Adopting Wellbeing Budgeting at the Local Government Level in Malaysia: Lessons from New Zealand and Other Models

Abstract

Objective & object:

This article examines how Malaysian local governments can adopt wellbeing budgeting by drawing lessons from New Zealand’s Wellbeing Budget and subnational practices in the United Kingdom, Canada, and Australia. The study focuses on Malaysia’s local government context, particularly Penang, Kuala Lumpur, and Sarawak.

Methods:

The study employs a qualitative descriptive approach based on a literature review and comparative case analysis. It examines wellbeing economics, international wellbeing budgeting practices, Malaysia’s governance and budgeting context, and selected local initiatives.

Results & Conclusions:

The findings show that Malaysian local governments have introduced initiatives aligned with wellbeing goals, including Penang’s Vision 2030, Kuala Lumpur’s inclusive budgeting agenda, and Sarawak’s SDG roadmap. However, implementation remains constrained by limited local autonomy, fragmented institutional coordination, conventional budgeting practices, and inadequate wellbeing indicators and data systems. The study concludes that wellbeing budgeting requires clear outcomes linking wellbeing goals, indicators, planning, and budget allocation.

Limitations:

This conceptual study relies on secondary data and selected case studies and does not empirically evaluate implementation effectiveness.

Implications:

The article proposes a roadmap involving local wellbeing goals, indicators and data systems, outcome-based planning and budgeting, budget reform, institutional coordination, and community engagement to support more evidence-based, people-centred local government budgeting.