He said they would be given an opportunity to improve their respective agencies, as the assessment system had only just come into effect earlier this month, Harian Metro reported.

“If you fail, I will submit your name to the director-general of public services and that has serious implications,” he said.

“Any local authority rated ‘red’ will have its funding withdrawn. If it’s rated ‘yellow’, funding will be reduced. But if it’s rated ‘green’, funding will be increased.

“If any local authority receives a red rating, both its mayor (or president) and secretary will be called in for counselling and sent for performance improvement training,” he told reporters after an event in Subang Jaya today.

The “traffic light” grading system, which applies to all 156 local authorities nationwide, was introduced to improve the quality of services provided and to ensure greater accountability and transparency.

It is intended to offer a clear benchmark for service delivery improvements, ensuring that public resources are used efficiently, with every ringgit spent justified through return on investment and cost-benefit analysis.

Earlier, Nga attended the Seri Kembangan public market design competition prize-giving ceremony.

He said the ministry had received 91 entries from various local firms and professional architects for the competition, with seven expert and community-based judges shortlisting the top 10 designs.

Each shortlisted entry received between RM5,000 and RM50,000 in cash prizes, along with certificates for the best designs.

In addition to the cash prizes, he said, the winner would be appointed as the consultant for the RM12 million market construction project.

“This competition was judged based on a system comprising 90% evaluation by an independent panel of professional jurors and 10% by community representatives, including assemblymen and local councillors,” Nga said.