Federalism in Malaysia

[1] Some suggest that opposition triumphs in several of the 2008 state elections will alter the political climate and approach towards federalism.

State governments are excluded from the revenues of income tax, export, import and excise duties, and they are also largely restricted from borrowing internationally.

They have to depend on revenue from forests, lands, mines, petroleum, the entertainment industry, and finally, transfer payments from the central government.

Previously, the ruling Barisan Nasional coalition controlled twelve of the state governments, with the exception of Kelantan.

But as a result of the general election five states are now ruled by non-BN parties and there is likelihood they are going to act more individually than they have been in the past.