What specific powers does the Federal Constitution grant to the federal Parliament regarding finance?

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Federal Parliament's Powers Over Finance Under the Constitution

The federal Parliament in Malaysia possesses the authority to legislate on matters enumerated within the Federal List, including specific aspects of finance. This power is constitutionally defined, granting the federal legislature exclusive jurisdiction over currency, legal tender, and coinage, as outlined in the Ninth Schedule of the Federal Constitution. Consequently, state legislative assemblies are precluded from enacting laws pertaining to these financial domains.
Legislative Authority on Federal Matters

Article 74(1) of the Federal Constitution explicitly empowers the federal Parliament to create laws concerning any subject listed in the Federal List or the Concurrent List within the Ninth Schedule. This establishes the federal government's primary role in national legislative matters, ensuring uniformity and central control over key areas of governance.
Finance as a Federal List Item

Finance is designated as Item 7 within the Federal List of the Ninth Schedule. This classification specifically includes the regulation of currency, the definition of legal tender, and the minting of coinage. These are critical components of national economic sovereignty and are therefore reserved for federal jurisdiction.
Exclusive Authority on Currency and Coinage

The Currency Act 2020, which came into effect on October 1, 2020, further delineates the federal government's control over financial matters. This legislation designates Bank Negara Malaysia as the sole authority responsible for issuing currency notes and coins. The Act also stipulates that only currency issued by the central bank, provided it is not defaced or tampered with, shall be recognised as legal tender in Malaysia.

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What specific powers does the Federal Constitution grant to the federal Parliament regarding finance?

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