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The privatization policy was first
announced as a national policy by the Government in 1983. It represents
a new approach in the national development policy and complements other
national policies such as the Malaysia Incorporated policy, developed
to underscore the increased role of the private sector in the development
of the Malaysian economy. This approach is to facilitate the economic
growth of the nation, relieve the financial and administration burden
of the Government, reduce the Government's presence in the economy, decrease
both the level and scope of public spending and to allow market forces
to govern economic activities and improve efficiency and productivity
in line with the National Development Policy. In respect of ownership
of wealth, the privatization policy forms an integral part of the Government's
strategy in realizing active participation by Bumiputera in corporate
sector to correct the imbalances in the corporate sector participation.
The privatized entity should allocate 30% of its equity to Bumiputera.
Foreign participation in a privatized entity is limited to a maximum of
25 % of its share capital. |
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In implementing the
policy, the Government published statements from time to time to explain
to the public the intention and content of the policy as well as to keep
the general public informed. In order to ensure that, the privatization
effort is channeled to appropriate priority areas to optimize the impact
of the policy implementation in terms of the achievement of the policy
objectives, the Government published the Malaysian Privatization Master
Plan (PMP) in 1991 followed by Guidelines on Privatization. The Master
Plan explained the implementation of the policy as well as the progress
achieved and addressed the future direction of the programme.
The Guidelines on Privatization detailed among others, the objectives
of the policy, the methods applicable and the implementation machinery.
Several developments have taken place since the policy was first announced.
The significant changes which have been introduced by the Government include
the amendments of the various laws in order to allow privatization to
take place and the commissioning of a study to help in the drawing up
of a privatization Master Plan.
Privatization can be implemented by several methods as follows:
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Sale
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Lease |
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Management
Contract |
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Build |
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Build-Operate-Transfer
(BOT) |
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Build-Operate-Own |
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Build-Operate |
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Build-Lease-Transfer |
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Land
Development/Land Swap |
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Management
Buy Out |
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Either a single method or a combination of methods
may be chosen depending on the merits of each case. The choice of methods
will be considered case by case. As a general rule, however, the method
which results in the maximum practicable degree of private sector involvement
will be aimed at. Comparatively, the sale method is expected to satisfy
this criterion. In addition, the methods to be used will reflect the requirements
of national objectives and the constraints in each case. In order to facilitate
the implementation of privatization programme, the Government has amended
a number of laws such as Pension Act 1980, Telecommunication Act 1950,
Port Act 1963, and Electricity Act 1949. |
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