to internally driven benchmarking in local government, whereby benchmarking forms part of the interactive performance management mechanisms that lead to institutional learning and improvement.Practical implicationsBenchmarking activities should be based on comprehensive analyses of performance management design and use. A reflective approach to continuously identify gaps or weaknesses in performance management systems will enable local government administrators to improve systems and processes in a timely manner to meet stakeholder needs.Originality/valueThis paper explains the impact of central government policy and benchmarking initiatives on other levels of government. We have built on previous literature by examining the connection between external benchmarking and internal performance management design and use in local government. In relation to this, and following calls for research on holistic performance management, the integration between operational and strategic performance management packages was also examined.