Big ticket items lined up for privatisation
Privatisation is the name of the game under the 10th Malaysia Plan (10MP), with extensive plans to boost investment and centralise essential services.
Privatisation is the name of the game under the 10th Malaysia Plan (10MP), with extensive plans to boost investment and centralise essential services.
From development projects to solid waste management, the government looks set to accommodate more private sector involvement.
Over the next five years, the government intends to develop 52 projects worth an estimated RM62.7 billion under Public-Private Partnerships (PPP).
This is more than five times the value of PPP projects under the Ninth Malaysia Plan, which had a total of 22 projects worth an estimated RM12 billion.
The projects under consideration include seven toll highways, five Universiti Teknologi Mara branch campuses, the Integrated Transport Terminal in Gombak, privatisation of Penang Port and redevelopment of Angkasapuri Complex in Kuala Lumpur into a Media City.
Another RM20 billion will be set aside under a facilitation fund to encourage more private investment in projects with high strategic value and multiplier effects.
The fund's objective is to assist the private sector to finance land cost and basic infrastructure such as access roads, bridges and water supply, with priority for infrastructure, education, tourism and health projects.
However, it will only be available to projects that have a minimum capital cost or investment of RM100 million.
Among the projects considered for the fund are the Senai Hi-Tech Park in Iskandar Malaysia and raw water supply for the Industrial Complex in Tanjong Langsat, both in Johor.
Trust Schools in the pipeline
Schools will also be the target of the PPP system, with plans to set up Trust Schools - schools jointly-run and managed by private partners and civil school leaders.
Trust schools will have extensive rights to decide over curriculum, finance and human resources including staff, with the aim of elevating standards in government and government-aided schools.
The schools selected will span the spectrum from weak to top performers and will include schools from urban, suburban and rural areas.
The government also plans to complete the federalisation of water supply and solid waste management over the period of the 10MP.
For water supply, the government is gunning for full migration of state water operators to its new licensing regime under the National Water Services Commission (SPAN).
At the same time, this process will eventually bring together water supply and sewerage management costs, making it compulsory for consumers to pay for both under a single water tariff.
As for solid waste management, the government plans to take the daily upkeep of public areas off the hands of local authorities with a total restructuring of the sector.
Solid waste management and sanitation will be contracted out to three yet-to-be-named concessionaires, who will be responsible for everything from drains and public toilets to collecting and disposing of garbage at markets and other public areas.
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