Efficiency in Urban Governance towards Sustainability and Competitiveness of City: A Case Study of Kuala Lumpur Hamzah Jusoh, and Azmizam Abdul Rashid Abstract—Malaysia has successfully applied economic planning to guide the development of the country from an economy of agriculture and mining to a largely industrialised one. Now, with its sights set on attaining the economic level of a fully developed nation by 2020, the planning system must be made even more efficient and focused. It must ensure that every investment made in the country, contribute towards creating the desirable objective of a strong, modern, internationally competitive, technologically advanced, post-industrial economy. Cities in Malaysia must also be fully aware of the enormous competition it faces in a region with rapidly expanding and modernising economies, all contending for the same pool of potential international investments. Efficiency of urban governance is also fundamental issue in development characterized by sustainability, subsidiarity, equity, transparency and accountability, civic engagement and citizenship, and security. As described above, city competitiveness is harnessed through ‘city marketing and city management’. High technology and high skilled industries, together with finance, transportation, tourism, business, information and professional services shopping and other commercial activities, are the principal components of the nation’s economy, which must be developed to a level well beyond where it is now. In this respect, Kuala Lumpur being the premier city must play the leading role. Keywords—Economic planning, sustainability, efficiency, urban governance and city competitiveness. I. INTRODUCTION ISION 2020 targets Malaysia to be developed nation economically, socially, politically and spiritually by year 2020. The manifestation and aspiration of Vision 2020 sets the framework for which development is to be steered. The nation is now in its second phase of development towards achieving the Vision. Rapid globalisation, progression in science and technology and the need to capitalise on knowledge-based economy requires the country to have a strong foundation in order to be competitive with other nations. In this context, the direction of development has to be planned and managed systematically and comprehensively to induce the country’s capacity to compete globally. The urban sector is an important catalyst towards national economic growth and a vital investment centre for the nation. Apart from being a centre for social and recreation, urban sector plays an important role in attracting local and foreign investors in economic activities. Therefore, cities must be able to provide a good and competitive environment, complemented with all forms of activities within its territory. Peninsular Malaysia is expected to experience a rapid process of urbanisation by year 2020, with a majority of the population being urbanized. The increase in population means additional space is required for housing, public amenities and infrastructure. Hence, development to be carried out should be able to bring a good return whilst priority being given to environmental protection, through a balanced and optimal use of national resources. Brain [1] proposed urbanisation issues being emphasized by the government, among other, are urban poverty the rising crime rate, solid waste disposal, housing for the poor, environmental protection, pollution etc. These issues need to be tackled holistically to ensure the role of urban centre as the engine of economic growth will be continuously maintained and enhanced. Cities need to be governed efficiently and effectively to promote a sustainable and conducive environment as a place of work and living. At the same time, the uniqueness of city should also the preserved to maintain its image and distinct identity. II. THE CONCEPT OF URBAN GOVERNANCE Beata Banachowicz & Justyna Danielewicz [2] proposed urban governance implies high organizational efficiency, with respect to the process of the assumption formulation for local and regional development policy and its implementation Thus it contributes to economic development, stabilization and welfare, bringing the transparency of decision-making process, social participation, openness, finance equilibrium and law being obeyed to. Integrated mechanisms, processes and institutions, through which citizens and social groups might state their preferences, negotiate solutions of their contradictions and make use of their constitutional rights, as well as realize their duties, is also being understood as the urban governance. Thus, public governance should guarantee that formulating political, social and economic priorities will be made in accordance with the broadly understood social consensus, with both the poorest and the richest affairs taken into account when decision process influencing resources and goods allocation is being considered. Governance can be used in several contexts such as corporate governance, international governance, national governance and local governance. Since governance is the process of decision-making and the process by which decisions are implemented, an analysis of governance focuses on the V World Academy of Science, Engineering and Technology 40 2008 443