PAPAR: The performance of 156 local authorities in the country will be evaluated using a performance-based “traffic light” grading system starting next year.

Housing and Local Government Minister Nga Kor Ming, who disclosed this, said the move was aimed at enhancing the quality of public services among local authorities countrywide.

He said said the ministry wanted to ensure that every expenditure was justified based on Return on Investment (ROI) and cost benefit analysis.

“All 156 local authorities will be required to adhere to specific SOP, including feasibility studies to prevent inefficient projects and ensure cost-benefit analyses and optimise expenses,” he said in a statement after his 31st Sentuhan Kasih Programme held here yesterday.

Under the “traffic light” grading system, local authorities will be categorised as green, yellow and red.

Green light will mean that the local authority is one of “high performance, eligible for additional funding”, yellow means “warning issued, with funding allocations to be reviewed” while red will mean “poor performance, leading to rejection of funding applications”.

“We will engage with the local authorities to find out why they failed to meet their key performance indicators,” he said.

At the event, Nga announced RM13.2mil for 31 public infrastructure and socio-economic development projects for Papar and Kimanis.

The allocation included development and upgrading projects for various public infrastructure and housing projects.

Also present were Domestic Trade and Cost of Living Minister and Papar MP Datuk Armizan Mohd Ali, Sabah’s Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe and other senior officials.

https://www.thestar.com.my/news/nation/2024/09/17/nga-traffic-light-grading-system-for-local-authorities