The local government in Malaysia is the lowest tier of government in Malaysia administered under the states and federal territories which in turn are beneath the federal tier. Local governments are generally under the exclusive purview of the state governments as provided in the Constitution of Malaysia, except for local governments in the federal territories. The federal Ministry of Local Government Development plays a role in co-ordinating and standardising the practices of local governments across the country.[1]
Local government has the power to collect taxes (in the form of assessment tax), to create laws and rules (in the form of by-laws) and to grant licenses and permits for any trade in its area of jurisdiction, in addition to providing basic amenities, collecting and managing waste and garbage as well as planning and developing the area under its jurisdiction.[1]
Local governments are usually referred to as local authority (Malay: pihak berkuasa tempatan, abbreviated PBT), headed by a civil servant with the title President (Yang Di-Pertua) for rural districts and municipalities, and Mayor (Datuk Bandar) for cities, though there are a few exceptions in the form of "special and modified local authorities". Councillors are appointed by the state governments.[1]
Local government areas are distinct from the districts, which are mainly for land administration purposes. In rural areas, the jurisdiction area of local governments largely correspond to the district boundaries. However, in urbanised areas, local government areas may not be consistent with the district boundaries and may overlap with adjoining districts, as municipal or city boundaries usually do not conform to district boundaries.[1]