Group Member:

1. Nur Alya binti Ahmad Lotfi (2019725683)

2. Nur Fatehah Nabilah binti Daud (2019709965)
3. Amirah binti Abdull Mud Talib (2019312153)
4. Nur Aliah binti Hishamudin (2019704457)
5. Nurul Fazlin Hanim binti Hassan (2019578871)

Seminar Paper :
Issues and Challenges for Public Private Partnership (PPP) Project Performance in
Malaysia (Draft)

Introduction

● Public private partnership is a partnership between an agency of the

government and the private sector in the delivery of goods or services to
the public.
● The concept of this scheme is to promote a contractual relationship between
public sector as a client and private sector as an asset creator and also a service
provider.
● The private sector will finance and manage a full package of capital investment
and services, which involved pre-construction, construction and post construction
(operation & maintenance)
● The PPP has involved in Malaysia since 1981.
● The reason we choose this topic is because it is related with the Chapter 2, New
Public Management. We also want to learn and improve the performance of the
Public Private Partnership in Malaysia

Statement of the problem

● Insufficient of Public Private Partnership (PPP) implementation guidelines and
challenge in managing KPIs
➔ No clear framework for monitoring or performance auditing.

● Maintenance approach and service delivery failure

➔ Service failure was often reported.

● Asset risk and life cycle issues

➔ Life Cycle Cost (LCC) for asset are always overlooked as it was not a
universal requirement.
 Objectives of the paper

● To investigate four performance measurement models around the globe as a

basis for improvement of Public Private Partnership (PPP) in Malaysia.

1. Framework Model (UK vs Australia)

2. Type of Infrastructure (Economic & Social vs Social)
3. Assessment Tools (KPI vs Output specification)
4. Performance Measurement Areas (Social, Economic, Technical Vs
Innovation & Payment Mechanism)

Methodology

● The study is based on the literature review that related to PPP project
performance in Malaysia context where the issues and challenges were grouped
into three focused areas and there are four world wide framework models chosen
as precedent studies.

● The study also theoretically reviews on the performance measurement of the

assessment models that applied in the UK & Australia which means by country
and also hospital & transport infrastructure which is by sector.

● This study also carried out the comparative analysis against the models to
highlight the advantages and disadvantages and Malaysia PPP models were
gathered into the analysis to identify the gaps.

● The outcomes from the literature review and the comparative analysis will be
summarized into the findings diagram.

Definition of important terms

Public Private Partnership (PPP)

 Public private partnership (PPP) is a public sector procurement approach by which

government undertakes commitment from the private sector and transfers a certain
level of responsibilities to the private sector in providing public facilities or services
( Ismail, 2013)

Key Performance Indicators (KPIs)

 Malaysia decides to employ Key Performance Indicators (KPIs) as one of their

performance measurement tools. This type of performance measurement is now
 becoming the interest to a wide range of bodies including governments as well as
educational institutions. (Hazadiah et al., 2009)

Critical Success Factor (CSFs)

 Critical success factors refer to characteristics , condition or variables that have a

significant impact on the success of a project ,when they are properly sustained,
maintened and managed (Alias etal.,2014)

Traditional Public Administration view on our topic

● TPA aims at encouraging top-down governance structures, where public service

provision is a full responsibility of public managers (public servants) who seem
accountable to their political masters only.
● Under such governance systems, the public managers do not serve the interests
of the wider society but aim at pleasing a small group of elected officials who
illogically give their loyalty to the political parties’ positions or more to their
personal political agendas by sacrificing the wellbeing of the citizens.
● The delivery of public service through bureaucratic processes is not only clumsy,
ineffective but also unresponsive.

New Public Management view on our topic

● NPM reforms broadly aim at improving public services through a dual

‘government- market’ structure where the government contributes capital to
outsource public goods and services from the private sector.
● The public sector focuses on formulating policies and controlling the way public
services are provided by the private for profit organizations through specific
performance indicators, monitoring and market based mechanisms.
● Public private partnership arrangements are purely constructed along
commercial lines with the intentions of achieving value for money by integrating
some or all the public infrastructure project tasks into a single long-term contract
indorsed through a competitive tendering process.
● The government can afford to transfer majority of the responsibilities and their
associated problems to more capable, experienced and skilled private firms
whose payment is dependent on making the physical infrastructure available and
operating the same facility to provide the desired service.