Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/66.Exercise of legislative power

Part IV THE FEDERATION

Chapter Chapter 5 Legislative procedure

66. Exercise of legislative power

(1) The power of Parliament to make laws shall be exercised by Bills passed by both Houses (or, in the cases mentioned in Article 68, the House of Representatives) and, except as otherwise provided in this Article, assented to by the Yang di-Pertuan Agong.

(2) Subject to Article 67, a Bill may originate in either House.

(3) When a Bill has been passed by the House in which it originated it shall be sent to the other House; and it shall be presented to the Yang di-Pertuan Agong for his assent when it has been passed by the other House and agreement has been reached between the two Houses on any amendments made in it or when it is required to be so presented under Article 68.

(4) The Yang di-Pertuan Agong shall within thirty days after a Bill is presented to him assent to the Bill by causing the Public Seal to be affixed thereto.

(4a) If a Bill is not assented to by the Yang di-Pertuan Agong within the time specified in Clause (4), it shall become law at the expiration of the time specified in that Clause in the like manner as if he had assented thereto.

(4b) (Repealed).

(5) A Bill shall become law on being assented to by the Yang di-Pertuan Agong or as provided in Clause (4A), but no law shall come into force until it has been published, without prejudice, however, to the power of Parliament to postpone the operation of any law or to make laws with retrospective effect.

(6) Nothing in this Article or in Article 68 shall invalidate any law confirming an undertaking given by the Federal Government to the effect that a Bill to which the undertaking relates shall not be presented to the Yang di-Pertuan Agong for his assent except in accordance with the undertaking.

EXPLANATORY NOTES:

Article 66(1):

The words ", except as otherwise provided in this Article," were added after the word "and" by Act A584, paragraph 2(a), in force from 20-1-1984.

Article 66(4):

1. The words ", and after assenting to a Bill he shall cause it to be published as a law" were deleted by Act A566, section 12, in force from 16-12-1983.

2. Clause (4) was substituted by Act A584, section 2, in force from 20-1-1984. The original Clause read as follows:

"(4) The Yang di-Pertuan Agong shall signify his assent to a Bill by causing the Public Seal to be affixed thereto, and after assenting to a Bill he shall cause it to be published as a law.".

Clauses (4a) and (4b): Added by Act A584, paragraph 2(b), in force from 20-1-1984.

Clause 5:

1. Substituted by Act A566, paragraph 12(b), in force from 16-12-1983. Act A566, paragraph 12(b) also introduced Clause (5a). Both Clauses (5) and (5a) read as follows:

"(5) A Bill shall become law on being assented to by the Yang di-Pertuan Agong. If for any reason whatsoever the Bill is not assented to within fifteen days of the Bill being presented to the Yang di-Pertuan Agong, he shall be deemed to have assented to the Bill and the Bill shall accordingly become law.

(5a) No law shall come into force until it has been published, without prejudice, however, to the power of Parliament to postpone the operation of any law or to make laws with retrospective effect.".

2. Subsequently Act A584, paragraphs 2(c) and (d), in force from 20-1-1984 substituted Clause (5) as it stands and repealed Clause (5a).

Clauses (4), (4a), (4b) and (5):

1. Clauses (4) and (4a) were substituted by Act A885, section 8, in force from 24-6-1994. The earlier Clauses read as follows:

"(4) The Yang di-Pertuan Agong shall within thirty days after a Bill is presented to him--

(a) assent to the Bill by causing the Public Seal to be affixed thereto; or (b) if it is not a money Bill, return the Bill to the House in which it originated with a statement of the reasons for his objection to the Bill, or to any provision thereof.

(4a) If the Yang di-Pertuan Agong returns a Bill to the House in which it originated in accordance with Clause (4)(b), the House shall as soon as possible proceed to reconsider the Bill. If after such reconsideration the Bill is passed by the votes of not less than two-thirds of the total number of members of that House in the case of a Bill for making any amendment to the Constitution other than an amendment excepted pursuant to Article 159, and by a simple majority in the case of any other Bill, with or without amendment, it shall be sent together with the objections to the other House, by which it shall likewise be reconsidered, and if similarly approved by members of that House, the Bill shall again be presented to the Yang di-Pertuan Agong for assent and the Yang di-Pertuan Agong shall give his assent thereto within thirty days after the Bill is presented to him.".

2. Clause (4b) which read as follows, repealed by Act A885, section 8, in force from 24-6-1994:

"(4b) If a Bill is not assented to by the Yang di-Pertuan Agong within the time specified in Clause (4)(a) or (4a) hereof, it shall become law at the expiration of the time as specified in Clause (4)(a) or (4a), as the case may be, in the like manner as if he had assented to it.".

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/67.Restriction on introduction of Bills and moving of amendments involving taxation, expenditure, etc.

67. Restriction on introduction of Bills and moving of amendments involving taxation, expenditure, etc.

(1) A Bill or amendment making provision (whether directly or indirectly) for--

(a) imposing or increasing any tax or abolishing, reducing or remitting any existing tax;

(b) the borrowing of money, or the giving of any guarantee, by the Federation, or the amendment of the law relating to the financial obligations of the Federation;

(c) the custody of the Consolidated Fund, the charging of any money on the Consolidated Fund or the abolition or alteration of any such charge;

(d) the payment of moneys into the Consolidated Fund or the payment, issue or withdrawal from the Consolidated Fund of any moneys not charged thereon, or any increase in the amount of such a payment, issue or withdrawal;

(e) the compounding or remission of any debt due to the Federation;

(f) the assignment of a tax or fee or the making of a grant to any State;

(g) the receipt of moneys on account of the Consolidated Fund or the custody or issue of such moneys or the audit of the accounts of the Federation or a State, being provision as respects which the Minister charged with responsibility for finance signifies that it goes beyond what is incidental only and not of a substantial nature having regard to the purposes of the Bill or amendment shall not be introduced or moved except by a Minister, and a Bill making any such provision shall not be introduced in the Senate.

(2) A Bill or amendment shall not be deemed to make provision for any of the said matters by reason only that it provides--

(a) for the imposition or alteration of any fine or other pecuniary penalty or for the payment or demand of a licence fee or a fee or charge for any service rendered; or

(b) for the imposition, alteration or regulation of any tax or rate by any local authority or body for local purposes. 

EXPLANATORY NOTES:

Article 67:

See Article 66(2).

Clause (1):

1. The words "(whether directly or indirectly)" which appear in lines one and two and the words "being provision as respects which the Minister charged with responsibility for finance signifies that it goes beyond what is incidental only and not of a substantial nature having regard to the purposes of the Bill or amendment" which appear after paragraph (g) were added and the words "any such provision" in the penultimate line of the Clause were substituted for "provision for any such matter" by Act 14/1962, section 16, in force from 15-7-1962.

2. See Article 68(6).

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/68.Assent to Bills passed by House of Representatives only

68. Assent to Bills passed by House of Representatives only

(1) Where a money Bill is passed by the House of Representatives and, having been sent to the Senate at least one month before the end of the session, is not passed by the Senate without amendment within a month, it shall be presented to the Yang di-Pertuan Agong for his assent unless the House of Representatives otherwise directs.

(2) Where--

(a) a Bill which is not a money Bill is passed by the House of Representatives and, having been sent to the Senate at least one month before the end of the session, is not passed by the Senate or is passed by the Senate with amendments to which the House of Representatives does not agree; and

(b) in the following session (whether of the same Parliament or not) but not earlier than one year after it was first passed by the House of Representatives the same Bill, with no other alterations than those mentioned in Clause (3), is passed again by the House of Representatives and sent to the Senate at least one month before the end of the session and is not passed by the Senate or is passed by the Senate with amendments to which the House of Representatives does not agree, the Bill shall, unless the House of Representatives otherwise directs, be presented to the Yang di-Pertuan Agong for his assent with such amendments, if any, as may have been agreed to by both Houses.

(3) The alterations referred to in Clause (2) are alterations certified by the Speaker of the House of Representatives to be necessary owing to the time which has elapsed since the Bill was passed in the earlier session or to represent amendments made in that session by the Senate.

(4) When a Bill is presented to the Yang di-Pertuan Agong in pursuance of this Article it shall bear a certificate of the Speaker of the House of Representatives that the provisions of this Article have been complied with, and that certificate shall be conclusive for all purposes and shall not be questioned in any court.

(5) This Article does not apply to any Bill for making any amendment to this Constitution, other than an amendment excepted from the provisions of Clause (3) of Article 159.

(6) In this Article "money Bill" means a Bill which, containing in the opinion of the Speaker of the House of Representatives only provisions dealing with all or any of the following matters, that is to say:

(a) the matters mentioned in Clause (1) of Article 67 or the regulation of any tax;

(b) the reduction of any such amount as is mentioned in paragraph (d) of Clause (1) of Article 67; and

(c) any matter incidental to those matters or any of them, is certified by him as a money Bill.

EXPLANATORY NOTES:

Article 68:

See Article 66(1), (3) and (6).

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/69.Capacity of Federation as respects property, contracts and suits

Part IV THE FEDERATION

Chapter Chapter 6 Capacity as respects property, contracts and suits

69. Capacity of Federation as respects property, contracts and suits

(1) The Federation has power to acquire, hold and dispose of property of any kind and to make contracts.

(2) The Federation may sue and be sued.

EXPLANATORY NOTES:

Article 69:

Clause (1):See Government Contracts Act 1949 [Act 120].

Clause (2):See Government Proceedings Act 1956 [Act 359].

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/70.Precedence of Rulers and Yang di-Pertua-Yang di-Pertua Negeri

Part V THE STATES

70. Precedence of Rulers and Yang di-Pertua-Yang di-Pertua Negeri

(1) Subject to the precedence of the Yang di-Pertuan Agong and his Consort, the Rulers and Yang di-Pertua-Yang di-Pertua Negeri of the States shall take precedence over all other persons and each Ruler or Yang di-Pertua Negeri shall in his own State take precedence over the other Rulers and Yang di-Pertua-Yang di-Pertua Negeri.

(2) Subject to Clause (1), the Rulers shall take precedence over the Yang di-Pertua-Yang di-Pertua Negeri and, among themselves, in accordance with the dates on which they acceded as Rulers, and the Yang di-Pertua-Yang di-Pertua Negeri shall take precedence among themselves in accordance with the dates on which they were appointed as Yang di-Pertua-Yang di-Pertua Negeri; and if Yang di-Pertua-Yang di-Pertua Negeri were appointed on the same day the older shall take precedence over the younger.

EXPLANATORY NOTES:

Article 70:

1. Clause (1): The words "Yang di-Pertua Negeri" substituted for "Governor" by Act A354, section 42, in force from 27-8-1976.

2. Clauses (1) and (2): The words "Yang di-Pertua-Yang di-Pertua Negeri" substituted for "Governors" by Act A514, section 19, in force from 27-8-1976.

3. See Article 159(5).

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/71.Federal guarantee of State Constitutions

71. Federal guarantee of State Constitutions

(1) The Federation shall guarantee the right of a Ruler of a State to succeed and to hold, enjoy and exercise the constitutional rights and privileges of Ruler of that State in accordance with the Constitution of that State; but any dispute as to the title to the succession as Ruler of any State shall be determined solely by such authorities and in such manner as may be provided by the Constitution of that State.

(2) Clause (1) shall, with the necessary modifications, apply in relation to a Ruling Chief of Negeri Sembilan as it applies to the Ruler of a State.

(3) If it appears to Parliament that in any State any provision of this Constitution or of the Constitution of that State is being habitually disregarded Parliament may, notwithstanding anything in this Constitution, by law make provision for securing compliance with those provisions.

(4) If at any time the Constitution of any State does not contain the provisions set out in Part I of the Eighth Schedule, with or without the modifications allowed under Clause (5) (hereinafter referred to as "the essential provisions") or provisions substantially to the same effect, or contains provisions inconsistent with the essential provisions, Parliament may, notwithstanding anything in this Constitution, by law make provision for giving effect in that State to the essential provisions or for removing the inconsistent provisions.

(5) The provisions set out in Part I of the Eighth Schedule may be modified by substituting for section 2 or section 4 or both the provisions set out in Part II of that Schedule as an alternative thereto--

(a) in the case of every State, until the dissolution of the second Legislative Assembly constituted in accordance with those provisions or those provisions so modified;

(b) in the case of Perlis, until such further time as the Legislative Assembly of that State may resolve and, as respects the provision set out in section 2 of that Schedule, indefinitely. 

(6) A law made for a State in pursuance of this Article shall, unless sooner repealed by Parliament, cease to have effect on such day as a new Legislative Assembly, constituted in that State after the passing of the law, may resolve.

(7) In relation to the State of Sabah or Sarawak--

(a) Clause (5) shall not apply; but

(b) until the end of August 1975, or such earlier date as the Yang di-Pertuan Agong with the concurrence of the Yang di-Pertua Negeri may by order direct, Clause (4) shall apply as if the reference to the modifications allowed under Clause (5) were a reference to the modifications made by the Constitution of the State as in force on Malaysia Day. 

(8) (Repealed).

EXPLANATORY NOTES:

Article 71(1):

See Article 159(5).

Article 71(4):

Act 25/1963, section 8, in force from 29-8-1963, deleted the words "after the thirtieth day of June, nineteen hundred and fifty-nine," which appeared after "If at any time" in line one, and the words "it appears to Parliament that" which followed immediately thereafter were deleted by Act 26/1963, subsection 12(2), in force from 16-9-1963.

Article 71(7):

1. Added by Act 26/1963, subsection 12(1), in force from 16-9-1963. The figures "1975" in paragraph (b) were substituted for "1957" by Act 59/1966, section 2, in force from 16-9-1963.

2. The words "Yang di-Pertua Negeri" substituted for "Governor" by Act A354, section 42, in force from 27-8-1976 and the words "the State of Sabah or Sarawak" substituted for "a Borneo State" by Act A514, section 19, in force from 27-8-1976.

Article 71(8):

This Clause which read as follows was inserted by Act 26/1963, subsection 12(1), in force from 16-9-1963, and repealed by Act 59/1966, section 2, in force from 16-9-1963:

"(8) In relation to Singapore Clauses (4) to (6) shall not apply, but no enactment of the Legislature of Singapore making in the Constitution of the State amendments relating to any matter dealt with by the provisions set out in Part I of the Eighth Schedule (as it applies to Singapore) shall have effect unless--

(a) the amendments do not materially affect the operation of the Constitution in relation to those matters; or (b) the effect of the amendments is confined to inserting provisions so set out or provisions substantially to the same effect (whether or not in substitution for other provisions) or to removing provisions inconsistent with the provisions so set out; or (c) the enactment is approved by Act of Parliament.".

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/72.Privileges of Legislative Assembly

72. Privileges of Legislative Assembly

(1) The validity of any proceedings in the Legislative Assembly of any State shall not be questioned in any court.

(2) No person shall be liable to any proceedings in any court in respect of anything said or any vote given by him when taking part in proceedings of the Legislative Assembly of any State or of any committee thereof.

(3) No person shall be liable to any proceedings in any court in respect of anything published by or under the authority of the Legislative Assembly of any State.

(4) Clause (2) shall not apply to any person charged with an offence under the law passed by Parliament under Clause (4) of Article 10 or with an offence under the Sedition Act 1948 as amended by the Emergency (Essential Powers) Ordinance No. 45, 1970.

(5) Notwithstanding Clause (4), no person shall be liable to any proceedings in any court in respect of anything said by him of the Ruler of any State when taking part in any proceedings of the Legislative Assembly of any State or any committee thereof except where he advocates the abolition of the Ruler's position as the constitutional Ruler of that State.

EXPLANATORY NOTES:

Article 72:

Clause (4): Added by Act A30, section 4, in force from 10-3-1971.

Clause (5): Added by Act A848, section 6, in force from 30-3-1993.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/73.Extent of federal and State laws

Part VI RELATIONS BETWEEN THE FEDERATION AND THE STATES

Chapter Chapter 1 Distribution of legislative powers

73. Extent of federal and State laws

In exercising the legislative powers conferred on it by this Constitution--

(a) Parliament may make laws for the whole or any part of the Federation and laws having effect outside as well as within the Federation;

(b) the Legislature of a State may make laws for the whole or any part of that State. 

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/74.Subject matter of federal and State laws

74. Subject matter of federal and State laws

(1) Without prejudice to any power to make laws conferred on it by any other Article, Parliament may make laws with respect to any of the matters enumerated in the Federal List or the Concurrent List (that is to say, the First or Third List set out in the Ninth Schedule).

(2) Without prejudice to any power to make laws conferred on it by any other Article, the Legislature of a State may make laws with respect to any of the matters enumerated in the State List (that is to say, the Second List set out in the Ninth Schedule) or the Concurrent List.

(3) The power to make laws conferred by this Article is exercisable subject to any conditions or restrictions imposed with respect to any particular matter by this Constitution.

(4) Where general as well as specific expressions are used in describing any of the matter enumerated in the Lists set out in the Ninth Schedule the generality of the former shall not be taken to be limited by the latter.

EXPLANATORY NOTES:

Article 74:

1. See Article 159(4)(b).

2. Clause (2): The words "Without prejudice to any power to make laws conferred on it by any other Article," appearing at the commencement were inserted by Act 25/1963, subsection 2(2), in force from 31-8-1957.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/75.Inconsistencies between federal and State laws

75. Inconsistencies between federal and State laws

If any State law is inconsistent with a federal law, the federal law shall prevail and the State law shall, to the extent of the inconsistency, be void.

EXPLANATORY NOTES:

Article 75:

See Articles 76a(2), 162(2).

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/76.Power of Parliament to legislate for States in certain cases

76. Power of Parliament to legislate for States in certain cases

(1) Parliament may make laws with respect to any matter enumerated in the State List, but only as follows, that is to say:

(a) for the purpose of implementing any treaty, agreement or convention between the Federation and any other country, or any decision of an international organization of which the Federation is a member; or

(b) for the purpose of promoting uniformity of the laws of two or more States; or

(c) if so requested by the Legislative Assembly of any State. 

(2) No law shall be made in pursuance of paragraph (a) of Clause (1) with respect to any matters of Islamic law or the custom of the Malays or to any matters of native law or custom in the States of Sabah and Sarawak and no Bill for a law under that paragraph shall be introduced into either House of Parliament until the Government of any State concerned has been consulted.

(3) Subject to Clause (4), a law made in pursuance of paragraph (b) or paragraph (c) of Clause (1) shall not come into operation in any State until it has been adopted by a law made by the Legislature of that State, and shall then be deemed to be a State law and not a federal law, and may accordingly be amended or repealed by a law made by that Legislature.

(4) Parliament may, for the purpose only of ensuring uniformity of law and policy, make laws with respect to land tenure, the relations of landlord and tenant, registration of titles and deeds relating to land, transfer of land, mortgages, leases and charges in respect of land, easements and other rights and interests in land, compulsory acquisition of land, rating and valuation of land, and local government; and Clauses (1)(b) and (3) shall not apply to any law relating to any such matter.

EXPLANATORY NOTES:

Article 76:

See Articles 159(4)(b), 160(2) definition of "federal purposes".

Clause (1):See Article 169.

Clause (1)(b):See Article 95d.

Clause (2):

1. The words "or to any matters of native law or customs in the Borneo States" were inserted by Act 26/1963, section 70, in force from 16-9-1963.

2. The words "Islamic law" substituted for "Muslim law" by Act A354, section 45 and "States of Sabah and Sarawak" substituted for "Borneo States" by Act A345, section 43, and Act A514, section 19, both in force from 27-8-1976.

Clause (3): The words "for the purposes of Article 75" which appeared before "to be a State law" were deleted by Act 10/1960, section 11, in force from 31-5-1960.

Clause (4):

1. The words "other than mining leases" which appeared after "leases" were deleted by Act 14/1962, section 17, in force from 21-6-1962.

2. See Articles 80(3), 95d.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/76a.Power of Parliament to extend legislative powers of States

76a. Power of Parliament to extend legislative powers of States

(1) It is hereby declared that the power of Parliament to make laws with respect to a matter enumerated in the Federal List includes power to authorize the Legislatures of the States or any of them, subject to such conditions or restrictions (if any) as Parliament may impose, to make laws with respect to the whole or any part of that matter.

(2) Notwithstanding Article 75, a State law made under authority conferred by Act of Parliament as mentioned in Clause (1) may, if and to the extent that the Act so provides, amend or repeal (as regards the State in question) any federal law passed before that Act.

(3) Any matter with respect to which the Legislature of a State is for the time being authorized by Act of Parliament to make laws shall for purposes of Articles 79, 80 and 82 be treated as regards the State in question as if it were a matter enumerated in the Concurrent List.

EXPLANATORY NOTES:

Article 76a:

1. Added by Act 26/1963, section 37, in force from 31-8-1957.

2. See Article 95c(1)(a).

3. See Incorporation (State Legislatures Competency) Act 1962 [Act 380].

4. Clause (3):See Article 95c(3).

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/77.Residual power of legislation

77. Residual power of legislation

The Legislature of a State shall have power to make laws with respect to any matter not enumerated in any of the Lists set out in the Ninth Schedule, not being a matter in respect of which Parliament has power to make laws.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/78.Legislation restricting use of rivers

78. Legislation restricting use of rivers

In so far as any law made by Parliament or any regulation made in pursuance of such a law restricts the rights of a State or its residents to the use for navigation or irrigation of any river wholly within that State it shall not have effect in that State unless it has been approved by a resolution of the Legislative Assembly of that State supported by a majority of the total number of its members.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/79.Exercise of concurrent legislative powers

79. Exercise of concurrent legislative powers

(1) Where it appears to the presiding officer of either House of Parliament or of the Legislative Assembly of any State that a Bill or an amendment to a Bill proposes a change in the law relating to any of the matters enumerated in the Concurrent List, or to any of the matters enumerated in the State List with respect to which the Federation is exercising functions in accordance with Article 94, he shall certify the Bill or amendment for the purposes of this Article.

(2) A Bill or amendment certified under this Article shall not be proceeded with until four weeks have elapsed since its publication, unless the presiding officer, being satisfied that the State Governments, or as the case may be, the Federal Government, have been consulted, allows it to be proceeded with on the ground of urgency.

EXPLANATORY NOTES:

Article 79:

See Articles 76a(3), 92(2), 149(1), 150(5).

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/80.Distribution of executive powers

Part VI RELATIONS BETWEEN THE FEDERATION AND THE STATES

Chapter Chapter 2 Distribution of executive powers

80. Distribution of executive powers

(1) Subject to the following provisions of this Article the executive authority of the Federation extends to all matters with respect to which Parliament may make laws, and the executive authority of a State to all matters with respect to which the Legislature of that State may make laws.

(2) The executive authority of the Federation does not extend to any matter enumerated in the State List, except in so far as is provided in Articles 93 to 95, nor to any matter enumerated in the Concurrent List, except in so far as may be provided by federal or State law; and so far as federal or State law confers executive authority on the Federation with respect to any matter enumerated in the Concurrent List it may do so to the exclusion of the executive authority of the State.

(3) So far as a law made under Clause (4) of Article 76 makes provisions for conferring executive authority on the Federation it shall not operate in any State unless approved by resolution of the Legislative Assembly of that State.

(4) Federal law may provide that the executive authority of a State shall extend to the administration of any specified provisions of federal law and may for that purpose confer powers and impose duties on any authority of the State.

(5) Subject to any provisions of federal or State law, arrangements may be made between the Federation and a State for the performance of any functions by the authorities of the one on behalf of the authorities of the other and such arrangements may provide for the making of payments in respect of any costs incurred under the arrangements.

(6) Where, in pursuance of Clause (4), any functions are conferred by federal law on any authority of a State the Federation shall make such payments to the State as may be agreed between the Federation and the State or as may in default of agreement be determined by a tribunal appointed by the Chief Justice of the Federal Court.

EXPLANATORY NOTES:

Article 80:

See Article 76a(3).

Clause (4):See Article 95c(1)(b).

Clause (6):

1. The words "Lord President of the Federal Court" were substituted for "Chief Justice" by Act 26/1963, section 70, in force from 16-9-1963. Subsequently subsection 18(2) of Act A566, in force from 1-1-1985, provides that a reference to the Federal Court shall now be construed as a reference to the Supreme Court.

2. See Article 95c(3).

3. The words "Chief Justice of the Federal Court" substituted for the words "Lord President of the Supreme Court" by Act A885, section 9, in force from 24-6-1994.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/81.Obligations of States towards Federation

81. Obligations of States towards Federation

The executive authority of every State shall be so exercised--

(a) as to ensure compliance with any federal law applying to that State; and

(b) as not to impede or prejudice the exercise of the executive authority of the Federation. 

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/82.Financing of expenditure relating to matters on Concurrent List

Part VI RELATIONS BETWEEN THE FEDERATION AND THE STATES

Chapter Chapter 3 Distribution of financial burdens

82. Financing of expenditure relating to matters on Concurrent List

Where any law or executive action relating to any of the matters enumerated in the Concurrent List involves expenditure, such action shall be taken under this Constitution as will ensure that, unless otherwise agreed, the burden of that expenditure is borne--

(a) by the Federation, if the expenditure results either from federal commitments or from State commitments undertaken in accordance with federal policy and with the specific approval of the Federal Government;

(b) by the State or States concerned, if the expenditure results from State commitments undertaken by the State or States on its or their own authority. 

EXPLANATORY NOTES:

Article 82:

See Article 76a(3).

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/83.Acquisition of land for federal purposes

Part VI RELATIONS BETWEEN THE FEDERATION AND THE STATES

Chapter Chapter 4 Land

83. Acquisition of land for federal purposes

(1) If the Federal Government is satisfied that land in a State, not being alienated land, is needed for federal purposes, that Government may, after consultation with the State Government, require the State Government, and it shall then be the duty of that Government, to cause to be made to the Federation, or to such public authority as the Federal Government may direct, such grant of the land as the Federal Government may direct:

Provided that the Federal Government shall not require the grant of any land reserved for a State purpose unless it is satisfied that it is in the national interest so to do.

(2) Where in accordance with Clause (1) the Federal Government requires the State Government to cause to be made a grant of land in perpetuity, the grant shall be made without restrictions as to the use of the land but shall be subject to the payment annually of an appropriate quit rent and the Federation shall pay to the State a premium equal to the market value for the grant; and where the Federal Government so requires the State Government to cause to be granted any other interest in land, the Federation shall pay to the State the just annual rent therefor and such premium, if any is required by the State Government, as may be just:

Provided that if the value of the land has been increased by means of any improvement made (otherwise than at the expense of the State) while the land was reserved for federal purposes, the increase shall not be taken into consideration in determining the market value, rent or premium for the purposes of this Clause.

(3) Where a requirement is made under Clause (1) in respect of any land which, at the date of the requirement, was intended for any State purpose, then if--

(a) other land is acquired by the State for that purpose in substitution for the first-mentioned land; and

(b) the cost of the land so acquired exceeds the amount paid by the Federation (otherwise than as rent) in accordance with Clause (2) in respect of the interest granted to the Federation, the Federation shall pay to the State such sum as may be just in respect of the excess.

(4) Where a further grant is made in pursuance of this Article in respect of land an interest in which is vested in the Federation or any public authority, any sums payable by way of premium under Clause (2) in respect of the further grant shall be reduced by an amount equal to the market value of any improvements made (otherwise than at the expense of the State) since that interest became vested as aforesaid.

(5) The foregoing provisions of this Article (except Clause (3)) shall apply in relation to alienated land as they apply in relation to land not being alienated land, but subject to the following modifications:

(a) in Clause (1), the words "after consultation with the State Government" shall be omitted;

(b) where a requirement is made under that Clause, it shall be the duty of the State Government to cause to be acquired by agreement or compulsorily such interest in the land as may be necessary for complying with the requirement;

(c) any expenses incurred by the State in or in connection with the acquisition of land in accordance with paragraph (b) shall be repaid by the Federation, except that if the acquisition is by agreement the Federation shall not, unless it is party to the agreement, be liable to pay more than it would have paid on a compulsory acquisition;

(d) any sum paid by the Federation to the State in accordance with paragraph (c) shall be taken into consideration in determining for the purposes of Clause (2) the market value, the appropriate quit rent or the just annual rent, and shall be deducted from any premium to be paid by the Federation under that Clause. 

(6) Where a grant is made to the Federation in pursuance of Clause (1) in respect of land which, or an interest in which, was acquired by the State Government at the expense of the Government of the Federation of Malaya before Merdeka Day, paragraph (d) of Clause (5) shall apply to the sums paid in respect of the acquisition by the Government of the Federation of Malaya as if they were sums paid by the Federation in accordance with paragraph (c) of Clause (5); and Clause (3) shall not apply to any such land.

(7) Nothing in this Article shall prevent the reservation of land in a State for federal purposes on such terms and conditions as may be agreed between the Federal Government and the Government of the State, or affect the power of the appropriate authority in a State to acquire in accordance with any law for the time being in force any alienated land for federal purposes without a requirement by the Federal Government under this Article.

(8) Nothing in this Article shall prevent the making of a grant of land in a State to the Federation, on such terms and conditions as may be agreed between the Federal Government and the Government of the State, without a requirement by the Federal Government under this Article.

EXPLANATORY NOTES:

Article 83:

See Article 88.

Clause (5):See Article 84(1)(a).

Paragraph (a):See Article 88(b).

Clause (8): Added by Act A704, section 3, in force from 10-6-1988.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/84.Acquisition of land for federal purposes

84. Acquisition of land for federal purposes

(Repealed).

EXPLANATORY NOTES:

Article 84:

1. This Article which read as follows was repealed by Act A704, section 4, in force from 10-6-1988:

"84. (1) Where any interest in land in a State vested in the Federation or a public authority for federal purposes ceases to be required for federal purposes, it shall revert to that State if the State Government agrees to pay to the Federation--

(a) in a case where the land, or an interest therein, was acquired by the State Government in pursuance of Clause (5) of Article 83, or was acquired by the State Government at the expense of the Government of the Federation of Malaya before Merdeka Day, an amount equal to the market value of the interest vested in the Federation or public authority;

(b) in any other case, at the option of the State Government, either--

(i) an amount equal to the market value of that interest; or (ii) an amount equal to the sums paid (otherwise than as rent) by the Federation, or by the Government of the Federation of Malaya before Merdeka Day, in respect of the grant of that interest, together with the market value of any improvements made (otherwise than at the expense of the State) to the land after that grant.

(2) Where any interest in land to which Clause (1) applies does not revert to the State in accordance with that Clause, the Federal Government or the public authority, as the case may be, may sell the interest on such terms and conditions as that Government or authority may think fit.".

2. See Articles 86(1), (2), (4) and (5), 88.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/85.Grant to Federation of land reserved for federal purposes

85. Grant to Federation of land reserved for federal purposes

(1) Where any land in a State is reserved for any federal purposes, the Federal Government may require the State Government, and it shall then be the duty of that Government, to cause to be made to the Federation a grant of the land in perpetuity without restrictions as to the use of the land, but subject to the payment of a premium to be determined in accordance with Clause (2) and to the payment annually of an appropriate quit rent.

(2) The premium referred to in Clause (1) shall be equal to the market value of the land reduced by--

(a) the market value of any improvements made (otherwise than at the expense of the State) while the land was in use for federal purposes; and

(b) the amount, if any, paid by the Federation, or paid before Merdeka Day by the Government of the Federation of Malaya, in respect of the cost of acquisition of any interest in the land by the State Government. 

(3) Without prejudice to Clause (1), where any land in a State is reserved for any federal purposes, the Federal Government may offer to release the land to the State on condition that the State pays to the Federation the market value and the amount mentioned in paragraphs (a) and (b) of Clause (2); and if the State Government accepts the offer the reservation shall cease.

(4) Except as provided by this Article, land in a State which is reserved for federal purposes shall not cease to be so reserved, and all land so reserved shall be controlled and managed by or on behalf of the Federal Government, and the Federal Government may grant any right of occupation, control or management, or a tenancy or lease, of the whole or any part of such land, to any person--

(a) for the use of the land by such person for any duration for the federal purpose for which it is reserved, or for any purpose ancillary or incidental thereto; or

(b) where the Federal Government is unable for any reason to use the land for the time being for the federal purpose for which it is reserved, for its use by such person for any purpose other than a federal purpose, for such duration and on such terms and conditions as the Federal Government may determine. 

(5) In this Article the reference to land in a State reserved for federal purposes includes--

(a) any land which was reserved before Merdeka Day in accordance with the provisions of any law then in force in the State for any purpose which has become a federal purpose after Merdeka Day;

(b) any land reserved for any federal purpose after Merdeka Day in accordance with the provisions of any law for the time being in force in a State;

(c) any State land referred to in the repealed Clause (4) of Article 166; and

(d) any land in a State reserved for federal purposes by virtue of Clause (7) of Article 83. 

EXPLANATORY NOTES:

Article 85:

1. This Article which read as follows was substituted by Act A704, section 5, in force from 10-6-1988:

"85. (1) Where any land in a State which is reserved for any federal purposes ceases to be required for those purposes, the Federal Government shall offer to release the land to the State on condition that the State pays to the Federation--

(a) the market value of any improvements made (otherwise than at the expense of the State) while the land was in use for federal purposes; and (b) the amount, if any, paid by the Federation, or paid before Merdeka Day by the Government of the Federation of Malaya, in respect of the cost of acquisition of any interest in the land by the State Government, and if the State Government accepts the offer the reservation shall cease.

(2) Where the State Government does not accept an offer made in accordance with Clause (1), then, unless by agreement between the Federal Government and the State Government the land is reserved for another federal purpose, the Federal Government may require the State Government, and it shall then be the duty of that Government, to cause to be made to the Federation a grant of the land in perpetuity without restrictions as to the use of the land, but subject to the payment of a premium equal to the market value of the land reduced by the amounts which would have been payable to the Federation under Clause (1) if the said offer had been accepted, and to the payment annually of an appropriate quit rent; and where such grant is made to the Federation, the Federal Government may sell and transfer or lease the land on such terms and conditions as it may think fit.

(3) Except as provided by this Article, land in a State which is reserved for federal purposes shall not cease to be so reserved, and all land so reserved shall be controlled and managed by or on behalf of the Federal Government.".

2. See Articles 86(2) and (5), 88.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/86.Disposition of land vested in the Federation

86. Disposition of land vested in the Federation

(1) Where any interest in land is vested in the Federation, or in a public authority, for any purpose, the Federation or the public authority may dispose of that interest or any smaller interest in the land to any person as it deems fit.

(2) Where any interest in land in a State is disposed of by or to the Federation or any public authority in pursuance of this Article or of Article 85, it shall be the duty of the Government of that State to register the transaction accordingly.

EXPLANATORY NOTES:

Article 86:

1. Clause (6) of this Article which read as follows was added by Act A585, section 23, in force from 14-4-1984:

"(6) The foregoing provisions of this Article shall not apply to any land or interest in land in the Federal Territory of Kuala Lumpur or the Federal Territory of Labuan howsoever vested in the Federation, and the Federation may dispose of such land or interest.".

2. This Article was substituted by Act A704, section 6, in force from 10-6-1988. The previous Article read as follows:

"86. (1) Where any interest in land vested in the Federation, the Federation may, subject to Article 84 and to Clause (2) of this Article, dispose of that interest or any smaller interest in the land.

(2) Every such disposition of an interest in land shall be made conditional on the land being used for a federal purpose specified therein, and no such disposition shall be made to a person other than a public authority except--

(a) under and in accordance with the provisions of federal law; or (b) by an order of the Yang di-Pertuan Agong laid and approved in accordance with Clause (3):

Provided that nothing in this Clause shall apply to a disposition authorized by Article 84 or Article 85, or to a disposition by the Federation to any person for the purposes of the implementation of any treaty, agreement or convention with any other country, or to any person in his capacity as consular or diplomatic representative of any other country.

(3) An order of the Yang di-Pertuan Agong under paragraph (b) of Clause (2) shall be laid before both Houses of Parliament and shall not take effect until it is approved by resolution of each House.

(4) Except as provided by Article 84, no interest in land vested for federal purposes in a public authority, or vested in any other person by virtue of a disposition under this Article, shall be disposed of by that authority or person otherwise than to the Federation.

(5) Where any interest in land in a State is disposed of by or to the Federation or any public authority in pursuance of this Article or of Article 84 or 85, it shall be the duty of the Government of that State to register the transaction accordingly.

(6) The foregoing provisions of this Article shall not apply to any land or interest in land in the Federal Territory of Kuala Lumpur or the Federal Territory of Labuan howsoever vested in the Federation, and the Federation may dispose of such land or interest.".

3. See Article 88.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/87.Determination of disputes as to land values

87. Determination of disputes as to land values

(1) Where any dispute arises between the Federal Government and a State Government as to the making of any payment by or to the Federation under the foregoing Articles of this Chapter, or as to the amount of any such payment, the dispute shall be referred, at the instance either of the Federal Government or of the State Government, to the Lands Tribunal appointed in accordance with this Article.

(2) The Lands Tribunal shall consist of--

(a) a chairman, who shall be appointed by the Chief Justice of the Federal Court and who shall be, or have been, or be qualified to be a judge of the Federal Court, the Court of Appeal or a High Court, or shall before Malaysia Day have been a judge of the Supreme Court;

(b) a member who shall be appointed by the Federal Government; and

(c) a member who shall be appointed by the State Government. 

(3) The practice and procedure of the Lands Tribunal shall be regulated by rules of court framed by the Rules Committee or other authority having power under written law to make rules or orders regulating the practice and procedure of the Federal Court.

(4) An appeal shall lie from the Lands Tribunal to the Federal Court on any question of law.

EXPLANATORY NOTES:

Article 87:

See Articles 88, 156.

Clause (2)(a):

1. This paragraph was inserted by Act 26/1963, section 70, in force from 16-9-1963, and replaced the original paragraph which read as follows:

"(a) a chairman, who shall be a person who is or has been or is qualified to be a judge of the Supreme Court, and who shall be appointed by the Chief Justice;".

2. Subsection 18(2) of Act A566 provides that a reference to the Federal Court shall now be construed as a reference to the Supreme Court.

3. The words "Chief Justice of the Federal Court" substituted for the words "Lord President of the Supreme Court"; and the words "Federal Court, the Court of Appeal or a High Court" substituted for the words "Supreme Court or a High Court" by Act A885, section 10, in force from 24-6-1994.

Clause (3): The words "or other authority having power under written law to make rules or orders regulating the practice and procedure of the Federal Court" which appear at the end were added by Act 26/1963, section 70, in force from 16-9-1963.

Clause (4): The words "Federal Court" were substituted for "Supreme Court" by Act 26/1963, section 70, in force from 16-9-1963.

Clauses (3) and (4): The word "Federal" substituted for the word "Supreme" by Act A885, section 10, in force from 24-6-1994.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/88.Application of Articles 83 to 87 to States not having a Ruler

88. Application of Articles 83 to 87 to States not having a Ruler

In their application to any of the States not having a Ruler, Articles 83 to 87 shall have effect--

(a) subject to such adaptations (if any) as Parliament may by law provide, being adaptations required to secure that they apply (as nearly as practicable having regard to differences in the system of land tenure) in the same manner as they apply to other States; and

(b) in the case of the States of Sabah and Sarawak with the omission in Article 83 of paragraph (a) of Clause (5). 

EXPLANATORY NOTES:

Article 88:

The present Article was inserted by Act 26/1963, section 44, in force from 16-9-1963. Act 59/1966, section 2, in force from 9-8-1965, amended paragraph (b) by deleting the words "and Singapore" which appeared after "Borneo States". The original Article read as follows:

"88. Parliament shall by law make provision for modifying Articles 83 to 87 in their application to Malacca and Penang in such manner as it may consider to be required.".

Paragraph (b): The words "States of Sabah and Sarawak" were substituted for "Borneo States" by Act A514, section 19, in force from 27-8-1976.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/89.Malay reservations

89. Malay reservations

(1) Any land in a State which immediately before Merdeka Day was a Malay reservation in accordance with the existing law may continue as a Malay reservation in accordance with that law until otherwise provided by an Enactment of the Legislature of that State, being an Enactment--

(a) passed by a majority of the total number of members of the Legislative Assembly and by the votes of not less than two-thirds of the members present and voting; and

(b) approved by resolution of each House of Parliament passed by a majority of the total number of members of that House and by the votes of not less than two-thirds of the members voting. 

(1a) Any law made under Clause (1) providing for the forfeiture or reversal to the State Authority, or for the deprivation, of the ownership of any Malay reservation, or of any right or interest therein, on account of any person, or any corporation, company or other body (whether corporate or unincorporate) holding the same ceasing to be qualified or competent under the relevant law relating to Malay reservations to hold the same, shall not be invalid on the ground of inconsistency with Article 13.

(2) Any land in a State which is not for the time being a Malay reservation in accordance with the existing law and has not been developed or cultivated may be declared as a Malay reservation in accordance with that law:

Provided that--

(a) where any land in a State is declared a Malay reservation under this Clause, an equal area of land in that State which has not been developed or cultivated shall be made available for general alienation; and

(b) the total area of land in a State for the time being declared as a Malay reservation under this Clause shall not at any time exceed the total area of land in that State which has been made available for general alienation in pursuance of paragraph (a). 

(3) Subject to Clause (4), that Government of any State may, in accordance with the existing law, declare as a Malay reservation--

(a) any land acquired by that Government by agreement for that purpose;

(b) on the application of the proprietor, and with the consent of every person having a right or interest therein, any other land, and shall, in accordance with the existing law, immediately declare as a Malay reservation, in a case where any land ceases to be a Malay reservation, any other land of a similar character and of an area not exceeding the area of that land.

(4) Nothing in this Article shall authorize the declaration as a Malay reservation of any land which at the time of the declaration is owned or occupied by a person who is not a Malay or in or over which such a person has then any right or interest.

(5) Without prejudice to Clause (3), the Government of any State may, in accordance with law, acquire land for the settlement of Malays or other communities, and establish trusts for that purpose.

(6) In this Article "Malay reservation" means land reserved for alienation to Malays or to natives of the State in which it lies; and "Malay" includes any person who, under the law of the State in which he is resident, is treated as a Malay for the purposes of the reservation of land.

(7) Subject to Article 161A, this Article shall have effect notwithstanding any other provision of this Constitution; but (without prejudice to any such other provision) no land shall be retained or declared as a Malay reservation except as provided by this Article and Article 90.

(8) The provisions of this Article shall apply to the Federal Territories of Kuala Lumpur and Putrajaya in the like manner that they apply to a State, save that Clause (1) in its application to the Federal Territories of Kuala Lumpur and Putrajaya shall be modified to read that any land in the Federal Territory of Kuala Lumpur or the Federal Territory of Putrajaya which immediately before Merdeka Day was a Malay reservation in accordance with the existing law may continue as a Malay reservation in accordance with that law until otherwise provided by an Act of Parliament passed by a majority of the total number of members of each House of Parliament and by the votes of not less than two-thirds of the members present and voting in each House.

EXPLANATORY NOTES:

Article 89:

1. See Articles 90(3), 161a(5).

2. Clause (1):See Articles 62(3), 90(2).

3. Clause (1a): Added by Act A514, section 7, in force from 15-5-1981.

4. Clause (3): The words "and shall, in accordance with the existing law, immediately declare as a Malay reservation, in a case where any land ceases to be a Malay reservation, any other land of a similar character and of an area not exceeding the area of that land." added after paragraph (b) by Act A514, section 7, in force from 15-5-1981.

Paragraph (c) which read as follows was repealed by Act A514, section 7, in force from 15-5-1981:

"(c) in a case where any land ceases to be a Malay reservation, any land of a similar character and of an area not exceeding the area of that land.".

5. Clause (7): The words "Subject to Article 161a" at the commencement were inserted by Act 26/1963, section 70, in force from 16-9-1963.

6. Clause 8: Added by Act A585, subsection 24(1), in force from 1-2-1974, and subsequently amended by Act A1095, section 17, in force from 1-2-2001 to include in the Federal Territory of Putrajaya.

Note:

Article 89 of the Constitution shall not apply to the Federal Territory of Labuan and Article 8 of the Constitution shall not invalidate or prohibit any provisions of federal law for reservation of land for natives in the Federal Territory of Labuan or for alienation to them, or for giving them preferential treatment as regards the alienation of land in the Federal Territory of Labuan by the Federation. (See subsection 18(2) of Act A585).

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/90.Special provisions relating to customary land in Negeri Sembilan and Malacca, and Malay holdings in Terengganu

90. Special provisions relating to customary land in Negeri Sembilan and Malacca, and Malay holdings in Terengganu

(1) Nothing in this Constitution shall affect the validity of any restrictions imposed by law on the transfer or lease of customary land in the State of Negeri Sembilan or the State of Malacca, or of any interest in such land.

(1a) For the purpose of Clause (1)--

(a) "transfer" includes any charge, transmission or vesting, or creation of any lien or trust, or entry of any caveat, or any other form of dealing or disposal of whatever description or nature; and

(b) "lease" includes any tenancy of whatever form or duration. 

(2) Notwithstanding anything in this Constitution, the existing law in the State of Terengganu with respect to Malay holdings shall continue in force until otherwise provided by an Enactment of the Legislature of that State passed and approved as described in Clause (1) of Article 89.

(3) Any such Enactment of the Legislature of the State of Terengganu may make provision for Malay reservations corresponding with the existing law in force in any other State of a Ruler; and in that event the said Article 89 shall have effect in relation to Terengganu subject to the following modifications, that is to say:

(a) in Clause (1), for the reference to land which immediately before Merdeka Day was a Malay reservation in accordance with the existing law, there shall be substituted a reference to land which, immediately before the passing of the said Enactment, was a Malay holding; and

(b) subject as aforesaid, any reference to the existing law shall be construed as a reference to the said Enactment. 

EXPLANATORY NOTES:

Article 90:

1. See Article 89(7).

2. Clause (1a): Added by Act A566, section 13, in force from 16-12-1983.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/91.National Land Council

91. National Land Council

(1) There shall be a National Land Council consisting of a Minister as chairman, one representative from each of the States, who shall be appointed by the Ruler or Yang di-Pertua Negeri, and such number of representatives of the Federal Government as that Government may appoint but, subject to Clause (5) of Article 95E, the number of representatives of the Federal Government shall not exceed ten.

(2) The chairman may vote on any question before the National Land Council but shall not have a casting vote.

(3) The National Land Council shall be summoned to meet by the chairman as often as he considers necessary but there shall be at least one meeting in every year.

(4) If the chairman or a representative of a State or of the Federal Government is unable to attend a meeting, the authority by whom he was appointed may appoint another person to take his place at that meeting.

(5) It shall be the duty of the National Land Council to formulate from time to time in consultation with the Federal Government, the State Governments and the National Finance Council a national policy for the promotion and control of the utilization of land throughout the Federation for mining, agriculture, forestry or any other purpose, and for the administration of any laws relating thereto; and the Federal and State Governments shall follow the policy so formulated.

(6) The Federal Government or the Government of any State may consult the National Land Council in respect of any other matter relating to the utilization of land or in respect of any proposed legislation dealing with land or of the administration of any such law, and it shall be the duty of the National Land Council to advise that Government on any such matters.

EXPLANATORY NOTES:

Article 91:

1. See Articles 95e(1), (2) and (5)(a).

2. Clause (1):(a) The words "not exceeding ten" which appeared after "and such number" were deleted and the words "but, subject to Clause (5) of Article 95e, the number of representatives of the Federal Government shall not exceed ten" which appear at the end were added by Act 26/1963, section 70, in force from 16-9-1963.

(b) The words "Yang di-Pertua Negeri" substituted for "Governor" by Act A354, section 42, in force from 27-8-1976.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/92.National development plan

Part VI RELATIONS BETWEEN THE FEDERATION AND THE STATES

Chapter Chapter 5 National development

92. National development plan

(1) If, after a recommendation from an expert committee and after consultation with the National Finance Council, the National Land Council and the Government of any State concerned, the Yang di-Pertuan Agong is satisfied that it is conducive to the national interest that a development plan be put into operation in any area or areas in one or more of the States, the Yang di-Pertuan Agong may, after publishing the plan, proclaim the area or areas as a development area; and thereupon Parliament shall have power to give effect to the development plan or any part thereof, notwithstanding that any of the matters to which the plan relates are matters with respect to which, apart from this Article, only States would have power to make laws.

(2) Any Act passed in pursuance of this Article shall recite that it has been so passed and that the provisions of Clause (1) have been complied with; and Article 79 shall not apply to any Bill for such an Act or any amendment to such a Bill.

(3) In this Article, "development plan" means a plan for the development, improvement, or conservation of the natural resources of a development area, the exploitation of such resources, or the increase of means of employment in the area.

(4) Without prejudice to their power under any other Article to require any interest in land to be acquired or granted for federal purposes, the Federal Government may from time to time require the reservation for the purposes of a development plan, to such extent as they may specify, of any land in a development area which is not occupied by private persons; but any diminution, in consequence of the reservation, of the annual revenue received by a State shall be made good to the State by the Federation.

(5) All income received by the Federation through the operation of a development plan shall, subject to Clause (6), be applied--

(a) in the first instance, for the provision of capital and the meeting of working expenses for the development plan;

(b) in the second instance, for the repayment to the Federation of any expenditure, including expenditure under Clause (4), incurred by the Federation in operating the plan; and

(c) as to the balance, for payments to the State in which the development area is situated or, if it is situated in two or more States, to those States in such proportions as the Federal Government may determine. 

(6) If it is agreed between the Federal Government and the Government of any State which includes the whole or any part of the development area that any expenditure incurred in operating the development plan is to be met by the State, any expenditure so met shall be repaid to the State and the repayment shall rank pari passu with the repayment to the Federation of any expenditure incurred by the Federation.

(7) Parliament may repeal or amend any Act passed in pursuance of this Article, and for that purpose may make such incidental and consequential provisions as it may consider necessary.

(8) Nothing in this Article shall affect the power of Parliament or of the Legislature of any State--

(a) to impose such taxes or rates as it is authorized to impose under any other provision of this Constitution; or

(b) to make from the Federal Consolidated Fund or the State Consolidated Fund, as the case may be, grants not repayable under Clause (5) or (6), except that where, in pursuance of Clause (1), a rate is imposed on any property by federal law which, but for this Article, might have been imposed by State law, no rate of the same kind shall be imposed by State law for any period for which the rate imposed by federal law is payable.

EXPLANATORY NOTES:

Article 92:

See Articles 95e(1) and (3), 108(4)(e).

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/93.Inquiries, surveys and statistics

Part VI RELATIONS BETWEEN THE FEDERATION AND THE STATES

Chapter Chapter 6 Federal surveys, advice to States and inspection of State activities

93. Inquiries, surveys and statistics

(1) The Federal Government may conduct such inquiries (whether by Commission or otherwise), authorize such surveys and collect and publish such statistics as it thinks fit, notwithstanding that such inquiries, surveys and collection and publication of statistics relate to a matter with regard to which the Legislature of a State may make laws.

(2) It shall be the duty of the Government of a State, and of all officers and authorities thereof, to assist the Federal Government in the execution of its powers under this Article; and for this purpose the Federal Government may give such directions as it may deem necessary.

EXPLANATORY NOTES:

Article 93:

See Articles 80(2), 94(3).

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/94.Federal powers in respect of State subjects

94. Federal powers in respect of State subjects

(1) The executive authority of the Federation extends to the conduct of research, the provision and maintenance of experimental and demonstration stations, the giving of advice and technical assistance to the Government of any State, and the provision of education, publicity, and demonstration for the inhabitants of any State, in respect of any of the matters with respect to which the Legislature of a State may make laws; and the agricultural and forestry officers of any State shall accept any professional advice given to the Government of that State under this Clause.

(2) Notwithstanding anything in this Constitution, the existing Departments of Agriculture, Commissioner of Lands, Forestry and Social Welfare may continue to exercise the functions exercised by them immediately before Merdeka Day.

(3) Nothing in this Constitution shall prevent the Federal Government from establishing Ministries or Departments of Government to exercise the functions of the Federal Government under Article 93 and this Article in relation to matters within the legislative authority of a State, and such matters may include soil conservation, local government and town and country planning.

EXPLANATORY NOTES:

Article 94:

See Articles 79(1), 80(2), 95e(1).

Clause (1):See Article 95e(4).

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/95.Inspection of State activities

95. Inspection of State activities

(1) Subject to Clause (3), in exercising the executive authority of the Federation any officer authorized by the Federal Government may inspect any department or work of a State Government with a view to making a report thereon to the Federal Government.

(2) A report made under this Article shall, if the Federal Government so direct, be communicated to the State Government and laid before the Legislative Assembly of the State.

(3) This Article does not authorize the inspection of any department or work dealing only with or carried on only with respect to matters within the exclusive legislative authority of a State.

EXPLANATORY NOTES:

Article 95:

See Article 80(2).

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/95a.National Council for Local Government

Part VI RELATIONS BETWEEN THE FEDERATION AND THE STATES

Chapter Chapter 7 National Council for Local Government

95a. National Council for Local Government

(1) There shall be a National Council for Local Government consisting of a Minister as Chairman, one representative from each of the States, who shall be appointed by the Ruler or Yang di-Pertua Negeri, and such number of representatives of the Federal Government as that Government may appoint but, subject to Clause (5) of Article 95E, the number of representatives of the Federal Government shall not exceed ten.

(2) The Chairman may vote on any question before the National Council for Local Government and shall have a casting vote.

(3) The National Council for Local Government shall be summoned to meet by the Chairman as often as he considers necessary but there shall be at least one meeting in every year.

(4) If the Chairman or a representative of a State or of the Federal Government is unable to attend a meeting, the authority by whom he was appointed may appoint another person to take his place at that meeting.

(5) It shall be the duty of the National Council for Local Government to formulate from time to time in consultation with the Federal Government and the State Governments a national policy for the promotion, development and control of local government throughout the Federation and for the administration of any laws relating thereto; and the Federal and State Governments shall follow the policy so formulated.

(6) It shall also be the duty of the Federal Government and the Government of any State to consult the National Council for Local Government in respect of any proposed legislation dealing with local government and it shall be the duty of the National Council for Local Government to advise those Government on any such matter.

(7) The Federal Government or the Government of any State may consult the National Council for Local Government in respect of any other matter relating to local government, and it shall be the duty of the National Council for Local Government to advise that Government on any such matter.

EXPLANATORY NOTES:

Article 95a:

1. Added by Act 10/1960, section 12, in force from 31-5-1960.

2. See Articles 95e(1), (2) and (5)(b).

3. Clause (1):(a) The words "not exceeding ten" which appeared after "and such number" were deleted and the words "but, subject to Clause (5) of Article 95e, the number of representatives of the Federal Government shall not exceed ten" which appear at the end were added by Act 26/1963, section 70, in force from 16-9-1963.

(b) The words "Yang di-Pertua Negeri" substituted for "Governor" by Act A354, section 42, in force from 27-8-1976.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/95b.Modifications for States of Sabah and Sarawak of distribution of legislative powers

Part VI RELATIONS BETWEEN THE FEDERATION AND THE STATES

Chapter Chapter 8 Application to States of Sabah and Sarawak

95b. Modifications for States of Sabah and Sarawak of distribution of legislative powers

(1) In the case of the States of Sabah and Sarawak--

(a) the supplement to List II set out in the Ninth Schedule shall be deemed to form part of the State List, and the matters enumerated therein shall be deemed not to be included in the Federal List or Concurrent List; and

(b) the supplement to List III set out in the Ninth Schedule shall, subject to the State List, be deemed to form part of the Concurrent List, and the matters enumerated therein shall be deemed not to be included in the Federal List (but not so as to affect the construction of the State List, where it refers to the Federal List). 

(2) Where by virtue of Clause (1) an item is included in the Concurrent List for a State for a period only, the expiration or termination of that period shall not affect the continued operation of any State law passed by virtue of the item, save as provided by federal or State law.

(3) The Legislature of the State of Sabah or Sarawak may also make laws for imposing sales taxes, and any sales tax imposed by State law in the State of Sabah or Sarawak shall be deemed to be among the matters enumerated in the State List and not in the Federal List; but--

(a) there shall not in the charging or administration of a State sales tax be any discrimination between goods of the same description according to the place in which they originate; and

(b) the charge for any federal sales tax shall be met out of sums collected from a person liable for that tax before the charge for a State sales tax. 

EXPLANATORY NOTES:

Article 95b:

Added by Act 26/1963, section 35, in force from 16-9-1963. Act 59/1966, section 2, in force from 9-8-1965, deleted the words "and Singapore" which appeared at the end of the first line of Clause (1) and the word "appropriate" which appeared at the commencement of paragraphs (a) and (b) before "supplement".

Shoulder Note and Clause (1): The words "States of Sabah and Sarawak" substituted for "Borneo States" by Act A514, section 19, in force from 27-8-1976.

Clause (3): The words "the State of Sabah or Sarawak" substituted for "a Borneo State" by Act A514, section 19, in force from 27-8-1976.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/95c.Power by order to extend legislative or executive powers of States

95c. Power by order to extend legislative or executive powers of States

(1) Subject to the provisions of any Act of Parliament passed after Malaysia Day, the Yang di-Pertuan Agong may by order make as respects any State any such provision as may be made by Act of Parliament--

(a) for authorizing the Legislature of the State to make laws as mentioned in Article 76A; or

(b) for extending the executive authority of the State, and the powers or duties of any authority of the State, as mentioned in Clause (4) of Article 80. 

(2) An order made by virtue of paragraph (a) of Clause (1) shall not authorize the Legislature of a State to amend or repeal an Act of Parliament passed after Malaysia Day, unless the Act so provides.

(3) Clause (3) of Article 76A and Clause (6) of Article 80 shall apply in relation to an order under paragraph (a) and paragraph (b) respectively of Clause (1) of this Article as they apply in relation to an Act of Parliament.

(4) Where an order under this Article is revoked by a later order, the later order may include provision for continuing in force (generally or to such extent or for such purposes as the order may specify) any State law passed by virtue of the earlier order or any subsidiary legislation made or thing done under any such State law, and from the coming into operation of the later order any State law thereby continued in force shall have effect as federal law:

Provided that no provision shall be continued in force by virtue of this Clause if or in so far as it could not have been made by Act of Parliament.

(5) Any order of the Yang di-Pertuan Agong under this Article shall be laid before each House of Parliament.

EXPLANATORY NOTES:

Article 95c:

Added by Act 26/1963, section 38, in force from 16-9-1963.

Clause (1):

1. The words "any State" in line three were substituted for "a Borneo State" by Act 31/1965, subsection 2(1), in force from 16-9-1963.

2. See--

(a) Borneo States (Legislative Powers) Order 1963--L.N. 17/1964; (b) Borneo State (Executive Powers) (Shotguns) Order 1963--L.N. 38/1964; (c) Sarawak (Legislative Powers) Order 1965--L.N. 22/1965; (d) Sarawak (Legislative Powers) (No. 2) Order 1965--L.N. 106/1965.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/95d.Exclusion for States of Sabah and Sarawak of Parliament's power to pass uniform laws about land or local government

95d. Exclusion for States of Sabah and Sarawak of Parliament's power to pass uniform laws about land or local government

In relation to the State of Sabah or Sarawak, Clause (4) of Article 76 shall not apply, nor shall paragraph (b) of Clause (1) of that Article enable Parliament to make laws with respect to any of the matters mentioned in Clause (4) of that Article.

EXPLANATORY NOTES:

Article 95d:

1. Added by Act 26/1963, section 42, in force from 16-9-1963. The words "and in relation to Singapore" which appeared after "a Borneo State" were deleted by Act 59/1966, section 2, in force from 9-8-1965.

2. The words "the State of Sabah or Sarawak" substituted for "a Borneo State" by Act A514, section 19, in force from 27-8-1976.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/95e.Exclusion of States of Sabah and Sarawak from national plans for land utilization, local government, development, etc.

95e. Exclusion of States of Sabah and Sarawak from national plans for land utilization, local government, development, etc.

(1) In relation to the State of Sabah or Sarawak Articles 91, 92, 94 and 95A shall have effect subject to the following Clauses.

(2) Subject to Clause (5), under Article 91 and under Article 95A the State Government shall not be required to follow the policy formulated by the National Land Council or by the National Council for Local Government, as the case may be, but the representative of the State shall not be entitled to vote on questions before the Council.

(3) Under Article 92 no area in the State shall be proclaimed a development area for the purposes of any development plan without the concurrence of the Yang di-Pertua Negeri.

(4) Under Clause (1) of Article 94 (under which in respect of matters in the State List the Federation may conduct research, give advice and technical assistance, etc.) the agricultural and forestry officers of the State of Sabah or Sarawak shall consider, but shall not be required to accept, professional advice given to the Government of the State.

(5) Clause (2) shall cease to apply to a State--

(a) as regards Article 91, if Parliament so provides with the concurrence of the Yang di-Pertua Negeri; and

(b) as regards Article 95A, if Parliament so provides with the concurrence of the Legislative Assembly, but for each representative of the State of Sabah or Sarawak becoming entitled, by virtue of this Clause, to vote on questions before the National Land Council or National Council for Local Government, one shall be added to the maximum number of representatives of the Federal Government on that Council.

EXPLANATORY NOTES:

Article 95e:

Added by Act 26/1963, section 43, in force from 16-9-1963. The words "and in relation to Singapore" which appeared after "a Borneo State" in Clause (1) and the words "or of Singapore" which appeared after "Borneo State" in Clause (5) were deleted by Act 59/1966, section 2, in force from 9-8-1965.

Clause (1): The words "the State of Sabah or Sarawak" substituted for "a Borneo State" by Act A514, section 19, in force from 27-8-1976.

Clause (3): The words "Yang di-Pertua Negeri" substituted for "Governor" by Act A514, section 19, in force from 27-8-1976.

Clause (4): The words "the State of Sabah or Sarawak" substituted for "a Borneo State" by Act A514, section 19, in force from 27-8-1976.

Clause (5):

1. See Articles 91(1), 95a(1).

2. The words "Yang di-Pertua Negeri" substituted for "Governor" and "the State of Sabah or Sarawak" substituted for "a Borneo State" by Act A514, section 19, in force from 27-8-1976.

EXPLANATORY NOTES:

Part VI:

See Article 154(2).

The heading of Chapter 8 "States of Sabah and Sarawak" substituted for the words "Borneo States" by Act A514, section 19, in force from 27-8-1976.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/96.No taxation unless authorized by law

Part VII FINANCIAL PROVISIONS

Chapter Chapter 1 General

96. No taxation unless authorized by law

No tax or rate shall be levied by or for the purposes of the Federation except by or under the authority of federal law.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/97.Consolidated Funds

97. Consolidated Funds

(1) All revenues and moneys howsoever raised or received by the Federation shall, subject to the provisions of this Constitution and of federal law, be paid into and form one fund, to be known as the Federal Consolidated Fund.

(2) All revenues and moneys howsoever raised or received by a State shall, subject to Clause (3) and to any law, be paid into and form one fund, to be known as the Consolidated Fund of that State.

(3) If in accordance with State law or in respect of the Federal Territories of Kuala Lumpur, Labuan and Putrajaya, in accordance with federal law any Zakat, Fitrah , Baitulmal, or similar Islamic religious revenue is raised, it shall be paid into a separate fund and shall not be paid out except under the authority of State law or federal law, as the case may be.

(4) Unless the context otherwise requires, any reference in this Constitution to the Consolidated Fund shall be construed as a reference to the Federal Consolidated Fund.

EXPLANATORY NOTES:

Article 97(3):

1. The words "or in respect of the Federal Territory, in accordance with federal law" were inserted after "in accordance with State law" in line one, and after the words "State law" at the end of the Clause the words "or federal law, as the case may be" were inserted by Act A206, Schedule, in force from 1-2-1974. The words "Islamic religious revenue" substituted for "Muslim revenue" by Act A354, section 45, in force from 27-8-1976.

2. The words "Territories of Kuala Lumpur and Labuan" were substituted for the word "Territory" by Act A585, Schedule, in force from 16-4-1984.

3. See Financial Procedure Act 1957 [Act61].

4. The words "Kuala Lumpur, Labuan and Putrajaya" were substituted for "Kuala Lumpur and Labuan" by Act A1095, section 18, in force from 1-2-2001.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/98.Expenditure charged on Federal Consolidated Fund

98. Expenditure charged on Federal Consolidated Fund

(1) There shall be charged on the Consolidated Fund, in addition to any grant, remuneration or other moneys so charged by any other Article or federal law--

(a) all pensions, compensation for loss of office and gratuities for which the Federation is liable;

(b) all debt charges for which the Federation is liable; and

(c) any moneys required to satisfy any judgment, decision or award against the Federation by any court or tribunal. 

(2) In making payment of any grant to a State in accordance with the provisions of this Part, the Federation may deduct the amount of any debt charges payable to the Federation by the State and charged on the Consolidated Fund of that State.

(3) For the purposes of this Article debt charges include interest, sinking fund charges, the repayment or amortisation of debt, and all expenditure in connection with the raising of loans on the security of the Consolidated Fund and the service and redemption of debt created thereby.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/99.Annual financial statement

99. Annual financial statement

(1) The Yang di-Pertuan Agong shall, in respect of every financial year, cause to be laid before the House of Representatives a statement of the estimated receipts and expenditure of the Federation for that year, and, unless Parliament in respect of any year otherwise provides, that statement shall be so laid before the commencement of that year:

Provided that there may be separate statements of estimated receipts and estimated expenditure, and in that case it shall not be necessary for the statement of receipts to be so laid before the commencement of the year to which it relates.

(2) The estimates of expenditure shall show--

(a) the total sums required to meet expenditure charged on the Consolidated Fund; and

(b) subject to Clause (3), the sums required to meet the expenditure for other purposes proposed to be met from the Consolidated Fund. 

(3) The sums to be shown under paragraph (b) of Clause (2) do not include--

(a) sums representing the proceeds of any loan raised by the Federation for specific purposes and appropriated for those purposes by the Act authorizing the raising of the loan;

(b) sums representing any money or interest on money received by the Federation subject to a trust and to be applied in accordance with the terms of the trust;

(c) sums representing any money held by the Federation which has been received or appropriated for the purpose of any trust fund established by or in accordance with federal law. 

(4) The said statement shall also show, so far as is practicable, the assets and liabilities of the Federation at the end of the last completed financial year, the manner in which those assets are invested or held, and the general purposes in respect of which those liabilities are outstanding.

EXPLANATORY NOTES:

Article 99:

See Article 102(b).

Clause (1): Proviso added by Act 14/1962, subsection 18(1), in force from 21-6-1962.

Clause (2): The original Clause (2) read as follows:

"(2) The estimates of expenditure shall show separately--

(a) the total sums required to meet expenditure charged on the Consolidated Fund; and (b) subject to Clause (3), the sums respectively required to meet the heads of other expenditure proposed to be met from the Consolidated Fund.".

The word "separately" appearing after the words "shall show" deleted and paragraph (b) substituted by Act A354, section 18, in force from 27-8-1976.

Clause (3):

1. Paragraph (c) added by Act 14/1962, subsection 18(2), in force from 21-6-1962.

2. See Articles 100, 104(2).

Clause (4): The word "purposes" substituted for "heads" by Act A354, section 18, in force from 27-8-1976.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/100.Supply Bills

100. Supply Bills

The expenditure to be met from the Consolidated Fund but not charged thereon, other than expenditure to be met by such sums as are mentioned in Clause (3) of Article 99, shall be included in a Bill, to be known as a Supply Bill, providing for the issue from the Consolidated Fund of the sums necessary to meet that expenditure and the appropriation of those sums for the purposes specified therein.

EXPLANATORY NOTES:

Article 100:

1. See Article 102(b).

2. The words "heads of" deleted before the "expenditure" in line one by Act A354, section 19, in force from 27-8-1976.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/101.Supplementary and excess expenditure

101. Supplementary and excess expenditure

If in respect of any financial year it is found--

(a) that the amount appropriated by the Supply Act for any purpose is insufficient, or that a need has arisen for expenditure for a purpose for which no amount has been appropriated by the Supply Act; or

(b) that any moneys have been expended for any purpose in excess of the amount (if any) appropriated for that purpose by the Supply Act, a supplementary estimate showing the sums required or spent shall be laid before the House of Representatives and the purposes of any such expenditure shall be included in a Supply Bill.

EXPLANATORY NOTES:

Article 101:

1. See Article 102(b).

2. The word "purposes" substituted for "heads" by Act A354, section 20, in force from 27-8-1976.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/102.Power to authorize expenditure on account or for unspecified purposes

102. Power to authorize expenditure on account or for unspecified purposes

Parliament shall have power in respect of any financial year--

(a) before the passing of the Supply Bill, to authorize by law expenditure for part of the year;

(b) to authorize by law expenditure for the whole or part of the year otherwise than in accordance with Articles 99 to 101, if owing to the magnitude or indefinite character of any service or to circumstances of unusual urgency it appears to Parliament to be desirable to do so. 

EXPLANATORY NOTES:

Article 102:

See Article 104(1)(c).

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/103.Contingencies Fund

103. Contingencies Fund

(1) Parliament may by law provide for the creation of a Contingencies Fund and for authorizing the Minister charged with responsibility for finance, if satisfied that there has arisen an urgent and unforeseen need for expenditure for which no other provision exists, to make advances from the Contingencies Fund to meet that need.

(2) Where any advance is made in accordance with Clause (1), a supplementary estimate shall be presented and a Supply Bill introduced as soon as possible for the purpose of replacing the amount so advanced.

EXPLANATORY NOTES:

Article 103:

See(a) Article 109(5); (b) Financial Procedure Act 1957 [Act 61], section 11.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/104.Withdrawals from Consolidated Fund

104. Withdrawals from Consolidated Fund

(1) Subject to Clause (2), no moneys shall be withdrawn from the Consolidated Fund unless they are--

(a) charged on the Consolidated Fund; or

(b) authorized to be issued by a Supply Act; or

(c) authorized to be issued under Article 102. 

(2) Clause (1) does not apply to any such sums as are mentioned in Clause (3) of Article 99.

(3) No moneys shall be withdrawn from the Consolidated Fund except in the manner provided by federal law.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/105.Auditor General

105. Auditor General

(1) There shall be an Auditor General, who shall be appointed by the Yang di-Pertuan Agong on the advice of the Prime Minister and after consultation with the Conference of Rulers.

(2) A person who has held the office of Auditor General shall be eligible for reappointment but shall not be eligible for any other appointment in the service of the Federation or for any appointment in the service of a State.

(3) The Auditor General may at any time resign his office but shall not be removed from office except on the like grounds and in the like manner as a judge of the Federal Court.

(4) Parliament shall by law provide for the remuneration of the Auditor General, and the remuneration so provided shall be charged on the Consolidated Fund.

(5) The remuneration and other terms of office (including pension rights) of the Auditor General shall not be altered to his disadvantage after his appointment.

(6) Subject to the provisions of this Article, the terms and conditions of service of the Auditor General shall be determined by federal law and, subject to the provisions of federal law, by the Yang di-Pertuan Agong.

EXPLANATORY NOTES:

Article 105:

Clause (3): The words "Federal Court" were substituted for "Supreme Court" by Act 26/1963, section 70, in force from 16-9-1963. Subsequently subsection 18(2) of Act A566, in force from 1-1-1985, provides that a reference to the Federal Court shall now be construed as a reference to the Supreme Court.

Act A885, section 11, in force from 24-6-1994, substituted the word "Federal" for the word "Supreme".

Clauses (4) and (6):See Audit Act 1957 [Act 62].

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/106.Powers and duties of Auditor General

106. Powers and duties of Auditor General

(1) The accounts of the Federation and of the States shall be audited and reported on by the Auditor General.

(2) The Auditor General shall perform such other duties and exercise such powers in relation to the accounts of the Federation and of the States and to the accounts of other public authorities and of those bodies which are specified by order made by the Yang di-Pertuan Agong, as may be provided by federal law.

EXPLANATORY NOTES:

Article 106(2):

1. See Audit Act 1957 [Act 62].

2. The words "of those bodies which are specified by order made by the Yang di-Pertuan Agong" were substituted for "bodies administering public funds" by Act A354, section 21, in force from 27-8-1976.

3. See Statutory Bodies (Accounts and Annual Reports) Act 1980 [Act 240].

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/107.Reports of Auditor General

107. Reports of Auditor General

(1) The Auditor General shall submit his reports to the Yang di-Pertuan Agong, who shall cause them to be laid before the House of Representatives.

(2) A copy of any such report relating to the accounts of a State, or to the accounts of any public authority exercising powers conferred by State law, shall be submitted to the Ruler or Yang di-Pertua Negeri of that State, who shall cause it to be laid before the Legislative Assembly.

EXPLANATORY NOTES:

Article 107(2):

1. See Article 112a(1).

2. The words "Yang di-Pertua Negeri" substituted for "Governor" by Act A354, section 42, in force from 27-8-1976.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/108.National Finance Council

108. National Finance Council

(1) There shall be a National Finance Council consisting of the Prime Minister, such other Ministers as the Prime Minister may designate, and one representative from each of the States, appointed by the Ruler or Yang di-Pertua Negeri.

(2) The National Finance Council shall be summoned to meet by the Prime Minister as often as he considers necessary and whenever the representatives of three or more States demand a meeting, but there shall be at least one meeting in every twelve months.

(3) At any meeting of the National Finance Council the Prime Minister may be represented by another Minister of the Federation, and the Prime Minister or, if he is not present, the Minister representing him, shall preside.

(4) It shall be the duty of the Federal Government to consult the National Finance Council in respect of--

(a) the making of grants by the Federation to the States;

(b) the assignment to the States of the whole or any portion of the proceeds of any federal tax or fee;

(c) the annual loan requirements of the Federation and the States and the exercise by the Federation and the States of their borrowing powers;

(d) the making of loans to any of the States;

(e) the making of development plans in accordance with Article 92;

(f) the matters referred to in Items 7(f) and (g) of the Federal List;

(g) any proposal to introduce a Bill for such a law as is mentioned in Clause (2) of Article 109 or Clause (3) or (3A) of Article 110;

(h) any other matter in respect of which this Constitution or federal law makes provision for consultation with the National Finance Council. 

(5) The Federal Government may consult the National Finance Council in respect of any other matter, whether or not it involves questions of finance, and the government of a State may consult the said Council in respect of any matter which affects the financial position of that State.

EXPLANATORY NOTES:

Article 108:

1. Clause (1): The words "other Ministers" substituted for "other Minister" and "Yang di-Pertua Negeri" substituted for "Governor" by Act A354, section 22 and section 42, in force from 27-8-1976.

2. Clause (4): The words "or (3a)" at the end of paragraph(g) were inserted by Act 14/1962, Schedule section 5, in force from 21-6-1962.

3. See Article 112d(7).

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/109.Grants to States

109. Grants to States

(1) The Federation shall make to each State in respect of each financial year--

(a) a grant, to be known as a capitation grant, which shall be calculated in accordance with the provisions of Part I of the Tenth Schedule

(b) a grant for the maintenance of State roads, to be known as the State road grant, which shall be calculated in accordance with the provisions of Part II of that Schedule. 

(2) Parliament may from time to time by law vary the rates of the capitation grant; but if the effect of any such law is to reduce the grant, provision shall be made in that law for securing that the amount of grant received by any State in respect of any financial year is not less than ninety per cent of the amount received by that State in the preceding financial year.

(3) Parliament may by law make grants for specific purposes to any of the States on such terms and conditions as may be provided by any such law.

(4) The amounts required for making the grants mentioned in the preceding provisions of this Article shall be charged on the Consolidated Fund.

(5) If, in accordance with Article 103, a Contingencies Fund is created, the power to make advances from that Fund for meeting an urgent and unforeseen need for expenditure shall include power to make such advances to a State for meeting such a need.

(6) The Federation shall pay into a fund, to be known as the State Reserve Fund--

(a) (Repealed);

(b) in respect of every financial year such sum as the Federal Government may, after consultation with the National Finance Council, determine to be necessary, and the Federation may from time to time, after consultation with the National Finance Council, make grants out of the State Reserve Fund to any State for the purposes of development or generally to supplement its revenues.

EXPLANATORY NOTES:

Article 109:

Clause (2):See Article 108(4)(g).

Clause (6): The word "succeeding" which appeared before "financial year" in paragraph (b) was deleted and paragraph(a) which read as follows was repealed by Act 25/1963, section 8, in force from 29-8-1963:

"(a) in respect of the first financial year in which Part VII is in operation, the sum of four million dollars; and".

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/110.Assignment of taxes and fees to the States

110. Assignment of taxes and fees to the States

(1) Subject to Clause (2), each of the States shall receive all proceeds from the taxes, fees and other sources of revenue specified in Part III of the Tenth Schedule so far as collected, levied or raised within the State.

(2) Parliament may from time to time by law substitute for any source of revenue specified in section 1, 3, 4, 5, 6, 7, 8, 12 or 14 of Part III of the Tenth Schedule or for any source of revenue so substituted, another source of revenue of substantially equal value.

(3) Each State shall receive, on such terms and conditions as may be provided by or under federal law, ten per cent or such greater amount as may be so provided of the export duty on tin produced in the State.

(3a) Parliament may by law provide that each State shall receive, on such terms and conditions as may be prescribed by or under federal law, such proportion as may be so prescribed of the export duty on minerals (other than tin) produced in the State.

In this Article "minerals" means mineral ores, metal and mineral oils.

(3b) Without prejudice to the power to impose conditions conferred by Clause (3) or (3A), Parliament may by law provide for prohibiting or restricting, in, or except in, such cases as may be provided by or under the law, the levying of royalties on or similar charges in respect of minerals (whether under a lease or other instrument or under any State enactment, and whether the instrument was made or the enactment passed before or after the coming into operation of this Clause).

(4) Without prejudice to the provisions of Clauses (1) to (3A), Parliament may by law--

(a) assign to the States the whole or any portion of the proceeds of any tax or fee raised or levied by the Federation; and

(b) assign to the States the responsibility of collecting for State purposes any tax or fee authorized by federal law. 

(5) The amounts receivable by the States under Clause (1), (2) or (4) shall not be paid into the Consolidated Fund; and the amounts receivable by the States under Clauses (3) and (3A) shall be charged on the Consolidated Fund.

EXPLANATORY NOTES:

Article 110:

See Article 161c(3).

Clause (3):

1. The words "may be provided by or under federal law" and "may be so provided" were substituted for "Parliment may by law provide" by Act 14/1962, Schedule section 5, in force from 21-6-1962.

2. See Article 108(4)(g).

Clause (3a):

1. Added by Act 14/1962, section 19, in force from 21-6-1962.

2. See Articles 108(4)(g) , 112c(3).

3. See Assignment of Revenue (Export Duty on Iron Ore) Act 1962 [Act 395] and Assignment of Export Duty (Mineral Ores) Act 1964 [Act 396].

Clause (3b):

1. Added by Act 14/1962, section 19, in force from 21-6-1962.

2. See Article 122c(4).

Clause (4):

1. The words "to (3a)" were substituted for "to (3)" in line two by Act 14/1962, Schedule section 5, in force from 21-6-1962.

2. See Article 112c(3).

Clause (5): The words "Clauses (3) and (3a)" were substituted for "Clause (3)" by Act 14/1962, Schedule section 5, in force from 21-6-1962.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/111.Restriction on borrowing

111. Restriction on borrowing

(1) The Federation shall not borrow except under the authority of federal law.

(2) A State shall not borrow except under the authority of State law, and State law shall not authorize a State to borrow except from the Federation or, for a period not exceeding five years, from a bank or other financial source approved for that purpose by the Federal Government, and subject to such conditions as may be specified by the Federal Government.

(3) A State shall not give any guarantee except under the authority of State law, and such guarantee shall not be given except with the approval of the Federal Government and subject to such conditions as may be specified by it.

EXPLANATORY NOTES:

Article 111:

Clause (2): The present Clause (2) was inserted by Act A354, section 23, in force from 27-8-1976, and replaced the earlier Clause which read as follows:

"(2) A State shall not borrow except under the authority of State law, and State law shall not authorize a State to borrow except from the Federation or, for a period not exceeding twelve months, from a bank approved for that purpose by the Federal Government.".

See Article 112b.

Clause (3): Added by Act A354, section 23, in force from 27-8-1976.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/112.Restriction on alterations in establishments of States

112. Restriction on alterations in establishments of States

(1) Subject to Clause (2), no State shall, without the approval of the Federation, make any addition to its establishment or the establishment of any of its departments, or alter the rates of established salaries and emoluments, if the effect of doing so would be to increase the liability of the Federation in respect of pensions, gratuities or other like allowances.

(2) This Article does not apply to--

(a) non-pensionable appointments the maximum salaries of which do not exceed four hundred ringgit per month or such other amount as may be fixed by order by the Yang di-Pertuan Agong; or

(b) pensionable appointments the maximum salaries of which do not exceed one hundred ringgit per month or such other amount as may be fixed by order by the Yang di-Pertuan Agong. 

EXPLANATORY NOTES:

Article 112:

Clauses (2)(a) and (b): The word "ringgit" substituted for "dollars" by Act 160, section 2, in force from 29-8-1975; the words "or such other amount as may be fixed by order by the Yang di-Pertuan Agong" inserted after "per month" by Act A354, section 24, in force from 27-8-1976.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/112a.State audits in States of Sabah and Sarawak

Part VII FINANCIAL PROVISIONS

Chapter Chapter 2 Application to States of Sabah and Sarawak

112a. State audits in States of Sabah and Sarawak

(1) The Auditor General shall submit his reports relating to the accounts of each of the States of Sabah and Sarawak, or to the accounts of any public authority exercising powers vested in it by the State law in either of those States, to the Yang di-Pertuan Agong (who shall cause them to be laid before the House of Representatives) and to the Yang di-Pertua Negeri of the State; and accordingly Clause (2) of Article 107 shall not apply to those reports.

(2) The Yang di-Pertua Negeri shall cause any such report submitted to him to be laid before the Legislative Assembly.

(3) The powers and duties of the Auditor General in relation to the accounts mentioned in Clause (1) for any period ending before the year 1969 shall, in the State of Sabah or Sarawak, be exercised and discharged on his behalf by the senior officer of his department for the time being stationed in the State in question:

Provided that during the absence or incapacity of that officer, or a vacancy in his post, those powers and duties shall be exercised and discharged by the Auditor General or such officer of his department as he may designate.

EXPLANATORY NOTES:

Article 112a:

Added by Act 26/1963, section 50, in force from 16-9-1963.

Clause (1):(a) The words "each of the Borneo States" were substituted for "a Borneo State or Singapore" and the words "either of those States" were substituted for "any of those States" by Act 59/1966, section 2, in force from 9-8-1965.

(b) The words "States of Sabah and Sarawak" substituted for "Borneo States" by Act A514, section 19, in force from 27-8-1976 and "Yang di-Pertua Negeri" substituted for "Governor" by Act A354, section 42, in force from 27-8-1976.

Clause (2): The words "Yang di-Pertua Negeri" substituted for "Governor" by Act A354, section 42, in force from 27-8-1976.

Clause (3): The words "the State of Sabah or Sarawak" substituted for "a Borneo State" by Act A514, section 19, in force from 27-8-1976.

Article 112a-d:

Shoulder Notes: The words "States of Sabah and Sarawak" substituted for the words "Borneo States" by Act A514, section 19, in force from 27-8-1976.

Unannotated Statutes of Malaysia - Principal Acts/FEDERAL CONSTITUTION/FEDERAL CONSTITUTION,,/112b.Borrowing powers of States of Sabah and Sarawak