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Federalism in Malaysia - Coggle Diagram
Federalism in Malaysia
Introduction
- Formed in 16/9/1963 with Governments of Federation of Malaya and the UK, and the representative of North Borneo, Sarawak and Singapore
- The Malaysia Agreement laid down foundation for establishment of a new nation, has the status of an international treaty and deposited with the UN
- Malaysia is a combination of existing Federation of Malaya, incorporating 3 new entities (Sabah, Sarawak, Singapore) on special terms to political autonomy, immigration and economic affairs laid out in Malaysia agreement
- The FC of Malaysia was an amended version of the Constitution of the Federation of Malaya (1957 Merdeka Constitution). Incorporating the terms agreed upon in the Malaysia Agreement of 1963
- Singapore left the Federation of Malaysia on peaceful terms in 1965
Federalism in Malaysia
- Federalism was first fomalised in 1896 with establishment of Federated Malay States (FMS) between Selangor, Perak, Pahang and Negeri Sembilan
- Established the powerful post of Resident General (British civil servant under Governor of Straits Settlement).
- After 2nd World War and failure of proposed Malayan Union, 9 Malay States and the Straits Settlements (Malacca and Penang) brought together in the Federation of Malaysia
- Federation achieved independence from Britain in 1957 as Federation of Malaya
The Government of the State of Kelantan v The Government of Federation of Malaya and Tunku Abdul Rahman Putra Al Haj (1963):
- Facts: PAS State Government of Kelantan issued a last-minute challenge to legality of Malaysia Agreement and the Act amending the Constitution to provide for the creation of Malaysia
- Cause of action: substantial changes made and the effect of abolishing the Federation of Malaya, must obtain permission from individual states. Also, Federal Parliament has no power to make substantial changes without consulting State Governments
Held per Thompson CJ:
- With consideration of the 1957 Agreement leading to the Formation of Malaya, there is nothing whatsoever for the Constitution to consult the State / Ruler.
- There is no possibility that C (Kelantan) alleging that the Malaysia Act or Malaysia Agreement is a nullity
Why Federation Works in Malaysia:
- High level of regional, ethnic and religious diversity
- Achieves allocative efficiency in economic resources
- Protect sovereignty and position of Malay Rulers that is crucial as demonstrated in coordinated opposition to Malayan Union
- Paves way for the unique rotational monarchy at the federal level, that operates on principle of "first among equals"
- To protect the position of Sabah and Sarawak, and protect the terms on which these States established Malaysia in 1963
Main characteristics of federalism in Malaysia:
- Supremacy of the FC, lays out rules governing the relationship between the Federation and the States; Art 4(1)
- States are protected from any change to their boundaries without consent of the State Legislature and the Conference of Rulers; Art 2(b)
- Existence of separate federal and State institutions
- Legislative and executive powers are divided between the federation and the State as laid out in the Constitution; Part 4 and the 9th Schedule
- Sources of revenue are divided between the States and the Federation; Art 109, 110, 112C, and the 10th Schedule
- Special constitutional safeguards for Sabah and Sarawak; Part XIIA etc.
- Emergency powers; Part XI
Power of amending the Constitution vested exclusively in the Federal Parliament; Art 159, Art 161E
- Malaysia as a system is still overwhelmingly dominated by the Federal Government at the expense of the States
- The division of legislative competencies between Federation and States
- The division of sources of revenue between the Federation and the States
- Emergency powers provisions conferring power on the Federation
The Federal Institutions are:
- The YDPA
- Parliament
- The Federal Government (headed by the PM) and the Federal Civil Service
- The Councils and Public Service Commissions established by the FC or by Federal law e.g. the National Land Council, the National Security Council
- The Civil Courts of Judicature - Malaysia has a single system of courts that enforces both federal and state law
The State Institutions are:
- The Sultans / Rulers / Governors / YDP Negeri
- The State Governments (headed by Menteri Besar / Chief Ministers and the State Civil Services
- Council and Commissions established by the State Constitutions or by legislation, e.g. State Religious Councils, Zakat Boards, municipal councils
- The Syariah Courts
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Sources of Revenue:
- Its important that financial resources and revenues be equally distributed between the Federal and State Governments so that they can perform their respective responsibilities
- There's lots of imbalance. Most revenue is directed to the Federation rather than the States
10th Schedule:
- Lays out sources of revenue specifically assigned to States and the grants to be given to States by the Federal Government.
- Relates toArt 109, 110, 112C of the Constitution
Art 112(C) read together with Part 4 of the 10th Schedule:
- All other sources or revenue e.g. personal income tax, corporation tax, export duty are under the purview of the Federal Government
Art 111 (2) and (3):
- Restricts the ability of States to raise revenue through borrowing except with consent of Parliament
Executive Power
Art 80(1):
- Executive authority of States will be exercised in compliance with applicable Federal Law.
- The executive power of States won't be exercised to impede executive authority of the Federation
- Executive competencies are divided between the Federation and the States in line with existing division competencies
- Federal Executive agencies have jurisdiction in matters where Federation have competency to legislate, and likewise for the State executive agencies
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