A) City Council
- Local Authority should include administrative centre in the state
- Have people not less than 500,000
- Have steady income from financial resource (fiscally sustainable) with annual outcome not less from RM100 million and afford steady expenditure
- Able to prepare services at the high level include revenue collection activity, approval development of developer, enforcement and other Local Authorities function and have Organizational structure established with those staff capable officiates efficiently and effectively.
- urban development that stresses to steady development (sustainable development) and focus to efforts to tackle municipal issues as squatter, illegal factory operation, security, housing for lower income group and environmental conservation. Indicator stable city as those emphasized in Malaysia Urban Indicator Network System (MURNInet) also will be accounted;
- Image of city formation or suitable identity with the function and national culture which symbolize the history and heritage. Areas and buildings with story worth, culture and unique architecture need to be reared.
- Own industrial centre, finance and facility institution carry out business and trade to attract investor entry. These include hotel facilities to encourage tourism activity and deal. Given attention to rapidity service sector and development of economic activity worth increase city and based oriented knowledge.
- Complete educational institution centre with the university, college, museum and public library
- Centre to cultural activity, sport and recreation events and convention at the national and international level.
- Have complete infrastructural facility, adequate public utility include friendly consumer public parks especially to Disabled Persons (OKU). These include public transport facilities, traffic management system and efficient road network and ICT services; AND
- Obtain certain recognition either at the national level or international in certain areas parallel with a standard as a city.
- Capital city or administrative centre for any State or district
- Have people not less than 150,000
- Have steady income from financial resource (sustainable) with annual outcome not less from RM20 million and able to prepare services at the proper and comfortable level relevant with quality of living level in certain City.
- Have industrial activity, business, tourism and major present housing or in planning which identified as potential contribute to expansion hold may be levied and generate job opportunities in range of sectors .
- Capacity in provide space and opportunity to plenty dealer by promote growth investment activity, business and commercial
- Have infrastructural facility that satisfies and connect with highway system that efficient. Have steady concept of town planning (sustainable) which cope in providing the environment safe and comfortable to inhabit. Indicator stable city as those emphasized in Malaysia Urban Indicator Network System (MURNInet) also will be accounted; AND
- Have programmers which can encourage local citizen to develop community respectively through city management that efficient like the implementation Program of Local Agenda 21 (LA 21) or involvement committee by citizen.
C) District Council
- Other areas apart from major towns
- Inhabitants less than 150,000 people
- Total annual revenue less than RM20 million; and
- Overall citizen needs focused to infrastructure facility and public utility compare with services at municipal.
Special consideration may be given over particular importance; such for instance supply investment and tourism interesting point. Application must gain support from relevant agencies.
Though that, if one Local Authority does not succeeded to record minimum total annual revenue that prescribed, consideration still may be given if stated Local Authority have capacity and ability to generate additional revenue from various source which certified until can achieve the total minimum as fixed for purpose of upgrade status either to City Council or Council. For capital that has not yet gain city status, then it reasonable to be given special consideration and state government may help in their revenue if needed.
This new criterion were approved in the State Council Meeting for Local Government (MNKT) 60th On 3rd Of June 2008