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Asian City Innovation Systems Initiative (CIS-
                    ASIA)

     CITY INNOVATION SYSTEMS
             PHASE II


      Report on Malaysian Case
      Studies: Decision Support
  System


       by
       Safiah @ Yusmah Muhammad Yusoff
THE INNOVATION
What is this innovation all about?


    E-Submission (electronic mode) for building
    permits

    Online submission for development proposals,
    which used Decision Support System and
    implemented under the One Stop Centre (OSC).
THE INNOVATION
Why is it an innovation?

      New product
      New process
      New paradigm
      New institution
THE INNOVATION
           What is its value proposition?
           Previous                          Present
Manual                            Online from submission to
                                  approval

Time consuming                    Within 4-6 months


Separate and in stagger process   Concurrent process


Various approach varies by        Uniform and transparent
different technical department,   approach
federal and state agencies
Background of the innovation
• How did it start?
  The Government received many complaints
  from the public. Therefore, the government
  has directed all agencies involved to take
  necessary steps to ensure that the service
  provided is affective, fast, efficient and
  competitive. This is how the idea of e-
  Submission originated as the Government
  needs to increase customer satisfaction and
  produce high quality products.

• Where did the idea originate?
 Ministry of Housing and Local Government
Background of the innovation

 • Who created it?
  i. Research and Technical Legislation
     Department, Ministry of Housing and
     Local Government
  ii.Information, Communication and
     Technology Department, Ministry of
     Housing and Local Government

 • Who first adopted it?
  City Hall Kuala Lumpur
Background of the innovation
• Who implemented it?
 Local Planning Authorities (LPAs)

• Who made it more successful and widely
  adopted?
  Ministry of Housing and Local Government
IMPLEMENTING THE INNOVATION
  Key actors/communities/agencies – both informal
  and formal
      One stop centre
      Land Office
      Local Authority Planning Department
      Local Authority Building Department
      Local Authority Engineering Department
      Technical Department
IMPLEMENTING THE INNOVATION
  Interactions and linkages among actors
  Policies and implementation procedures
  Refer Fig. 1 & 2
FIG 1: FLOWCHART OF PROCESSING CONCURRENT
         APPLICATION WITHIN 4 MONTHS




                                            10
FIGURE 2: FLOWCHART OF PROCESSING CONCURRENT
          APPLICATION WITHIN 6 MONTHS




                                               11
CONCLUSION

Key Success Factors:

   Uniform, fast and transparent public
   delivery system
   Reduce processing time frame
   Reduce human interference
CONCLUSION

Areas for    possible    improvement       of
innovation

   Implementation process
       Complaints of slow downloading of
       documents


   Reluctance of implementation
       New technology
       Financial constraint - allocation for
       extra staff, hardware and software, and
       training for small LAs
CONCLUSION
Next steps for case study:

  1.   Evaluation of the Implementation of e-
       Submission
         Feedback from applicants and Local
         Authorities
         Analysis of interrelationships among
         the physical, information and cognitive
         spaces and the six dimensions of city
         innovation


  2.   City innovators
       Identification of innovator/s
BACKGROUND

In this project an account of major innovation
that the Malaysian government systems have
implemented and the consequences on their
changes will be highlighted.
Focus more on the Decision Support Systems
(DSS), which has been adapted in urban
governance.
DSS is used in government systems to help
improve the process of decision making in
complex systems.
Applied in the information systems of any
                                                 15
Planning Development Department.
Established as an electronic application system,
the DSS functions are mainly for information
management, retrieval, analysis and also to
assist in the management of data resources for
planning programs.
DSS acts as an integration centre for all
application being developed and is shown in a
web-based module.
This study examines




                                                   16
IDENTIFICATION OF CITY INNOVATION
                 PROGRAM
               BACKGROUND

The Ministry of Housing and Local Government
(MHLG)-main agency for any kind of
development proposal by virtue that regulations
regarding development such as Town and
Country Planning Act 1976 (Act 172), Street,
Drainage and Building Act 1974 (Act 133), Local
Government Act 1976 (Act 171), and Building
and Common Property (Maintenance and
Management) Act 2007 (Act 663) are under its
purview.
The approach to process development proposal by
the various technical department or agencies at
the federal and state levels as well as the       17
government linked companies also varies.
The government has directed all agencies
involved to take necessary steps to ensure that
the service provided is affective, fast, efficient
and competitive-increase customer satisfaction
and produce high quality products.




                                                     18
DEVELOPMENT PROPOSAL ACCORDING TO
                     ACT

Subsection 2(1) of Act 172 explain the meaning of
“development” as the carrying out of any
building, engineering, mining, industrial or other
similar operation in, on, over, or under land, the
making of any material change in the use of any
land or building, or the subdivision or
amalgamation of lands.
Subsection 19(1) of Act 172 further provides that
no person shall commence, undertake, or carry
out any development unless planning permission
in respect of the development has been granted.
                                                     19
The requirement to obtain planning permission is
crucial to ensure that the development as
proposed by the development proposal will bring
about an orderly, safe and well-preserved
environment.
Planning permission is a development control
tool imposed by the LPAs in implementing
development control over every planning
application.
This means that whoever is interested to
undertake development has to obtain the
planning permission and abide by all the
conditions imposed by the LPAs in granting the
planning permission.
Planning permission is a procedures that           20
requires the applicants to submit document,
plans and fees as may be prescribed by LPAs.
DEVELOPMENT THAT REQUIRES PLANNING
                  PERMISSION

 Every development activities are required to
 submit an application for planning permission
 such as:

i. Operational work
ii. Material change
iii. Subdivision and amalgamation of land.




                                                 21
OPERATIONAL WORK

       Carried out work as follows:-

i.      Earthworks
ii.     Building operation including demolition of
        building
iii.    Engineering operation
iv.     Mining operation
v.      Industrial operation

Or similar operation, in, on, over, or under land.
                                                     22
MATERIAL CHANGE

Means undertaking a significant change in the
use of land or building or any of their parts
thereof.
Subsection 2(2) of Act 172 further describe what
constitutes a material change in the use of land,
to include dump site and any use of land that
contravenes any provision of the development
plan.
While a material change in the use of a building
includes:

                                                    23
i.     Any increase in the number of units in a
       building
ii.    The use as a dwelling-house of a building not
       originally constructed for human habitation
iii.   Any alteration or addition to the building
iv.    Any use of a building that contravenes any
       provision of the development plan
v.     The use for other purpose of a building
       originally constructed as a dwelling-house.
o      “Development” in this context does not involve
       any physical change of the land or building



                                                        24
SUBDIVISION AND AMALGAMATION OF
                  LAND

Approval for subdivision and amalgamation of
land requires the approval of planning
permission.




                                               25
PROCEDURES AND PROCESS FOR
       DEVELOPMENT PROPOSALS

MHLG is committed to ensure that all
development proposals should be expedited in
line with the aspiration of the government in
providing better services to the public.
All development proposals will processed within
6 months from the date of submission. Is
reasonable and well accepted by all relevant
quarters in development industry.
The Cabinet meeting on the 7 June 2006 resolved
that all development under the Built Then Sell
concept will be processed on a fastlane basis.
                                                  26
Under this fastlane basis, the development
process which involves application related to land
matter, planning permission, building plan,
earthwork plan as well as road and drainage plan
approval will be processed concurrently.
The whole process will take just 4 months.
The One-Stop Centre will accept all applications
and the processing time are subjected to the time
frame norms prescribed for each relevant process.




                                                     27
APPLICATION FOR DEVELOPMENT
                    PROPOSALS
Involves 4 main stages which require approval, namely,
application for land matters, application for planning
permission, application for building plans and application
for earthworks plan and road and drainage plans.
Related with legislations namely National Land Code 1965
(NLC 56), Town and Country Planning Act 1976 (Act 172),
and Street, Drainage and Building Act 1974 (Act 133).
Application for land matters is processed by the District
Land Office/Department of Land and Mine whereas for
planning permission, building plan and earthwork plan
and road and drainage plan, approval are processed by the
local authorities which involve the planning department,
the building department and the engineering department.
The flow chart provided in Figure 1 shows the processes
as carried out by the related departments according to their
own specialized responsibilities.
                                                               28
APPLICATION FOR LAND MATTERS

Application for land matters involving provisions
under section 124 of the National Land Code
(land conversion) section 135 (for subdivision)
and section 146 (for amalgamation) can still be
submitted under normal process.




                                                    29
APPLICATION FOR PLANNING PERMISSION

For any development proposal, the approval for
planning permission is an important requirement
as provided under section 20, of Act 172.
Application for Planning Permission is defined as
all development as prescribed in Form A,
Schedule 1 Planning Control (General) Rules
1986, as follows:-




                                                    30
i.      To make material change/s in the use with the
        accompanying plan
ii.     To subdivide the land in accordance with the
        accompanying plans
iii.    To amalgamate the land in accordance with the
        accompanying plans
iv.     To erect/construct/carry out on the land a
        building/buildings/works in accordance with the
        accompanying plan
v.      To make material change/s in the use of the
        building on the land in accordance with the
        accompanying plans
vi.     To carry out additions/alteration to a building on
        the land in accordance with the accompanying plans
vii.    To carry out engineering/mining/industry
viii.   Amendments on planning approval.
                                                             31
APPLICATION FOR BUILDING PLANS

Applications are required to be submitted to the
respective local authorities as provided for under
section 70 of Act 133.
Terms and technical requirement for submitting
plans are described under the provisions of the
Uniform Building Bylaw 1984.
For building plans approval submitted must
ensure adequate measures for safety and
comfort.
Other requirement are as stipulated under the
Standards Specifications, Guidelines or Technical
                                                     32
Rules issued from time to time.
APPLICATION FOR EARTHWORK PLANS,
       ROAD AND DRAINAGE PLANS

Section 70A of Act 133 provides that no individual or
persons may commence or carry out any activity
without prior approval of the respective local
authorities concerned-must be based on the layout
plans submitted and under the stagger application
must be based on the layout plans approved.
Section 9 of Act 133 provides that no individual or
persons may construct any road without prior written
approval from the respective local authorities.
Any persons with the intention to construct any new
road must submit plans showing level and the
proposed construction as well as the drainage.
                                                        33
ALTERNATIVE FOR CONCURRENT
                 APPLICATION
Alternative 1: concurrent processing for all 4
applications i.e. applications for land matters,
planning permission, building plan and earthworks
plan well as road and drainage plan.
Alternative 2: combination of 3 applications such as
application for land matters, planning permission and
building plan or application for planning permission,
building plan and earthworks plan.
Alternative 3: combination of 2 applications such as
application for land matters and planning permission
or application for planning permission and building
plan or application for building plan and earthworks
plan or application for planning permission and
earthworks plan.                                        34
APPLICATION FOR DEVELOPMENT PROPOSALS
ACCORDING TO CONCURRENT PROCESS WITHIN
 4 MONTH (UNDER THE BUILD THEN SELL (BTS)
                CONCEPT)
    Applicant shall submit to the OSC the following
    applications:-
i.    Simultaneous application for subdivision and
      conversion under section 124A NLC or application
      for surrender and realienation under 204D NLC
ii.   Application for planning permission
iii. Application for building plan approval
iv.   Application for earthworks plan and road and
      drainage plan
o     The application process under this concurrent
      approach shall take 92 days. If the application falls
      within an area with a gazette local plan, the process
      shall take 67 days.                                     35
APPLICATION FOR DEVELOPMENT PROPOSALS
ACCORDING TO CONCURRENT PROCESS WITHIN
               6 MONTH
Who choose the STB concepts the process and
procedures for obtaining approvals are the same-
submit to the OSC Secretariat (Refer Figure 2)
In line with the Government intention to
expedite the delivery system with regards to
applications for land development, planning
permission and building plans, the STB concept
shall also be given due attention.
Approvals under this concept shall not take more
than 6 months.

                                                   36
METHOD AND SOURCES OF DATA
Literature review based on DSS in urban
governance in Kuala Lumpur
Primary and secondary sources
Interviews and discussions with relevant
agencies




                                           37
ANALYSIS

    Carried out based on two sets of conceptual
    frameworks:-
i.    The analysis will illustrate how the 6
      dimensions of city innovations interplay with
      one       another,       particularly        the
      technological/product     and      institutional
      dimensions.
ii.   The inter-relationships among physical, cyber
      and cognitive spaces.


                                                         38
SIX DIMENSIONS OF CITY INNOVATIONS
    The six dimension of city innovations that will be
    discussed are:-
i.    Product-(E-Submission       for   building   permits,
      involves building, layout plans and infrastructure
      planning using the MHLG guidelines)
ii.   Process- (online process of tracking plans
      submission and files)
iii. Services- (local authorities)
iv.   Institution- (OSC Secretariat, City Hall Kuala
      Lumpur)
v.    Paradigm- (manual, separate and in stagger system
      to an online, all together and concurrent system)
vi.   Position- (local authorities)                           39

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Ar project introduction
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ST-Decision Support System

  • 1. Asian City Innovation Systems Initiative (CIS- ASIA) CITY INNOVATION SYSTEMS PHASE II Report on Malaysian Case Studies: Decision Support System by Safiah @ Yusmah Muhammad Yusoff
  • 2. THE INNOVATION What is this innovation all about? E-Submission (electronic mode) for building permits Online submission for development proposals, which used Decision Support System and implemented under the One Stop Centre (OSC).
  • 3. THE INNOVATION Why is it an innovation? New product New process New paradigm New institution
  • 4. THE INNOVATION What is its value proposition? Previous Present Manual Online from submission to approval Time consuming Within 4-6 months Separate and in stagger process Concurrent process Various approach varies by Uniform and transparent different technical department, approach federal and state agencies
  • 5. Background of the innovation • How did it start? The Government received many complaints from the public. Therefore, the government has directed all agencies involved to take necessary steps to ensure that the service provided is affective, fast, efficient and competitive. This is how the idea of e- Submission originated as the Government needs to increase customer satisfaction and produce high quality products. • Where did the idea originate? Ministry of Housing and Local Government
  • 6. Background of the innovation • Who created it? i. Research and Technical Legislation Department, Ministry of Housing and Local Government ii.Information, Communication and Technology Department, Ministry of Housing and Local Government • Who first adopted it? City Hall Kuala Lumpur
  • 7. Background of the innovation • Who implemented it? Local Planning Authorities (LPAs) • Who made it more successful and widely adopted? Ministry of Housing and Local Government
  • 8. IMPLEMENTING THE INNOVATION Key actors/communities/agencies – both informal and formal One stop centre Land Office Local Authority Planning Department Local Authority Building Department Local Authority Engineering Department Technical Department
  • 9. IMPLEMENTING THE INNOVATION Interactions and linkages among actors Policies and implementation procedures Refer Fig. 1 & 2
  • 10. FIG 1: FLOWCHART OF PROCESSING CONCURRENT APPLICATION WITHIN 4 MONTHS 10
  • 11. FIGURE 2: FLOWCHART OF PROCESSING CONCURRENT APPLICATION WITHIN 6 MONTHS 11
  • 12. CONCLUSION Key Success Factors: Uniform, fast and transparent public delivery system Reduce processing time frame Reduce human interference
  • 13. CONCLUSION Areas for possible improvement of innovation Implementation process Complaints of slow downloading of documents Reluctance of implementation New technology Financial constraint - allocation for extra staff, hardware and software, and training for small LAs
  • 14. CONCLUSION Next steps for case study: 1. Evaluation of the Implementation of e- Submission Feedback from applicants and Local Authorities Analysis of interrelationships among the physical, information and cognitive spaces and the six dimensions of city innovation 2. City innovators Identification of innovator/s
  • 15. BACKGROUND In this project an account of major innovation that the Malaysian government systems have implemented and the consequences on their changes will be highlighted. Focus more on the Decision Support Systems (DSS), which has been adapted in urban governance. DSS is used in government systems to help improve the process of decision making in complex systems. Applied in the information systems of any 15 Planning Development Department.
  • 16. Established as an electronic application system, the DSS functions are mainly for information management, retrieval, analysis and also to assist in the management of data resources for planning programs. DSS acts as an integration centre for all application being developed and is shown in a web-based module. This study examines 16
  • 17. IDENTIFICATION OF CITY INNOVATION PROGRAM BACKGROUND The Ministry of Housing and Local Government (MHLG)-main agency for any kind of development proposal by virtue that regulations regarding development such as Town and Country Planning Act 1976 (Act 172), Street, Drainage and Building Act 1974 (Act 133), Local Government Act 1976 (Act 171), and Building and Common Property (Maintenance and Management) Act 2007 (Act 663) are under its purview. The approach to process development proposal by the various technical department or agencies at the federal and state levels as well as the 17 government linked companies also varies.
  • 18. The government has directed all agencies involved to take necessary steps to ensure that the service provided is affective, fast, efficient and competitive-increase customer satisfaction and produce high quality products. 18
  • 19. DEVELOPMENT PROPOSAL ACCORDING TO ACT Subsection 2(1) of Act 172 explain the meaning of “development” as the carrying out of any building, engineering, mining, industrial or other similar operation in, on, over, or under land, the making of any material change in the use of any land or building, or the subdivision or amalgamation of lands. Subsection 19(1) of Act 172 further provides that no person shall commence, undertake, or carry out any development unless planning permission in respect of the development has been granted. 19
  • 20. The requirement to obtain planning permission is crucial to ensure that the development as proposed by the development proposal will bring about an orderly, safe and well-preserved environment. Planning permission is a development control tool imposed by the LPAs in implementing development control over every planning application. This means that whoever is interested to undertake development has to obtain the planning permission and abide by all the conditions imposed by the LPAs in granting the planning permission. Planning permission is a procedures that 20 requires the applicants to submit document, plans and fees as may be prescribed by LPAs.
  • 21. DEVELOPMENT THAT REQUIRES PLANNING PERMISSION Every development activities are required to submit an application for planning permission such as: i. Operational work ii. Material change iii. Subdivision and amalgamation of land. 21
  • 22. OPERATIONAL WORK Carried out work as follows:- i. Earthworks ii. Building operation including demolition of building iii. Engineering operation iv. Mining operation v. Industrial operation Or similar operation, in, on, over, or under land. 22
  • 23. MATERIAL CHANGE Means undertaking a significant change in the use of land or building or any of their parts thereof. Subsection 2(2) of Act 172 further describe what constitutes a material change in the use of land, to include dump site and any use of land that contravenes any provision of the development plan. While a material change in the use of a building includes: 23
  • 24. i. Any increase in the number of units in a building ii. The use as a dwelling-house of a building not originally constructed for human habitation iii. Any alteration or addition to the building iv. Any use of a building that contravenes any provision of the development plan v. The use for other purpose of a building originally constructed as a dwelling-house. o “Development” in this context does not involve any physical change of the land or building 24
  • 25. SUBDIVISION AND AMALGAMATION OF LAND Approval for subdivision and amalgamation of land requires the approval of planning permission. 25
  • 26. PROCEDURES AND PROCESS FOR DEVELOPMENT PROPOSALS MHLG is committed to ensure that all development proposals should be expedited in line with the aspiration of the government in providing better services to the public. All development proposals will processed within 6 months from the date of submission. Is reasonable and well accepted by all relevant quarters in development industry. The Cabinet meeting on the 7 June 2006 resolved that all development under the Built Then Sell concept will be processed on a fastlane basis. 26
  • 27. Under this fastlane basis, the development process which involves application related to land matter, planning permission, building plan, earthwork plan as well as road and drainage plan approval will be processed concurrently. The whole process will take just 4 months. The One-Stop Centre will accept all applications and the processing time are subjected to the time frame norms prescribed for each relevant process. 27
  • 28. APPLICATION FOR DEVELOPMENT PROPOSALS Involves 4 main stages which require approval, namely, application for land matters, application for planning permission, application for building plans and application for earthworks plan and road and drainage plans. Related with legislations namely National Land Code 1965 (NLC 56), Town and Country Planning Act 1976 (Act 172), and Street, Drainage and Building Act 1974 (Act 133). Application for land matters is processed by the District Land Office/Department of Land and Mine whereas for planning permission, building plan and earthwork plan and road and drainage plan, approval are processed by the local authorities which involve the planning department, the building department and the engineering department. The flow chart provided in Figure 1 shows the processes as carried out by the related departments according to their own specialized responsibilities. 28
  • 29. APPLICATION FOR LAND MATTERS Application for land matters involving provisions under section 124 of the National Land Code (land conversion) section 135 (for subdivision) and section 146 (for amalgamation) can still be submitted under normal process. 29
  • 30. APPLICATION FOR PLANNING PERMISSION For any development proposal, the approval for planning permission is an important requirement as provided under section 20, of Act 172. Application for Planning Permission is defined as all development as prescribed in Form A, Schedule 1 Planning Control (General) Rules 1986, as follows:- 30
  • 31. i. To make material change/s in the use with the accompanying plan ii. To subdivide the land in accordance with the accompanying plans iii. To amalgamate the land in accordance with the accompanying plans iv. To erect/construct/carry out on the land a building/buildings/works in accordance with the accompanying plan v. To make material change/s in the use of the building on the land in accordance with the accompanying plans vi. To carry out additions/alteration to a building on the land in accordance with the accompanying plans vii. To carry out engineering/mining/industry viii. Amendments on planning approval. 31
  • 32. APPLICATION FOR BUILDING PLANS Applications are required to be submitted to the respective local authorities as provided for under section 70 of Act 133. Terms and technical requirement for submitting plans are described under the provisions of the Uniform Building Bylaw 1984. For building plans approval submitted must ensure adequate measures for safety and comfort. Other requirement are as stipulated under the Standards Specifications, Guidelines or Technical 32 Rules issued from time to time.
  • 33. APPLICATION FOR EARTHWORK PLANS, ROAD AND DRAINAGE PLANS Section 70A of Act 133 provides that no individual or persons may commence or carry out any activity without prior approval of the respective local authorities concerned-must be based on the layout plans submitted and under the stagger application must be based on the layout plans approved. Section 9 of Act 133 provides that no individual or persons may construct any road without prior written approval from the respective local authorities. Any persons with the intention to construct any new road must submit plans showing level and the proposed construction as well as the drainage. 33
  • 34. ALTERNATIVE FOR CONCURRENT APPLICATION Alternative 1: concurrent processing for all 4 applications i.e. applications for land matters, planning permission, building plan and earthworks plan well as road and drainage plan. Alternative 2: combination of 3 applications such as application for land matters, planning permission and building plan or application for planning permission, building plan and earthworks plan. Alternative 3: combination of 2 applications such as application for land matters and planning permission or application for planning permission and building plan or application for building plan and earthworks plan or application for planning permission and earthworks plan. 34
  • 35. APPLICATION FOR DEVELOPMENT PROPOSALS ACCORDING TO CONCURRENT PROCESS WITHIN 4 MONTH (UNDER THE BUILD THEN SELL (BTS) CONCEPT) Applicant shall submit to the OSC the following applications:- i. Simultaneous application for subdivision and conversion under section 124A NLC or application for surrender and realienation under 204D NLC ii. Application for planning permission iii. Application for building plan approval iv. Application for earthworks plan and road and drainage plan o The application process under this concurrent approach shall take 92 days. If the application falls within an area with a gazette local plan, the process shall take 67 days. 35
  • 36. APPLICATION FOR DEVELOPMENT PROPOSALS ACCORDING TO CONCURRENT PROCESS WITHIN 6 MONTH Who choose the STB concepts the process and procedures for obtaining approvals are the same- submit to the OSC Secretariat (Refer Figure 2) In line with the Government intention to expedite the delivery system with regards to applications for land development, planning permission and building plans, the STB concept shall also be given due attention. Approvals under this concept shall not take more than 6 months. 36
  • 37. METHOD AND SOURCES OF DATA Literature review based on DSS in urban governance in Kuala Lumpur Primary and secondary sources Interviews and discussions with relevant agencies 37
  • 38. ANALYSIS Carried out based on two sets of conceptual frameworks:- i. The analysis will illustrate how the 6 dimensions of city innovations interplay with one another, particularly the technological/product and institutional dimensions. ii. The inter-relationships among physical, cyber and cognitive spaces. 38
  • 39. SIX DIMENSIONS OF CITY INNOVATIONS The six dimension of city innovations that will be discussed are:- i. Product-(E-Submission for building permits, involves building, layout plans and infrastructure planning using the MHLG guidelines) ii. Process- (online process of tracking plans submission and files) iii. Services- (local authorities) iv. Institution- (OSC Secretariat, City Hall Kuala Lumpur) v. Paradigm- (manual, separate and in stagger system to an online, all together and concurrent system) vi. Position- (local authorities) 39