National Council for Local Government to adopt new Service Efficiency Act, says Nga

• Minister of Housing and Local Government Nga Kor Ming outlined that Act 867 focuses on four key principles: improving service efficiency, reducing bureaucratic red tape by at least 25%, enhancing accountability in governance, and ensuring effective regulation through structural reforms.

PUTRAJAYA (Aug 20): The 86th National Council for Local Government (MNKT) meeting on Wednesday agreed to implement the Government Service Efficiency Commitment Act 2025 (Act 867) at the state and local authority levels to strengthen the public service reform agenda.

Minister of Housing and Local Government Nga Kor Ming outlined that Act 867 focuses on four key principles: improving service efficiency, reducing bureaucratic red tape by at least 25%, enhancing accountability in governance, and ensuring effective regulation through structural reforms.

“The government will review outdated regulatory instruments that burden the public and the business community. We aim to reduce regulatory burdens by 25%, introduce a ‘one in, one out’ approach for regulatory documents, and establish a performance rating system for services.

“This includes offering financial incentives to civil servants for their performance, with recognition and rewards,” Nga said in a statement on Wednesday.

The Government Service Efficiency Commitment Bill 2025, designed to improve the quality and effectiveness of government services, was passed in the Dewan Rakyat on March 6 and in the Dewan Negara on March 25.

In addition to the Bill, the MNKT meeting also reviewed the 2025 Urban Renewal Bill. This new legislation aims to facilitate efficient, inclusive, and sustainable urban redevelopment.

The council also discussed guidelines for parking spaces for persons with disabilities, ensuring a more consistent approach nationwide.

“A proposal was made to implement central cooling systems in industrial zones, which could reduce carbon emissions, lower energy costs, and improve industrial efficiency. We also discussed guidelines for solar farm planning to ensure renewable energy development is both environmentally friendly and beneficial to local communities,” Nga added.

The meeting, chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof, reiterated the federal government's commitment to strengthening cooperation between the state governments and local authorities, with the goal of realising Malaysia Madani’s aspirations.

“All the decisions made today will serve as a foundation for more efficient, inclusive, and sustainable local governance, ultimately benefiting the people and ensuring balanced, long-term national development,” Nga added.

Seven key papers were presented at the meeting, covering topics such as public administration reforms, sustainable urban development, inclusivity, government procurement improvements, and the country's strategic energy transition towards a greener, more resilient future.

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