Commentary: Should Selangor take Kuala Lumpur back?
There is talk of integrating Kuala Lumpur into the state of Selangor again. The Malaysian federal capital’s governance and residents' needs must first be addressed, says an ISEAS-Yusof Ishak Institute academic.
KUALA LUMPUR: In November, Selangor’s chief minister Amirudin Shari expressed interest in reclaiming Kuala Lumpur if the opportunity arises despite not having any concrete plans. Reintegrating the capital, Malaysia’s financial and commercial hub, into the state would have far-reaching implications, especially for residents of the capital who do not have democratic representation.
Kuala Lumpur, once part of Selangor, became a city in 1972 and a Federal Territory two years later under an agreement stating it would revert to Selangor if it ceased to be the federal capital. The 1974 agreement to cede Kuala Lumpur to the federal government is bound by two conditions: Its status as the federal administrative centre and the location of the parliament building in the capital. With Putrajaya serving as the administrative centre, only the latter condition remains.
Selangor taking Kuala Lumpur back would have significant financial, administrative and political implications. These include potentially increasing Selangor’s revenue base and also possibly straining its expenditure bill.
KL LEADERSHIP APPOINTED, NOT ELECTED
More importantly, it would ensure the inclusion of more local and democratic governance where currently none exists.
Kuala Lumpur is governed by the Kuala Lumpur City Hall (DBKL), which reports directly to the Ministry of Federal Territories. This ministry appoints DBKL’s mayor and Board of Advisors, who oversee urban planning and socioeconomic development.
Senior civil servants and professionals typically fill the city’s top management positions. DBKL controls an annual budget of between RM2.6 billion (US$584 million) and RM2.9 billion, larger than the combined state budgets of Penang, Kedah and Perlis.
Given its significant budget and administrative control, the lack of democratic representation is concerning. Since its leadership is appointed and not elected, reintegrating into Selangor would allow Kuala Lumpur residents to vote for state leaders accountable for DBKL’s administration. Under Malaysia’s Federal Constitution, local governments fall under the jurisdiction of democratically elected state governments.
STATE-FEDERAL CHALLENGE ON LOCAL ISSUES
Second, while DBKL has made strides in enabling citizen participation through online budget consultations, communication with residents remains limited, often leaving developers and service providers as intermediaries. This has caused frustration, as residents expect DBKL to handle local issues.
A recent billboard controversy – stemming from a peremptory directive that all commercial signage must include Malay – highlighted the disconnect between DBKL and local businesses. This incident suggests that granular matters like advertisements or the popular peeve of potholes may be better managed by an elected state entity rather than the federal government.
The Selangor state government could more effectively address urban planning and service delivery through the principle of subsidiarity – delegating authority to the level closest to the affected community.
Reintroducing local government elections, a cause ruling coalition Pakatan Harapan once championed, would further increase accountability. Synergising policy planning to reduce overlap between Selangor and Kuala Lumpur would also reduce duplication of efforts.
For instance, cleaning and rejuvenating the Klang River, which flows through both Selangor and Kuala Lumpur, has been challenging because coordination is needed between the state and federal governments. When both entities are not politically aligned, decision-making is complicated. Unifying governance would streamline such initiatives.
That said, maintaining Kuala Lumpur as a neutral administrative hub independent from state control may appeal to investors. Shah Alam could continue to serve as a governance capital to address Selangor’s needs.
Managing Kuala Lumpur’s hefty budget may strain Selangor’s administrative capacity, and resources may be allocated towards urban rather than rural areas.
However, Kuala Lumpur’s high property value would mean that Selangor can derive higher revenue from the land tax (also known as quit rent) charged on the city’s properties. In addition, reintegrating Kuala Lumpur into Selangor may also entail the transfer of assets, which could generate further state government income.
SHIFT IN ELECTORAL POWER
What is certain is that having Selangor reincorporate Kuala Lumpur into its state would have significant electoral implications.
Kuala Lumpur currently has 11 parliamentary seats, of which the Democratic Action Party (DAP) and People’s Justice Party (PKR) control five seats each, with the United Malays National Organisation (UMNO) controlling one. With parliamentary seats mainly containing two to three state legislative seats, Kuala Lumpur’s reintegration into Selangor would add between 22 and 33 state seats to Selangor’s existing 56, depending on how the Election Commission delimits the boundaries.
This would mean a major redistribution of electoral power, as there may be a significant increase in the proportion of Parti Keadilan Rakyat (PKR) and DAP state seats within the new Selangor legislature. This would also lead to further political consolidation of the Pakatan Harapan coalition, which may well be the very reason why the proposal is being highlighted at present.
IMPROVING LOCAL GOVERNANCE
Before considering reintegration, however, Kuala Lumpur’s governance needs to be addressed. Replacing the Advisory Board with appointed councillors, as suggested by the DAP Federal Territories chapter recently, is one immediate way to improve accountability.
This would require amending the Federal Capital Act 1960 to limit the board’s role to advising the mayor on matters connected with the city’s administration or addressing questions referred to by the ministry or mayor. This could also be a stepping stone towards restoring local council elections, enhancing democratic participation and ensuring Kuala Lumpur citizens have a say in their city’s administration.
Ultimately, the decision to reintegrate Kuala Lumpur into Selangor rests with the federal and state governments and the Selangor ruler and is subject to the Council of Rulers’ assent, as in 1974. Such a move would require the parliament building to be relocated elsewhere and address the challenges and consequences outlined above.
As local governments provide public service delivery that citizens experience on a day-to-day basis, it is imperative that Kuala Lumpur’s local governance is improved, whether it reintegrates with Selangor or not.
Dr Tricia Yeoh is a Visiting Fellow at the ISEAS – Yusof Ishak Institute and Associate Professor of Practice at the University of Nottingham Malaysia's School of Politics and International Relations. This commentary first appeared on the ISEAS-Yusof Ishak Institute's blog, Fulcrum.
