PETALING JAYA: The Housing and Local Government Ministry (KPKT) will introduce two new indicators, the Auditor-General’s Certificate (KAN) and the Public Service Corruption Ranking (PSCR)—to the Local Authority Star Rating System (SPB-PBT) starting in 2026, in a move aimed at strengthening integrity and transparency across all 156 local councils nationwide.
Housing and Local Government Minister Nga Kor Ming said the initiative reflects the Madani government’s commitment to good governance and effective service delivery.
“The inclusion of these indicators proves our determination to ensure local authorities are more transparent, accountable and free from corruption.
“This is the spirit of reform the Madani government champions,” Nga said after chairing the annual Housing and Local Government Exco Meeting (MEXCOPT) yesterday.
Nga stressed that every new measure underscores KPKT’s pledge to empower the public service to be efficient, trustworthy and focused on the people’s well-being.
Among the key policies announced was a streetlight electricity tariff rebate.
“Beginning 1 July 2025 until 31 December 2027, all local councils in Peninsular Malaysia will enjoy an 11 sen per kilowatt-hour rebate on streetlight electricity bills under the Incentive-Based Regulation framework.
“The move is expected to reduce operating costs and improve the efficiency of public facilities,” he said.
KPKT will also continue its One-Stop Centre (OSC) reforms to simplify development approvals under the New Deal for Business and the Bureaucratic Red Tape Reform agenda.
Key measures include:
*Industrial Green Lane (IGL): A fast-track process for strategic investments supporting green economic growth and high-value industries.
*Pre-Requisite (PR): Online preliminary reviews by technical agencies before formal applications through the OSC 3.0 Plus system.
*Self-Regulation (SR): A framework encouraging registered professionals to comply with clear guidelines, with enforcement based on professional accountability.
Of the 99 applications received under these initiatives so far, 62 met the required standards, achieving an overall compliance rate of 63 percent.
In addition, KPKT is finalising revised guidelines for the management of grease traps in food premises, updating the 2018 version.
“The new guidelines will cover design, maintenance and disposal of fat, oil and grease waste to help curb river pollution nationwide.
“To address flooding risks, RM200 million has been allocated in 2025 to help local councils upgrade urban drainage systems,” he said.
State governments and local authorities are urged to prioritise continuous, efficient maintenance to ensure the systems function effectively.
Nga said these reforms form part of a wider effort to modernise local governance and ensure that services remain people-focused and free of corruption.
