The Local Government Act 1976 (Act 171) is the federal statute that revises and consolidates the law on local government in Peninsular Malaysia. It lets each State Authority declare an area a local authority, fix its status as a Municipal or District Council, and appoint the councillors who run it — and it is the law that ended local-government elections, so no Malaysian votes for a mayor or councillor. It received Royal Assent on 18 March 1976 and, by its own terms, applies only to Peninsular Malaysia; Sabah and Sarawak have their own ordinances.
- Section 1(1) states the Act applies only to Peninsular Malaysia — correcting the common web claim that it applies throughout the country; Sabah and Sarawak use separate ordinances (Local Government Ordinance 1961 and Local Authority Ordinance 1996).
- Section 15(1) provides that all provisions relating to local-government elections cease to have effect — the statutory basis for Malaysia's appointed, non-elected councils.
- Section 10 sets a council as a Mayor or President plus 8 to 24 councillors appointed by the State Authority, each for a term not exceeding three years.
- Part XV lets a council impose assessment rates (cukai pintu) under Section 127, and Part XIII lets it make and enforce by-laws with penalties, confirmed by the State Authority.
- In its consolidated form the Act comprises 16 Parts, 166 sections and 2 schedules, and has been amended seven times, including by the Fire Services Act 1988 which deleted the original Part X.
Who this applies to: Residents, ratepayers and property owners, councillors, planning and law students, and anyone dealing with a city, municipal or district council in Peninsular Malaysia.
On this page
If you have ever wondered why no Malaysian ballot has ever listed a candidate for mayor, the answer is a single statute. The Local Government Act 1976 (Act 171) — long title “An Act to revise and consolidate the laws relating to local government” — is the law that constitutes every city, municipal, and district council in Peninsular Malaysia, appoints the people who run them, and hands them the power to tax and fine you. It received Royal Assent on 18 March 1976 and was gazetted on 25 March 1976. Despite what much of the web says, Section 1(1) states it applies only to Peninsular Malaysia; Sabah and Sarawak keep their own ordinances.
Why are councillors appointed instead of elected?
This is the Act’s most consequential feature. Section 15(1) provides that all provisions relating to local-government elections “shall cease to have force or effect,” and Section 15(2) removed the elected councillors then in office. In their place, Section 10 makes the council a Mayor or President plus not fewer than eight and not more than twenty-four councillors, appointed by the State Authority, each for a term not exceeding three years. That is the statutory root of the long-running “restore local elections” or “third vote” debate.
It also fits the constitutional design: under the Federal Constitution’s Ninth Schedule, local government — including local authorities, local rates, and local-government elections — sits in the State List, making it primarily a state matter. Article 95A adds a National Council for Local Government, chaired by a Minister with one representative per state, to set national policy.
What counts as a “local authority”?
Section 2 defines a local authority as any City Council, Municipal Council, or District Council (in the Federal Territory, the Commissioner of the City of Kuala Lumpur). A City Council is the council of a municipality that has been conferred city status. Under Section 3, a State Authority — consulting the Minister and the Election Commission — declares an area a local authority, names it, fixes its boundaries, and sets its status as Municipal or District, all by Gazette.
| Question | Provision |
|---|---|
| Where does the Act apply? | Section 1 — Peninsular Malaysia only |
| Who creates a council and sets its status? | Section 3 |
| How is a council made up? | Section 10 — Mayor/President + 8–24 appointees |
| Why no elections? | Section 15 |
| By-laws and penalties | Part XIII (Sections 102–106) |
| Assessment rates | Part XV — Section 127 (basis in Section 130) |
What can a council actually do to your daily life?
Two Parts of the Act reach into most residents’ lives. Part XV (Rating and Valuation) lets a local authority impose rates — the assessment tax, or cukai pintu — on holdings within its area under Section 127, with the basis of assessment set in Section 130. Part XIII gives councils a general power to make by-laws, which the State Authority must confirm (Section 103) and which may carry penalties for breaches (Section 104). Between them, they underpin the licensing, markets, sanitation, and public-place rules a council enforces.
How big and how old is the Act?
In its consolidated form the Act comprises 16 Parts, 166 sections, and 2 schedules. It was passed by the Dewan Rakyat on 18 December 1975 and the Dewan Negara on 20 January 1976, and has since been amended seven times — including the Local Government (Amendment) Acts of 1978, 1983, 1991, 1993, and 2007, and the Fire Services Act 1988, which deleted the Act’s original Part X. Nationwide, the Department of Local Government (JKT) has referenced a list of 155 local authorities (PBT), alongside the parallel systems in Sarawak (Local Authority Ordinance 1996) and Sabah (Local Government Ordinance 1961).
What’s next
To object to a valuation or an assessment bill, follow the notice-and-objection procedure in Part XV and your council’s valuation list. To understand where councils sit beneath the state and federal tiers, look next at the Ministry of Housing and Local Government (KPKT) and the National Council for Local Government under Article 95A.
Why can't I vote for my mayor or local councillor?
Because Section 15(1) of Act 171 provides that all provisions relating to local-government elections cease to have effect, and Section 10 makes every councillor a State Authority appointee. Local government sits in the State List of the Federal Constitution, so it is a state matter.
Does the Local Government Act 1976 apply to Sabah and Sarawak?
No. Section 1(1) says the Act applies only to Peninsular Malaysia. Sabah uses the Local Government Ordinance 1961 and Sarawak the Local Authority Ordinance 1996.
What legal basis lets a council charge assessment tax?
Part XV (Rating and Valuation). Section 127 empowers a local authority to impose rates on holdings in its area, with the basis of assessment set out in Section 130.
The following are deliberately unstated or described only qualitatively until confirmed by a subject-matter expert:
- Exact current number and breakdown of local authorities (city vs municipal vs district councils) for 2024–2026 — JKT/KPKT listed 155 PBT as of Aug 2021; the count and city-status upgrades change over time.
- Precise historical date local-government elections were suspended (commonly cited as 1 March 1965) and the roles of the Athi Nahappan Royal Commission and the Local Government (Temporary Provisions) Act 1973 — confirm against a primary source before stating.
- The definitive count of amending Acts and whether any amendments to Act 171 exist after 2007.
- Official criteria/thresholds (population, annual revenue) for conferring City or Municipal status — needs an official KPKT source.
- Exact number of Parts/sections/schedules in the most current in-force reprint (Wikipedia states 16 Parts/166 sections/2 schedules as of 1 Dec 2012; verify no structural change since).
Sources
- Laws of Malaysia, Act 171 Local Government Act 1976 (official reprint incorporating amendments up to 1 January 2006) — Commissioner of Law Revision, Malaysia
- Local Government Act 1976 — Wikipedia
- Concept of Local Government — Jabatan Kerajaan Tempatan (Department of Local Government), KPKT
- Federal Constitution of Malaysia (Reprint) — Article 95A and Ninth Schedule, State List — Attorney General's Chambers of Malaysia (AGC)
Change history
| Version | Date | Change | By |
|---|---|---|---|
| 01.00 | 14 Aug 2026 | Approved and published. | — |