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\vskip16pt \textcolor{GJBlue}{\large\bfseries\abstractname\space} }{% \vskip8pt \textcolor{GJMediumGrey}{\rule{\textwidth}{2pt}} \vskip16pt } \usepackage[absolute,overlay]{textpos} \makeatother \usepackage{lineno} \linenumbers \begin{document} \author[1]{Dr. Azmizam Abdul Rashid} \renewcommand\Authands{ and } \date{\small \em Received: 12 December 2011 Accepted: 5 January 2012 Published: 15 January 2012} \maketitle \begin{abstract} In the age of globalization, it was argued that major cities in the region should be positioned in the global city system, in order for these cities and their immediate regions are effectively developed. At the same time, the emergence of new global economic and informational societies has created a new form of spatial development, the global cities. Such status was achieved only when a city and its region becomes a major center of international finance, transnational corporate headquarters, related high-level and specialized services, information processing and advanced telecommunications, a city with an international command and control functions. The aspiration for Kuala Lumpur City-Region (KLCR) is to drive rapid growth parallel with upgrading the city's liveability, according to the Economic Transformation Programme (ETP)'s A Roadmap for Malaysia. \end{abstract} \keywords{Globalization, local government, city-region, international economy, economic tranformation programme.} \begin{textblock*}{18cm}(1cm,1cm) % {block width} (coords) \textcolor{GJBlue}{\LARGE Global Journals \LaTeX\ JournalKaleidoscope\texttrademark} \end{textblock*} \begin{textblock*}{18cm}(1.4cm,1.5cm) % {block width} (coords) \textcolor{GJBlue}{\footnotesize \\ Artificial Intelligence formulated this projection for compatibility purposes from the original article published at Global Journals. However, this technology is currently in beta. \emph{Therefore, kindly ignore odd layouts, missed formulae, text, tables, or figures.}} \end{textblock*} \let\tabcellsep& \section[{Introduction}]{Introduction}\par n the context of globalization, local government (LA) is increasingly faced with complex challenges. Urbanisation is a natural constituent of civilisation and development, a consequence of economic changes that take place as a country develops, and an essential phenomenon that contributes to the growth process at large. However, the positive role of urbanisation is overshadowed by the enormous problems it brings in its wake. Urban management, therefore, is concerned with policies, plans, programmes and practices that seek to\par Author : E-mail : azmizam67@yahoo.co.uk ensure that population growth is matched by access to shelter, basic infrastructure and economic opportunities. \section[{II.}]{II.}\par Objectives This paper will discuss the effects of globalization, economical crises, competitiveness and development on the urban structure and city form of KLCR. Malaysia has successfully applied economic planning to guide the development of the country from an economy of agriculture and mining to a largely industrialised one. Now, with its sights set on attaining the economic level of a fully developed nation by 2020, the planning system must be made even more efficient and focused. This paper also discuss on the role of LG to enhance KLCR development and competitiveness. In this framework the influence of Foreign Direct Investment (FDI) will be analyzed as well as the role and potentiality of the local economy. \section[{Year}]{Year}\par Managing the affairs of a city-region is an iterative process of planning, implementation and control of some or all of these aspects and the complex inter-relationships among them. In recent years, it has been recognised the world over that effective management of urban areas requires a shift from technocratic processes traditionally utilised by urban planning agencies to a more inclusive process involving a wide spectrum of actors and stakeholders \hyperref[b0]{(Boschken 2008)}.\par Urban need to be governed efficient and effective to promote a sustainable and conducive environment as a place of work and living. At the same time, the uniqueness of urban should also be preserved to maintain its image and distinct identity. City-region is a catalyst and contributor towards the national economic growth, a centre for innovation and entrepreneurship and a source for high social services.\par LG will help to generate a competitive national development in the context of physical, economy and social. Therefore, development potentials that exist in city-region should be continuously adopted and supported as a place for investment and providing services of a high level. With the rapid pace of urbanization in Malaysia by 2020, LG is faced with various complex challenges ahead {\ref (DTCP 2006} \section[{The Roles of Local Government}]{The Roles of Local Government}\par The major functions of LG in city-region can be summarized as environmental, public, social and developmental \hyperref[b11]{(Thye 2002}). \section[{a) Environmental}]{a) Environmental}\par This relates to functions of maintenance and improvement of the environment within the area of jurisdiction. This includes obligatory services such as cleansing, collection and disposal of solid wastes, proper drainage and sewage, sewerage system and beautification programmes. \section[{b) Public amenities}]{b) Public amenities}\par This applies to services such as abattoirs, veterinary services, transportation, burial grounds and crematoria. \section[{c) Public health and cleansing}]{c) Public health and cleansing}\par This function includes the provision of sanitation and solid waste management system, cleaning drains and roads and the general upkeep of the environment. The licensing of hawkers, stall holders, shop and business operators whose businesses are public nuisances and obnoxious in nature, falls under this function as well. \section[{d) Social functions}]{d) Social functions}\par Some larger municipalities provide social services such as childcare centres, clinics within their health care service programmes, ambulance and hearse services. Besides these, they maintain fountains and arrange for lighting public streets and other public services and provide manual labour and facilities to state governments or the district offices to assist in the organization of ad hoc social services at the state and district levels; e) Developmental functions As opposed to mandatory functions of the local authorities, the development functions are considered "discretionary" under the Local Government Act, 1976. Even though LG could be regarded as an important instrument for local socioeconomic modernization, the lack of financial and physical capacity limits the extent and functions that they can provide. This is particularly the case with district councils. \hyperref[b1]{(Boschma 2004)} In the face of rapid growth and the pressure to fulfil multiple needs of the local citizens and the private sector community, the scope of functions and responsibilities of LG is expanding every day. The increase in the rate of industrialization, trade, commerce and development of modern services not only pushes the demand for urban space but also that of urban support services. With an increasing concentration of people and industries in urban areas, the functions and responsibilities of LG to have significantly expanded. This requires LG to perform multifarious roles that include: ? Efficient service delivery functions and employment generation; ? The normal system maintenance function for public places, drainage and sewerage, market places and crematorium, road maintenance and street-lighting, landscaping and maintenance, public health and sanitation;\par ? The development planning and control and management functions (building control, land-use planning, development, creation of industrial estates etc.); ? The promotion of tourism and urban renewal beautification programmes; and Year development control and managing the urban system and its environment. Such a role is important to ensure uninterrupted growth and sustainable development within the context of maintaining national competitiveness in this era of economic globalization. Besides, it imposes not only financial but also administrative pressures on local authorities. These pressures come in the form of new demands and challenges to increase and improve delivery of urban services. The challenges also pose important and strategic questions regarding their roles at local, national and global levels. One of these challenges is in the management of LG finance and fiscal development \hyperref[b2]{(Boyne 1997}).? \section[{V. The Challenges of Local Government in City-Region Development}]{V. The Challenges of Local Government in City-Region Development}\par The current global economic challenges have put LG in the front and centre of attention. They are under the microscope, their past actions are being scrutinized and their behaviour and actions going forward are being closely watched. In view of this, effective leadership has never been more important. Periods of economic stress test the ability and capability of LG and demands that they rise to the challenges. The LG of today are being tested on several levels, both internally and externally. While they may have some control over their internal environment, they certainly do not know what awaits them externally in the current volatile business environment.\par Today, the LG is expected to be pro-active in contingency planning, to anticipate and prepare responses. Expediency in the appropriate response can negate losses. It is necessary for business leaders and LG to seek out the possibilities in these challenging times. Them must do this to remain relevant, sustainable and competitive. Leadership is a demanding role even during times of relative calm. It calls for balancing of internal and inter-business relationships and more so during a crisis, when courage and desire to lead well and effectively are put to the test.\par The transformations in city-region triggered by globalization demand a review on the of internal and inter-business relationships and more so during a crisis, when courage and desire to lead well and effectively are and desire to well and effectively are put to the test. The transformations in our cities and urban agglomeration triggered by globalization demand a review on the various planning cultures. Each city/region must be prepared to act earlier, effectively and with high level of competitiveness. The need to drive the urban dynamic in an energetic responsible manner also demands an integral strategy with active participation of all stakeholders \hyperref[b2]{(Boyne 1997)}.\par The uncertainty and risks caused by climate change requires the adoption of preventive measures on the planning framework and new environmental regulations. The withdrawal of the state requires rethinking of the bottom-up approach process on spatial planning and careful analysis of its implications and potential. The processes of metropolization, the economic new parading of the regions and the functional urban networks open up questions on crossing border planning perspectives \hyperref[b7]{(Parr 2005)}.\par The needs to address global challenges in a strategic manner possess questions on the interplay between the local and the global. Communities and Local Government Department of United Kingdom, 2003 has stated that LG is crucial to the challenge of creating sustainable communities -places where people want to live and work. They deliver the day-to-day services upon which people depend and which improve people's quality of life. Self-evidently, where more resources can be made available to support these activities, there will be significant benefits for everyone \hyperref[b11]{(Thye 2002)}.\par According to the ETP, KLCR was selected as NKEA to reflect four important dynamics, the first onethat urbanization is a driver of GNI growth, where urbanization was one of the most important drivers of economic growth in any country. Secondly, the Primary City Matters Most -KLCR dominates Malaysia's urban economy and by a large margin and over the next decade, KLCR was targeted to grow in population by five percent per year and achieve GNI growth of 10 per cent a year (PMD 2010).\par The third dynamics is that Urban Productivity Does Matter -that the challenge for KLCR was to harness the power of urbanization while shaping it to maximise urban productivity to simultaneously pursue efficiency and liveability. Finally a great city needs to be a liveable city -because while urbanising intensively, KLCR must also focus on improving liveability and among challenges for KLCR according to the ETP are stiff competition from neighbouring cities because liveability lags compared to many other Asian cities, public transport remains inadequate and natural assets remain untapped. The dynamics of change of LG were contributed to administrative performance, fiscal management, public service provision, enhancing private sector development and participation in local and regional decision to formulate partnership between LA and civil society. The role of LG in city-region will establish efficient and transparent inter-government transfer system and creative mechanisms to mobilize and manage local resources (Phang 2008). \section[{VI.}]{VI.} \section[{Results and Discussion}]{Results and Discussion}\par Evaluation and measurement of the strength of linear relationships between independent and dependent variables under this paper can be performed using Pearson correlation. According to \hyperref[b3]{Chase and Brown (2000)}, Pearson correlation was used for A Year parametric measurements to see the strength of the relationship between two variables. In this paper Pearson correlation analysis results will test if there is a positive and significant relationship between the independent variable (five roles of LG in city-region) and dependent variable (KLCR development).\par While table {\ref 1} shows a summary of the overall Pearson correlation between the independent variable and dependent variable. According to this table clearly shows that the roles of LG have a strong and positive relationship with the KLCR development. The value of the correlation between roles of LG coefficients with KLCR development is 0.684 to 0.878. Similarly, the correlation coefficient of KLCR development. Which roles of LG have the strongest relationship with KLCR development?\par Among the roles of LG which had a strong positive correlation with the dependent variable is social function in KLCR (r = 0.771), development function (r = 0.767), environmental (r = 0.762), public health and cleansing (r = 0.729) and public amenities (r = 0.725). If you see the relationship between roles of neither LG nor the KLCR development still has a strong and positive correlation.\par This positive relationship indicates that the stakeholders of the study have relative increase in KLCR is affected by the roles of LG. This shows the correlation of independent variable (five roles of LG in city-region) and dependent variable (KLCR development). Pearson correlation analysis clearly shows that there is a strong positive relationship between the roles of LG with KLCR development.\par However, none of the five roles of LG who had a poor relationship with KLCR development with r values less than 0.50.This analysis clearly shows that the practices by the roles of LG is among the factors to the increase in KLCR development. LG in KLCR have business relationships with international corporate bodies and NGOs in order to strengthen the relationship between government, private and public.ETP has also outlined towards achieving the aspiration by 2020 and the economic aspirations for KLCR was to raise its GNI contribution by 2.5 times, from RM258 billion to approximately RM650 billion per year. The EPP's aim is to attract 100 of the world's most dynamic companies within priority sectors, attracting the right mix of internal and external talent and connecting to Singapore via a high speed rail system. The successful implementation EPP will lead to additional business opportunities within KLCR that will continue to enhance KLCR liveability and generate incremental GNI (EPU, 2010) KLCR will need to house one million new residents by 2020, and the current projected housing supply was expected to be sufficient to meet demand. KLCR aspiration can be summarized as 20-20 by 2020that is, to be the only city that simultaneously achieves a top 20 ranking in city economic growth as defined by city gross domestic product growth rates while being among the global top-20 most liveable cities by 2020. {\ref (KLCH,2008)}. KLCR will pursue both growth and liveability. Cities must cope with great numbers of people, plan to provide them services, find resources to meet needs of maintaining and augmenting infrastructure, respond to the urbanization and poverty, preserve their environment and retain their competitive edge. Enmeshed in the web of rigid, inflexible working cultures and erosion of all round capacity they must reengineer themselves to face these enormously complex challenges {\ref (EPU, 2010)}.\par This re-engineering is precisely the goal of efficient and effective LG roles. It envisages improving the quality of life in cities through improved local governance by reinventing a city as an inclusive city. Such a city provides space and voice to all its stakeholders through inclusive decision-making, since decision-making is the heart of good governance. The strategy for achieving the goals of good urban environment is to advocate the norms and country specific issues of the role of LG and promote inclusive decision-making process {\ref (KLCH 2008)}.\par KLCR has the opportunity of creating a regional education hub, global biotech industries, global information technology backup services, virtual university platforms as well as moving up the value chain of service and building our local businesses in all industries into MNCs. To do this, one would argue we need efficiency and effective in the role of LG that supports an economic system that promotes and facilitates the ability of business enterprises to compete effectively in the international markets and ensure the betterment of standard of living domestically.\par Table {\ref 2} shows the total investment in KLCR from 2007-2010. The table indicates that in 2008 there is more than RM8 billion investment in KLCR. However in 2009 and 2010 total investment were dropped due the world economy scenario in 2009-2010. Government keep continue and enhance their role to attract more local and foreign investors to invest in the country. Therefore, LG play significant role to promote and enhance their city-region development \hyperref[b8]{(Pastor 2006}).\par There must be an inclusive partnership between the private and public sectors as well as civil society as all our individual needs, demands and wants form the Nation's fabric and collective need (Brannan, John \& Stoker 2006). Each of the cogs must move with the wheel to set it in the right motion forward to enhance city-region development.\par Competitiveness cannot emanate off a situation where only one of the constituents is called to be accountable and responsible for advancement and development.The general assumption that business is market-driven and therefore only the most efficient survive is not entirely true \hyperref[b11]{(Thye 2002)}.LG may be the most efficient but if the elements in that market do not \section[{Global Journal of Human Social Science}]{Global Journal of Human Social Science}\par Volume XII Issue W XII Version I( D D D D ) A 2 20\par Year move in concert with our level of efficiency, we will not be as successful as we could be KLCR has seen a tremendous increase in the adoption of advanced technologies, particularly relating to online service delivery channels, whether business to business (B to B), business to consumer (B to C), government to business (G to B), or government to citizen (G to C). The online system is an e-government ICT-enabled delivery system to enhance transparency and improve the ability of KLCR to serve city-region citizens better. An efficient public service is a key factor in ensuring a conducive environment to attract local and foreign investment. Take for example financial institutions and the development of these institutions \hyperref[b12]{(Taylor 2004)}.\par Are these financial institutions supportive of businesses, especially small, medium and indigenous businesses? Or are they so risk averse such that they make it difficult for businesses to start and expand. This can result in the government having to intervene where innovative solutions and creative business models would have proven more effective. The same is true with other service providers. Malaysia is blessed with resources to achieve greater heights, and we must rise to these obligations in building better tomorrow for our children and grandchildren. This indeed is a moral imperative for all those with the means to make that difference. In the development of the efficient and effective role of LG, we need to consider the likely future developments in both locally and globally. In this respect, there are some possibilities that may develop into opportunities for the betterment of mankind and some that may cause difficulties, if not resolved properly. One area which poses both opportunities and threats is globalisation VII. \section[{Conclusion}]{Conclusion}\par Overall, this paper has discussed the assessment on the views of stakeholder on the role of LG in KLCR development. This approach facilitates analysis of the role of LG carried out to determine the factors that have an edge and influential enhancement of KLCR development. An evaluation of the determinants of KLCR development is not only the advantages of physical facilities, human resources and market advantages and the advantages of economic resources but the role of LG. A total of 5 roles of LG have been tested and evaluated based on criteria of the interests and views of stakeholders on the roles of LG in influencing KLCR development.\par The roles of LG in the territories of KLCR from the view of stakeholders are generally good at a moderate level. This indicates that the processes and practices by the LG in KLCR began to focus such as environmental, public, social and developmental in planning and developing in KLCR. The roles of LG are creating a direct impact on the economic advantages of agglomeration, further development of the city-region more competitive with the cities-region. This paper found that the administration and services of local authorities an important factor in increasing development in {\ref KLCR (EPU 2010)}. This is clearly evidenced by the improvement mechanism delivery system, OSC approval of local authorities to expedite the application process, online services and the plan approval process license applications and services and the counter service departments of local authorities. Stakeholders in cityregion benefited from the quality of LG services are administrative and the private sector consists of foreign and local investors. The role of the private sector in the KLCR is an important promoter of economic resources areas. When economic resources in urban areas increased this directly enhance KLCR development {\ref (KLCH 2008)}.\par This paper also found that elements of development functions in the role of LG are among the factors that led to enhance KLCR development. Such things as access to information about LG project, an open tender process and project procurements, information, financial statements report revenues and expenses of LG. The efficient of roles of LG have also been increased cooperation between public and private sectors. The roles of LG are seen as a concept and framework of urban management that involves all stakeholders KLCR. These findings are consistent in the Pearson correlation was found strong and positive relationships between the elements of the roles of LG (independent variables) with KLCR development (dependent variables).\par The 10th Malaysia Plan period witnessed a renewed commitment by the government to promote the efficient and effective the roles of LG in KLCR. This will be continued with government taking steps to enhance the integrity, transparency and accountability of the public and private sectors and further improve the level of good governance. These measures will help address corruption, reduce wastage and the cost of doing business as well as increase the efficiency of public service delivery and corporate sector. These gains from efficient LG will make KLCR is more competitive and attractive to investors and facilitate the achievement of the nation's development goals {\ref (EPU 2010)}.\par The scope of efforts to enhance the public sector delivery system encompassed land administration, services of local authorities, investment facilitation, quality management, performance measurement, consolidated licenses and permits, improvements in counter services, management of public complaints, reduction of bureaucratic red tape and ICT development. The commitment to enhance the efficiency and effectiveness of the public service delivery system will continue in order to reduce the cost of doing business, encourage private investment and positively LG has given greater attention not only in public administration but also in the operations of private businesses. The task to turn KLCR has successfully applied economic planning to guide the development of the country from an economy of agriculture and mining to a largely industrialised one \hyperref[b8]{(Pastor 2006}). Now, with its sights set on attaining the economic level of a fully developed nation by 2020, the planning system must be made even more efficient and focused. It must ensure that every investment made in the country, contribute towards creating the desirable objective of a strong, modern, internationally competitive, technologically advanced, post-industrial economy. \section[{Global}]{Global}\par KLCR must also be fully aware of the enormous competition it faces in a region with rapidly expanding and modernising economies, all contending for the same pool of potential international investments. Efficient and effective of LG are also fundamental issue in development characterized by sustainability, subsidiarity, equity, transparency and accountability, civic engagement and citizenship, and security.\par As described above, city competitiveness is harnessed through 'city marketing and city management'. High technology and high skilled industries, together with finance, transportation, tourism, business, information and professional services shopping and other commercial activities, are the principal components of the nation's economy, which must be developed to a level well beyond where it is now. In this respect, KLCR being the premier city must play the leading role. Competitiveness is more often than not driven and determined by soundness of infrastructure development as well as the quality of life a place provides for its people, be it its nationals, residents, its investors or tourists. Fundamentally the development of KLCR must be the sum total of what a city-region aims to attract as its outcome and to make it competitive domestically and globally. \section[{Global Journal of Human Social Science}]{Global Journal of Human Social Science}\begin{figure}[htbp] \noindent\textbf{}\includegraphics[]{image-2.png} \caption{\label{fig_0}}\end{figure} \begin{figure}[htbp] \noindent\textbf{} \par \begin{longtable}{P{0.8137333333333333\textwidth}P{0.015866666666666668\textwidth}P{0.0136\textwidth}P{0.0068\textwidth}} \multicolumn{4}{l}{Council (DBKL), Perbadanan Putrajaya, Shah Alam City}\\ \multicolumn{4}{l}{Council (MBSA), Petaling Jaya City Council (MBPJ),}\\ \multicolumn{4}{l}{Klang Municipal Council (MPK), Kajang Municipal}\\ \multicolumn{4}{l}{Council, Subang Jaya Municipal Council (MPSJ),}\\ \multicolumn{4}{l}{Selayang Municipal Council (MPS), Ampang Jaya}\\ \multicolumn{4}{l}{Municipal Council (MPAJ) and Sepang Municipal}\\ \multicolumn{2}{l}{Council (MPSp).}\tabcellsep \tabcellsep \\ \multicolumn{4}{l}{The study involved 10 main LGs in KLCR with}\\ \multicolumn{4}{l}{315 respondents representing various stakeholders}\\ \multicolumn{4}{l}{which included government agencies, local and foreign}\\ investors,\tabcellsep non-government\tabcellsep organisation\tabcellsep (NGO),\\ \multicolumn{4}{l}{politician and university students. Pearson correlation}\\ \multicolumn{4}{l}{attempt to measure a significant the relationship}\\ \multicolumn{4}{l}{between the roles of LG and the KLCR development.}\\ \multicolumn{4}{l}{In 2010, KLCR population was estimated at six}\\ \multicolumn{4}{l}{million and it contributed about RM263 billion to the}\\ nation's IV.\tabcellsep \tabcellsep \tabcellsep \end{longtable} \par \caption{\label{tab_0}}\end{figure} \footnote{© 2012 Global Journals Inc. (US)} \footnote{© 2012 Global Journals Inc. (US) 20} \footnote{© 2012 Global Journals Inc. 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