Closely examining the Malaysian administrative modernization or reform initiated by Dr. Mahathir Mohamad, the Prime Minister of Malaysia from 1981 to 2003 - a decade of modernization and faster economic growth - the reseacher analyses various programmes and reform policies introduced in the public administration system in Malaysia. Modernization efforts that were carried out not only involved the federal government levels but also included the local government level. This article identifies the administrative reform efforts that were introduced at the local government level. Research were carried out from 2002 to 2003, to gauge the opinion of the senior officers who are currently serving in various units in the local governments in eight states, namely Perlis, Penang, Kedah, Kelantan, Sabah, Sarawak, Pahang and Terengganu. The eight states were chosen based on the assumptions that they are still some reform efforts implemented that have not met the targets. The result of the research shows that not all reform efforts introduced and adopted in those states are effective and successful. This means that the local government must be ready to carry out reforms and changes to modernize their administrative system to be able to compete with other local government in other advanced and developing countries.