Malaysia's New 'Traffic Light' System for Local Governments: Funding Tied to Performance

Malaysia Implements 'Traffic Light' System to Assess Local Government Performance Kuala Lumpur, Malaysia – In a move to improve efficiency and accountability, the Malaysian government has introduced a new performance assessment system for local governments (PBTs). The system, unveiled by Housing and Local Government Minister Nga Kor Ming, uses a traffic light system to categorize PBTs based on their performance. Those deemed underperforming receive a 'red light' and face funding cuts. 'Yellow light' PBTs will see their funding reduced, while high-performing PBTs with a 'green light' will receive additional funds. "The traffic light system is a transparent and fair way to assess the performance of our PBTs," said Minister Kor Ming in a recent press conference. "We want to ensure that public funds are used effectively and efficiently, and this system will help us to achieve that goal." The system, launched in early May, covers 156 PBTs nationwide. The Minister also noted that those receiving 'red lights' will be called in for counseling and training. This initiative aims to improve service delivery and enhance the quality of life for Malaysians. This new system represents a significant step towards greater transparency and accountability in local governance. The government's commitment to improving performance and providing better services to its citizens is encouraging.