KUALA LUMPUR, May 25 -- Housing and local government minister Nga Kor Ming has warned local councils that poor performance under the new "traffic light" grading system will carry consequences, including funding cuts.

According to Harian Metro, Nga said the assessment system, which came into effect earlier this month, is meant to improve public service delivery and promote accountability and transparency across all 156 local authorities nationwide.

"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"Any local authority rated 'red' will have its funding withdrawn.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...