Kuala Lumpur: All 156 local authorities (PBT) nationwide have been urged to enhance service delivery and speed up the implementation of people-centric development projects to create a more investor-friendly climate.
According to BERNAMA News Agency, Housing and Local Government Minister (KPKT) Nga Kor Ming emphasized that this step is crucial to improve the ease of doing business, stimulate the country’s economic growth, and increase Malaysia’s global competitiveness. He supported Prime Minister Datuk Seri Anwar Ibrahim’s recent call to address longstanding project delays and bureaucratic red tape that have persisted since the 1980s, underscoring the importance of resolving these issues promptly.
Nga stated, “The MADANI Government is committed to strengthening economic growth through high-quality public service, especially through speedy approval and implementation, to create an investor-friendly environment.” He highlighted Malaysia’s progress, noting its rise in the World Competitiveness Ranking from 34th to 23rd, and urged local authorities to act swiftly as time is of the essence.
To facilitate this, the KPKT has introduced a performance assessment system based on a ‘traffic light’ rating to guide allocation approvals. This system evaluates procurement efficiency and compliance (30 percent), project progress and adherence to technical specifications (40 percent), and timeliness in submitting complete documents for claims and fund disbursement (30 percent). Authorities are categorized as Green for excellent performance with increased funding, Yellow for moderate performance with reassessed funding, and Red for poor performance with funding cuts or cancellations.
Nga also outlined the ministry’s new guidelines on project approval times based on project scale: small-scale projects have a 14-day approval period, medium-scale projects up to 60 days, and large-scale projects a maximum of 120 days, including the open tender process. This directive aims to ensure quicker and more systematic project approvals tailored to each project’s needs.