Constitution of Malaysia

PART VI - RELATIONS BETWEEN THE FEDERATION AND THE STATES

Chapter 5 - National development

92

(1) If, after a recommendation from an expert committee and after consultation with the National Finance Council, The National Land Council and the Government of any State concerned, the Yang di- Pertuan Agong is satisfied that it is conductive to the national interest that a development plan be put into operation in any area or areas in one or more of the States, the Yang di- Pertuan Agong may, after publishing the plan, proclaim the area or areas as a development area; and thereupon Parliament shall have power to give effect to the development plan or any part thereof, notwithstanding that any of the matters to which the plan relates are matters with respect to which, apart from this Article, only States would have power to make laws.

(2) Any Act passed in pursuance of this Article shall recite that it has been so passed and that the provisions of Clause (1) have been complied with; and Article 79 shall not apply ta any Bill for such an Act or any amendment to such a Bill.

(3) In this Article, "development plan" means a plan for the development, improvement, or conservation of the natural resources of a development area, the exploitation of such resources, or the increase of means of employment in the area.

(4) Without prejudice to their power under any other Article to require any interest in land to be acquired or granted for federal purposes, the Federal Government may from time to time require the reservation for the purposes for a development plan, to such extend as they may specify, of any land in a development area which is not occupied by private persons: but any diminution, in consequence of the reservation of the annual revenue received by a State shall be made good to the State by the Federation.

(5) All income received by the Federation through the operation of a development plan shall, subject to Clause (6). Be applied-

(a) in the first instance, for the provision of capital and the meeting of working expenses for the development plan;

(b) in the second instance, for the repayment to the Federation of any expenditure, including expenditure under Clause (4), incurred by the Federation in operating the plan; and

(c) as to the balance, for payments to the State in which the development area is situated in two or more States, to those States in such proportions as the Federal Government may determine.

(6) If it is agreed between the Federal Government and the Government of any State which includes the whole or any part of the development area that any expenditure incurred in operating the development plan is to be met by the State, any expenditure so met shall be repaid to the State and the repayment shall rank pari passu with the repayment to the Federation of any expenditure incurred by the Federation.

(7) Parliament may repeal or amend any Act passed in pursuance of this Article, and for that purpose may make such incidental and consequential provisions as it may consider necessary.

(8) Nothing in this Article shall affect the power of Parliament or of the Legislature of any State-

(a) to impose such taxes or rates as it is authorised to impose under any other provision of this Constitution; or

(b) to make from the Federal Consolidated Fund or the State Consolidated Fund, as the case may be, grants not repayable under Clause (5) or (6);

except that where, in pursuance of Clause (1), a rate is imposed on any property by federal law which, but for this Article, might have been imposed by State law, no rate of the same kind shall be imposed by State law for any period for which the rate imposed by federal law is payable.