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Malaysia’s federal system has long been characterised by a high degree of centralisation, particularly in fiscal authority, policy formulation, and administrative implementation. Over time, concerns have emerged among policymakers, scholars, and civil society actors regarding the efficiency and equity of existing state–federal arrangements. Discussions among policy experts have increasingly emphasised the need for greater decentralisation, transparency, and collaborative governance in the Malaysian federal framework.
Recent policy dialogues have highlighted that improving state–federal relations is not simply a matter of constitutional adjustment but requires practical experimentation with decentralised governance models across different policy sectors. Enhancing the role of state governments in service delivery can potentially lead to more locally responsive policymaking, more efficient resource allocation, and stronger democratic accountability.
The COVID-19 pandemic also revealed structural gaps in Malaysia’s governance framework, particularly in the coordination between federal and state governments in areas such as public health, welfare delivery, and mobility management. The crisis demonstrated that state governments can play a more significant role in policy innovation and service delivery, especially when local conditions demand tailored responses.
Against this backdrop, the “Decentralization of State–Federal Relations by Sector in Practice Series” is proposed as a platform for structured dialogue among policymakers, researchers, civil society organisations, and practitioners. The series aims to explore sector-specific pathways for decentralisation, focusing on practical governance reforms rather than abstract constitutional debates.
By examining decentralisation in specific sectors, the series will identify opportunities for improving policy coordination, strengthening fiscal arrangements, and enhancing state-level administrative capacity.
