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UN HABITAT Powered By Docstoc
					ISTANBUL+5 SPECIAL SESSION OF THE
UNITED NATIONS GENERAL ASSEMBLY
      NEW YORK, 6 – 8 JUNE 2001




        COUNTRY REPORT
              OF
           MALAYSIA




            PREPARED BY
    MINISTRY OF HOUSING AND
       LOCAL GOVERNMENT
           MALAYSIA
                     TABLE OF CONTENTS




                                                             Page


              INTRODUCTION                                    4


CHAPTER 1 :   SHELTER                                         6

              1.1   Provide Security of Tenure                6
              1.2   Promote The Right To Adequate
                    Housing                                   8
              1.3   Promote Equal Access To Land              11
              1.4   Promote Equal Access To Credit            12
              1.5   Promote Access To Basic Services          14


CHAPTER 2 :   SOCIAL DEVELOPMENT AND ERADICATION 15
              OF POVERTY

              2.1   Provide Equal Opportunities For A         15
                    Safe And Healthy Life
              2.2   Promote Social Integration And Support    17
                    Disadvantaged Groups
              2.3   Promote Gender Equality In Human          18
                    Settlements Development


CHAPTER 3 :   ENVIRONMENTAL MANAGEMENT                        20

              3.1   Promote Geographically Balanced           20
                    Settlement Structures
              3.2   Manage Supply And Demand For              24
                    Water In An Effective Manner
              3.3   Reduce Urban Pollution                    26
              3.4   Prevent Disaster And Rebuild              28
                    Settlements
              3.5   Promote Effective And Environmentally     29
                    Sound Transportation System
              3.6   Support Mechanisms To Prepare And         31
                    Implement Local Environmental Plans
                    And Local Agenda 21 Initiatives


                                2
                                                            Page


CHAPTER 4 :   ECONOMIC DEVELOPMENT                           34

              4.1   Strengthen Small And Micro-              34
                    Enterprises Particularly Those
                    Developed By Women
              4.2   Encourage Public-Private Sector          37
                    Partnership And Stimulate
                    Productive Employment Opportunities


CHAPTER 5 :   GOVERNANCE                                     40

              5.1   Promote Decentralization And             40
                    Strengthen Local Authorities
              5.2   Encourage And Support Participation      43
                    And Civic Engagement
              5.3   Ensure Transparent, Accountable And      44
                    Efficient Governance Of Towns, Cities
                    And Metropolitan Areas


CHAPTER 6 :   INTERNATIONAL COOPERATION                      46

              6.1   Enhance International Cooperation        46
                    And Partnership


CHAPTER 7 :   FUTURE ACTIONS AND INITIATIVES                 53

              7.1   Local Initiatives                        53
              7.2   International Initiatives                54
              7.3   Made-In-Malaysia Regional                57
                    Initiatives
              7.4   Conclusion                               58


              APPENDICES 1 - 4                               59




                                3
                         INTRODUCTION


The National Habitat Committee of Malaysia was established on 12
August 1999. The Committee consists of 33 members and is chaired by
the Secretary General of the Ministry of Housing and Local Government
Malaysia (MHLG) which is the National Focal Point for Habitat Agenda in
Malaysia. The membership of the Committee is drawn from various
government agencies involved in the implementation of Habitat Agenda
programs as well as related organizations in the private sector and various
non governmental organizations (NGOs). Details of the Committee
members are attached as Appendix 1


The National Habitat Committee of Malaysia discussed the preparation of
Malaysia’s Country Report to be presented to the United Nations General
Assembly at its June 2001 special session (Istanbul+5). Additional
government agencies and NGOs who have contributed significantly on
any of the 20 items to be reported were invited to sit in the committee in
order to prepare a comprehensive country report. Six (6) working groups
formed for the purpose of preparing the country report are as below :


             Working Group                     Lead Agency

2.1   Shelter                            National Housing Department,
                                         MHLG.

2.2   Social Development &               Ministry of National Unity &
      Eradication of Poverty             Social Development, Malaysia

2.3   Environmental Management           Town & Country Planning
                                         Department, MHLG.

2.4   Economic Development               Policy Planning and Development
                                         Division, MHLG.

2.5   Governance                         Local Government Department,
                                         MHLG.

2.6   International Cooperation          Administration Division, MHLG.




                                  4
Details on the membership of each working group are as in Appendix 2.
Apart from preparing the report on Economic Development, the Policy
Planning and Development Division, MHLG was entrusted to coordinate
and perform the role of secretariat in preparation of the country report.


Upon compilation of all the draft reports from the respective working
groups a Consultative Meeting involving more than eighty (80) related
government agencies, private organizations and NGOs was held on the
18 April 2000 to collect views and feedback on the draft country report
prepared. All views and feedback where appropriate were then
incorporated into the report.




                                 5
                               CHAPTER 1

                                SHELTER

1.1   PROVIDE SECURITY OF TENURE

      1.1.1 Progress made since 1996, prevailing conditions, new trends,
            emerging issues and major areas of concern

            1.1.1.1   For the period of 1996-2000, the total number of houses
                      targeted to be built is 800,000 units of various cost
                      categories namely housing for the poor, low, low-
                      medium, medium and high costs. Out of the total target,
                      housing for the very poor constitutes 4.4%, low cost 25%,
                      low medium cost 43.8%, medium cost 16.3% and the
                      high cost 10.6%. The private and public sectors are
                      expected to contribute 71.3% and 28.7% respectively of
                      the total to be completed during this period.

            1.1.1.2   It was estimated that by the end of 1998, a total of
                      403,000 units was completed which was about 50.4% of
                      the overall target. Housing for the poor made up of 3.1%,
                      low cost housing 22.3%, low medium cost housing
                      10.9%, medium cost housing 33.8% and the high cost
                      housing 29.7% of the total units completed. With the
                      exception of low medium cost housing, the performances
                      of the other cost categories of housing were
                      commendable.

            1.1.1.3   The performance of the residential construction was
                      severely affected during the economic crisis starting from
                      the month of July 1997, particularly in terms of the
                      numbers of unsold houses. This resulted in 93,000 units
                      of houses worth about RM13.8 billion remained unsold.
                      Out of these total units, 12.9% were of low cost houses.
                      Subsequently, the Government in December 1998
                      launched the house ownership campaign in order to
                      boost up the sales of these unsold houses.




                                      6
      1.1.1.4   Another aspect of housing development is the
                performance of housing transactions (a proxy to demand)
                during 1996 – 1998. In 1996, a total of 170,000 units of
                houses were transacted compared to the 1997 figure of
                176,000 units. In 1998, the figure dropped to 123,000
                units. This means that the housing demand for houses
                went down by 31% between 1997 and 1998. Generally,
                the effects of this decline were manifested in all the
                housing categories including low cost houses. The main
                reason for these unsold low cost houses was due to the
                mismatch between preferred locations by intended house
                purchasers and the actual locations where the houses
                were built.

      1.1.1.5   In 1998, there was serious concern about the
                proliferation of squatter settlements especially in city
                centres with the rural-urban migration of the population
                and the influx of foreign labourers making their way
                (legally and illegally) into this country in search of job
                opportunities. Consequently, various efforts have taken
                by the Government to overcome this problem and
                targeting that the country will achieve zero-squatter
                position by the year 2005. This is made possible by
                relocating these squatters to other areas where the
                majority of them are accommodated in the formal
                housing schemes. Transitional housing has been set up
                to accommodate them temporarily while waiting for the
                housing schemes to be ready for occupation. Where
                possible, these squatters will be placed into the housing
                schemes that are not far away from their former habitat.


1.1.2 Policy and legislative changes since Habitat II

      1.1.2.1   Ever since Habitat II, there are no major changes in the
                legislation. Like any other countries, the key objective of
                the Malaysian Housing Policy is to provide all
                Malaysians, particularly those in the low-income
                categories, accessibility to adequate and affordable
                housing. The government emphasises its role as an
                enabler and facilitator and provides institutional support
                for the delivery of houses to the low-income groups.

1.1.3 Institutional weaknesses and obstacles encountered




                                7
              1.1.3.1   There has been criticism regarding the allocation process
                        of low cost houses carried out by various state
                        governments within the country. All state governments
                        had been directed to implement the open registration
                        system so as to increase transparency in the allocation
                        process.     This included the adoption of specific
                        guidelines in order to countercheck the abuses or
                        unfairness in the allocation process.        Under these
                        guidelines, the successful beneficiaries will be selected
                        from the central registry that will be updated periodically
                        at each state level.

      1.1.4   Lessons learned with emphasis on sustainability and impact

              1.1.4.1   The idea of sustainability in the housing sector per se has
                        still to be fully understood by all key players concerned.
                        Attempts have been made for future housing schemes to
                        consider the optimization of all the available resources.
                        Policy makers do recognise the importance of
                        conservation of resources for sustainable development in
                        the housing industry.

      1.1.5 Recommendations for priority action

              1.1.5.1   There is an urgent need to industrialize the building
                        system in the construction of housing units especially for
                        the low and medium cost houses. The government
                        cannot rely on labour intensive method of construction
                        due to the shortage of semi-skilled and skilled workers in
                        the country.

1.2   PROMOTE THE RIGHT TO ADEQUATE HOUSING

      1.2.1 Progress made since 1996, prevailing conditions, new trends,
            emerging issues and major areas of concern

              1.2.1.1   There are no changes in terms of housing rights since
                        1996. Except for Malay reserved lands and Native lands
                        whose ownership is confined to Malays and Natives
                        respectively, there are no impediments to anyone
                        including women from owning land and inheriting land
                        and housing.

              1.2.1.2   The house price index was 212.8 and 216.8 in 1996 and
                        1997 respectively, indicating an increase of 1.9%.
                        However, the index decreased by 9.4% in 1998 to 196.4.



                                        8
          In real terms, the average (mean) price of housing had
          gone down by 1.3% when the price dropped to
          RM143,400 in 1998 from RM145,399 in 1997. This could
          be attributed to the fall in the volume of transactions in
          1998. But this did not improve the purchasing power of
          consumers since the consumer price index went up by
          5.2% in 1998.
1.2.1.3   It is generally agreed that house price is considered to be
          affordable if the percentage of the income spent on rental
          is not more than 30%. In Malaysia, on the whole, most of
          the houses are still affordable. Based on the findings of
          the Household Expenditure Survey, the percentage of
          expenditures spent on rental was 23.8% in 1998.
          However, the house price/household income ratio was
          5.7 in 1993 and, in 1998 it was 4.1. This means that the
          prices for houses were still at a higher level although the
          income level had gone up by 79% as compared to
          increase of housing price by 29% during this period. For
          a developing country like Malaysia, the ratio should not
          exceed more than 3.

1.2.1.4   For most of us, purchasing a house represents once in a
          lifetime investment. There is greater awareness that the
          houses bought are of acceptable standard of quality. In
          this respect, the greatest challenge faced by housing
          developers is to produce quality homes at affordable
          prices. Consequently, the zero-defect move is instituted
          as houseowners’ expections are getting more
          sophisticated by wanting quality homes.

1.2.1.5   In the present context, housing development is sprawling
          away from the city centres and places of work. During
          the economic crisis recently, some types of houses were
          not in demand including the low cost houses as buyers
          realised that the housing schemes were located far from
          their place of work. In this respect, efficient transport
          system and facilities should be addressed at the planning
          stage of a specific housing development.

1.2.1.6   In September 1998, the Federal Government had
          introduced the new low cost housing price schemes
          according to locations in order to cover the cost of
          development of these houses. With these changes, the
          target groups are correspondingly realigned whereby the
          maximum household income is not more than RM1,500
          per month so that the maximum selling price of the house



                          9
                of RM42,000 is affordable. Research and development
                in housing design and the use of appropriate method of
                construction are in the pipeline so that the prices of low
                cost houses can be reduced to an affordable level
                especially for the lower income groups. For the time
                being, households in the lower income group will be
                provided access to houses for rental until they can afford
                to purchase one the near future.


1.2.2 Policy and legislative changes since Habitat II

      1.2.2.1   With rapid urbanisation, there is a growing urban
                population which comprises of low income workers who
                needs cheaper accommodations either for purchase or
                for rental. Since 1993, the government has increased the
                allocation for the construction of rental houses in urban
                centres to meet the accommodation needs of urban
                household in the poor category.

      1.2.2.2   In the plantation sector, the estate owners are required to
                continue providing living quarters for their workers.
                Similarly, employers in the manufacturing sectors are
                also encouraged to provide housing for local workers and
                decent rental housing units for foreign workers. Rental
                accommodations in the form of hostels or dormitories are
                being built for the workers within the industrial estates.


1.2.3 Institutional weaknesses and obstacles encountered

      1.2.3.1   Majority of housing developers still face delays in getting
                approvals from various authorities for their housing
                developments despite the government’s policy to provide
                a speedy planning approvals for the low-cost and low
                medium cost housing projects.              It has been
                acknowledged that the overall cost of developing low-
                cost housing schemes can be greatly reduced if the time
                taken to approve these schemes can be shortened. As
                an attempt, the government has prepared standard plans
                for these housing schemes in order to get early approval
                via one-stop agency approval system.



1.2.4 Lessons learned with emphasis on sustainability and impact



                                10
            1.2.4.1   Government intervention, directly and indirectly, is
                      necessary in the provision of low cost housing to ensure
                      affordability of houses particularly amongst the lower
                      income group.

      1.2.5 Recommendations for priority action

            1.2.5.1   A greater emphasis on research and development
                      activities is needed by having greater collaboration and
                      smart partnership with local institutions of higher learning
                      and the private sectors. The kinds of co-operation will
                      include matters relating to the affordability of the target
                      groups, the suitability of the housing units, as well as the
                      quality of the total living environment in the housing
                      schemes.


1.3   PROMOTE EQUAL ACCESS TO LAND

      1.3.1 Progress made since 1996, prevailing conditions, new trends,
            emerging issues and major areas of concern

            1.3.1.1   The increase in the land-price-to-income ratio in Kuala
                      Lumpur from 0.27 (highly developed land), 0.15
                      (developed land) and 0.076 (raw land) in 1993 to 0.37
                      (highly developed land), 0.17 (developed land) and 0.12
                      (raw land) in 1998 indicates that land affordability is
                      becoming much lower in the capital city of Malaysia
                      which is experiencing rapid urbanization. The same trend
                      applies to other cities in Malaysia where land prices are
                      increasing at a faster rate compared to the increase in
                      the income level.

      1.3.2 Policy and legislative changes since Habitat II

            1.3.2.1   Kuala Lumpur with about 24,000 squatter households is
                      implementing the policy of building 35,000 units of low
                      cost housing for rent to squatters and families affected by
                      urban renewal and development projects. This policy is
                      also being extended to other major towns in Malaysia in
                      an effort to attain a squatter-free nation by year 2005.


      1.3.3 Institutional weaknesses and obstacles encountered




                                      11
           1.3.3.1   Land scarcity in Kuala Lumpur and other major towns in
                     Malaysia is dictating the nature of housing development
                     in the future.      Given the high costs of land and
                     constraints on urban spaces to cope with housing
                     demand, the present condominium and apartment types
                     of housing will become a norm.

      1.3.4 Lessons learned with emphasis on sustainability and impact

           1.3.4.1   Local governments should be able to respond to growing
                     needs of urban centres particularly the more immediate
                     needs for shelter especially for the lower income group.

      1.3.5 Recommendations for priority action

           1.3.5.1   Local government should develop basic infrastructures in
                     the undeveloped parts of cities and major towns or
                     provide incentives for its development to promote access
                     to land particularly to meet housing needs.



1.4   PROMOTE EQUAL ACCESS TO CREDIT


      1.4.1 Progress made since 1996, prevailing conditions, new trends,
            emerging issues and major areas of concern

           1.4.1.1   The total approved housing loans by the various
                     financing bodies was RM17 billion in 1996 compared to
                     RM22 billion in 1997, an increase of 29%. However, at
                     the peak of the economic crisis, the figure went down to
                     RM11 billion in 1998, a drop by 50% when intended
                     house purchasers were very cautious of the economic
                     uncertainties. The credit restrictions introduced in
                     December 1997 by Bank Negara Malaysia (BNM) under
                     the lending guidelines for the property sector also
                     contributed to the drop. However, with the relaxation of
                     lending guidelines by BNM in September 1998 to enable
                     house buyers to purchase houses costing RM250,000
                     and below, and subsequently the provision of easy credit
                     facilities by financial institutions as well as by the
                     government for its eligible employees aimed at reviving
                     the property market and providing more opportunities for
                     the public to own houses, the total approved housing




                                    12
                loans had increased with the bulk of it provided by
                commercial banks.




1.4.2 Policy and legislative changes since Habitat II

      1.4.2.1   Low cost housing lending guidelines were issued to
                financial institutions as follows:-

                i) Commercial banks to finance 100,000 units of houses
                   by March 1998.

                ii) Finance companies to finance 40,000 units of houses
                    by March 1998.

                iii) For houses costing RM100,000 and below, the
                     maximum interest rate allowed is 9% for annum.


1.4.3 Institutional weaknesses and obstacles encountered

      1.4.3.1   Difficulty in obtaining mortgage loan encountered by
                self-employed (mainly small businessmen, retail
                proprietors, etc) that have the ability to pay but do not
                possess the requisite documents to support the loan
                application.


1.4.4 Lessons learned with emphasis on sustainability and impact

      1.4.4.1   The housing developers, financial institutions and
                government can work closely in providing more
                opportunities for the public to own homes as shown by
                the successful Home Ownership Campaign introduced
                by the government.


1.4.5 Recommendations for priority action

      1.4.5.1   Emphasis should also be made to provide home finance
                for the self-employed.




                               13
            1.4.5.2   The amount of           withdrawal from the Employees'
                      Provident Fund for housing should be increased to 50%
                      to facilitate accessibility to house financing.




1.5   PROMOTE ACCESS TO BASIC SERVICES

      1.5.1 Progress made since 1996, prevailing conditions, new trends,
            emerging issues and major areas of concern

            1.5.1.1   The presence of informal settlements in Kuala Lumpur
                      and major towns in Malaysia, some of which are without
                      proper access to basic services, is posing environmental
                      problem particularly in terms of the lack of proper
                      sewerage and solid waste collection services. The
                      government has resolved to move those in informal
                      settlements to public housing being built for rental with
                      all the basic services to sustain the environment and
                      improve the quality of life of those involved.

            1.5.1.2   Since 1993, the percentage of household with access to
                      water as well as the percentage of household connected
                      to water, sewerage, electricity and telephone services
                      have increased indicating an increase in the number of
                      household having better access to basic services.

      1.5.2 Policy and legislative changes since Habitat II

            1.5.2.1   Equal access in basic telephony service was
                      implemented in January 1999 making it possible for
                      customers to choose the services of any of the 5
                      network operators through an access code.

      1.5.3 Institutional weaknesses and obstacles encountered

            1.5.3.1   The existence of separate water authority in each state
                      poses problem to the development of water resources
                      across border.

      1.5.4 Lessons learned with emphasis on sustainability and impact

            1.5.4.1   Access to basic services should be stepped up to help
                      promote sustainability of the environment as well as


                                     14
                     enable more people to enjoy these basic services
                     thereby improving their quality of life

      1.5.5 Recommendations for priority action

           1.5.5.1   Strengthen the regulatory framework to ensure the
                     provision of basic quality services to consumers.

                              CHAPTER 2

      SOCIAL DEVELOPMENT AND ERADICATION OF POVERTY

2.1   PROVIDE EQUAL OPPORTUNITIES FOR A SAFE AND HEALTHY LIFE


      2.1.1 Progress Made Since 1996, Prevaling Conditions, New Trends,
            Emerging Issues And Major Areas of Concern


           2.1.1.1   Malaysia’s social development programmes are aimed
                     towards improving the quality of life and welfare of the
                     people in line with the objectives of achieving a balanced
                     and caring society. The continuous implementation of
                     poverty reduction programmes and the rapid growth of
                     the economy since the 90’s have contributed significantly
                     to lowering the incidence of poverty in Malaysia.

           2.1.1.2   With regard to health services, the implementation of
                     preventive and promotive health programmes as well as
                     the expansion of health facilities are undertaken to widen
                     the coverage and accessibility of curative and
                     rehabilitative health services. In this regard, under five
                     mortality has dropped from 0.09% in 1993 to 0.07% in
                     1998 to both men and women. The figure indicates that
                     health programmes implemented both at the city and
                     country level provide equal opportunities for a safe and
                     healthy life to both men and women.

           2.1.1.3   With regards to the level of security, record at the city
                     and country level shows that in general, Malaysians
                     enjoy a high level of security. However, the crime rates
                     especially thefts and commercial crime has increased in
                     1998 as compared to 1993, both at the city and country
                     level. This can be attributed to several factors such as
                     economic recession, the influx of the immigrants and the


                                     15
                  rising number of drug addicts. However, the security of
                  the public at large is still under control and the public has
                  confidence in the police. In fact, people can move freely
                  and carry out their activities without any fear.




2.1.2     Policy and Legislative Changes Since Habitat II (1996)

        2.1.2.1   As an integral part of the preventive and promotive health
                  programme, several healthy lifestyle campaigns were
                  implemented with the cooperation of various
                  governmental       agencies     and     non-governmental
                  organisations (NGO’s). The campaigns emphasized the
                  prevention of diabetes in 1996, the promotion of healthy
                  diet and nutrition in 1997 and the importance of exercise
                  and fitness in 1998.

        2.1.2.2   The implementation of the Plan of Action on Nutrition in
                  1997 included standards for preparation of food quality
                  and safety, nutritional serveillance and dietary guideline
                  as well as food and nutrition labeling for the providers
                  and sellers of food. To improve food quality and safety,
                  and disease control, three public health laboratories were
                  constructed.

        2.1.2.3   Recognizing that the changing structure of and inter
                  relationships within families pose challenges which affect
                  individuals and families, a social action plan was
                  formulated.      The plan provides strategies and
                  programmes to address and alleviate the occurrence of
                  social problems and domestic violence as well as monitor
                  the impact of social and economic development on the
                  well-being of families.

        2.1.2.4   Educational reforms were introduced in 1996 to improve
                  the quality of education and to build a progressive society
                  oriented towards information technology. This is a move
                  towards improving the economic status of the general
                  population.


2.1.3 Institutional Weaknesses And Obstacles Encountered




                                  16
            None.

      2.1.4 Lessons Learned With Emphasis On Sustainability
            And Impact

            2.1.4.1   Programmes on health care, crime/violence prevention
                      and education should be enhanced.


      2.1.5 Recommendations For Priority Action

            2.1.5.1   Social and economic development programmes should
                      continue to focus on providing quality social services,
                      improve the well being of the people and to realise
                      balanced development.

2.2   PROMOTE SOCIAL INTEGRATION AND SUPPORT DISADVANTAGED
      GROUPS


      2.2.1 Progress Made Since 1996, Prevailing Conditions, New Trends,
            Emerging Issues And Major Areas of Concern


            2.2.1.1   Malaysian’s policy against poverty first took a clear and
                      coordinated shape in 1971 with the introduction of the
                      New Economic Policy. The policy focused on improving
                      the quality of life and welfare of the people in line with the
                      objectives of achieving a balanced society. Since then,
                      its basic features have been retained even though there
                      have been modifications made to it.

            2.2.1.2   Both urban and rural households recorded significant
                      reductions in poverty during the 1993 – 1997 period. The
                      incidence of urban poverty decreased from 5.3% to 2.1%
                      while the incidence of urban hardcore poor decreased
                      from 1.1% to 0.4%. In rural areas, the incidence of rural
                      poverty was reduced from 18.6% to 10.9%, while the
                      incidence of rural hardcore poverty declined from 4.3% to
                      2.5%. With regards to women headed household, it is
                      undeniable that there are women who are the sole bread
                      – winner. However, their numbers are not available.


      2.2.2 Policy And Legislative Changes Since Habitat II (1996)




                                       17
           2.2.2.1   Additional resources will be provided to the provision of
                     basic services and amenities to reduce the possible
                     negative effects of the economic slowdown on the poor
                     and the low-income group.




      2.2.3 Institutional Weaknesses And Obstacles Encountered

           2.2.3.1   The economic slowdown from 1997 slightly increased the
                     incidence of poverty in 1998.


      2.2.4 Lessons Learned With Emphasis On Sustainability And Impact

           2.2.4.1   Greater emphasis is given towards reducing poverty.




      2.2.5 Recommendations For Priority Action

           2.2.5.1   The Development Programme For The Hard-Core Poor
                     should be enhanced.

           2.2.5.2   Greater micro – credit assistance should be given to
                     petty traders and small businesses.



2.3   PROMOTE GENDER EQUALITY IN HUMAN SETTLEMENTS
      DEVELOPMENT

       2.3 Progress made since 1996, Prevailing Conditions, New Trends,
           Emerging Issues And Major Areas of Concern

           2.3.2.1   Looking at the female-male gap in education (school
                     enrolment), in health (child mortality) and in employment,
                     at country level, it can be concluded that in general,
                     gender equality has been achieved in the country’s
                     human settlements development. In fact, female
                     enrolment in primary, secondary and tertiary education
                     was higher than male both in 1993 and 1998.



                                     18
      2.3.2.2   Measures undertaken by the government to increase the
                participation of women in the economy and labour market
                include the provision of tax exemption for employers who
                build child care centers near or at the work place.




2.3.2 Policy and Legislative Changes Since Habitat II (1996)

      2.3.2.1   In 1996, Malaysia adopted a National Plan of Action for
                Advancement of Women which incorporated the salient
                elements of the Beijing Declaration and Platform for
                Action. The adoption of the Plan, addresses the realities
                of women’s lives and actively assist women in gaining
                access to wages, employment, health care, education,
                personal autonomy and decision making. Educational
                reforms were also introduced in 1996 to consolidate the
                national education system and to widen the scope of
                education in the country irrespective of gender.


2.3.3 Institutional Weaknesses And Obstacles Encountered

      None


2.3.4 Lessons Learned With Emphasis On Sustainability And Impact

      2.3.4.1   The economic slowdown has emphasized the importance
                of skill development to generate a positive impact on
                productivity growth. Therefore to increase accessibility to
                skill training, the Human Resources Development
                Council (HRDC) provided a special fund of RM5.0 million
                under the Human Resource Development Fund for the
                benefit of retrenched workers, to finance their retraining
                in new skills so as to increase their employability in other
                industries.


2.3.5 Recommendations For Priority Action

      2.3.5.1   Policies to promote gender equality in human settlements
                development must be continuously enhanced.




                                19
                               CHAPTER 3
                 ENVIRONMENTAL MANAGEMENT

3.1   PROMOTE    GEOGRAPHICALLY                BALANCED          SETTLEMENT
      STRUCTURES

      3.1.1 Progress made since 1996, prevailing conditions, new trends,
            emerging issues, and major areas of concern

            3.1.1.1   Malaysia has been experiencing rapid urbanisation in the
                      past two decades. The percentage of urban population
                      has increased from 8.9 million or 51.1% of the total
                      population in 1991 to 13.0 million or 58.8% by the year
                      2000. The figure is expected to reach 24.1 million or
                      71.0% by the year 2020. Major cities continue to absorb
                      a substantial proportion of the population growth since
                      1996. At the same time, efforts have been made to
                      upgrade the services and infrastructures of the local
                      centres and the rural growth centres to balance the
                      spatial and socio-economic development.
            3.1.1.2   The overall trend of the Malaysian Quality of Life Index
                      from 1980 - 1998 reflects an improvement in the quality
                      of life of Malaysians over the period.           The Index
                      increased from 86.2 points in 1980 to 105.7 points in
                      1998, with an overall improvement in income and
                      distribution, education, family life, health, transport and
                      communications, social participation, housing and
                      working life.    One of the underlying factor which
                      contribute to these improvement is the Government's
                      development efforts in implementing various policies and
                      programmes to enhance the quality of life of the people,
                      such as the New Economic Policy, the National
                      Development Policy as well as Vision 2020, which focus
                      on people development, and in essence a better quality
                      of life for all.



                                      20
      3.1.1.3   In relation to the settlement distribution, there is already
                in existence A Functional Urban Hierarchy For National
                Development to foster an orderly form of urban
                development. A key feature of urbanisation in Malaysia
                is the distribution of the urban population in all sizes of
                towns with no primate city exists. This is attributed
                largely to the policy of balanced spatial development and
                dispersal of activities from the large urban centres. To
                sustain the growth of these settlements, a Total Planning
                and Development Doctrine was adopted to guide
                planning authorities to attain balance and sustain
                development         economically,        spiritually     and
                environmentally. This Doctrine calls for the maintenance
                of the balanced relationships between Man and his
                Creator, Man and Man and Man and Environment.
      3.1.1.4   Population density control is monitored through the
                formulation of development plans for all cities which
                includes the population size, structures, distribution and
                the relevant needs to sustain its growth (e.g. adequate
                supply of basic services, affordable home, sufficient
                employment, recreation spaces, land use zoning and
                environmental conservation).
      3.1.1.5   The influence of IT has encouraged a greater population
                mobility and this give rise to the emergence of Regional
                Authority areas to absorb greater number of population
                concentration and sharing better facilities to achieve a
                higher standard of living and quality of life.
      3.1.1.6   A serious issue for urban policy makers in the country is
                the lack of appropriate information at the city level, and
                other datas are available only in some places and are
                seldom collected in a consistent network. Thus, there is
                a need to build national, state and local capacity to
                collect useful information on urban conditions and trends
                and to have effective tools to analyse the performance of
                cities.


3.1.2 Policy and legislative changes since Habitat II

      3.1.2.1   Since Habitat II the government is more certain about
                environmental protection. Efforts are constantly directed
                to ensure integration of environmental concern in all
                aspects of land use planning and development as well
                as systematic and orderly physical development. The
                government has taken steps to review the present



                                21
                legislation and to prepare relevant guidelines towards
                achieving sustainable urban development. On this note,
                amendments were made to the Town and Country
                Planning Act, 1976 (Act 172) to include environmental
                considerations such as the preservation and falling of
                trees. These amendments were spelt out in the Act A933
                and adopted by all states and local authorities. Other
                legislative changes include the implementation of Agenda
                21 and Sustainable Development Strategy for the state of
                Selangor which is being acknowledged as the first
                initiative in the world, Land Conservation Act 1960
                (Revised 1989), Antiquities Act, 1976 and Heritage
                Buildings Act. Apart from these, Malaysia has
                implemented the Integrated Planning and Resource
                Management System, the National Policy for the
                Environment, the National Conservation Strategy and
                National Plan Of Action such as PINTAS (Social Action
                Master Plan) and Love Our River programs. The
                government has established the National Landscape
                Department to coordinate and implement the nation’s
                landscape programme. To further facilitate the above
                courses of action numerous planning guidelines are
                being streamlined to promote a more balanced
                development of settlement pattern towards a better
                Quality of Life.

3.1.3 Institutional weaknesses and obstacles encountered

      3.1.3.1   Past experience revealed that there is a lack of technical
                and professional manpower at the local authorities and
                other implementation agencies and this has made the
                implementation process not efficient. There is a
                misunderstanding and capability gap at the local level.
                Policies and programmes formulated at national and
                state level are often misunderstood, misinterpreted and
                not being implemented according to plan because of lack
                of understanding, lack of coordination, proper guidance
                and technical ability at local level. Even though the
                Integrated Planning And Resource Management System
                has been adopted at the national level, there is still lack
                of understanding and coordination between ministries,
                departments and other agencies. This has made the
                implementation difficult in terms of efficient conservation
                of the built-up environment.

3.1.4 Lessons learned with emphasis on sustainability and impact



                                22
     3.1.4.1   Policies and programmes could be thought of at national
               level but it may fail at implementation stage if
               implementing agencies at the local level are not involved
               and drawn into the process. Sufficient attention has to be
               given to the rationalisation of these policies. Furthermore
               the manpower requirements at the local level should not
               to be neglected.




     3.1.4.2   Decentrailisation alone does not help to overcome the
               problem. There is the need for better coordination . The
               sharing of values need to be looked at . There is also a
               need to have a check and balance on implementation
               procedures at the national, state and local level.
     3.1.4.3   When there is a lack of manpower and lack of fund to
               place professional and technical persons at every local
               authority, the system of manual, guidelines and
               procedures which are user friendly helps to improve
               implementation and coordination at the local level.

3.1.5 Recommendations for priority action

     3.1.5.1   Adopt fully the Intergrated Planning And Resource
               Management System in the planning as well as in the
               allocation of resources at national, state and local level.
     3.1.5.2   Strengthen and develop the system of Inter Agency
               Planning Group and Technical Working Group which is
               currently being used in the preparation of five year
               Malaysia Plan to all activities at the state and local level.
               In this manner not only the programmes are well
               coordinated but it also ensure public participation and
               consultation based on the principle of concensus and
               moderation.
     3.1.5.3   Formulation of the National Urbanisation Policy to ensure
               an effective and efficient urban planning and
               management, increase national economic efficiency and
               promote a more balanced development which will
               facilitate sosio-economic integration and sustain the
               quality of urban life.
     3.1.5.4   Preparation of the National Spatial Plan to link the social
               economic planning, human resource and spatial
               development within the five year Malaysia Plan.




                               23
          3.1.5.5   Establishment of Malaysian Human Settlement and
                    Urbanisation Research Institute (MAHSURI) for the
                    purpose of monitoring and to examine housing and urban
                    development issues and to provide strategic input to both
                    public and private sector.




3.2 MANAGE SUPPLY AND DEMAND FOR WATER IN AN EFFECTIVE
     MANNER

    3.2.1 Progress made since 1996, prevailing conditions, new trends,
          emerging issues, and major areas of concern

          3.2.1.1   The proportion of population served by public water
                    supplies in Peninsular Malaysia at present varies from
                    about 38% in the Outer Districts of Kelantan to as high as
                    100% and 95% respectively in the Capital Region and
                    Outer Districts of Pulau Pinang.
          3.2.1.2   Malaysia is facing two major problems with regard to
                    water supply: a growing demand due to the increasing
                    population, particularly in urban centres and an aging
                    pipelines network which is no longer able to be
                    maintained or expanded to deliver water efficiently. The
                    high percentage of water losses due to leakages in the
                    aging asbestos cement pipe network have contributed
                    partly to the increase of overall water consumption in
                    most areas. Another factor for high consumption could
                    be due to the low water tariffs in the country.
          3.2.1.3   Many of the State’s water tariffs have remained
                    unchanged for the past 8 to 10 years or more. Most of
                    the water supply services were and are still being
                    operated by the State Governments and the revenue
                    from water bills at the current tariffs is able to cover
                    operating expenses of the utilities concerned. However,
                    the cost of recovery for capital investments is not
                    included. Hence, the tariffs in the country are still low.
                    The monthly water charge as a percentage of Mean
                    Household Income per month is 0.83%.


    3.2.2 Policy and legislative changes since Habitat II



                                    24
      3.2.2.1   Water demand and conservation plans were initiated to
                make it a significant opportunity, not only to augment, but
                more importantly, to ‘stretch’ existing supplies and to
                push back some of the development of large capital
                intensive water supply projects. Other actions taken
                include efforts directed on awareness raising and public
                education to stress the critical importance of water in
                daily life and the need to conserve even in non-crisis
                time. Harvesting of rainwater from rooftops for non-
                drinking use for residential houses was also introduced in
                a pilot housing scheme in one of the states recently.
                Amendments to building codes and other such
                regulations to ensure new homes and industrial facilities
                are fitted with water efficient appliances and devices
                were also looked into.

      3.2.2.2   Over the last 5 years, only three states have revised their
                water tariff though most of the states have done tariff
                reviews but no increase was implemented for various
                reasons.


3.2.3 Institutional weaknesses and obstacles encountered

      3.2.3.1   The need for coordinated and consolidated advice on
                water related matters.

3.2.4 Lessons learned with emphasis on sustainability and impact

      3.2.4.1   Because water is uniquely cross-sectoral in nature, the
                need for co-ordinated and consolidated advice on water–
                related matters had been recognised and a body, called
                the National Water Resources Council was established.

      3.2.4.2   Water management and conservation is necessary to
                sustain supply and demand.

3.2.5 Recommendations for priority action

      3.2.5.1   A comprehensive demand management strategy should
                be introduced as an alternative way to save and
                conserve water in the future. This includes programmes
                on awareness raising and public education, program to
                tackle water leakage and program on recycling and reuse
                of water and wastewater.




                                25
          3.2.5.2   To build up the database for water consumption and
                    demand and policy for water conservation need to be
                    formulated.

          3.2.5.3   The government is in the midst of forming a Commission
                    On Water And Sanitation to regulate and advise matters
                    pertaining to water and sanitation.




3.3   REDUCE URBAN POLLUTION.

       3.3.1 Progress made since 1996, prevailing conditions, new
             trends, emerging issues, and major areas of concern


          3.3.1.1   The Environment Index declined from 103.9 points in
                    1985 to 100.9 points in 1998. Although rapid economic
                    development and heightened industrial activity had
                    affected the quality of the environment, measures have
                    been taken, since the early eighties, to control the
                    discharges and emissions from existing and new sources
                    by implementing and enforcing several comprehensive
                    environmental legislations.

          3.3.1.2   Air pollution is the contamination of air by any number of
                    substances, usually gaseous and particulates, which are
                    not normally found in the healthy air. Air pollution occurs
                    through the burning of fossil fuels in industrial processing,
                    energy production and transportation, land and forest
                    clearance by burning and municipal and industrial
                    wastes.

          3.3.1.3   Air quality was assessed by the annual mean
                    concentrations of atmospheric lead (Pb) and total
                    suspended particulates (TSP) in the atmospheric and
                    overall air quality improved from 89.3 points in 1985 to
                    100.1 points in 1998. Although the air quality sub-index
                    showed an overall improvement in air quality, there were
                    some increases in atmospheric acidication as well as
                    transboundary atmospheric pollution.

          3.3.1.4   With the privatization policy, about half of the urban
                    population enjoyed proper wastewater treatment



                                    26
                facilities. The other half uses mainly individual systems
                of sewerage infrastructure, but they still meet the
                hygienic standard.


3.3.2 Policy and legislative changes since Habitat II

      3.3.2.1   In 1998, priority was given to amending the
                Environmental Quality Act 1974 (EQA) to provide for the
                prohibition of open burning as one major step to prevent
                the recurrence of the haze as seen in 1997. The
                Environmental Quality Act (Amendment) 1998, includes
                prohibition of open burning specifically and to increase
                penalties in deterring such activities.

      3.3.2.2   The Government privatised the sewerage services in the
                country in 1993. This will allow the private sector to
                speed up the development of sewerage infrastructure.

      3.3.2.3   The Department of Environment is given empowerment
                to act upon polluters and this has drastically reduced
                indiscriminate dumping of industrial waste. Centralized
                treatment plant had been built to treat and dispose
                scheduled waste that comes under the Environmental
                Quality (Scheduled Wastes) Regulations, 1989 to ensure
                proper management of scheduled waste produced by the
                year 2020.


3.3.3 Institutional weaknesses and obstacles encountered

      3.3.3.1   Interagency   co-operation    and     co-ordination   in
                environment protection efforts will further improve the
                implementation action.

      3.3.3.2   Co-ordination between the government agencies and the
                privatised partner to achieve a higher standard of
                performance at a reasonable cost to the taxpayers.

3.3.4 Lesson learned with emphasis on sustainability and impact

      3.3.4.1   The success of environmental sustainability is largely
                dependent on the extent of commitment of the
                community and the government itself.

3.3.5 Recommendations for priority action



                               27
            3.3.5.1   This centralisation of commitment to the Local
                      Government is the major agenda that needed to be
                      addressed urgently.


            3.3.5.2   Co-ordination during the implementation period at local
                      level.




3.4   PREVENT DISASTER AND REBUILD SETTLEMENTS


      3.4.1 Progress made since 1996, prevailing conditions, new trends,
            emerging issues, and major areas of concern

            3.4.1.1   The Terrain Mapping in the Klang Valley was completed
                      in 1996. Since then, the project has been shifted to the
                      Pulau Pinang area and up to date, about 90% of the
                      Island have been mapped.

            3.4.1.2   The geological hazards map of Kuala Lumpur and the
                      sinkhole occurrences map of Kinta Valley are continually
                      being updated.

            3.4.1.3   The trend is now to have proper landuse zoning maps in
                      all developing areas so that buildings are constructed in
                      non-hazardous areas. If development is to be carried out
                      in hazardous areas, engineers will be informed of the
                      risks and they will have to carry out more detailed
                      investigations and be more conservative in the design.

            3.4.1.4   The major areas of concern are the safety of public and
                      exposure to environmental hazards.

      3.4.2 Policy and legislative changes since Habitat II.

            3.4.2.1   The Engineers are more aware of the need for the better
                      site investigation and the importance of having a
                      Malaysian Standard for the construction industry. As
                      such, the Construction Industry Development Board
                      (CIDB) is preparing a ‘Skill Standard of Site Investigation’
                      for the purpose of training site investigators. The CIDB is


                                      28
                        also preparing a Malaysian Code of Practice for
                        engineering practice.

              3.4.2.2   There were also some proposals for the implementation
                        of new guidelines and review of some Acts. Some of the
                        examples are:
                        (i) Planning Guideline for Preservation of Natural Hill
                             Areas (by Federal Town and Country Planning
                             Department, Ministry of Housing and Local
                             Government).
                        (ii)  Guideline for demarcation of safety zones in the
                              vicinity of limestone hills (by Minerals and
                              Geoscience Department).
                        (iii) Review on Road, Drainage and Building Act (Act
                              133)
                        (iv) Amendment to Uniform Building By - Law 1984.


      3.4.3    Institutional weaknesses and obstacles encountered

               3.4.3.1 One of the obstacles is the lack of enforcement and
                       supervision. One example is that during site
                       investigations, there is lack of enforcement for the correct
                       acquisition of raw data.


      3.4.4    Lessons learned with emphasis on sustainability and impact

               3.4.4.1 It has been mentioned that incorrect acquisition of data
                       during site investigations will result in either over-design
                       or under-design of foundation for buildings. Over-design
                       will hike up the construction costs and under-design will
                       endanger the safety of the public.

      3.4.5   Recommendations for priority action

              3.4.5.1   All guidelines and Code of Practices should be strictly
                        adhered.


3.5   PROMOTE   EFFECTIVE   AND                ENVIRONMENTALLY            SOUND
      TRANSPORTATION SYSTEM

      3.5.1 Progress made since 1996, prevailing conditions, new trends,
            emerging issues, and major areas of concern



                                        29
      3.5.1.1   There has been an enhancement of the well-being and
                quality of life of the population which has recorded an
                improvement for the 1980 – 1998 period.                  The
                improvement in this area was accelerated by a conducive
                economic environment and rapid development in
                technology. The trend of Transport and Communications
                Index rose from 87.4 points in 1980 to 112.8 points in
                1998. The increase in private motor cars and cycles per
                thousands population has been more than double from
                1980 to 1998. The increase in number of motor vehicles
                and the improvement in road system in terms of standard
                and coverage have provided greater mobility and
                accessibility to the people. The rapid rate of vehicle
                growth has resulted in an alarming rate of increase in the
                average daily traffic entering the Metropolitan Kuala
                Lumpur boundary for the past years causing severe
                congestion.      During the peak hours, the average
                volume/road capacity ratio of ring and radial road network
                is more than 1:0, which indicates that the level of service
                of these roads is at a category of level ‘7’, i.e., bumper to
                bumper movement and occasional stand still.

      3.5.1.1   Due to the severe traffic congestion on the road network,
                the road-based public services within the city suffered
                many setbacks. The buses and taxis cannot keep up to
                their planned schedule and their services became highly
                unreliable.


      3.5.1.2   The Klang Valley Region has netted with LRT system
                and monorail system as an alternative public transport.
                In city area, monitoring on congestion problems is
                constantly being made and new highways are being built
                to provide better accessibility between regions, growth
                centres and settlements to solve traffic problem.

3.5.2 Policy and legislative changes since Habitat II

      3.5.2.1   An integrated system is needed to check and restrain any
                further deterioration of the urban transportation services.
                This will focus on the provision of a well inter-phased and
                integrated public transportation system to achieve
                optimum mobility and accessibility and a traffic
                management strategy which will complement further the
                enhancement of public transport services as well as
                ensure efficient and effective utilization of road space.



                                30
            3.5.2.2   An integrated public transportation system comprising of
                      4 major transit modes has been planned and currently at
                      different stages of implementation, namely The Regional
                      Commuter System Double Tracking Project, The
                      Metropolitan Commuter System (Light Rail Transit
                      System), The Downtown People Mover System
                      (Monorail) and The Bus System.



            3.5.2.3   A traffic management strategy employing demand
                      management techniques is being focussed to
                      complement the efforts in providing an integrated public
                      transportation system. These transportation demand
                      management measures will include car-pooling, bus
                      priority lanes, HOV-priority lanes, pedestrian lanes and
                      car-parking policy.

      3.5.3 Institutional weaknesses and obstacles encountered
            None

      3.5.4 Lessons learned with emphasis on sustainability and impact

            3.5.4.1   Planning of human settlements has to give greater
                      emphasis for public transport and its integration with the
                      land use development plan.


      3.5.5 Recommendations for priority action

            3.5.5.1   National Public Transport Network and formulation of
                      National Transportation Policy.
            3.5.5.2   Integrated Transport and Landuse Planning System.


3.6   SUPPORT MECHANISMS TO PREPARE AND IMPLEMENT LOCAL
      ENVIRONMENTAL PLANS AND LOCAL AGENDA 21 INITIATIVES

      3.6.1 Progress made since 1996, prevailing conditions, new trends,
            emerging issues, and major areas of concern

            3.6.1.1   Development Plans have always been the principal
                      planning instrument for achieving a healthy and quality
                      urban living environment. This has been adequately
                      provided for under the Town and Country Planning Act,
                      1976 (Act 172) and the Town and Country Planning Act,
                      (Amendment) 1995 (Act A933). To date, Structure Plans


                                      31
                have been prepared for all 96 Local Authorities in
                Peninsular Malaysia.       Following this, the Seventh
                Malaysia Plan (1996-2000) will focus on the preparation
                of 81 Local Plans and revision of some of the earlier
                Structure Plans for major towns.

      3.6.1.2   These Structure Plans provide useful guidance on
                resource development and conservation, especially land
                and land-related natural resources. Local Plans facilitate
                detailed planning and urban design for an area. Under

                the Act, the public is given the opportunities to participate
                in the planning and consultation process to facilitate in
                the preparation of development plans. Through this
                mechanism the government is now regarded as the
                facilitator or enabler to development initiative and
                enterprise. The consultation process provides valuable
                feedback in decision making particularly in drawing up
                action plan for the Agenda 21.


3.6.2 Policy and legislative changes since Habitat II.

      3.6.2.1   The Town and Country Planning Act (Amendment) 1995,
                (Act A933) include measures from environmental
                planning for sustainable development by Local Plan.
                This includes protection and improvement of physical
                environment, preservation of natural topography of an
                area, landscape improvement, preservation and planting
                trees, creation of open spaces, conservation and
                enhancement of heritage building and traffic
                management.

3.6.3 Institutional weaknesses and obstacles encountered
      None.

3.6.4 Lessons learned with emphasis on sustainability and impact


      3.6.4.1   Development Control is to ensure that development
                should take place as envisioned by the development
                plans in terms of overall layout, allocation of land space,
                provision and distribution of infrastructure and community
                facilities as well as their contribution towards
                environmental improvement and protection.




                                32
     3.6.4.2   The Town and Country Planning Act (Amendment) 1995,
               (Act A933) allows for the Local Planning Authority to
               impose certain planning conditions for the purpose of
               regulating nature, type and location of development. The
               requirement for submission of Development Proposal
               Report together with application for planning permission
               further enables the Local Planning Authorities to make
               effective development control decision that would
               safeguard the environment.




3.6.5 Recommendations for priority action

  3.6.5.1   The Strategic Environmental Assessment (SEA) which has
            been applied in the preparation of Development Plans is a
            form of application of the Environmental Impact Assessment
            (EIA). It is a formal, systematic and comprehensive process
            for evaluating the impact of any policy, plan or program on
            the environment. The SEA is undertaken to evaluate all
            possible alternative policies, plans or programs in order to
            ensure that those which will bring about the minimum
            adverse impacts shall be accepted for implementation, along
            with suitable mitigation measures, where necessary.




                               33
                                 CHAPTER 4

                       ECONOMIC DEVELOPMENT

4.1   STRENGTHEN SMALL AND MICRO-ENTERPRISES PARTICULARLY
      THOSE DEVELOPED BY WOMEN

      4.1.1 Progress made since 1996, prevailing conditions, new trends,
            emerging issues and major areas of concern

            4.1.1.1   The Action Plan for Women in Development was
                      formulated in 1997 to translate policies for the
                      advancement of women into action including the
                      participation of women in the informal sector. Among
                      those included in the informal sector are the petty traders
                      and hawkers, small-scale farmers, fishermen and those
                      involved in the cottage industries. The rate of growth in
                      the informal sector is quite significant judging from the
                      increase in the number of licences issued to petty traders
                      and hawkers. In the City of Kuala Lumpur itself, the
                      number of licences issued has increased by 13.68% i.e.
                      from 30,713 in 1993 to 34,914 in 1998.

            4.1.1.2   Various local authorities including Kuala Lumpur City Hall
                      have implemented a programme aimed at providing a
                      more conducive business environment for those involved
                      in small and micro-enterprises by centralising them in
                      various premises/centres/locations which are equipped
                      with all the necessary infrastructure and facilities.

            4.1.1.3   The informal sector has been seen to play an important
                      role in absorbing part of the retrenched labour force
                      during the economic crisis which hit Asia beginning mid-
                      1997. Various government agencies such as Community
                      Development Division (KEMAS) of the Ministry of Rural


                                      34
                Development (MRD), Rubber Industry Smallholders
                Development      Authority   (RISDA),    Federal    Land
                Consolidation and Rehabilitation Authority (FELCRA) and
                Federal Land Development Authority (FELDA) organised
                training programmes to encourage the workers
                particularly the women including those retrenched to
                venture into small businesses. The Women’s Institute of
                Management provided basic training in areas such as
                marketing, management, planning, budgeting and
                finance to more than 7,000 women since 1996. Training
                and Advisory Unit under the Rural Economy Division of
                MRD also provided management and skilled training to
                rural entrepreneurs including the women to participate in
                rural industry. From 1998 to 1999 about 30% of those
                who attended the entrepreneurial training were women.

      4.1.1.4   Various micro-credit schemes/programmes have been
                implemented to provide assistance to small and micro-
                enterprises. Among them are the Loan Fund for Hawkers
                and Petty Traders, the Small Entrepreneur Fund
                managed by the Credit Guarantee Corporation and
                various micro-credit schemes managed by the Amanah
                Ikhtiar Malaysia (AIM), an NGO. AIM in particular
                received an interest-free loan of RM200 million from the
                Malaysian Government under the 7th Malaysia Plan
                (1996-2000) to provide micro credit to hardcore poor.
                However, the borrowers are charged management fee
                paid weekly based on the size of the loans. An addition of
                RM100 million loan was provided to AIM in 1998 to
                address the capital requirement of the poor during the
                economic crisis. Since operating in 1987 to December
                1999 a total of 59,716 hardcore poor families received
                loans worth RM336.305 million to enable them to venture
                into agricultural activities and small businesses. Fund
                was also provided by the Ministry of Rural Development
                to AIM in 1997 to implement a micro-credit scheme for
                single mothers to enable them to venture into economic
                activities in urban areas to earn income for their families.
                As at March 2000, the scheme has provided loans
                averaging RM6,680 to 426 borrowers.


4.1.2 Policy and legislative changes since Habitat II

      4.1.2.1   The Women’s Affairs Division (HAWA) at the Ministry of
                National Unity and Social Development was upgraded to



                                35
                a department and later placed under the Prime Minister’s
                Department to enable a more effective implementation of
                programmes for women.


4.1.3 Institutional weakness and obstacles encountered

      4.1.3.1   The lack of data on the informal sector has hindered
                efforts towards formulating adequate policies and
                programmes to enable the sector to perform and expand
                productively.

      4.1.3.2   The      various   micro-credit   schemes/programmes
                encountered some common problems relating to
                identifying viable , feasible and suitable projects,
                changing of business premises, low level of education
                and low commitment of participants.

      4.1.3.3   Lack of strategic business locations/premises for the
                small and micro-enterprises to conduct their business.


4.1.4 Lessons learned with emphasis on sustainability and impact

      4.1.4.1   The centralisation of small and mirco-enterprises in
                various business premises/centres/locations has reduced
                the number of illegal businesses, facilitated enforcement
                activities and created a more hygienic and conducive
                business environment       for both the traders and
                consumers.

      4.1.4.2   The provision of cheap or interest-free loans for small
                businesses under the various micro-credit schemes/
                programmes has contributed towards increasing the
                income of poor households, thereby reducing the
                incidence of     poverty.    However, programmes on
                attitudinal change and skill training need to be
                incorporated in planning for income generating projects
                to ensure the projects are sustainable over a long period
                and the target group does not regress to poverty.


4.1.5 Recommendations for priority action

      4.1.5.1   There is a need for coordinated efforts to collect and
                analyse data on the informal sector to enable proper



                               36
                      policies and programmes to be formulated to meet the
                      needs of the sector.

            4.1.5.2   Provide more accessibility and opportunities for
                      involvement of women in the informal sector particularly
                      in areas where their number is still small by formulating
                      and implementing micro-credit schemes and other
                      assistance programmes that are more gender-friendly.

            4.1.5.3   Incorporate attitudinal change and skill training in the
                      planning for income generating projects to be financed
                      through the various micro-credit schemes and other
                      assistance programmes.

            4.1.5.4   Provide         more           strategic          business
                      premises/centres/locations    for small     and     micro-
                      enterprises.



4.2   ENCOURAGE PUBLIC-PRIVATE SECTOR PARTNERSHIP                          AND
      STIMULATE PRODUCTIVE EMPLOYMENT OPPORTUNITIES

      4.2.1 Progress made since 1996, prevailing conditions, new trends,
            emerging issues and major areas of concern

            4.2.1.1   Public-private partnership took place under several
                      modes of privatization. From 1996 – 1999, a total of 109
                      projects were privatized with a total cost of RM 61.31
                      billion. For certain projects, concessionary terms in the
                      form of soft loans were extended to facilitate the
                      implementation. These public-private partnerships in line
                      with Malaysia Incorporated Policy have resulted in
                      positive changes to the organization, management and
                      performance of the entities.

            4.2.1.2   Despite the initial setbacks in terms of acceptance by
                      affected workers and the general public, privatization has
                      without doubt enabled Malaysia to sustain high growth
                      leading to an expansion of employment opportunities.
                      With labour demand increasing at a rate faster than the
                      rate of labour supply, the unemployment rate decreased
                      from 3.0 percent in 1993 to 2.6 percent in 1996.
                      However, the regional economic crisis beginning mid-
                      1997 resulted in a slight increase in the unemployment
                      rate to 3.2 percent in 1998. The pace of employment



                                      37
                creation is currently improving as Malaysia successfully
                overcome the economic crisis through its own approach
                of macroeconomic management.


4.2.2 Policy and legislative changes since Habitat II

      4.2.2.1   The Federal Government enacted several legislation in
                order to promote greater public-private sector
                partnerships. Amendments were also made to related
                regulations to facilitate the privatization process. These
                include the Sewerage Services (Licensing) Regulations
                1994, the Sewerage Services (Charges) Regulations
                1994 and 1996. Existing legislations including the
                Railways Act 1991 are being reviewed in order to further
                promote public-private sector partnerships.

      4.2.2.2   On the other hand, the Employment Act 1955 was
                amended to facilitate greater employment of part-time
                workers, such as housewives, the self-employed and
                students who require part-time or temporary employment.
                Provision relating to wages was also reviewed to permit
                employers to introduce incentive payments for productive
                employees. This is to facilitate the progress towards the
                wider implementation of productivity-based wage
                schemes in the private sector.

      4.2.2.3   To stimulate productive employment opportunities, the
                government has simplified the procedures for the
                employment of workers in the government service on
                hourly or piece rate basis beginning 15 August 1999.


4.2.3 Institutional weaknesses and obstacles encountered

      4.2.3.1   Among the institutional weaknesses and obstacles
                encountered in public-private sector partnership
                programme are the ineffectiveness of the regulatory
                framework to regulate the privatized entities due to
                limited financial resources and lack of expertise. The
                economic crisis in the second half of 1997 also affected
                the implementation of the privatization programmes.

      4.2.3.2   Privatization of sewerage services encountered various
                problems including the refusal of consumers to pay their
                sewerage bills and high capital cost. As for solid waste



                                38
                collection and disposal services, prior to the
                implementation of a full scale privatization, the services
                for the central, eastern and southern regions had been
                taken over by the concessionaires on an interim basis.
                Full privatization would only take place once the Solid
                Waste Disposal Act is enacted and the Government
                approves the proposed tariff structure.



4.2.4 Lessons learned with emphasis on sustainability and impact

      4.2.4.1   The privatization programme demonstrated that the
                transfer of the activities and functions that are
                traditionally with the Government to the private sector
                had brought about positive changes to the organization,
                management and performance of the entities. Since its
                implementation, it had achieved the objectives of
                relieving the financial and administrative burden of the
                Government, improved efficiency and productivity,
                facilitated economic growth, reduced the size and
                presence of the public sector in the economy and helped
                meet the National Development Policy targets.

      4.2.4.2   While employment opportunities are being created
                through various programmes including privatization,
                human resources should be developed by giving priority
                to education and training programmes, as educated and
                trainable human resources are essential for the
                achievement of higher productivity and improved
                competitiveness of the economy in order to sustain
                growth and development.


4.2.5 Recommendations for priority action

      4.2.5.1   Privatization will continue to play an important role in
                facilitating further growth of the economy. In this regard,
                privatization programmes need to be further enhanced.
                To ensure such projects are implemented speedily, steps
                have to be taken to streamline procedures, provide for
                more effective coordination and consultation between
                relevant parties as well as closer monitoring. Priority
                should be given to projects that have greater multiplier
                effects in stimulating employment opportunities, such as
                those in the infrastructure, utilities and transport sectors.



                                39
                      In addition, the regulatory aspects of privatization also
                      need to be strengthened to ensure the interests of the
                      consumers and industries are safeguarded.

            4.2.5.2   On the other hand, the private sector should intensify its
                      effort to increase productivity and complement the
                      Government’s efforts in expediting and facilitating the
                      shift to a knowledge-based economy (K-economy).

                           CHAPTER 5

                         GOVERNANCE

5.1   PROMOTE DECENTRALIZATION                AND    STRENGTHEN         LOCAL
      AUTHORITIES

      In Malaysia, local authorities (LAs) are under the jurisdiction of the
      respective state governments. The role of the Federal Government is to
      make laws and policies for the purpose of uniformity. To ensure that LAs
      are comforming to the laws and policies, there are provisions in the Local
      Government Act, 1976 for the LAs to get approval from the Federal/State
      Government for certain activities.

      5.1.1 Progress made since 1996, prevailing conditions, new trends,
            emerging issues, and major areas of concern

            5.1.1.1   Most LAs are coping with issues associated with rapid
                      urbanization and are dealing with problems like squatters
                      and environmental issues. At the same time, they face
                      certain constraints (financial, manpower and technical
                      expertise). Contract officers are often employed for
                      critical tasks performed by the LAs.

            5.1.1.2   In an effort to strengthen them, all LAs are provided with
                      more posts especially at the professional (technical) and
                      managerial levels. Full time presidents are appointed for
                      LAs with income exceeding RM10 million. More training
                      opportunities are given to the officers to increase their
                      skills. This will enable them to make their own decisions,
                      thus promoting decentralization and strengthening them.
                      Previously, LAs without technical expertise need to refer
                      to other technical departments at the state and district
                      level to get technical advice.




                                      40
      5.1.1.3   At the same time, more urban services are either being
                privatized or contracted-out to increase efficiency or to
                reduce the expenditure of LAs.

      5.1.1.4   In order to enhance effectiveness and efficiency of LAs in
                enforcing rules and regulations, efforts are being made to
                create a centralized enforcement unit at the respective
                states to supplement enforcement officers at the LA level.

      5.1.1.5   Most LAs do not revise assessment rates every five
                years as required by the Local Government Act. This
                has resulted in lower income for the respective LAs. A
                large number of LAs are also facing a problem in the
                collection of rates. Therefore, with more officers, this
                situation hopefully will improve.


5.1.2 Policy and legislative changes since Habitat II

      5.1.2.1   Previously, almost all district councils had district officers
                as their part time presidents. In 1998, there was a policy
                to appoint full time presidents for LAs with income of
                more than RM10 million.

      5.1.2.2   The current practice is to appoint most of the councilors
                on a political basis. Recently, representation from NGOs
                and community-based organizations are being seriously
                considered in order to increase greater representation in
                the decision making process.

      5.1.2.3   Recently, EIA Report was made a requirement for
                planning approval (Environmental Quality Act 1974 and
                Town and Country Planning Act (Amend 1995).

      5.1.2.4   The need for LAs to consult NGOs and CBOs has been
                established.     A number of pilot projects are being
                implemented where the community as well as the private
                sector is involved.


5.1.3 Institutional weaknesses and obstacles encountered

      5.1.3.1   The main obstacles are:

                (i) lack of manpower and expertise




                                 41
                (ii)    lack of funds

                (iii) Ineffective enforcement


5.1.4 Lessons learned with emphasis on sustainability and impact

      5.1.4.1   Full time presidents made the councils more effective in
                the management of LAs.

      5.1.4.2   The new system of appointing councilors has led to
                better representation and more transparency in
                management of LAs.

      5.1.4.3   The requirement for the EIA report made both the
                councils and the public generally more aware of
                sustainable development and environmental issues.


5.1.5 Recommendations for priority action


      5.1.5.1   Private sectors and NGOs participation and financial
                contribution in programs/activities undertaken by LAs.

      5.1.5.2   To seek new sources of revenue and to improve
                collection of arrears.

      5.1.5.3   To establish a networking with LAs within the country and
                LAs abroad.

      5.1.5.4   To increase effectiveness and efficiency in enforcement,
                a study is being undertaken to consider the possibility of
                creating a centralized enforcement unit at the respective
                state level to assist LAs.

      5.1.5.6   Most LAs do not revise assessment rate every five years
                as required by the Local Government Act, and this has
                affected their income.

      5.1.5.7   Councilors are given specific areas to monitor i.e. acting
                as area officers.

      5.1.5.8   More technical and enforcement officers needed to
                strengthen LAs.




                                42
            5.1.5.9   Need to further strengthen LAs through capacity building.




5.2   ENCOURAGE AND            SUPPORT       PARTICIPATION        AND     CIVIC
      ENGAGEMENT


      5.2.1 Progress made since 1996, prevailing conditions, new trends,
            emerging issues, and major areas of concern

            5.2.1.1   Public participation is increasing in line with the changes
                      in policy and increase awareness through public
                      education. This can be seen from the increasing number
                      of public attendance at public hearings and articles in
                      local newspapers on related matters.

            5.2.1.2   With the cooperation of UNDP, the Local Agenda 21
                      program was introduced recently with the implementation
                      of pilot projects in four LAs.


      5.2.2 Policy and legislative changes since Habitat II

            5.2.2.1   All LAs are strongly advised to allow the public to attend
                      their full council meetings and most of them have
                      complied with this directive.

            5.2.2.2   It is a requirement that all structural and local plans are
                      exhibited for the public to examine before being gazetted.
                      Public opinion are also sought for major projects.


      5.2.3 Institutional weaknesses and obstacles encountered

            5.2.3.1   Among the weaknesses are:

                      (i)   Lack of awareness and apathy on the part of the
                            public.




                                      43
                      (ii)   No forum for interaction between public and LAs to
                             discuss proposed development.




      5.2.4 Lessons learned with emphasis on sustainability and impact

            5.2.4.1   The triangular cooperation between the public, private
                      and community sectors has achieved a better
                      understanding between them, thus producing more
                      fruitful planning and implementation policies.


      5.2.5 Recommendations for priority action

            5.2.5.1   To increase awareness through public education.

            5.2.5.2   LA’s and community to have shared vision and mission,
                      and to share data and indicators to measure success.

            5.2.5.3   LA’s to establish communication/interaction with NGOs in
                      their areas.

            5.2.5.4   Awards for contributions from NGOs.

            5.2.5.5   To give some kind of empowerment to NGOs.


5.3   ENSURE TRANSPARENT,     ACCOUNTABLE    AND EFFICIENT
      GOVERNANCE OF TOWNS, CITIES AND METROPOLITAN AREAS

      5.3.1 Progress made since 1996, prevailing conditions, new trends,
            emerging issues, and major areas of concern

            5.3.1.1   The presence of public in full council meetings and
                      appointment of associate councilors from NGOs and
                      community-based organizations has made it more
                      transparent, accountable and efficient.


      5.3.2 Policy and legislative changes since Habitat II



                                       44
      5.3.2.1    Among the changes made since Habitat II are:

                 (i)    Drafting of the Financial and Accounting Procedure
                        for Local Authorities (a by-law under the Local
                        Government Act, 1976).

                 (ii)   Amendment to Treasury Instructions in 1997
                        adopted to use at the LAs.


5.3.3 Institutional weaknesses and obstacles encountered

      5.3.3.1    Although public is allowed to attend full council meetings,
                 transparency is still limited when pre-discussion and
                 decisions are made before the full council meetings
                 which subsequently acts as a ‘rubber stamp’.

      5.3.3.2    The presence of public in full council meeting without
                 active participation limits this objective.


5.3.4 Lessons learned with emphasis on sustainability and impact

      5.3.4.1    The council and councilors are more involved in issues of
                 public concern. Therefore, decisions made are more
                 beneficial and meaningful to the public.


5.3.5 Recommendations for priority action

    5.3.5.1     The public should be allowed to raise questions during the
                  full council meetings. However, comments should be
                    constructive and must be followed by suggestions.




                                  45
                               CHAPTER 6

                  INTERNATIONAL COOPERATION

6.1   ENHANCE INTERNATIONAL COOPERATION AND PARTNERSHIP

      6.1.1 Progress made since 1996, prevailing conditions, new trends,
            emerging issues, and major areas of concern

            6.1.1.1   Malaysia has played an active role in international
                      cooperation through the bilateral, multilateral and
                      regional initiatives. Special emphasis was placed on the
                      Malaysian Technical Cooperation Program (MTCP),
                      which promotes bilateral technical cooperation between
                      Malaysia and other developing countries in the context of
                      South-South Cooperation. Much of the MTCP resources
                      were directed at capacity building through the provision
                      of short-term training and study visits. The MTCP’s
                      activities focused particularly on areas in which Malaysia
                      has an expertise. These include economic management,
                      privatization, promotion of foreign direct investment,
                      poverty eradication, tax administration, agriculture
                      system       management,      and    urban    environment
                      management. The number of MTCP’s participating
                      countries has increased from 92 in 1996 to 105 in 2000.

            6.1.1.2   Adequate shelter for all is a priority of the Malaysian
                      government. Housing programmes especially for the
                      poor are continuously reviewed and consolidated.



                                      46
          Housing estates are provided with related facilities and
          services.

6.1.1.3   Appropriate research on human settlements has been
          carried out and Malaysia is very happy to share the
          information and knowledge with other countries.

6.1.1.4   Since 1998, Ministry of Housing and Local government
          has been actively participating in the W82 projects on
          Sustainable Development and the Future of Construction.
          The project aims to define and validate construction
          relating to sustainability, implement the indicators
          measuring the sustainability of building projects and the
          different actors involved in creating and maintaining them
          at national level as well as implement the indicators in
          comparing the sustainability of building projects, regions
          and nations at the international level.

6.1.1.5   Appropriate studies and pilot projects will be
          implemented, with the cooperation of international donor
          agencies, such as the United nations Development
          Program (UNDP) , Danish Cooperation for Environment
          and Development (DANCED), the Japanese Green Aid
          Plan (GAP) and the Global Environmental Facility (GEF)
          in areas such as biodiversity, wetlands management,
          coastal zone management and the conservation of
          marine parts.

6.1.1.6   Ministry of Housing and Local Government is the
          National Focal Point to coordinate all international
          activities related to human settlements. The Ministry will
          focus on integrated programs of policy advice,
          operational research, technical cooperation, capacity-
          building programmes and awareness raising. Besides
          that, the Ministry will coordinate and organize activities
          and programmes in conjunction with the World Habitat
          Day Celebration in the month of October every year. The
          celebration is to remember the homeless and those with
          inadequate shelter, including those whose housing
          conditions are incompatible with their human status and
          seek ways and means of improving their shelter and
          neighborhoods.

6.1.1.7   The Ministry also took the initiative to have the Habitat
          Award to give recognition and appreciate outstanding
          human settlements projects during the Habitat Day



                          47
          Celebration in Malaysia. In 1999, three (3) awards
          were accorded to three (3) organizations who have made
          outstanding contributions towards promotion of public
          participation in the implementation of human settlement
          projects, successfully solving a specific human
          settlement problem which has a significant impact at the
          local level, and successfully bringing notice significant
          human settlement problems towards their solution.

6.1.1.8   Malaysia through the Ministry of Housing and Local
          Government is also a member/associated member of
          four international organization such as :

          i)    Eastern Regional Organization For Planning and
                 Housing (EAROPH). The Secretary General ,
                 Ministry of Housing and Local Government is the
                 Vice President and the Honourable Treasurer of
                 EAROPH;

          ii)   Commonwealth Local Government Forum (CLGF).
                The Secretary General Ministry of Housing and
                Local Government is the Board Member of CLGF;

          iii   International Union for Local Authorities for the
                World Executive Committee (IULA-WEXCOM) and
                Asia Pacific Section(IULA-ASPAC) as an executive
                member;

          iv)   The International Council for Research and
                Innovation in Building and Construction (CIB), an
                associated member; and

          v)    Organization Islamic Capital Cities(OICC )through
                Kuala Lumpur City Hall.

6.1.1.9   Besides that Malaysia is also the member state for the
          United      Nations     Commission        for    Human
          Settlements(UNCHS) for the year 2000 until 2003. As a
          member state, Malaysia has committed to ensure
          adequate supply of affordable housing, enhancing
          access to land and credit, and assisting those unable to
          take part in the housing market. Malaysia has been
          contributing the voluntary pledge to UNCHS Foundation
          since 1987. From year 2001, the amount will be
          increased to support the work of the United Nations
          Center for Human Settlements (Habitat) and to help in



                          48
         the revitalization of the Habitat Center with a focused
         work programmes based on Habitat Agenda. The details
         of the international organizations are as mentioned in the
         Appendix 3.

6.1.1.10 Malaysia implements the Habitat Agenda in partnership
         with these international organizations. Malaysia attends
         committee meetings annually, seminars, workshops, and
         conferences     organized    by     these   international
         organizations        and        other       international
         organizations/associations such as Council of Local
         Authorities for International Relation (CLAIR), United
         Nations Environment Programme(UNEP), Economic and
         Social Commission for Asia and the Pacific (ESCAP),
         United Nations Development Programme (UNEP), United
         Nations Centre for Regional Development (UNCRD) and
         World Associations of Local Authorities and Cities
         Coordination (WACLAC).

6.1.1.11 Kuala Lumpur City Hall , Penang Municipal Council,
         Seberang Perai Municipal council, Ipoh Municipal
         Council,      Seremban Municipal Council, Malacca
         Municipal Council, Johor Bahru City          Council and
         Kuantan Municipal Council are involved in direct city to
         city cooperation through twinning city programmes with
         various cities in the world as mentioned in the Appendix
         4.

6.1.1.12 The objectives of the twinning programmes are to
         exchange experience, technology between cities,
         promote social and cultural activities between cities,
         encourage official visits among the city managers and
         promote exhibition between cities. Efforts have been
         made to enhance its role to be a center of regional
         international activities.

6.1.1.13 International cooperation and better coordination in the
         areas identifies by Habitat II have been strengthened,
         and funding commitments by Malaysia, aimed to improve
         the social, economic and environmental quality, adequate
         shelter and living environment of all people in the rural
         and urban areas.

6.1.1.14 In June 1996, World Bank has provided Financial Aide I
         establishment of Malaysian Halon Bank. Assistance was
         in the form of monetary funding amounted to



                         49
                  US$720,000.00 to initiate the halon phase out project in
                  Malaysia. The project period was for 3 years and
                  effective from January 2000, the on-site project
                  management & recycling activities are undertaken
                  completely by the Malaysian Fire and Rescue
                  Department (FRDM).

        6.1.1.15 As part of bilateral cooperation, in September 1997,
                 FRDM was actively involved in “Cross-Border” fire
                 fighting operation, when a contingent of 1268 fire
                 personnel from FRDM was mobilized to Sumatra in
                 Indonesia, to put off one of the biggest forest fire in this
                 region. The fire was then the main cause of the haze
                 problem in many parts of South East Asia. FRDM later
                 was selected by United Nation to train the Indonesian fire
                 personnel on forest fire fighting, which began in 1999 .

        6.1.1.16 FRDM also signed Memorandum of Understanding
                 (MoU) with other countries like Finland, New South
                 Wales, Australia and France on exchange of information
                 and training programmes, technical assistance and fire
                 safety information programme.


6.1.2     Policy and Legislative changes since Habitat II


        6.1.2.1   Malaysia has taken appropriate measures to ensure its
                  development     is    sustainable   and     balanced.
                  Environmental and conservation considerations are
                  integrated into national development policies and
                  planning such as National Plan of Action and the Five
                  Year Malaysian Plan.

        6.1.2.2   Environmental and social dimensions, as adopted in the
                  Habitat Agenda and its Plan of Action as well as Agenda
                  21 are given due consideration to prepare Malaysia in
                  facing the challenges of sustainable development in the
                  new millennium and ensure that the benefits of growth
                  and urbanization will not be negated by development and
                  environmental degradation.


6.1.3 Institutional weaknesses and obstacles encountered

        6.1.3.1   Lack of funds to run the activities and programmes; and



                                  50
      6.1.3.2   Lack of manpower, in quantity and quality.


6.1.4 Lessons learned with emphasis on sustainability and impact

      6.1.4.1   Malaysia uses its five-year plans to manage
                environmental and natural resources and ensures long
                term sustainability and improvement in the quality of life.
                These governmental efforts are being supplemented and
                complemented by investments from the private sector in
                the field of environment and natural resources
                management.

      6.1.4.2   Environmental education and public awareness
                programmes have been stepped up in cooperation with
                the Non Governmental Organizations (NGOs) and the
                private sector to educate the public on environmental and
                conservation issues to realize the goal of sustainable
                development.

      6.1.4.3   Malaysia’s policy on environment is to achieve a clean,
                safe and healthy environment for both present and future
                generations.      Towards creating a green living
                environment, tree planting and landscaping, sound
                construction practices, reutilization of construction wastes
                and the use of incinerators for municipal waste were
                some of the strategies adopted.

      6.1.4.4   Malaysia will continue to place emphasis on the proper
                management of the environment and natural resource
                base taking     into account the populations’ social-
                economic needs as well as enhancement of the quality of
                life.

      6.1.4.5   As highlighted by the United Nations Special Unit on
                Technical Cooperation Among developing Countries
                (TCDC) in it’s 1996’s report, international cooperation,
                including those in support of the Habitat Agenda consist
                of matrix activities that are multifaceted in nature and
                involved a wide range of participants. Increase efforts
                would therefore need to be made to improve linkages
                between the various activities in order to achieve a more
                efficient allocation of resources and overall rationalization
                of objectives.




                                51
     6.1.4.6   In terms of managing fire disasters at local and national
               level, the elements of fire fighting training, enforcement,
               promulgation of new codes and standards are also part
               of the subjects that could be adopted by FRDM with
               slight modification.

     6.1.4.7   The sustainability of projects and programmes depends
               on continual response from both parties very much and it
               is satisfactory.    The great impact on the bilateral
               cooperation to us is now placing FRDM, Malaysia at par
               with other ‘essential’ agencies and also to strengthen our
               capabilities in order to achieve world class fire and
               rescue organization.


6.1.5 Recommendations for priority action

     6.1.5.1   Recommendations for priority action are on areas
               mentioned below:-

               (i)     Shelter and social services;
               (ii)    Urban management;
               (iii)   Environmental and infrastructure; and
               (iv)    Assessment, monitoring and information.

     6.1.5.2   Further cooperation between the government, local
               authorities, non-governmental organizations and the
               private sector focussing on urban management, housing,
               basic services and infrastructure development.

     6.1.5.3   Development of equitable and affordable housing policy
               needs to be further promoted.




                               52
                                   CHAPTER 7

                       FUTURE ACTIONS AND INITIATIVES



The political and economical stability as well as the physical infrastructure,
facilities and amenities offered by Malaysia have made it both a comfortable as
well as efficient host to both regional and world-class events. Malaysia has also
proven herself as a suitable incubator for citizen-initiated programmes as well as
the ideal centre for pilot projects of international programmes implemented within
Malaysian cities. This chapter elaborates on some of these major initiatives
categorized into three groups.


7.1   LOCAL INITIATIVES

      This first category of actions and initiatives that have had international
      impact are made up of home-grown ventures that truly reflect the
      ingenuity, aspiration and inspiration of Malaysians who are committed to
      creating better cities.


      7.1.1 Malaysian Human Settlement and Urbanization Research
            Institute

             7.1.1.1     Actions are being undertaken by the Ministry of Housing
                         and Local Government to establish Malaysian Human
                         Settlement and Urbanization Research Institute
                         (MAHSURI).

             7.1.1.2     The institute will play the role of a data hub for Human
                         Settlement and Urbanization apart from carrying out
                         research and consultancy projects in both fields.


                                        53
7.1.2 Institute of Urban Governance

      7.1.2.1   A new Institute of Urban Governance has been
                established at the University Malaya, Kuala Lumpur. The
                institute will be active as a research centre for urban
                issues, offering postgraduate programmes in related
                areas.




7.1.3 Sustainable Penang Initiative

      7.1.3.1   The Sustainable Penang Initiative is a project that
                addresses the challenge of sustainable development by
                pioneering a process of popular consultation for inputs
                into holistic development planning. As aresult of this
                project, a people’s report with community indicators has
                been launched.


7.1.4 Virtual Cities : Ipoh

      7.1.4.1   Virtual Cities : Ipoh is a leap forward into extensive use of
                new information technologies to move towards what is
                called a ‘virtual city’.


7.1.5 Subang Jaya 2005 Initiative

      7.1.5.1   Subang Jaya Municipal Council with assistance of the
                Malaysian Institute for Microelectronic System (MIMOS)
                and National Information Technology Council of Malaysia
                (NITC) is developing an initiative that will carry it forward
                to becoming a model E-Community called the Subang
                Jaya 2005 Initiative.


7.1.6 Heritage Maps

      7.1.6.1   The states of Penang, Malacca, Ipoh and Taiping have
                developed some excellent local heritage maps and trails.



                                54
                       Initiatives will be taken to encourage every local authority
                       to promote such mapping and discovery in order for
                       residents to feel proud about their towns and cities thus
                       creating a sense of commitment and community.



7.2   INTERNATIONAL INITIATIVES

      This second category of initiatives listed below are internationally based
      but have strong local partners or centres that in their own rights have
      shown innovative adaptations of the international programme.




      7.2.1 Local Agenda 21

             7.2.1.1   Local Agenda 21 (LA 21) is an idea inspired by the
                       United Nations Conference on Environment and
                       Development (UNCED) that was held in Rio de Janeiro in
                       1992. LA 21 has been recognised as a valuable
                       approach towards harmonizing urban development and
                       the environment by utilizing consultative processes with
                       urban population in order to reach a consensus.

             7.2.1.2   With the support of the United Nations Development
                       Programme, the Ministry of Housing and Local
                       Government has launched pilot projects in Petaling Jaya,
                       Miri, Kuantan and Kerian.

             7.2.1.3   This process has the potential for the most
                       comprehensive bottoms-up planning on the urban
                       environment. Upon the completion of the four pilot
                       projects actions and initiatives will be taken to implement
                       the project to other local authorities through out the
                       country.



      7.2.2 Kuching Healthy Cities Project

             7.2.2.1   This project is the result of a collaboration between the
                       World Health Organisation (WHO) and the Malaysian
                       Ministry of Health. Starting initially as a project scheduled
                       to run from 1995 to 2000, it is envisaged that the concept



                                       55
                of Healthy City Kuching will become a way of life and the
                way to plan the City.

      7.2.2.1   Kuching is among the world leaders within this global
                initiative and their website has been acclaimed as one of
                the most comprehensive amongst other cities that have
                implemented the same project. Malaysia has also played
                host to regional level trainings concerning the WHO
                Healthy Cities Project.

      7.2.2.3   A major programme to expand this concept to other cities
                and towns in Malaysia is currently underway.


7.2.3 Kuantan Asian Development Bank Benchmarking Project

      7.2.3.1   Kuantan, one of the major cities in Malaysia has lead in
                the Asian Development Bank (ADB) Benchmarking
                Project and also in ISO Standards.

      7.2.3.2   The ADB Benchmarking Project is a pilot project referred
                to as Enhancing Municipal Service Delivery Capability,
                and is currently implemented in ten municipalities within
                seven Asian Countries.

      7.2.3.3   This initiative aims to provide regional technical
                assistance for the purpose of enhancing municipal
                service delivery in selected developing member countries
                using two management techniques, benchmarking and
                continuous improvement.

7.2.4 Malaysian Child-Friendly Cities Initiative

      7.2.4.1   Malaysia is the first country in Asia to launch a framework
                and resource book on making urban areas child-friendly.

      7.2.4.2   This initiative was undertaken by a core team called the
                Malaysian Child-Friendly Cities Initiative and supported
                by the United Nations Children’s Fund (UNICEF) and the
                United Nations Development Programme (UNDP).

      7.2.4.3   This Malaysian Initiative is a complement of the
                International Child-Friendly Cities Initiative (CFCI) that
                was launched during the International Worksyop on
                Children’s Rights : Working Towards Child-Friendly Cities
                held after Habitat II in Istanbul Turkey, 1996.



                                56
      7.2.5 Penang Self Advocacy Training

            7.2.5.1    Penang is developing a training hub for people with
                       disability through the promotion of self-advocacy training
                       that is related to the advocacy for better access to and
                       provision of facilities for people with disabilities.

            7.2.5.2    This initiative is supported by the United Nations
                       Economic and Social Commission for Asia and the
                       Pacifis (UNESCAP).


7.3   MADE-IN-MALAYSIA REGIONAL INITIATIVES

      This third category of projects is a direct result of the work of the Urban
      Management Programme for Asia and the Pacific (UMPAP) of the United
      Nations Development Programme (UNDP) that had been based in Kuala
      Lumpur for the duration of 6 years that is from its inception in 1992 till
      1998, when it became translated to The Urban Governance Initiative,
      whose work on promoting innovative urban governance projects continues
      from its base in Kuala Lumpur. The UMPAP in Malaysia was instrumental
      in the birth of the following projects:-


      7.3.1 Water Watch Asia

            7.3.1.1    This initiative is a light, action oriented participatory
                       regional network that focuses upon the exchange of
                       information and facilities of advocacy amongst civil
                       society groups concerned with water resource
                       management.

            7.3.1.2    Water Watch Asia’s activities include the production of a
                       resource book that help readers undertake specific
                       activities like conducting a rapid mapping of water
                       deficient areas as well as implement ‘quick and clean’
                       tests on the quality of water.

            7.3.1.3    This network is hosted by the Socio-Economic Research
                       Institute (SERI) that is based in Penang, Malaysia.


      7.3.2 Waste Wise Asia Pacific




                                       57
     7.3.2.1   This is an informal regional network of organisations and
               individuals based in Bangalore, India and dedicated to
               promoting solid waste management policies which are
               environmentally friendly and socially responsible.


7.3.3 Asia and West Pacific Network for Urban Conservation
      (AWPNUC)

     7.3.3.1   This network was formed in 1991 and its objectives are to
               exchange cultural information and technical expertise in
               the area of urban conservation.

     7.3.3.2   AWPNUC is currently based in Penang, Malaysia and is
               the only cultural organisation that links Far East Asia,
               South East Asia, Australia and the Western Pacific.

     7.3.3.3   The first comprehensive regional directory on heritage
               called ‘Heritage Habitat’ was researched and produced in
               Malaysia. AWPNUC will continue to play a significant role
               in heritage conservation in the region.


7.3.4 The Sustainable Transport Action Network for Asia and the
      Pacific (SUSTRAN)

     7.3.4.1   SUSTRAN is a network based in Kuala Lumpur which
               promotes and popularizes people-centred, equitable and
               sustainable transport with focus on Asia and the Pacific.

     7.3.4.2   A key aim of the network is to address the problem of
               escalating negative impacts of transportation in Asia and
               the Pacific by providing information to researchers in the
               government, community and private sectors.

7.3.5 Urban Links


     7.3.5.1   Urban Links is a prominent awareness service and
               currently being produced and published in Malaysia for
               dissemination to over 1,200 urban planners, local
               government organisations, institution of higher learning,
               non-governmental      organisations,   community-based
               organizations, private sector individuals and others
               involved in urban issues throughout the world.




                               58
7.4     CONCLUSION


        Malaysia’s role as a regional hub and incubator of urban innovation and
        initiatives has considerably strengthened since the Habitat II held in
        Istanbul, Turkey in 1996. With its enthusiasm to establish itself as a leader
        in urban management and good governance and with the cooperation of
        various United Nations agencies especially UNDP, Malaysia is poised to
        play an even more significant role in these fields.1

                                                                                      Appendix 1

      MEMBERS OF THE MALAYSIAN NATIONAL HABITAT COMMITTEE

Chaiman         :        Secretary General, Ministry of Housing and Local
                         Government (MHLG)

Members         :        1.      Deputy Secretary General, MHLG
                         2.      Department of Housing, MHLG
                         3.      Local Government Department, MHLG
                         4.      Federal Town and Country Planning Department,
                                 MHLG
                         5.      Sewerage Services Department, MHLG
                         6.      National Landscape Department, MHLG
                         7.      Fire and Rescue Department, MHLG
                         8.      Policy Planning and Development Division, MHLG
                         9.      Finance Division, MHLG
                         10.     Administration Division, MHLG
                         11.     Personnel Management Division, MHLG
                         12.     Economic Planning Unit, Prime Minister’s Department
                         13.     Ministry of National Unity and Social Development
                         14.     Ministry of Transport
                         15.     Ministry of Energy, Communication and Multimedia
                         16.     Ministry of Health
                         17.     Ministry of Rural Development
                         18.     Valuation and Property Services Department
                         19.     Department of Environment
                         20.     Federal Land and Mines Department
                         21.     Department of Public Works
                         22.     Central Bank of Malaysia
                         23.     Construction Industry Development Board
                         24.     Housing Developers Association Malaysia
                         25.     Master Builders Association Malaysia

The inputs for this chapter was contributed by Ms. Saira Shameem, Communication and Information
Officer, The Urban Governance Initiative (TUGI), UNDP.


                                                 59
                   26.    Malaysian Fire Protection Association
                   27.    Association of Architects Malaysia
                   28.    Malaysia Institute of Planners
                   29.    Institute of Engineers Malaysia
                   30.    Malaysian Water Association
                   31.    Environmental Protection Society Malaysia
                   32.    Federation of Malaysian Consumers Association
                   33.    Business Council for Sustainable Development in
                          Malaysia

Secretariat :      Policy Planning and Development Division, MHLG


                                                                  Appendix 2

                   MEMBERS OF THE WORKING GROUP


                           CHAPTER 1 : SHELTER



1.    National Housing Department                    -    Lead Agency

2.    Ministry of Land and Cooperative Development

3.    Ministry of Rural Development

4.    Valuation and Property Services Department

5.    Kuala Lumpur City Hall

6.    Petaling Jaya Municipal Council

7.    Central Bank of Malaysia

8.    Federation of Malaysian Consumers Association

9.    Association of Banks Malaysia

10.   Association of Architects Malaysia

11.   Housing Developers Association of Malaysia

12.   National Council for Women Organizations




                                        60
                CHAPTER 2 : SOCIAL DEVELOPMENT AND
                     ERADICATION OF POVERTY



1.    Ministry of National Unity and               -        Lead Agency
      Social Development

2.    Policy Planning and Development Division, MHLG

3.    Ministry of Rural Development

4.    Ministry of Education

5.    Ministry of Home Affairs

6.    Economic Planning Unit, Prime Minister’s Department

7.    Department of Statistics Malaysia

8.    Social Welfare Department

9.    Population and Family Development Board

10.   Women’s Affairs Department, Prime Minister’s Department

11.   Royal Malaysian Police




                                       61
              CHAPTER 3 : ENVIRONMENTAL MANAGEMENT



1.    Federal Town and Country                     -        Lead Agency
      Planning Department

2.    Policy Planning and Development Division, MHLG

3.    Ministry of Rural Development

4.    Ministry of Health

5.    Ministry of Transport

6.    Economic Planning Unit, Prime Minister’s Department

7.    Department of Statistics Malaysia

8.    Department of Environment

9.    Federal Land and Mines Department

10.   Public Works Department

11.   Local Government Department, MHLG

12.   Sewerage Services Department, MHLG

13.   Department of Mineral and Goescience

14    Kuala Lumpur City Hall



                                      62
15.   Petaling Jaya Municipal Council

16.   Business Council for Sustainable Development in Malaysia




                  CHAPTER 4 : ECONOMIC DEVELOPMENT



1.    Policy Planning and Development              -        Lead Agency
      Division, MHLG

2.    Ministry of Human Resources

3.    Ministry of Rural Development

4.    Ministry of Agriculture

5.    Ministry of Entrepreneur Development

6.    Economic Planning Unit, Prime Minister’s Department

7.    Department of Statistics, Malaysia

8     Kuala Lumpur City Hall

9.    Women’s Affairs Department, Prime Minister’s Department

10.   Federation of Malaysian Consumers Association

11.   National Council for Women Organizations




                                        63
                          CHAPTER 5 : GOVERNANCE



1.    Local Government Department, MHLG              -      Lead Agency

2.    Economic Planning Unit, Prime Minister’s Department

3.    Public Services Department

4.    Ministry of Public Works

5.    Federal Town and Country Planning Department, MHLG

6.    Policy Planning and Development Division, MHLG

7.    Kuala Lumpur City Hall

8.    Highway Authority Malaysia

9.    University Malaya

10.   Northern University of Malaysia

11.   Federation of Malaysian Consumers Association

12.   Business Council for Sustainable Development in Malaysia

13.   Environmental Protection Society of Malaysia

14.   ANULAE Peninsular Malaysia

15.   Malaysian Youth Council




                                        64
16.   National Council for Women Organizations




              CHAPTER 6 : INTERNATIONAL COOPERATION



1.    Administration Division, MHLG                -        Lead Agency

2.    Ministry of Foreign Affairs

3.    Ministry of National Unity and Social Development

4.    Economic Planning Unit, Prime Minister’s Department

5.    Kuala Lumpur City Hall

6.    Federal Town and Country Planning Department, MHLG

7.    Local Government Department, MHLG

8.    Fire and Rescue Department, MHLG

9.    National Housing Department, MHLG

10.   Policy Planning and Development Division, MHLG




                                     65
                                                                APPENDIX 3


i)    Eastern Regional Organization Planning For Housing (EAROPH) is
      an autonomous regional organization affiliated to the International
      Federation of Housing and Planning (IFHP). It covers all countries in
      Asia, Autralasia and the Pacific situated between longitudes 60 degrees
      East and 180 degrees East (Iran to Hawaii). EAROPH is a non-
      governmental and multi-sectoral organization encompassing the private,
      public and academic sectors established to foster the exchange of
      insights and experiences among countries in the EAROPH Region. It
      promotes better understanding of human settlements and encourages
      excellence in planning, development and management to improve the
      quality of life and sustainability of human settlements. EAROPH’s
      activities include:

          International technical exchange programmes;
          International conferences and seminars;
          Technical training programs;
          International technical field visits;
          Urban and rural development study projects; and
          Facilitation in arranging funding projects .

     The EAROPH Secretariat Committee is in Kuala Lumpur serves as a body
     through which EAROPH Malaysia organizes itself as almost all officials
     and organizations represented in the EAROPH Secretariat Committee
     have Malaysian residence status. The Secretary General, Ministry of
     Housing and Local Government of Malaysia is the The Honorable
     Treasurer and Vice President of EAROPH.

     As an organizational member of EAROPH, Ministry of Housing and Local
     Government Malaysia pays an annual subscription fees of RM 260.00 and
     an annual grant of RM 20,000.00 to EAROPH.


                                    66
ii)    International Union of Local Authorities World Executive Committee
       (IULA-WEXCOM) , headquarters in the Hague and International Union of
       Local Authorities-Asia pacific Section (IULA-ASPAC), headquarters is in
       Jakarta, Indonesia. The Congress will be held every three years and the
       Executive Committee Meeting will be held annually. The objectives of this
       International Organization are to exchange the experience among the
       practitioner and the city managers, to discuss matters pertaining to city
       management and to conduct workshops, seminars to the city manager.




iii)   Commonwealth Local Government Forum (CLGF). The headquarters
       is in London and the committee meeting will be held annually. The
       objectives are to encourage democracy at local level, exchange
       experience among practitioners and city managers, organize seminars
       and workshops, publish reports and pamphlets.

       The Secretary General, Ministry of Housing and Local Government,
       Malaysia is the CLGF Board Member.

iv)    City Net is the regional network of local authorities of human settlements.
       The headquarters is in Yokohama, Japan. The Congress will be held
       every three years and the Executive Committee Meeting will be held
       annually. The objectives are to discuss matters pertaining to city
       management, to share the experience of managing the cities and to
       conduct workshops, seminars for city managers.

V)     Organization Islamic Capital Cities (OICC)- The headquarters is in
       Jeddah, Saudi Arabia. The Congress will held it’s meeting every 3 years
       and the Administrative Council Meeting will be held annually. The
       objectives are to exchange experiences among members, promote the
       Islamic values especially in the architectural design, landscaping and
       discuss matters pertaining to the managing of Islamic Cities.

VI) The International Council for Research and Innovation in Building
    and Construction (CIB)- Malaysia through the Ministry is an associated
    member and has been actively participating in the W82 projects on
    Sustainable Development and the Future Construction. The Projects aim
    at defining and validating construction related to sustainability,
    implementing the indicators measuring the sustainability of building
    projects and the different actors involved in creating and maintaining them
    in the national level and implementing the indicators in comparing the
    sustainability of building projects, regions and nations at the international
    level.



                                        67
                                                                     APPENDIX 4

               TWINNING CITIES WITH OTHER CITIES IN THE WORLD



                     CITY                       TWINNING CITY           AGREEMENT
         STATE                                                            YEAR


1.   Penang          i. Georgetown          a. Adelaide, Australia         1973
                                            b. Medan, Indonesia            1983
                                            c. Xiamen, China               1993


                     ii. Seberang Perai     a. Fremantle, Australia        1978
                                                                           1981
                                            b. Manila, The
                                            Phillippines
2.   Perak           i. Ipoh                a. Fukuoka, Japan              1989
                                            b. Guangzhou, China            1999


3.   Wilayah         i. Kuala Lumpur        a. Ankara, Turkey,             1984
     Persekutuan                                                           1991
                                              Casablanca,
                                              Morocco                      1993
                                            b. Isfahan, Iran

4.   Negeri          i. Seremban            a. Bukit Tinggi,               1986
     Sembilan                                  Indonesia

5.   Malacca         i. Malacca             a. Lisbon, Portugal            1984
                                                                           1989


                                       68
                                    b. Hoorn, Holland      1991
                                    c. Valparaiso, Chile
6.   Johor    i. Johor Bahru        a. Istanbul, Turkey    1984

7.   Pahang   i. Kuantan            a. Sihanoukville,      1996
                                        Cambodia




                               69

				
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