Essays /

Should Malaysian Government Encourage Privatizati Essay

Essay preview

In 1983, the Malaysian Government introduced the privatization policy. Governments main objective in introducing privatization policy is to relieve the financial and administrative burden of the Government, to facilitate national economic growth, to promote achievement of the New Economic Policy targets, to improve the efficiency and productivity level of the country, and to reduce the size and presence of the public sector in the economy (

Since 1983 when privatization was first launched, a total of 457 projects have been privatized. The majority of privatized projects involved the corporatization of government-owned agencies and transfer of existing entities to the corporate sector. Privatization is being used in Malaysia to reduce the public sector and develop the economy.

As a first step in implementing the government's privatization policy, the National Electricity Board was corporative in 1990 as Tenaga Nasional Berhad (TNB) and subsequently privatized and floated on the Kuala Lumpur Stock Exchange, with the Ministry of Finance holding about 70% of the shares. The Malaysian model of privatization of the power sector, which was designed to meet the country's social and economic objectives, has...

Read more


1983 1990 1995 1997 457 70 abandon abl absorb acceler accept account achiev activ adam adequ administr advers advoc afford agenc alloc allow also among anoth antithesi apprehens ardent area attribut avoid balloon bankruptci base becom beneficiari benefit berhad better board brought budget bumiputra burden capit challeng civil clear commit communist competit complement concess condit confid continu contract contribut corpor corporat correspond countri crisi crisis-hit critic currenc cyclic debt decreas denot depreci design develop direct distribut drastic econom economi educ effect effici effort electr emolu employe enabl encourag enhanc ensur enterpris entiti equit ethnic even exchang exist expenditur experi experienc expertis extern facilit fact fail far financ financi first fiscal float fluctuat focus forc form former formula fredrik fulli fund garner good govern government-own greater group growth health hit hold hope hous howev impact implement impli implic improv incid increas inde instrument interest introduc investor involv kuala larg launch law lead level lumpur main maintain major malay malaysia malaysian manag manifest market mass may meet method ministri misunderstood model modern much nasion nation need new non non-financi number object oper order own ownership partial particip peopl period phenomenon play polici portion posit post post-privat poverti power presenc price privat privatizati process product project promot proport provid public qualiti quick rapid realloc reason receiv redress reduc reduct reflect regul relat relief reliev remuner resourc respect result revenu right ringgit role save scope sector secur serious servic share sharp sinc size smaller social socialist socio socio-econom spend stabl step still stock strengthen sub sub-contract subsequ suppli sustain target tax taxat technolog tenaga term therefor thought tnb total toward tradit transfer transport tremend understand unemploy unmanag upon use util viabl view way wealth well within world would