Abstract. Good urban governance administration system is the key to a successful physical planning development. A local authority of a local government concentrates on planning administration and executes the policies and strategies either the federal or state, or even the local's policies and strategies. Based on its characteristic as the lowest level of government, it becomes the best authority to regulate and monitor the development process within their territory. The significance of a local authority in providing quality living environment invites various academia and professionals to ponder the best urban governance system at a local level. However, there are issues with regards to financial and technical capacity of a local authority, its legal limitation and development instrument adopted in providing urban services for coastal reclamation area in Malaysia. The aim of this paper is to investigate the capability of local authorities in Malaysia in implementing their function as drawn by the legislation. Hence, this paper examines the roles and functions of a local authority as the lowest level of government administration agency in providing urban services; collecting revenue; safeguarding the physical environment in Malaysia, particularly when dealing with development in a coastal reclamation area. Primary data collection was gathered through face-to-face interview sessions involving government agencies and stakeholders. Legal documents, policies and development plans were then analysed to support the primary data for further understanding of the issues concerning the capacity of a local authority especially when providing urban services within its area. The study is expected to provide a new approach to local authorities in Malaysia in providing quality living environment in terms of development procedure, the role and function, legal empowerment, and decentralisation of function particularly in enhancing the current practices at local level.

Abstract.A Development Plan acts as a planning and controlling instrument that helps to guide in decision making of current and future development. Therefore, in the Malaysian Town and Country Planning Act 1976 (Act 172), the provision of development plan from each level of the planning administration is stated in the Act under Section 6B till Section 16B. In examining the significance of one of the many development plans in Malaysia, i.e. the local plan, this paper therefore, focuses on the provision of a local plan by the Local Planning Authority (LPA) of the said area. This paper, thus, aims to evaluate the Central Malacca Local Plan since Malacca is currently experiencing rapid growth in development along the coastal area. The primary data was obtained from interviews with the related planning authorities via face-to-face method. While, secondary data was gathered from related legal documents, policies and guidelines, as well as the existing development plan for the purpose of an in-depth data. Findings revealed incapability of the existing local plan to assist the development control in deciding the planning permission for reclaimed area. The existing local plan shows no zoning for coastal reclamation area because of the rapid growing development and time consuming procedure to amend the local plan according to the Act 172. In addition, the Act 172 and the process in amending the local plan should be more flexible and able to address the current issue efficiently. Finally, the paper concludes with a suggestion for further exploration in order to achieve an operative development process and functioning practice of the local plan.