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Introduction

In the Rakyat Guides: 2. Constitu-tional Institutions & the Separationof Powers, we learnt that under theFederal Constitution, there arethree main institutions that run thecountry the Legislature

(Parliament), the Executive (Federal Government)and the Judiciary (Courts).

That is how our country, Malaysia, is run. But Malaysia isalso made up of 13 States. If you live in one of theseStates, you may know that your State can make its ownlaws and has its own State Government.

How do the State Governments and the Federal Govern-ment work together? What sort of laws can Parliamentmake, and what laws can the States make?

The answers are in the Constitution.

Malaysia as a Federation

You may have learned in school thatMalaysia is a Federation. That meansthat there is an institution that has thepower to make laws for all of Malaysia(Parliament), and an institution thatruns the country according to the laws (Federal Govern-ment).

At the same time, each of the 13 States in Malaysia hasits own Parliament (called a Legislative Assembly)and its own Government (called a State Government).A Legislative Assembly has power to make laws for itsState, while a State Government has power to run theState according to those laws.

Federation Level State Level

Who makeslaws?

Who governsaccording to thelaws?

Parliament

Power to makelaws for all ofMalaysia

LegislativeAssembly

Powertomakelawsforthe State

FederalGovern-mentgovernsMalaysia

StateGovern-mentgovernsitsownState

Who decides what Federal laws or State laws

mean?

The Federal Court, the Court ofAppeal, the High Courts, the SessionsCourts and the Magistrates Courts candecide what Federal laws and Statelaws mean. The Federal Territoriesand each State has its own Syariah

Court to decide what Syariah laws mean.

However, all laws must be consistent with theConstitution.

How is the power to make laws divided

between Parliament and the LegislativeAssemblies?

The Constitution divides the power tomake laws between Parliament and theLegislative Assemblies. This means thatthe Constitution tells us what Parliamentcan make laws on and what LegislativeAssemblies can make laws on.

The Constitution has three lists. The Federal List setsout matters that only Parliament can make laws on. TheState List sets out matters that only LegislativeAssemblies can make laws on. The Concurrent List setsout matters which Parliament and LegislativeAssemblies can make laws on.

Some examples of what is on the Lists are set out below.

Federal List - Examples

Defenceincludingnaval,militaryandairforces,andnationalservice

SecuritywithinMalaysiaincludingthepolice force,prisonsandpreventivedetention

Civil and criminal law and procedure includingjurisdiction and powersof courts(exceptfor StateSyariahCourts),officialsecrets,bettingand lotteries

Ascertainment of Islamiclaw andother personallawsforthe purposesof federallaw

Malaysiancitizenship

Financeincluding taxes,banking, moneylending,loansor borrowingby the States, andforeignexchange

Trade, commerceand industryincludingimportsand exports , price control , food control , andinsurance

Shippingincludingports

Communicationsandtransport

Federalworks includingwater supplies, riversandcanals, except those wholly within one state orregulated by an agreement between all Statesconcerned; production, distribution and supplyofwaterpower(exceptforSabahand Sarawak)

Education including primary, secondary anduniversityeducation

Medicineandhealth

Labourandsocialsecurity

Welfareoftheorangasli

Newspapersandpublications

Censorship

Tourism

State List - Examples

Externalaffairsincludingenteringinto agreementswithothercountriesandissuingpassports

Islamiclawand personalandfamilylawofpersonsprofessingthereligionof Islam;settingupofSyariahCourts

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MyConstitution Campaign

ConstitutionalLaw Committee

MAJL

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MALAYSIA

BarCouncil

Are there any other Constitutional Institutionsthat affect the States?

Funding in a Federation

All monies collected by the Federal Government go intothe Federal Consolidated Fund. The Federal Government,among other things, receives revenue from immigration,passports, visas, income tax, sales tax, road tax, othercorporate taxes and customs duty. All monies collectedby State Governments go into the State ConsolidatedFund. Among other things, States receive revenue fromtoddy shops, lands, mines, forests, entertainment duty,town councils, rental of State property, and receipt fromland sales.

In addition, States are entitled to some money from theFederal Government. Every year, the Federation giveseach State a sum of money according to the number ofpeople in the State (the capitation grant), as well as asum of money to maintain State roads.

For the capitation grant, a State will get RM72 eachperson for the first 100,000 people, RM10.20 eachperson for the next 500,000 people, RM10.80 eachperson for the next 500,000 people, and RM11.40 foreach remaining person.

Sabah and Sarawak receive additional money from theFederal Government, and from (i) taxes, fees and dutieson petroleum products, timber, other forests products,and minerals (except for tin), and (ii) licenses connect edto water supplies and services.

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You can also learn more about theMyConstitution Campaign or follow it on:

www.perlembagaanku.com www.malaysianbar.org.my/

constitutional_law_committee www.facebook.com/MyConstitution www.twitter.com/MyConsti www.youtube.com/user/PerlembagaanKu

We can be reached at:Constitutional Law CommitteeBar Council SecretariatNo. 15, Leboh Pasar Besar50050 Kuala Lumpur

t: 03.2031.3003f: 03.2026.1313

e: perlembagaanku@gmail.com

How is Executive power divided between theFederal Government and the State Governments?

Under the Constitution, Parliament andthe Legislative Assemblies have powersto make laws. The power to governaccording to those laws (called execu-tive power) belongs to the FederalGovernment and the 13 State Govern -ments.

The Federal Government has executive power over allmatters on which Parliament can make laws. The Stateshave executive power over all matters on which theLegislative Assemblies can make laws.

The Federal Governments executive power cansometimes affect the State Governments executivepower. For example, where the Federal Governmentneeds land in a State for matters of national interest, the

State Government must use its power to make sure thatthe Federal Government gets the land.

National policy-making bodies cancontrol the kinds of laws that theStates can make. Examples are theNational Council for Local Government(NCLG) and the National LandCouncil (NLC).

The NCLG is a body that makes national policy for thepromotion, development and control of local govern-ment in all of Malaysia. The Federal and State Govern-ments must follow the policies made by the NCLG.However, Sabah and Sarawak do not need to follow anNCLG policy unless Parliament passes a law that saysSabah and Sarawak must follow it and the LegislativeAssembly of that State agrees to it.

The NLC is a body that makes national policy on landmatters. The Federal and State Governments must followthe policies made by the NLC. However, Sabah andSarawak do not need to follow an NLC policy unlessParliament passes a law that says Sabah and Sarawakmust follow it and the Yang di-Pertua Negeri of that Stateagrees to it.

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March 2010

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