MALAYSIAN PLANNING SYSTEM| TPS 515 – Structure of Government

MALAYSIAN PLANNING SYSTEM | TPS 515 – Structure of Government

1.0 BACKGROUND

Town planning involves both control of existing and new development. Strategic planning ensure our
resources are carefully managed to match our future needs and expectations. According to Moreton
Bay Regional Council, town planning is a dynamic process that is constantly evolving in response to
changes within the community. Through town planning, planning systems are developed, which are
important for shaping development all over the country. The modern town and country planning in
Malaysia has its origins from United Kingdom due to the historical ties of colonialism. It was introduced
in the country with the main objective of improving living conditions of the people. At present, that simple
objective has been developed enormously into an exercise of comprehensive analysis of all surrounding
conditions whether physical or human. Thus, and with the progress of the society, the central role of
the land use planning process started to change, as it became more and more complex in nature.

Formally, Malaysia began as a federal (developed) political framework in 1948 with the establishment
of Malayan Union. With independence in1957, a written constitution for the Federation of Malaya was
approved which allocated powers and responsibilities between the Federal Government and the States
and identified those areas where there was to be a concurrent responsibility between the Federal and
State Governments. This constitution, partially amended to accommodate the establishment of the
Federation of Malaysia in 1963, is still in place today. On another note, development planning in
Malaysia at the national level has evolved over the last 60 years.

It is important to study Malaysian planning system as the future directions of Malaysia planning system
will closely rely on the evolution of planning system in coping with new challenges and its supporting
institutions and needs. This report provides an overview of the town and country planning systems. In
this report, it will firstly provide a literature review on planning systems. Secondly, this report will
describe the components of principle in Malaysia planning system. Thirdly, it will discuss the issues and
problems arise from Malaysia planning system.

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 MALAYSIAN PLANNING SYSTEM | TPS 515 – Structure of Government

2.0 LITERATURE REVIEW

Physical planning in this country started in 1921 with the establishment of a town planning
department in Kuala Lumpur (Taib, M.S., & Siong, H. C., 2008). It was a response to the chaotic
development in Kuala Lumpur and with a vision of reducing unnecessary waste in financial expenditure,
towards setting out a systematic and orderly arrangement of towns in line with the modern town planning
practice. A Town and Country Planning Enactment was enacted in 1923 making the way for the
preparation of General Town Plan and Town Planning Scheme. To cater for immediate needs of
landowners and property developers the practice of re-planning and redistribution of lots were
undertaken. Town planning practice over the years were guided by later changes of the 1923
enactment, through the 1927 Town Planning Enactment, Sanitary Board Enactment of 1929, CAP 137
and subsequent amendments to the Town Board Enactments.

After independence in 1957 the Malaysian administrative system is divided into three levels: federal
government, state government and local government (Omar, D. & Leh, O. L. H.,2009). The powers of
each level of government are preserved in the Constitution and Parliament Acts. Planning matters are
in the concurrent list where both the federal and state governments are responsible for. At federal level,
the Federal Department of Town and Country Planning which is under the Ministry of Housing and Local
Government is responsible for formulating and administering all national policies relating to town and
country planning. At state level, The State Department of Town and Country Planning is an advisory
body to the state governments in Peninsular Malaysia while Sabah and Sarawak are practicing under
different acts. At the local level, local authorities are responsible for executing town and country planning
function as prescribed in the local plan. In Malaysia, land is a state matter. Therefore land use planning
is a state issue and the Federal government is to take on a supervisory role with the overall land use
planning activity. The land use planning system introduced by the 1976 Act express the authorities
intentions to initiate, encourage and control physical, economic, environmental and social changes in a
particular area.

The first draft of the Town and Country Planning Ordinance of Malaya was prepared in 1966 and
revised in 1972 to incorporate the need for a National Master Plan, the creation of several levels of
planning authorities and the bringing of public participation into the planning process. In 1976, the
Malaysian Parliament enacted the Town and Country Planning Act 1976 (Act 172) aiming at introducing
a uniform system of law and policy for town and country planning in Peninsular Malaysia. Among the
important features of TCP Act 1976 was the introduction of two-tier Development Plan system: Structure
Plan and Local Plan; a system of Development Control; establishment of State Planning Committee
and the setting up of Appeals Board. The 1976 Act was amended in 1995 through the Town and Country
Planning (Amendment) Act 1995 (Act A933) which emphasised environmental management in
planning, such as conservation of topographical features and trees.

In 2001 the Act was again amended through the Town and Country Planning (Amendment) Act
2001 [Act A1129] which seeks to balance the power between the Federal and State governments in
matters related to town and country planning. The Act introduces the establishment of the National
Physical Planning Council, Regional Planning Committee and National Physical Plan. The latest
amendment was in September 2007 through the Town and Country Planning (Amendment) Act 2007
[Act A1312] which is to confer the executive authority on the Federal Government over certain matters
in relation to the control and regulation of town and country planning in Peninsular Malaysia. The Town
and Country Planning Act 1976 (Act 172) and its subsequent amendments stated the provision of public
participation in Sections 9 (1, 2 and 3), 12 A, 13, 14 and 15. This ensures that public participation is
mandatory in the formulation of development plans in the country. The Federal Territory (Planning) Act
1982 (Act 267) provides the legal framework for planning practices in Kuala Lumpur Federal Territory,
was also based on the structure planning system and the local plans

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 MALAYSIAN PLANNING SYSTEM | TPS 515 – Structure of Government

3.0 COMPONENTS OF PRINCIPLE IN MALAYSIAN PLANNING SYSTEM

3.1 Planning Hierarchy in Malaysia

For the period 1947 – 1970, a loose hierarchy of planning levels gradually evolved at the end
of colonial period and in the early years of independence. After the rioting in Kuala Lumpur in
May 1969, firmer and clearer hierarchy was put in place and has remained to the present day.
Below is the hierarchy of planning levels for the ‘Old Economy Policy’ and ‘New Economy
Policy’.

Plan 1947-57 1958-70 1958-70 1991-2000 2001-2010

Content
The Vision British Colonial OEP NEP NEP NVP
or Political Office OPP1 OPP2
Reality
Planning at Plans for Plans for Development Development Development
the National Economic Economic Plans Plans Plans Malaysia
Level Development Development Plans 1-5 Plans 6-7 Plans 8-9
Plans 8-9
National Physical
Plan
Planning at ?? SEDCs SEDCs SEDCs SEDCs
the (wef1966)
Regional RDAs RDAs RDAs
Level
Regional Plans Regional Plans Kelang Valley Kelang Valley
/Studies /Studies
3 Regional
Growth
Conurbations
Land Use TBE Master TBE Master TBE Master TBE Master
Planning Plan Plan Plan Plan

Regional Plans Regional Plans Structure Plans

/Studies /Studies for Sates

Structure Plans/ Local Plans for

Local Plans for Structure Plans/ Local Authorities
Local Local Plans for
Authorities Local
Authorities
Table 1.0: Malaya/Malaysia: Hierarchy of Planning Levels 1947-2010
Source: SEDCs: State Economic Development Corporations; RDAs: Regional Development Authorities;
TBE: Town Board Enactment 1939; OEP. Old Economic Policy

The hierarchy generally consists of:

 A ‘vision’ (or political reality) statement which broadly outlines the development/change
sought;
 Plans at the national level for socio-economic change;
 Plans at the regional level for socio-economic and physical change; and
 Land use plans to accommodate the physical development associated with socio-economic
change.

Inevitably the nature of the hierarchy changes with time and not all elements of the hierarchy
are present at all times.

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 MALAYSIAN PLANNING SYSTEM | TPS 515 – Structure of Government

3.1.1 The ‘Old Economic Policy’ 1947 – 1970

After independence in 1957, and until the riots of the 13th May 1969, the ‘vision’ for the development
of Malaya was not explicitly stated, although an interpretation of the five-yearly national development
plans produced during this period suggests that laissez-faire economic growth took precedence over
social justice.

National socio-economic plans for development were produced which adopted a sectoral rather than
a locational approach to economic development- specifically the Draft Development Plan 1950-55;
the First Malaya Plan 1956-60, the Second Malaya Plan 1961-65 and the First Malaysia Plan 1966-
70. Below these plans sat the rigid land use master plans produced under the Town Board Enactment
1939

3.1.2 The ‘New Economic Policy’ 1971 – Present

The introduction of NEP in 1971 following the race riots in 1969 firmed up the hierarchy shown in
Table 1.9 with, for different time periods, the political reality being set by the New Economic Policy
1971-90 (NEP), the National Development Policy 1991-2000 (NDP), and currently the National Vision
Policy 2001-1020 (NVP). Each of these documents sets out for its respective time period an explicit
‘vision’ for social and economic change which had been missing (or thought define ‘development’ in
Malaysia’s terms and set agenda for socio-economic change.

At the next level down are the Outline Perspective Plans 1, 2 and 3 (OPP) associated with NEP, NDP
and NVP respectively for the same time periods (OPP1 1971-90; OPP2 1991 – 2000; OPP3 2001 –
2010).Beneath the OPPs are the Malaysia Plans (the five yearly development plans for the nation)

In the period of the ‘old economic policy’ (1947-57) there was no identifiable regional level in the
hierarchy. Post-independence (1958-70) saw the introduction under the First Malaysia Plan 1966-70
of the SEDCs and the setting up of ad hoc, in situ regional development projects such as the Muda
Agricultural Development Project (MADA) in Kedah and Perlis. The SEDCs began to produce
statewide strategic plans for economic, and less explicitly, social development, which inevitably had
a physical land use dimension.

From the early 1970s the regional level in the hierarchy began to firm up and in addition to the SEDCs
and in situ development projects saw the introduction of:

• Ad hoc regional socio-economic plans for areas experiencing urban growth pressures such as
Penang, with the Nathan Report (1970) and the Klang Valley Regional Planning and
Development Strategy (Shankland Cox, 1974)

• Regional Development Authorities (RDAs) which were established by act of parliament to bring
agricultural and insdustrial development to the disadvantaged ‘frontier’ areas of the country; e.g.
JENGKA, DARA.

3.2 Social and Economic Planning at the National Level

Social and economic planning development has been a central feature of government in Malaysia
since late 1940s, when five – yearly national development plans were first introduced. From 1971
onwards, they became plans both for economic development and social change and
redistribution. In the years following 19577, the main aim of national plans had been to shift
economy away from its dependence on Britain. However, little progress was made. As the
consequence of the riots of 1969 and the Malay demands for a greater share of the country’s
wealth, NEP 1971 – 90 was introduced. It aimed to:

a) Eradicate poverty
b) Remove the association between race and economic function.

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The NEP was succeeded by the National Development Policy 1991 – 2020 (NDP). The Second
Outline Perspective Plan 1991 – 2000 (OPP2) amplified the policy objectives of NDP. At the
same time, Dr. Mahathir, the then Prime Minister introduced the concept of ‘Vison 2020’, in which
Malaysian GDP had to double every 10 years between 1990 and 2020, to achieve the vision’s
aim that is to raise the average income of Malaysians to the same level as in highly industrialised
countries.

The Third Outline Perspective Plan 2001 – 2010 (OPP3) incorporates the National Vision Policy
(NVP) which succeeded NDP and sets out proposals for the development of Malaysia in the
period 2001 – 2010. The five-yearly national development plans, which have been produced
since the formulation of NEP/0PP3, VDP/OPP2 and NVP/OPP3, have been quite clearly set
within the socio-economic framework established.

Under NEP/OPP1 the broad strategy was directed towards securing a high rate of economic
growth. In later years of NDP/OPP2 and under NVP/OPP3, the Eighth and Ninth Malaysia Plan
policies to develop the economy have changed to cope with and utilise the benefits of
globalisation, liberalisation of trade and information and communication technology.

3.3 Social Economic and Physical Planning at the Regional Planning

3.3.1 Regional Studies and Plans

Prior to Town and Country Planning Act 1976, a series of strategies were produced for
the urban centres experiencing growth pressures as a result of in-migration:

 Aimed to promote economic and social development in the areas

 Defined sectoral targets and strategies for manufacturing and tertiary industries,
agriculture, infrastructure and public utilities
 Translated sectoral targets and strategies into a spatial strategy for the area
specifying improvements and detailing the development of the network of service
centres
 Provided breakdown of the costs, the sources of the funds required and the
difficulties likely to be encountered
 Recommended that more detailed physical planning proposals introduced to guide
growth centres development

3.3.2 Regional Development Authority

To address the problems of imbalance and inequality between different regions in

Malaysia, seven autonomous Regional Development Authorities were established:

1- Lembaga Kemajuan Pahang Tenggara (DARA 1972);

2- Lembaga Kemajuan Johor Tenggara (KEJORA 1972);
3- Lembaga Kemajuan Terengganu Tengah (KETENGAH 1973);
4- Lembaga Kemajuan Kelantan Selatan (KESEDAR 1978);
5- Lembaga Kemajuan Wilayah Kedah (KEDA 1981);
6- Lembaga Kemajuan Pulau Pinang (PERDA 1983);
7- Lembaga Kemajuan Wilayah Jengka (JENGKA 1983)

These autonomous authorities are concerned to improve conditions in resource-rich but

underdeveloped regions by providing opportunities for agricultural development and
forest industry.

3.3.3 State Economic Development Corporations (SEDCs)

SEDCs under the First Malaysian Plan are established to promote industrial development
in their respective states through the provision of infrastructure and the carrying out of
industrial and commercial ventures on their own. All the states in Peninsular Malaysia
have long established their SEDC, and as part of their operation, produce regularly an

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economic development plan which invariably includes a spatial dimension that does not
carry the force of law but tended to become a driving force behind development and
shaped the physical form of respective states. The fact that the Structure Plana
introduced in the TCPA 1976 had to be produced for the relatively small local planning
authority areas (the Municipalities and the Districts) ensured that until the amendments
to the 1970 Act introduced in 2001, the economic plans produced for each state formed
the only strategic framework to guide development.

3.4 Town and Regional Planning in Peninsular Malaysia

3.4.1 The Administration of Town and Country Planning from 1976 until Now

The Local Authority Structure and Town and Country Planning Responsibilities

Under the TCPA 1976 every local authority was designated as the local planning
authority for the rea of the local authority, and (Amendment) Act 2001 made the states
responsible for the production of the Structure Plan for its area. In Peninsular Malaysia
each state is divided into a number of rural and municipal districts, which are are the local
authorities for their areas, although not all the peninsular is covered by a local authority.

Each state used powers invested in it through the Local Government Act 1976 to
structure its local authorities to meet local social, economic, physical and political needs
that causes the local authority structures vary and do not always relate clearly to
underlying fundamentals such as population and area.

The state controls local government within its area. Local authority system in Malaysia
can be considered to be an extension of the state within which the local authority is
located. The 99 local authorities in Peninsular Malaysia, (excluding Kuala Lumpur and
Putrajaya) were, under the TCPA 1976, responsible in theory for producing and revising
the Structure Plan and any Local Plans for their areas, and operating the development
control system. However, many of these authorities did not have qualified town planners,
therefore they took the responsibilities through the State Planning Committee, that will
always drew on the FDTCP, which became more than the advisory body. The production
of majority of Structure Plans has been overseen by the directors of state department of
town and country planning.

With exception of George Town, the respective state departments of town and country
planning also processed applications under the TCPA 1976 for permission to develop.
This creates interesting situation whereby;

a) The states largely control the local authorities within their area
b) For the majority of local planning applications are handled by employees of the
FDTCP. With responsibility for the production and review of the Structure Plan has
been handed to the states.

The Federal Government accepted that its concurrent role was to ensure uniformity of
law and policy throughout Peninsular Malaysia.

The Federal Department of Town and Country Planning (Federal Department of Town
and Country Planning March 2005 and 2006a)

FDTCP forms part of the Housing and Local Government. The main role is to advise the
Minister, who is then answerable to Parliament for all matters relating to town and country
planning in the country.

The department has its main centre in Kuala Lumpur, which branch offices in each of the
11 states and four regional project offices. These project offices are concerned to
coordinate and prepare Structure Plans, Local Plans, Rural Plans and Regional and Sub
regional Plans for their areas. The main centre consists primarily of a Research and
Development Division, a Development Planning Division including units dealing with

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structure planning, local planning, rural planning and district development planning, a
National Physical Planning Division and a Regional Panning Division.

The importance of the FDTCP is reflected in the Town and Country Planning
(Amendment) Act 2001, which formally establishes the position of the Director-General
of the Department.

3.4.2 Legislation of Town and Country Planning in Peninsular Malaysia

Town and Country Planning Act 1976

Consists of what is known as the principal Act---the TCPA 1976---and three amendments
Acts---the Town and Country Planning (Amendment) Act 1993; the Town and Country
Planning (Amendment) Act 1995 and the Town and Country Planning (Amendment) Act
2001.

Structure Plans and local authority wide Local Plans have been produced under the Town
and Country Planning (Amendment) Act 2001, the completed development plans for local
authorities will have been produced under the provisions of the TCPA 1976. TCPA 1976
in conjunction with the Local Government Act 1976, was an attempt to put in place
relatively quickly a system of town and country planning and local government that was
intended to be dynamic, flexible and better equipped to cope with the social and
economic development pressures in Malaysia. This act was based on the then recently
introduced Town and Country Planning Act 1968 for England and Wales.

The essential elements of Malaysian TCPA 1976 are briefly summarised below:

Parts I and II: Preliminary, Policy and Administration (Sections 1 – 6):

- The Act applies only to the States of Malaya

- Introduced in accordance with the requirements of Article 76(4)
- It only became operative in a state on a date or dates decided by the State
Authority [Subsection 1(2)]
- Development is defined as ‘the carrying out of any building, engineering, mining,
industrial or other similar operation in, on, over or under land, and the making of
any material change of use any land or building or any part thereof, or the
subdivision or amalgamation of lands and ‘develop’ shall be construed accordingly’
[Subsection 2(1)]
- State Authority has responsibility for general policy in respect of the planning of the
development
- Every local authority is the local planning authority for its area (Subsection 5(1)]

Part III: Development Plans

Structure Plans (Sections 7 – 11):

- The local planning authority is required to carry out a survey of the factors likely to
affect the development of its area
- The local planning authority is required to submit a report of survey and a Draft
Structure Plan to the State Planning Committee (SPC) for its approval
- The report must include an estimate of any changes that are expected to occur during
the period of the plan
- The Draft Structure Plan consists of a written statement formulating the policy and
general proposals for the development, it can be accompanied by such diagrams
and illustrations
- The Draft Structure Plan can indicate ‘action areas’ selected for comprehensive
treatment within specified timescale
- The local planning authority is required to publicise the report of survey

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- The submission of the Draft Structure Plan to the SPC must be publicised and copies
made available for inspection by the public
- SPC must take into account any objections made to the plan
- Upon approving, SPC is required to submit the plan to state authority for its assent
and gazette

Local Plans (Sections 12 – 16):

- When Structure Plan come into effect, the local planning authority is required as soon
as practicable to consider and keep under review the desirability of preparing a Draft
Local Plan
- A Local Plan consists of a map and written statement setting out in such detail,
include such diagrams and illustrations
- The proposals should conform generally to the Structure Plan
- The availability of the prepared Draft Local Plan should be publicised
- The local planning authority can establish a local inquiry or other hearing
- Notifies the SPC of its decision and gazettes that decision in the State Gazette
(Section 15)
- The local planning authority can at any time make proposals for the alteration, repeal
or replacement of a Local Plan [Subsection 16(1)]

Part IV: Development Control (Sections 18 – 31) and Part VI Appeal Board (Section 36)

- The local planning authority is the planning authority

- No development may takes place unless planning permission has been granted
(Section 19)
- In considering an application for permission the local planning authority is required
to take into account ‘such matters as are in its opinion expedient or necessary for
proper planning’ [Subsection 22(2)] and in particular the provisions of the
development plan, and objections made to the application
- Unless extended, a planning permission lapses after twelve months (Section 24)
- Enforcement action can be taken against unauthorised development or development

Part V: Development Charge (Sections 32 – 34)

- Where policies or proposals in a Local Plan, or the alteration of a Local Plan, enhance
the value of land, a charge can be levied in respect of any development undertaken
on the land (Section 32)
- The local planning authority shall determine whether a development charge is
payable

Part VII: Development Areas (Section 38)

- After a Local Plan produced for an ‘action area’ has been adopted, the local planning
authority by notification in the State Gazette, may declare the area or any part of the
area
- The local planning authority is required to acquire that area by purchase or
compulsory under the Land Acquisition Act 1960

Town and Country Planning (Amendment) Act 1995

‘Environmental’ amendments in the Town and Country Planning (Amendment) Act

1995 include:

- Modifying the membership of the SPC to include the State Director of Environment
as an ex officio member of the SPC [Section 3 to amend Subsection 4(1) of TCPA
1976]
- Extending in a more precise way the content, of the Local Plan by requiring that:

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a) Additionally formulate proposals for the protection and improvement of the

physical environment
b) Developers submit a development proposal report with their application, which
deals with the development concept and justification
c) The submitted layout plans show the proposed development

- The Act also makes provision for the local planning

a) To take account of the development proposal report in considering the
application for permission to develop
b) To impose conditions on any planning permission prohibiting drainage to the
land, its physical environment, natural topography and landscape

Town and Country Planning (Amendment) Act 2001

An attempt to overcome the lack of coordination of planning policies among states and
between the Federal and State Governments. In 2005, all states except Terengganu and
Kelantan had adopted the provisions of the Amendment Act 2001. Major changes
included, the establishment of a NPPC chaired by the Prime Minister, to advise the
Federal Government and the states on town and country planning matters; the
introduction of a four-tier system of plan making at the national state, local and special
area levels, and the provision for the involvement of the Federal Government in major
development control matters.

The Act summary:

- It was produced pursuant to Clause 1 of Article 74, Clause 4 of Article 76 and Clause
2 of Article 80 of the Federal Constitution to make provision for an executive role for
the Federal Government (Section 4 of 2001 Act). This is in contrast to the TCPA
1976 which was produced pursuant to Clause 4 of Article 76 which is concerned only
with ensuring uniformity of law and policy (Preamble 2001 Act)
- Substitutes in the Principal Act (the TCPA 1976) the preamble
- Establishes the functions of the NPCC as:
a) ‘To promote in the country, within the framework of the national policy, town and
country planning as an effective and efficient instrument for the improvement of
the physical environment and towards the achievement of sustainable
development in the country;
b) To advise the Federal Government or the government of any state, on matters
relating to the town and country planning required under this Act; and
c) To perform any other functions conferred upon the Council under this Act’
[Subsection 2A (2)].

- Formally establishes the position of Director-General of Town and Country Planning

- Makes the state responsible for all development activities
- Makes provision for the establishment of regional planning committees
- Determines the composition of regional planning committees
- Specifies the functions of the regional planning committees
- Provides for the preparation of a NPP and specifies the general form of that plan

Federal Territory (Planning) Act 1982

Federal Territory is administered by the Federal Government. The day-to-day

administration of Kuala Lumpur was and is entrusted to a Commissioner – Datuk Bandar
Kuala Lumpur or Lord Mayor. The mayor held the responsibility previously held by
elected councillors for the management and administration of Kuala Lumpur. The mayor
is appointed by the King, on the advice of the Prime Minister, for a period of five-years,
which can be extended or terminated before the end of the five-year period if he is
considered to be failing in his duties (Section 4).

The mayor is directly responsible to the Federal Government. The mayor may act in
opposition to his Advisory Board but only after

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a) Consultation with the Minister responsible for the Federal Territory

b) Recording the reasons for not accepting the Board’s advice in writing (Section 10).

Federal Territory (Planning) Act 1982 was made to implement in the Federal Territory
the Structure Plan system that applied to the rest of Peninsular Malaysia, replacing the
comprehensive development plan system that had appalled previously.

Town Planners Act 1995

The need for such an Act was advocated on the grounds that it would ‘safeguard the
interests of the public and the planning profession’. The Act:

- Provides for the registration of town planners (Section 11 of the Act)

- Regulates and controls the entry of people into profession in Malaysia (Section 8)
- Prescribes the scale of fees to be charged by registered town planners for
professional advice [Subsection 8 (c)]
- Identifies the work that registered town planners are entitled to do

The Act contains no reference to the basis on which town planning should be considered
to be a profession.

Figure 1.0: Constitutional and Legislative Basis for Town and Country Planning in Peninsular
Malaysia
Source: Federal Department of Town and Country Planning 2003a p15

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 MALAYSIAN PLANNING SYSTEM | TPS 515 – Structure of Government

3.4.3 Supporting Acts Produced by Federal Department of Town and Regional

Planning

As part of its role in securing uniformity of law and practice, the following examples of
advice and guidance are produced.

Town and Country Planning (Structure Plans and Local Plans) Rules 1980 and the
Development Plans Manual 1980

The Town and Country Planning (Structure Plans and Local Plans) Rules 1980 (Federal
Department of Town and Country Planning 1980) superseded by a marginally modified
set of rules published in April 1981, were based on similar rules produced in England and
Wales. Examples of the rules required in producing Structure Plans and Local Plans:

- In the preparation of Structure Plans, consultation with adjoining local planning

authorities was necessary (Rule 4)
- The type of diagrams and inserts included should be consistent between local
planning authorities (Rule 8)
- The producers to be adopted in relation to publicity and representations (Rule 12)
and the inquiry into the proposed Structure Plan (Rule 18).

Similar requirements were incorporated in the rules relating to Local Plans. The manual
dealt with Structure Plans, Local Plans and Action Area Plans setting out their form and
functions and where appropriate providing examples of where a Local Plan or Action
Area Plan might be used.

The Structure Plan consisted of a written statement with associated diagrams and inserts
if necessary, supported by a report of survey

The Local Plan, by contrast, was to be map-based with a written statement supported by
a report of survey.

Action Area Plan were intended to be produced for areas where comprehensive planning
was to be undertaken, such as central area redevelopment.

The manual also dealt in some detail with the content of the plans, setting out what
subject matter should be covered. At all times it was expected that a reasoned
justification would be given for policies and proposals adopted in the plan.

Planning Standards and Guidelines

FDTCP has produced a series of planning standards and guidelines. Most of the
standards and guidelines are advisory but if any state formally adopts them they become
obligatory. The form and content of each guideline varies although the guidelines relating
to Open Space and Recreation Facilities perhaps illustrate best the approach. It
incorporates:

- A foreword, which outlines the rationale for the guidelines viz

- The background to the problem
- The means of implementing the policies adopted
- General guidelines
- Specific guidelines

The Total Planning and Development Guidelines were developed in the context of Vision
20200 and the National Development Policy (NDP), the Malaysia Plans and a series of
natural disasters.

Against this background, guidelines for decision-making, action and implementation in

planning in both the public and private sectors are developed, using the relationships
between;

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 Man and his Creator

 Man and man
 Man and the environment

3.5 Reform of the Town and Regional Planning System 2001

3.5.1 The Impact of the Town and Country Planning Act 2001

The amendments to the 1976 system of town and country planning introduced by the
Town and Country Planning (Amendment) Act 2001 included:

- Establishment of the National Physical Planning Council (NPPC)

- Production of the NPP
- Establishment of the relationship between the NUP and other national sectoral
policies and the NPP
- Introduction of state wide Structure Plans
- Allocation of responsibility to the states
- Introduction of local authority wide Local Plans
- Provision for the establishment of a regional planning committee
- Requirement that planning applications for certain projects to be referred to the
NPCC.

3.5.2 Sectoral Policies and Strategies at the National Level

Sectoral policies and strategies at the national level form an important input to the
production of the Malaysia Plans and the NPP.

The National Urbanisation Policy (NUP)

In general terms the government is concerned to protect the role of the urban sector. The
goal of NUP is ‘To create a visionary city with a peaceful community and living
environment through a sustainable urban development’ (FDTCP, 2006). The NUP adopts
six objectives to achieve the goal:

1- Develop a planned, quality, progressive and sustainable city

2- Develop and strengthen a competitive urban economy
3- Create a conducive environment in order to encourage social development
4- Eradicate urban poverty
5- Strengthen the planning, implementation and monitoring system
6- Strengthen urban management and administrative institutions

To achieve the objectives, six NUP thrusts are adopted:

Thrust 1: Achieve an Efficient and Sustainable Urban Development

Thrust 2: Develop an Urban Economy that is Resilient, Dynamic and Competitive
Thrust 3: Develop an Integrated and Efficient Urban Transportation System
Thrust 4: Provide Quality Urban Services, Infrastructure and Utilities
Thrust 5: Create a Conducive, Liveable Urban Environment with Identity
Thrust 6: Improve Effective Urban Governance

The NUP emphasizes:

- Responsibility for the implementation of these policies lies with various ministries,
departments and agencies responsible for planning, developing and managing urban
services

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- These agencies should establish a working relationship that facilitates the translation
of the NUP policies and measures into their respective programmes and projects

The Third Industrial Master Plan 2006 – 2020

The First Industrial Master Plan 1986 – 1995 was designed to transform Malaysia from
an agricultural and mineral-exporting country into an industrialised economy

The Second Industrial Master Plan 1996 – 2005 contributed to the further development
of the manufacturing sector by strengthening industrial linkages, increasing value-added
activities and enhancing productivity.

In 2002 a Knowledge-Based Economy Master Plan was made for the government. This
master plan fine-tuned parts of the Second Industrial Master Plan by
a) Exploring reasons why Malaysia should undertake the development of a knowledge
(k) economy and
b) Outlining the strategy that should be adopted.

This strategy consists of seven strategic thrusts;

Strategic Thrust 1: Cultivate and secure necessary human resources

Strategic Thrust 2: Establish the institutions to promote and drive to a k-economy
Strategic Thrust 3: Ensure the incentives, infrastructure and info structure in all sectors
of economy
Strategic Thrust 4: Increase capacity for the acquisition and application of science and
technology
Strategic Thrust 5: Ensure that the private sector is the vanguard of k-based economy’s
development
Strategic Thrust 6: Develop the civil service as a k-based sector
Strategic Thrust 7: Bridge the gap between the knowledge and digital divides

The Third Industrial Master Plan 2006 – 2020 is a major public policy document that
deals with issues such as performance and trends in the Malaysian and world
economies.

3.5.3 Town and Country Planning in Practice 2001 Until Now

The National Physical Plan

The Inception Report for the National Physical Plan

The Inception Report produced by the consultant commissioned. The intention was that
the NPP should within the framework provided by the Malaysia Plans, interpret the
physical land use requirements for Peninsular Malaysia and to be received every five
years in tandem with the review of the Malaysia Plans (Rekarancang, October 2000).
Data required for such regular reviews had to be readily available and the decision was
taken to base the plan production and review on geographical information systems (GIS).

The aim of the NPP project was to produce “An integrated strategic land use framework
to support the nation achieves developed status by 2020’ (sic). The plan was intended
to:

- Fill the gap between higher order socio-economic plans and policies and the more
detailed plans closer to the implementation process – Structure Plans and Local
Plans

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- Guide the spatial distribution of the future national economic growth and
development
- Direct the use of limited natural resources of land and the environment

The objectives:
- A comprehensive data base and an instruction manual
- A strategic land use/ spatial plan with policies and strategies for spatial
development at the national scale
- A draft government institutional structure

The constraints:
- Work within the framework provided by the Malaysia Plans, Vision 2020, and Agenda
21st
- Maximise the country’s resources
- Make optimum use of the country’s infrastructure utilities
- Produce spatial strategies to facilitate sustainable development on a national scale
- Conserve/ preserve good agricultural land
- Protect high quality environmental areas
- Improve the quality of life

The outputs proposed:

- A spatial interpretation of the five-yearly national plans and national policies and
strategies
- An integrated strategic land use framework
- A review in tandem with national plans
- A series of indicative plans and a written statement

The emphasis was to be on the macro level, recommendations were to be made at the
national level, sectoral studies were to focus on solving spatial issues, GIS was to be a
tool for spatial planning and an institutional structure.

Sectoral studies:
- Macroeconomic situation
- Primary, secondary and tertiary economic sectors
- Distribution of economic activity
- On the primary, secondary and tertiary economic sectors, a SWOT analysis
- Spatial implications of the three different growth scenarios assessed
- Environment and natural resources
- Tourism
- Urban centre and hierarchy
- Population
- Housing
- Social amenities
- Infrastructure and utilities
- Transportation
- Physical planning and land use
- Institutional and implementation

The National Physical Plan

- Introduced almost as a last resort

- Implemented successfully it must be through a consultative process with the states
- Certain proposals have a permanency

The core function of the NPP is stated as being the translation of

a) The socio-economic objectives of Vision 2020, OPP3, the Malaysia Plans
b) The national sectoral objectives and policies, into a spatial dimension to guide the
geographical distribution

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NPP is accompanied by such indicative plans are considered necessary to clarify the
strategic policies and deals with such other matters as may be prescribed by the
NPPC. It:

- Has been prepared through a consultative process between the Federal

Government and the State Governments
- Takes into account the current NUP and other similar policies and is to be reviewed
every five years in tandem with the National Five-Year Development Plan.

NPP goal: ‘The establishment of an efficient, equitable and sustainable national spatial
framework to guide the overall development of the country towards achieving
developed nation status by 2020’ (p2-1)

A number of planning principles are adopted:

- Globally
- Nationally
- Urbanisation
- Regional balance
- Optimising the use of land
- Infrastructure
- Western coast area
- Eastern coast area
- Central highlands

Key agencies involved in spatial planning:

- FDCTP
- Ministries of Housing and Local Government; Natural Resources and Environment;
Rural and Regional Development; Works; Transport and Agriculture and Agro-
based Industries
- Growing proliferation of national councils

The main policy council responsible for spatial planning is the NPPC, established by
the TCPA 1976 as amended by the Town and Country Planning (Amendment) Act
2001.

The plan identifies three ‘streams’ of national development planning which operate in
parallel and relate to organisations at both the federal and state levels:

- National socio-economic development planning, under the National Economic

Planning Council and the National Development Planning Council
- National Physical Planning under the NPPC
- Project implementation and monitoring under the National Development Council

Arising out of the identification in NPP of the three growth conurbations- Northern
Corridor Economic Region (NCER), South Johor Economic Region (SJER) and Eastern
Corridor Economic Region (ECER)- and of particular relevance to the issue of
state/Federal Government relations is policy NPP11, which states:
‘The conurbations shall be planned and development as integrated regions.’

Measures:

- Regional plans for the conurbations shall be prepared

- The general population targets of the four main conurbations

Regional Growth Conurbations and the Regional Plan for South Economic Region

South Johor Economic Region (SJER, also known as Iskandar Development Region)
was launched by the Prime Minister and the Chief Minister of Johor with the publication

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of the CDP for the area. The intention is to develop the region into a sustainable
metropolis of the international standing.

Under CDP, the SJER will:

- Strengthen the region’s role as a logistic hub
- Develop new service-based industries
- Upgrade human capital development through building a new education city
- Provide housing and recreational amenities for its population

The area was selected for special treatment because of its:

- Strong transport links to other parts of Malaysia, to Singapore and Indonesia
- Strategic location in relation to some of the world’s most rapidly growing economies

10 Physical development strategies:

1- Create balance growth within SJER by distributing development

2- Protect and conserve natural, historic and open space resources
3- Focus development in areas where adequate infrastructure already exists and
build, where necessary
4- Promote infill and redevelopment in existing communities
5- Enhance accessibility
6- Promote key economic initiatives
7- Plan and develop SJER as one integrated global node consisting of Johor,
Singapore and Indonesia
8- Manage regional growth in the peripheral areas of SJER
9- Plan for innovative and sustainable infrastructure and utilities
10- Promote planned communities

Special Projects of National Importance

A number of other ‘special projects’ have been initiated and implemented by the
Federal Government where:
- The nature of the projects was deemed to be of national importance
- The normal processes were implicitly judged not to have been adequate to deliver
the policy objectives

 Multimedia Super Corridor (MSC)

The concept was initiated in 1996 by the Federal Government as a strategic

initiative to:

- Attract world-class, technology-led companies in Malaysia

- Develop a knowledge-based economy in Malaysia
- Lead the transformation of Malaysia’s economic growth from one-lead by
high value-added information based economic activities

 Putrajaya: The New Administrative Capital

Putrajaya and its surrounding area will cover an area of 14,780 hectares with
4,400 hectares comprising the Core Area, residential neighbourhoods,
parklands and other facilities. The Core Area consists of five precincts, each
characterised by their predominant functions relating to government,
commercial, civic and cultural, sports and recreational activities.

 Cyberjaya

Cyberjaya is essentially a part of Putrajaya although plans for its development

started after the thinking underpinning Putrajaya was well advanced. It aims to
be an intelligent city concerned to:

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- Develop Malaysia’s multimedia industry

- Complement Putrajaya, the new electronic administrative capital
- Utilise leading edge technology in smart homes, interactive community
living and control of the city over utilities, transport and the community

 Kuala Lumpur International Airport (KLIA)

KLIA is located approximately 50 km south of Kuala Lumpur. It is some 20

minutes away from the new administrative capital of Putrajaya by road and rail
and aspires to become South-East Asia’s major airline hub.

Structure, Local and Special Area Plans

Malaysia Plans providing socio-economic framework for the NPP. The NPP, working
within the framework established by the Malaysia Plans, providing a framework within
which each State Structure Plan is to be produced, which in turn provides a framework
for each Local and Special Area Plan. The Special Area Plans are treated as Local
Plans concerned to provide detailed treatment for designated areas.

Functions of Structure Plan:

- Translate policies of the NPP into a form appropriate for the state
- Identify the main land uses at the state level
- Identify the main state projects
- Provide a framework for the production of Local Plans

Local Plans now produced by the local planning authorities for the whole of their area
rather than parts of that area.

Functions of Local Plan:

- Translate policies of the state Structure Plan into a form appropriate for the local
authority area
- Provide a guide to physical development for the local authority area
- Identify the main projects proposed by the local authority
- Facilitate the implementation of proposals in Sectoral Development Plans

Special Area Plans are a form of local plan to be produced for areas requiring special
or urgent treatment. There are five categories of such plans:

1- Redevelopment of urban centres

2- Heritage conservation areas
3- Environmentally sensitive areas
4- Resettlement and relocation of communities
5- Special areas for specific needs

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4.0 ISSUES AND PROBLEMS

General issues and problems of the overall planning system:

 Inadequacies of the static Town Board Enactment 1939 schemes that did not improve with the
introduction of the Structure/Local Plan system in 1976
 Structure plans were produced for Local planning authority areas which are generally too small
in area to be treated strategically
 Even with the radical change introduced by the Town and Country Planning (Amendment) Act
2001 there is still today a need for the uncoordinated and duplicative planning system to
become more realistically responsive to the land-use needs

NPP:

 Policies for socio-economic change are themselves complex and highly interrelated
 Further compounded by the inter relationship between policies for socio-economic change and
the demands on land to implement those policies
 Land uses are themselves further interrelated in a complex way
 Each state was over-optimistic in its estimation as to how much of new development associated
with the Malaysia Plans would be located in its area, leading to the issue of uncoordinated and
duplicated development
 Complex set of interrelationships is further complicated by the political and administrative
framework within which the system has to operate

Structure Plans:

 Area covered by the eight Structure Plans varies in size

 Cover different time periods
 The structure plans for Port Dickson Council, Jelebu District Council, Kuala Pilah District
Council, Rembau District Council and Tampin District Council were not gazetted until 10 years
after the structure plan for Seremban has been gazetted
 The population of the state is estimated to double approximately between 2000 and the different
end dates of the plans

Weaknesses in the system by these issues are:

o Structure Plans produced for too small area which leads to production of plans that are too
detailed to be strategic
o The eight Structure Plans are produced for different time periods, which make it difficult to get
a precise understanding both of what is happening and proposed for the state overall
o The delay in gazetting Plans means that for many years the local planning authorities operated
without the benefit of any formal physical planning guidance. These will point to the
administrative and logistical problems
o Written policies contain little specific quantification of the scale or location of the development
sought or anticipated
o Policies put forward in the Structure Plans vary from being very general to covering a level of
detail that is unnecessary in a strategic plan

Regional Plan for South Johor Economic Plan (SJER):

 The special authorities usurp the position of NPP; they are not responsible to it nor are they
controlled by it even though thay are responsible to a Minister in the Prime Minister ‘s
Department; this situation is mess and threatens the town and country planning system at least
within the Regional Growth Conurbations.

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5.0 CONCLUSION

The town and country planning system is made to regulate the development and use of land in the
public interest. It is important for protecting and enhancing the built and natural environment. Other than
that, it has a positive role to play in guiding appropriate development to the right place as well as
preventing development, which is not acceptable. The Malaysian’s town and country planning system
therefore should be able to adapt to changing needs and at the same time secure efficiency,
effectiveness and simplicity in conception and operation. Towards this end there should be a constant
review of the policies and practices in town and country planning including those that is provided in law.

Malaysian planning system operates within hierarchy levels of policy formation, each level of planning
performs a strategic function for the level below and conversely constrained by the strategic planning
of the level above. This allows the relationships to be pursued separately at each level, but within the
frameworks. Each level should in theory work within the framework established by the level however,
there are complicating factors for implementation. Nevertheless, the federal government has attempted
to deal with the issues. The future of the planning system in Malaysia is uncertain, but not as much as
in the past.

Hence, in order to support the dynamic development instrument that meet the continuous
growth and population expansion, the development plans system requires in-built system of data up
dating and reviewing. The constant monitoring of progress of implementation and growth, projections
and plan reviewing should be carried out. GIS should be further developed as to support the modern
approach of data base for the development plans system. In conclusion, the understanding on the
planning system will bring the effectiveness on implementation of the laws and its amendment. Through
the effective institutional process, roles and functions have the possibility to bring the excellent
environment of urbanization events. Thus, the sustainable approach can be fully implemented and
promoted.

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6.0 REFERENCES

Bruton, M.J., (2007). Malaysia: The Planning of a Nation

Manual Penyediaan Rancangan Tempatan (pindaan 2001), Jabatan Perancangan Bandar dan
Desa, Semenanjung Malaysia, Kementerian Perumahan dan Kerajaan Tempatan, 2001.

Manual Penyediaan Rancangan Tempatan (pindaan 1999), Jabatan Perancangan Bandar dan
Desa, Semenanjung Malaysia, Kementerian Perumahan dan Kerajaan Tempatan, 2001.

Moreton Bay Regional Council. (n.d.) What is Town Planning? Retrieved 2017, July 11 from
www.moretonbay.qld.gov.au/general.aspx?id=2242

National Physical Plan, Federal Department of Town and Country Planning, Ministry of Housing
and Local Government, April 2005.

Omar, D. & Leh, O. L. H. (2009) Malaysian Development Planning System: Kuala Lumpur
Structure Plan and Public Participation

Ponrahano, Z. (n.d.). A Theoretical Study on Malaysia Development Planning Mechanism and Its
Institutional Process: A Study On Malaysia City Planning: The Effectiveness Of Shah Alam City
Development Plans Implementation

Taib, M. S., & Siong, H. C., (2008, 26 June). Planning System in Malaysia

Town and Country Planning Act (Amendment 1995) (A 933), Legal Research Board, 2001,
International Law Book Services.

Town and Country Planning Act (Amendment 2001) (A 1129), Legal Research Board, 2001,
International Law Book Services.

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