Malaysia's Privatisation Of Infrastructure Facilities: A Call For Fine-Tuning

Abstract

After more than a decade since the contemporary privatisation arrangement was introduced to the world, Malaysia still leads among the developing countries in this field. While some analysts laud Malaysia's privatisation approach, others are less impressed. This paper focuses on the already implemented build-operate-transfer (BOT) schemes with which the share of the public sector in developing physical infrastructure is reduced. The installed North-South Highway project, the Independent Power Generation Schemes and the National Sewerage System - all path-breaking in their own right - are examined. The paper calls for greater transparency when forging future privatisation deals; in particular the selection of concession companies and the formulation of user-charge structures. Policy-makers are well-advised to fine-tune the manner in which future BOT deals are struck. Otherwise a groundswell of public disenchantment may reach to a level whereby the long-term viability of the national privatisation programme is jeopardised.