Malaysia Oversight

National Council for Local Government adopts Service Efficiency Act 2025

By TheSun in August 20, 2025 – Reading time 2 minute
National Council for Local Government adopts Service Efficiency Act 2025


: The 86th National Council for Local Government meeting today agreed to implement the Government Service Efficiency Commitment Act 2025 at state and local authority levels.

Minister of Housing and Local Government Nga Kor Ming outlined that Act 867 focuses on four key principles.

These principles include improving service efficiency and reducing bureaucratic red tape by at least 25 percent.

The act also aims to enhance accountability in governance and ensure effective regulation through structural reforms.

Nga stated that the government will review outdated regulatory instruments that burden the public and business community.

“We aim to reduce regulatory burdens by 25 per cent, 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 today.

The Government Service Efficiency Commitment Bill 2025 was passed in the Dewan Rakyat on March 6.

It was subsequently passed in the Dewan Negara on March 25.

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.

These guidelines aim to ensure 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 was chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof.

It reiterated the Federal government’s commitment to strengthening cooperation between state governments and local authorities.

This cooperation aims to realise Malaysia MADANI’s aspirations.

“All the decisions made today will serve as a foundation for more efficient, inclusive, and sustainable local governance.”

“This will ultimately benefit the people and ensure balanced, long-term national development,“ Nga added.

Seven key papers were presented at the meeting.

These covered topics including public administration reforms and sustainable urban development.

Other topics included inclusivity and government procurement improvements.

The meeting also discussed the country’s strategic energy transition towards a greener, more resilient future. – Bernama



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