Let states help run health, education services, says researcher

GEORGE TOWN: Putrajaya should consider giving states a greater role in delivering selected health, education and public transport services, says a researcher from a Singapore-based policy think tank.

Francis Hutchinson, a senior fellow with the ISEAS-Yusof Ishak Institute, said this would not require the federal government to relinquish funding control.

Instead, he said Putrajaya could continue funding key services while states handled implementation, as states are closer to local needs.

“When we discuss responsibilities, can we not also have a more open mind that we can separate revenue provision from service delivery?” he said at a forum on federal-state relations at the Penang Institute here.

Hutchinson said this arrangement was not new, claiming that state governments previously managed health and education services between 1948 and 1957 using federal funds.

“So this is not something that has not been done before,” he said.

He added that services should not be viewed strictly as either federal or state responsibilities, suggesting a more layered approach.

For example, he said education could be shared across different levels, such as primary, secondary and tertiary, depending on administrative suitability.

He added that the same approach could apply to transport: expensive roads could remain under Putrajaya, while states or local councils could handle public transport and road use.

Malaysia operates under a federal system widely regarded as highly centralised, with key powers over taxation, education and health. Major policies are made by the federal government.

The issue also sits within broader discussions over federal-state balance of power, including long-running calls from Sabah and Sarawak for greater administrative autonomy.

Hutchinson said states currently have limited safeguards within the federal system, and no clear mechanism exists to resolve disputes between federal and state governments.

Clearer rules would allow states to be given more flexibility without weakening the federation, he said.