What is Development Funds Act 1966?

Development Funds Act 1966 is Malaysia Act, cited as Act 406 (Revised) 1966, currently marked in force and first recorded in 1966.

Is Development Funds Act 1966 still in force?

Yes — Development Funds Act 1966 is currently in force.

When did Development Funds Act 1966 take effect?

Development Funds Act 1966 was first recorded in 1966.

How many sections does Development Funds Act 1966 have?

Development Funds Act 1966 contains 32 sections.

Where can I read the official version of Development Funds Act 1966?

The official text of Development Funds Act 1966 is published at lom.agc.gov.my.

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Development Funds Act 1966

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Enacted: 1966
Sections: 32

Front matterCover and publication detailsOpen

Please refer to Reprint ...2006

Revised up to...30th November 1989Date of publication in Gazette of this revised version...7th December 1989Date appointed for coming into force of this revised version pursuant to section 6(1)(xxiii) of the Revision of Laws Act 1968(Act1)14th December 1989

Act 406

DEVELOPMENT FUNDS ACT 1966 (Revised—1989)

Opening note

Preamble

An Act relating to the Development Fund of the Federation and to make provision relating to financial procedure with respect to the Development Funds of the States. [1st January 1967.] BE IT ENACTED by the Duli Yang Maha Mulia Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows:

Part I

PRELIMINARY

Section 1

(1)

This Act may be cited as the Development Funds Act 1966.

(2)

This Act shall apply throughout Malaysia.

Section 1A

In this Act, unless the context otherwise requires—

"Menteri Besar or Chief Minister" shall have the meaning assigned thereto in the Financial Procedure Act 1957;

"Minister" means the Minister of Finance;

"Yang di-Pertua Negeri" means the Head of State, by whatever style known, in a State not having a Ruler.

Part II

FEDERAL DEVELOPMENT FUND

Section 2

There shall be paid into the Development Fund specified in the Second Schedule to the Financial Procedure Act 1957 (hereinafter referred to as "the Fund")—

(c)

where under section 4 any expenditure out of the Fund shall have been authorised to be made by way of loan, sums representing the repayment of the principal of any such loan;

(d)

moneys received from the sale or realisation of any asset paid for out of the Fund; and

(e)

other moneys received by the/Government of Malaysia for any one or more of the purposes of the Fund.

Section 3

The moneys in the Fund shall be applied only to the purposes or any one or more thereof specified in the First Schedule and in accordance with such resolutions as may from time to time be passed by the Dewan Rakyat under section 4 appropriating and directing the expenditure of such moneys:

Provided that as respects sums paid into the Fund under section 2 (b) (being sums representing the proceeds of any loan raised by the Government of Malaysia for the purposes of the Fund as authorised by any written law) and as respects the moneys received by the Government of Malaysia under section 2 (e), the appropriation shall only relate to the purposes specifically provided by the said written law or to the specific purposes for which the moneys have been received.

Section 4

(1)

The Yang di-Pertuan Agong shall in respect of every financial year cause to be laid before the Dewan Rakyat a statement of—

(a)

the estimated opening balance and total income of the Fund for the year;

(b)

the proposed expenditure, whether direct or by way of loan, to be met out of the Fund in the year;

(c)

the sums necessary to meet each head and subhead of the proposed expenditure;

(d)

the estimated total cost of projects, works and undertakings included under any head or subhead of such proposed expenditure, whether or not such projects, works or undertakings are to be completed in the year.

(2)

If in respect of any financial year it is found—

(a)

that the amount appropriated under any head of expenditure is insufficient or that a need has arisen for expenditure for a purpose for which no amount has been appropriated by a resolution of the Dewan Rakyat; or

(b)

that any moneys have been expended for any purpose in excess of the amount, if any, appropriated for that purpose by a resolution aforesaid, a supplementary statement showing the sums required to be spent and the estimated total cost (or the actual cost) of the project, work or undertaking included under each sub head of expenditure shall be laid before the Dewan Rakyat.

(3)

The Dewan Rakyat may by resolution approve all or any part of any expenditure shown in a statement or supplementary statement referred to in subsections (1) and (2), and shall by such resolution appropriate the sums necessary to meet such approved expenditure.

(4)

The Yang di-Pertuan Agong shall cause to be laid before the Senate a statement of any expenditure approved by the Dewan Rakyat under subsection (3).

(5)

The Yang di-Pertuan Agong may, in respect of any financial year, cause to be laid before the Dewan Rakyat a provisional statement showing the sums necessary to meet urgent expenditure until the statement referred to in subsection (1) is laid before the Dewan Rakyat; and it shall be sufficient to indicate in such provisional statement the heads of the proposed expenditure.

(6)

Subsections (3) and (4) shall apply to a provisional statement laid before the Dewan Rakyat under subsection (5).

Section 5

If it appears to the Minister necessary to alter the proportion assigned to the sub heads under a head of expenditure shown in a statement of any expenditure approved by the Dewan Rakyat under section 4 (3), he may by warrant under his hand direct that there shall be applied in aid of any sub head which may be deficient a further sum out of any surplus arising on any other sub head of the same head:

Provided that the amount appropriated under any head of expenditure by a resolution passed under section 4 (3) is not thereby exceeded:

And provided further that the estimated total cost of any project, work or undertaking to which such subhead relates, as specified in the last preceding statement laid before the Dewan Rakyat pursuant to section 4 (1) and (2) is not thereby exceeded.

Section 6

(1)

Notwithstanding anything in section 3 there may be included in any such statement as is referred to in section 4 (1), (2) and (5), provision for a Contingencies Reserve; and references in the said section 4 to expenditure shall include references to such provision as aforesaid.

(2)

Moneys appropriated to the Contingencies Reserve shall be applicable, at the direction of the Minister, for making advances for meeting expenditure for a purpose falling within the terms of the First Schedule pending approval of a statement or supplementary statement under section 4.

(3)

A schedule of any direction under subsection (2) shall be laid before the Dewan Rakyat at its next meeting.

Section 7

Every appropriation made under section 4 shall lapse and cease to have any effect at the close of one calendar month following the financial year, and no payment shall be made of the appropriation during that month except in respect of work performed, goods received, services rendered or any other contractual arrangement made prior to the end of that year and properly chargeable to the accounts of that year.

Section 8

The Minister may by warrant under his hand authorise the issue from the Federal Consolidated Fund of sums appropriated under section 4 or directed to be applied in accordance with section 6, and may limit or suspend any expenditure so authorised.

(a)

moneys from time to time appropriated to and authorised to be paid into the Fund by this Act or by any other Federal law for any one or more of the purposes of the Fund;

(b)

sums representing the proceeds of any loan raised by the Government of Malaysia for any one or more of the purposes of the Fund and appropriated to such purposes by the written law authorising the rasing of the loan;

Part III

STATE DEVELOPMENT FUNDS

Section 9

(1)

Part II shall have application in respect of the Development Fund of a State as they have application in respect of the Development Fund specified in the Second Schedule to the Financial Procedure Act 1957, and references in that Part to the Development Fund specified in the said Second Schedule shall be construed accordingly.

(2)

In relation to the application of Part II to the Development Fund of a State as aforesaid—

(a)

references in that Part specified in the first column of the Second Schedule shall be construed as references specified in the corresponding second column of the said Schedule;

(b)

the expression "purposes or any one or more thereof specified in the First Schedule" in section 3, shall mean the purposes so specified or any one or more thereof which, as respects that State, are State purposes and includes any other purpose so specified and agreed to by the Minister but such expression shall not in any case include the purposes of water supplies in a State where a fund for those purposes has been specified by the Legislative Assembly of that State pursuant to section 10 (4) (b) of the Financial Procedure Act 1957;

(c)

section 4 (4) and paragraph 12 specified in the First Schedule shall not apply.

Part IV

GENERAL

Repeal.

Section 10

The written laws specified in the Third Schedule are hereby repealed.

Section 11

The Third Schedule to the Financial Procedure Act 1957, is hereby amended by adding thereto the following new item:

"Development Fund".

Section 12

Nothing in this Act shall be deemed to affect the legality of any payments made or expenditure authorised in respect of any Development Fund before the commencement of this Act.

Section 13

In relation to any Development Fund (whether or not established by or in accordance with any written law) all acts done, payments made or expenditure authorised or incurred after the commencement but before the passing of this Act, which if done, made, authorised or incurred before the commencement of this Act would have been valid, shall be deemed to have been done, made, authorised or incurred under this Act.

FIRST SCHEDULE

(Section 3)

PURPOSES TO WHICH THE FEDERAL DEVELOPMENT FUND MAY BE APPLIED

Section 1

The construction, improvement, extension, enlargement and replacement of buildings and works, and the provision, acquisition, improvement and replacement of other capital assets (including vehicles, vessels, aircraft, rolling stock, machinery, instruments and equipment) required in respect of or in connection with—

(a)

drainage and irrigation;

(b)

public roads, bridges, ferries, railways, aerodromes and airways and other means of communication;

(c)

public offices and other public buildings;

(d)

defence and internal security;

(e)

ports, harbours, light houses, canals and river-works, and the navigation of seas and rivers;

(f)

telecommunications and broadcasting;

(g)

the production, distribution and supply of water power, electricity, gas and other forms of power and energy;

(h)

education, libraries, museums, laboratories and scientific research;

(i)

hospitals, clinics, dispensaries, asylums, quarantine stations and other medical and health institutions;

(j)

public health, sanitation, sewerage and water supplies;

(k)

veterinary services and control of agricultural pests;

(l)

housing, including urban renewal and improvement trusts;

(m)

soil conservation;

(n)

the control and prevention of fires and other accidents;

(o)

repair and maintenance of public property;

(p)

printing and printing presses;

(q)

public administration and the provision and maintenance of public services;

(r)

industrial development;

(s)

the rehabilitation of mining land and land affected by soil erosion, and the reclamation of land from seas, rivers and other waters;

(t)

tourist resorts and other tourist development;

(u)

recreational facilities;

(v)

agricultural marketing;

(w)

family planning.

Section 2

The development, improvement, conservation and exploitation of agriculture, fisheries, forests, and minerals and other natural resources in Malaysia, and the provision, acquisition, improvement and replacement of capital assets required in respect thereof or in connection therewith.

Section 3

The acquisition of land and of any right or interest in or over land and in respect of the use of any invention.

Section 4

The carrying on of any survey, research, or investigation preparatory to the undertaking of any such purpose as is referred to in paragraphs 1 and 2 of this Schedule or to the formation of any plan or scheme for the development, improvement, conservation or exploitation of the resources in Malaysia or in any part thereof.

Section 5

The payment of the personal emoluments in respect of any public offices specified under section 15 (2) (b) of the Financial Procedure Act 1957 and any charges or expenses incidental to or arising from the carrying out of any of the purposes referred to in paragraphs 1, 2, 3 and 4 of this Schedule.

Section 6

Grants and loans to any Government in Malaysia and grants and loans to or investment in public and statutory authorities and any other body or any person for any one or more of the purposes referred to in paragraphs 1, 2, 3, 4 and 5 of this Schedule.

Section 9

The payment of any sum subscribed by the Government as investment in the authorised capital of the Malayawata Steel Limited registered under the Companies Act 1965.

Section 7

The payment of any sum subscribed by the Government pursuant to section 6 of the Central Bank of Malaysia Ordinance, 1958, in respect of the authorised capital of the Central Bank of Malaysia.

Section 8

The payment of any sum subscribed by the Government as equity investment in the authorised capital of Bank Bumiputra licensed under the Banking Act 1973.

Section 10

The payment of any sum subscribed by the Government for any investment authorised by a resolution of the Dewan Rakyat under section 8/(2)-

(b)

of the Financial Procedure Act 1957.

Section 11

Any grant or transfer of moneys to the Housing Loans Fund specified in the Second Schedule to the Financial Procedure Act 1957 and for the purpose of that fund as specified in section 5 of the Housing Loans Fund Act 1971, subject to such terms and conditions as the Minister may impose.

Section 12

DEVELOPMENT FUNDS

Grants or loans, subject to such terms and conditions as the Minister may impose, to any company (established for the promotion of the economic development of any community) registered under the Companies Act 1965 and specified by resolution of the Dewan Rakyat.

Section 13

...

SECOND SCHEDULE

(Section 9 (2) (a))

References in Part II

Construction in relation to the application of Part II to the Development Funds of the States

Section 1

Federal ..

State

Section 2

Dewan Rakyat .. Legislative Assembly

Section 3

Yang di-Pertuan Agong

Ruler or Yang di-Pertua Negeri of a State, as the case may be

Section 4

Minister

Menteri Besar or Chief Minister of a State and, in the case of Sabah, the Minister charged with responsibility for finance in that State

THIRD SCHEDULE

(Section 10)

WRITTEN LAWS

F of M. No. 18 of 1958 .. Development Fund Ordinance, 1958

F of M. No. 33 of 1962 .. Development Fund Act, 1962

Act 406

(Revised----1989)

Particulars under section 7 (ii) and (iii) of the Revision of Laws Act 1968 (Act 1)

LIST OF AMENDMENTS

Amending LawShort TitleIn force fromActA23Development Funds (Amendment) Act 196928-3-1969ActA259Financial Procedure and Development Funds (Amendment) Act 197416-8-1974ActA277Financial Procedure and Development Funds (Amendment) Act 197531-1-1975ActA398Financial Procedure (Amendment) Act 197710-6-1977ActA453Development Funds and Housing Loans Fund (Amendment) Act 19791-1-1978;3-9-1971ActA476Development Funds (Amendment) Act 19801-12-1977ActA506Development Funds (Amendment) Act 198128-3-1969

LIST OF LAWS OR PARTS THEREOF SUPERSEDED

No. Title 70 of 1966 .. Development Funds Act 1966

DEVELOPMENT FUND ACT 1966

(Revised----1989)

LIST OF AMENDMENTS MADE BY THE COMMISSIONER OF LAW REVISION UNDER SECTION 6 OF THE REVISION OF LAWS ACT 1968 (ACT 1)

ProvisionParticulars of AmendmentAuthority for AmendmentLong titleThe phrase “to amend and consolidate the law” omitteds.6(1)(vi)s.1The provision for date of commencement omitted; the words “The provisions of” in subsection(2) is omitteds.6(1)(i)(d);

(iii)

s.2The words “the provisions of” omitteds.6(1)(iii)s.3The words “to this Act” omitteds.6(1)(iii)s.4(6)The words “the provisions of” omitteds.6(1)(iii)s.6(2)The words “to this Act” omitteds.6(1)(iii)s.9The words “The provisions of” and “of this Act” omitteds.6(1)(iii)s.10The words “to this Act” omitteds.6(1)(iii)s.14Renumbered as section1A;the definition of“Governor”is substituted by the definition of“Yang di-Pertua Negeri”s.6(1)(xii);

(xviii)

;ActA354First ScheduleThe word“Malaysia” substituted for the words“the Federation”s.6(1)(xviii)Second ScheduleThe words“Yang di-Pertua Negeri” substituted for the word“Governor”in item3s.6(1)(xviii);ActA354Throughout the Act1.The words“Dewan Rakyat” substituted for the words“House of Representatives”s.6(1)(iii)

[Commissioner's Amendments]

ACT 406

Provision

Particulars of Amendment

Authority for Amendment

Section 2

The words "Government of Malaysia" substituted for the words "Federal Government"

s. 6 (1) (xviii)

Common questions

What is Development Funds Act 1966?: Development Funds Act 1966 is Malaysia Act, cited as Act 406 (Revised) 1966, currently marked in force and first recorded in 1966.
Is Development Funds Act 1966 still in force?: Yes — Development Funds Act 1966 is currently in force.
When did Development Funds Act 1966 take effect?: Development Funds Act 1966 was first recorded in 1966.
How many sections does Development Funds Act 1966 have?: Development Funds Act 1966 contains 32 sections.
Where can I read the official version of Development Funds Act 1966?: The official text of Development Funds Act 1966 is published at lom.agc.gov.my.

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