Adaptation of a strategic framework for the implementation of development charges by local authorities in Malaysia

The development charge is a charge levied by local authorities (PBT) on developers in return for the increased land value that results from a development, as provided for in the Town and Country Planning Act 1976 (Act 172) or under the Development Charge provisions of Act 267. This study aims to develop a comprehensive framework for the implementation of development charges in Malaysia by focusing on two main objectives: (i) to identify the key issues and challenges and (ii) to propose practical solutions to improve the current practises. A qualitative research approach was adopted which involved data collection through questionnaires and focus group discussions (FGD), followed by descriptive analysis. The results led to the formation of a holistic framework covering four main areas: (1) legal principles and source of authority (2 strategies, 3 components), (2) organisational structure and staffing development (3 strategies, 6 components), (3) quality of information delivery and services (3 strategies, 6 components), and (4) economic and urban infrastructure development (5 strategies, 6 components). This framework serves as a guide for local authorities and state governments to assess existing weaknesses and improve implementation methods. In addition, it serves as a reference for states or local authorities that have not yet implemented such mechanisms, enabling them to effectively plan and identify key requirements for a more efficient and satisfactory development charge system.