Privatisation in Malaysia

4996 Words Feb 23rd, 2011 20 Pages
LE 4000

ENGLISH FOR ACADEMIC PURPOSE

2ND DRAFT

TITLE:

SHOULD CURRENT PRIVATIZATION PRACTICES BEING FURTHER IMPLEMENTED AS ONE OF THE GOVERNMENT POLICIES IN CATERING PUBLIC NEEDS AND IN ENSURING SERVICES QUALITY?

DEPARTMENT OF ACCOUNTING

KULIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES

SECTION 15

TUTOR: BRO. SHAHRIZAL

PREPARED BY: MOHD. AIZAT BIN ALI

Introduction

In early decades of the 18th century, privatization had been introduced into the market. This new economy reforms started in western world, followed further by its implementation in Asian region in later years. Privatization is a policy whereby the ownership of an entity or controlling right of an entity being transferred from government to private sector.
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This may results to either two conditions -increase in unemployment rate or decreases in standard of living- due to cost saving policy implemented by the privatized firm.

Secondly, privatization also affects the welfare of the society as a whole. This can be explained by examining again the orientation of the firm after being privatized. Theoretically, economic efficiency can be divided into two categories, namely productive efficiency and allocative efficiency. Productive efficiency is achieved if firms produce goods and services demanded by consumer, while allocative efficiency is achieved if the goods produced were marketed to the right people. Right people here means people who demands for the goods and capable to pay for it. Results from privatization is, the market now will replace the real needs of people with those demanded item, given that it will yield high profit for the firm. For example, basic needs like tap water and electricity is not available in certain rural areas, but firms compete with each other to bid for mega projects in big cities. Here, firms are no longer concern with their social responsibility towards public, but only interested in making huge profit.

Privatization of Klang Container Terminal (KCT)

In the case of the privatization of the Klang Container Terminal (KCT), some of the employees complained that they suffer emotional distress from increased workload that almost double from the usual. Although

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