BUDGET 2019 | The government will reduce its equity ownership in non-strategic companies by realising the best possible value and use the proceeds to reduce debt.

Finance Minister Lim Guan Eng said the government would also leverage government assets by implementing projects through the public-private partnership (PPP) model based on land conversion transactions.

He said the collaboration would be carried out through open tender rather than direct negotiation.

"Previously, through direct negotiation, government land was valued below market prices, while the cost of projects was higher than the actual cost," he said when tabling Budget 2019 in Parliament today.

In the meantime, Lim said the actual PPP-based model of open tender would enable the government to get the highest returns from the assets disposed of and best value for the projects awarded.

“Based on this new model, 24 PPP projects such as schools, military camps, police and fire stations, and affordable housing worth RM5.2 billion will be implemented and the government is expected to receive RM800 million in net return from the land sales," he said.

Besides, Lim said the government also planned to implement land sales on a scheduled and staggered basis to the highest bidders subjected to land conditions to maximise revenue.

- Bernama