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The efficiency of each unit of government can be channel through decentralization.

Decentralization is also known as a force of change and decision-making powers of authority


from the central government to the organization at the local level. The federal government
provides to the organization of administration at the local level of the local government to
administer and manage the areas under its colonies. With this authority, the government can
manage the mysteries and more effectively. This concept is used to ensure the effectiveness
of the administration which was not only the central government but also to the lower levels
such as district, provincial and rural areas. In Public Administration, the concept of
decentralization indicates the presence of something at the center, from which it may be
dispersed. It also means the transfer of power from higher authority or body for the area of
political or administrative systems. Decentralization can also be considered as giving
administrative powers and responsibilities in the management. Government at state and local
levels being able to implement its own powers and be able to use its own financial resources
for use in the development and management of the area under their jurisdiction. State and
local government will be representative of all the people who were in the area in the course of
administering the affairs of the community and local authorities. With this decentralization so
it's easier administrative process at the local level.
For Malaysia, it still cannot be the best example in the implementation of the
decentralization as from the federal level to local level is still influenced by the central
government. There are certain state governments also under the control of the federal
government. Even so, there are a few things to show Malaysia was leading up to a fully
decentralized. The state government has given it refers to states won by the same party
backed by the central government where they come from the same party. The evidence is
clear when the federal government interfere in the state in term of political and administrative

with the issue of the appointment of chief minister, state secretaries and heads of state in the
state. The same situation occurred at the federal level, when the federal government has the
power to reorganize the administration at the federal level. However, the problems of
decentralization in Malaysia have made a significant impact on the administrative structure at
national, state and local levels. Decentralization is one way the federal government to hand
over power in the administration to the lower levels but it becomes a problem when abuse of
power and interests of certain parties.
In the context of the local authorities, decentralization often happens in this country
on the issue of appointment of the head of local government and council members came from
political appointees. The local government in Malaysia is under the control of state
government and being observe under Ministry Of Housing and Local Government. They are
appointed by the government to serve at the local level. If in other countries especially in
Thailand, the appointment of the head of local government and their councilors executed
through a special election. In this case, when the appointment comes out of political
appointees, appointed individuals are more prone to political parties and they obviously have
an interest in a position. To prevent that from happening, given the state of Kedah in
Malaysia for example has been appointed the head of local government officers among top
government officials for a specific time period. However, the appointments of members of
the council are still among the politicians without any qualifications. My personal opinion on
the question of eligibility, when a person is appointed means he deserves. Experience and
knowledge are two different things when combined will be better. In Malaysia clearly shows
that leaders at the state level do not matter whether the government or the opposition, they
practice the same thing by appointing councilors for political appointees. Political agendas
take precedence in this regard. The problem will arise when individuals who were appointed
actually not worth the trouble, it will have a negative effect on the state itself. Corruption and

abuse of power took place in the local staging unnoticed on personal interests and political
factors. Any action taken by the local government will be influenced by the interests of
certain political parties. At the central level, we also cannot deny the fact that every elected
government officials often an issue. The selections and appointments of candidates often
based on background and cronies. When this happens, the state apparatus would also be
unbalanced and its implementation is influenced by political interests.
The practice of privatization in Malaysia also considered a problem of
decentralization for the implementation required power in the hands of the government itself.
Privatization is the only highly effective way to resolve problems and unproductive
inefficiencies that occur in the services that are managed by the government. Public
complaints against the quality of public services provided by government bodies before this
have prompted the government to privatize one by one these government bodies. Although
the quality of public services is improved after it was privatized but the people are forced to
pay higher prices for all services rendered than ever before it is privatized. This is clearly
burdens the people and benefits certain parties. It is the center of government action that
changes the "federalism" to "central" (center) to capture state resources should be owned by
the state and local. To some extent it reinforces the position of the central government in the
country by implementing it as a tool to maintain the position. The fact is that in Malaysia,
despite the relationship between federal and state governments, state power is still limited to
land, natural resources and the local council. In business, usually when we give the
opportunity to others to gain advantage, we will be rewarded in the form of commissions.
This is happening in Malaysia that allows certain leaders can live in luxury and get more
political fund budget allocation to maintain the position and power. It is not fair for those who
have no power to gain an advantage like this and not good for the people because the people
are affected. It's also not fair to the opposition. Look at several factors, it is not wrong to

conclude that private companies that prioritize profit alone. See also comparison privatization
abroad, for example in Britain, public opinion was taken into consideration before its speed
rail transport sector was privatized. While in Japan, its speed rail system is privatized and
become fully state-owned, it is not surprising public transport sector is very great. Therefore,
most countries do not privatize some key sectors such as services, they see the industry in
terms of profitability is not judged, but the comfort of the user. In contrast to what happened
in Malaysia one by one privatized. At the end, this country will bear a significant loss due to
the loss of state assets as a result of the decentralization of the country's leadership.
All of the above shows that it is the federal government's strategy to strengthen and
expand the power of attorney. In most of the federal model, the revenue will be shared
between the state and federal governments. In most cases the tax collected would be
distributed to states based on a formula that takes into account the contribution of the state
and level of development. But in Malaysia, there is no mechanism for sharing the tax. Federal
funds provided to the state are Capitation Grant, Grant Maintenance of State Roads and small
grants to local authorities. Meanwhile, the state development fund is not managed by the state
government. Instead, it is controlled by the State Development Office, a unit under the Prime
Minister. As a result, the state government funds drought and over-reliance on revenue from
property, land, mines, forests and local council tax. As can be imagined, this income amount
is not much. Constitutional constraints also mean that the state is not allowed to raise funds
through loans. This makes things difficult for each state the freedom and rights like what the
federal government can. This involves the country's finances, so every year the minister of
finance will present yearly budgets in parliament. This budget is a budget usually biased in
interest of the federal government for their position.
As discussed, decentralization is very important in countries that practice democracy.
It simplifies the administration and thus meets the needs of people up at district and villages.

Administrative burdens and the development of financial management at the central level can
also be reduced. This will make it easier for the federal government, state and local
governments to improve their capability to implement the planned programs. Hence, the
knowledge of people about the political system can also be improved and participation of
local people can be encouraged to cooperate for implementation of development programs.
Malaysia is seen still in the middle of the implementation of decentralization because it does
not fully implement the decentralization of functions. The problems and challenges of
decentralization in Malaysia should be settled in the interest of the people and not a particular
party.

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