Performance-based "traffic light' system for local authorities — KPKT

• Nga said local authorities that fall short of their Key Performance Indicators (KPIs) would not be left behind, and the ministry will engage with underperforming local authorities to identify the root causes and work together to address the issues.

PAPAR (Sept 17): The Housing and Local Government Ministry (KPKT) will introduce a performance-based ‘traffic light’ grading system for all 156 local authorities in the country starting next year, said its minister, Nga Kor Ming (pictured).

He said the system, which aims to improve the quality of services provided by local councils nationwide, is part of an initiative by the ministry to ensure greater accountability and transparency in local governance.

He said the new grading system will assess the performance of local authorities, offering a clear benchmark for service delivery improvements.

"This grading system will ensure that public resources are used efficiently, with every ringgit spent justified through Return on Investment (ROI) and Cost-Benefit Analysis (CBA). We want local authorities to meet specific targets and deliver tangible results to the rakyat.

“Under the ‘traffic light’ system, the local authorities will be classified into three categories,  namely green, yellow and red lights based on their performance,” he said in a statement after his 31st Sentuhan Kasih Programme here yesterday.

Also present were Domestic Trade and Costs of Living Minister Datuk Armizan Mohd Ali, who is Papar Member of Parliament, and Sabah Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe. 

According to Nga, local authorities receiving a green light will be recognised for high performance and qualify for additional funding.

The yellow light category will receive a warning, with their funding allocations subject to review, while local councils classified under the red light will face potential cuts in funding and may have their future financial requests rejected, he said.

Nga said local authorities that fall short of their Key Performance Indicators (KPIs) would not be left behind, and the ministry will engage with underperforming local authorities to identify the root causes and work together to address the issues.

He also said it was important for local authorities to adhere to strict Standard Operating Procedures (SOPs) to ensure the viability of projects.

"Local authorities will be required to conduct feasibility studies and perform cost-benefit analyses for all projects. This will prevent inefficient projects and optimise expenditure for maximum benefit," he added.

Meanwhile, Nga said the ministry had approved an allocation of  RM13.2 million for public infrastructure and socio-economic development projects in Papar and Kimanis to improve the quality of life of the residents.

“The RM13.2 million allocation will fund the development and upgrading of various public facilities, including roads, drainage systems, and housing. We are committed to improving public amenities, ensuring better living conditions for the people of Papar and Kimanis," Nga stated.

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