Advantages Of Privatization In Malaysia

In the 20th century, trade unions is an important labour force through which working people have a collective voice at work and an avenue to equality, fair treatment and economic security. However, in the 21st century, it was argued that ‘organised labour seems heading for extinction’ (The Economist, 21 September 2006) as cited in Schnabel (2012). It seems that trade unions in various countries, including Malaysia, are slowly declining its density and membership.

Malaysia is a country of democracy, a multiparty system. The ruling party Barisan Nasional has been in power for over 25 years. That fact has provided the country with a high degree of stability, which is an important factor for companies investing in the country. Corruption exists in the country. This may be an obstacle for foreign companies, as it increases the company's costs and could cause problems. Transparency International takes 47th Malaysia out of 180 countries in its Corruption Perception

Privatization policy was introduced in Sri Lanka in 1977. The great efforts were taken by the government after privatization to reform economic policies including allowing private ownership in the plantation sector, to open the country for foreign direct investment and promoting free trade with other countries. Three major sectors of the Sri Lankan economy such as agriculture sector, industrial sector, and service sector were also subjected to economic reforms under this new trend. Several studies have been conducted to evaluate the impacts of new economic policy in various sectors of Sri Lanka. Sri Lanka’s agriculture export income mainly depends on Tea, Rubber and Coconut plantations. Further, rice is cultivated as a stable crop of Sri Lanka. 27.1 percent employment is occupied in Agriculture sector while agriculture sector contributes to 7.1 percent of Gross Domestic Product of Sri Lanka.

In order to understand the reasons behind privatisation of public services, it is essential to study the socio-political environment of the UK in the 1970’s. During this period of time, the UK was hit by the post-war crisis, which led the Tories British political party, also known as the Conservative Party, to lose dominance in the parliament. During this time, in the Ridley Report, the Thatcher shadow cabinet started suggesting about the need to break up the public sector and to disjoint unions. Initially, privatisation was subordinate to other policy themes. Nonetheless, during Margaret Thatcher’s governance starting in 1979, a certain degree of privatisation was put in place, notably regarding British Aerospace and Cable & Wireless (1). Nonetheless, during this period of time, the government’s aim was to privatise profitable entities, in order to increase revenues and therefore minimize borrowing from the public-sector.

1Malaysia product was established by the Malaysian Prime Minister Dato' Sri Haji Mohammad Najib bin Tun Haji Abdul Razak on 16 September 2010 with the slogan "Generating Transformation". 1Malaysia is intended to improve the relationship of all Malaysians, regardless of background, race, religion or culture. There are some major concerns that need to be addressed to seriously engage in the 1Malaysia concept. 1Malaysia concept meets the needs of all sectors of a society and to ensure equal distribution of wealth between races, between the state and federal governments. Integrity in government and public sector is a problem. Introduction NKRA and KPI is a laudable step. Use of Key Performance Indicators (KPIs), metrics and goals are more commonly used in private business, and the National Key Result Areas (NKRA) is natural is an important part of the efforts of 1Malaysia.

Privatization (outsourcing) is the process of transferring ownership of property or business from a government to a privately owned entity. Privatization is an ongoing trend in many parts of the developed and developing world. It conjures both positive and negative emotions within the corporate arena as well as often ignite as much heat as light within an education discussion. Proponents of privatization maintain that the competition in the private sector fosters more efficient practices, which eventually yield better service and products, lower prices and less corruption. On the other hand, critics of privatization argue that some services should be in the public sector to enable greater control and ensure more equitable access.

It is common practice now for governments to contract with private companies for services which were traditionally under public administration. As a general concept, administrative law regulates public bureaucracy while private bureaucracies are subject to other private law areas such as torts or contract law.

In my opinion, the politicians based its support to the de-privatization on how to take the greatest advantage of the system for their personal benefit, not to its population. As mentioned previously, in an ideal world with an honest government, the implementation of the privatization would be only in cases where private companies are making illegal movements that interfere and harm the development and prosperity of the country. In these cases, the intervention of the government will be imperative. However, I see more benefit for the country and for the government (if used the funds and benefits properly) in the privatization than the de-privatization

Savas (2005) argued that privatization initiatives had reached their fruition, realizing that public interest viewed the public/private partnership were strong opposition among labor unions and believed that the proposed contracts threaten employment. Situations such as perceived abuse in political power became a common place for grass root organizations advocating progressive change to the free enterprise markets by organizing campaigns to block elected officials who supported public/private partnerships. However, some of the service contracts which dominated the privatization methods were sheer volume activity; that thirty-two of the sixty-six privatization contracts were not a mixed of the private-public partnership; out of the $1, 148 million

To talk about the privatization, first you have to know what it is. Privatization is the process of transferring the control of an enterprise from the government sector to the private sector (giving

Malaysia is a democratic country with excellent economic system. We are one the leading country in economic terms and being an example for the economy system we are using. In Malaysia, we are into mixed economy system. This economy system is the leading type of economic system that is used in most of the countries such as United States. Mixed economy system includes a mixture of capitalism and socialism. It combines private economic freedom, centralized economic planning and government regulation. Government plays major role in economic growth as well as distribution of wealth. For example, our government collects tax and provides subsidies at the same time for the public.

Irlisuhana, Zulkhairi, Hafizah, and Suhaiza (2011) found the influx of foreign investments into the manufacturing sector was crucial in its transformation from an agricultural based economy to an industrialized based economy. Over many years, Malaysia has adopted two industrialisation policy and two industrialisation strategies which is the two policies are New Economy Policy and National Development Policy while two industrialisation policies were Import Substitution Industrialisation (ISI) strategy and Export-Oriented Industrialisation (EOI) strategy (“Overview of Malaysian Industrialization”,

According to Vision Launch, cities have already tried privatization in the past, and the results weren’t too satisfactory. Considering that private financing costs more than public financing, many people are often under the false perception that it is the other way around, which gives them the impression for a short term that privatization will be more beneficial in the long term. Taxpayers in the end are the ones who are left paying for these projects through their monthly bills. Gaining

Petroliam Nasional Berhad (PETRONAS) established on 17th August 1974, is Malaysia’s fully integrated oil & gas multinational ranked among the largest corporations on FORTUNE Global 500. As of the end of March 2005, the Petronas Group comprised 103 wholly owned subsidiaries, 19 partly owned outfits and 57 associated companies.

Continuous rapid economic growth has raised Malaysia from an agricultural and commodity-based low-income economy to a successful middle-income economy. As a mixed economy, Malaysia has elements of a free market economy nevertheless with intervention government. Malaysia's economic activity consist of a mixture of sectors whereas mixed of capitalism and socialism The strong economic performance has helped improve the quality of life for Malaysians and supported advances in education, health, infrastructure, housing and public amenities and others.