CHALLENGES IN PRIVATIZATION

DEVELOPMENT PROJECTS
UNDER LOCAL GOVERNMENT IN
MALAYSIA
LECTURER: MS FATHILAH BINTI MOHAMED ARIS

NAME MATRIC NUMBER

MUHAMMAD SHOLIHIN BIN SHOLIHIN LA11-032-23
DANISH DANIAL BIN MOHAMAD YAZI LA11-033-23
MAJOR REASONS TO IMPLEMENT
PRIVATISATION
• Efficient and effective service delivery or infrastructure management.
• Reduced government bureaucracy allows for faster decision-making.
• Access to additional funds and resources from the commercial sector.
• Risk sharing between the government and private investors.
• Flexibility and adaptability to market conditions and economic developments.
• Increased global competitiveness through private sector experience and innovation.
THE LIST OF CHALLENGES OF THE PUBLIC PRIVATE PARTNERSHIP WAS ADOPTED FROM TO COLLECT INFORMATION
AND DEVELOP AN IDEA TO CREATE THE LIST OF CHALLENGES FOR IMPLEMENTING PRIVATIZATION.
SIX ISSUES THAT DESERVE SPECIAL ATTENTION IN DEVELOPING A WELL THOUGHT
OUT IMPLEMENTATION STRATEGY

• Legal aspects including amendment of existing laws or enactment of new laws.

• Evolving appropriate regulatory framework.
• Policy decisions regarding the affected personnel.
• Capital market related issues.
• Participation of Bumiputeras.
• Foreign participation in privatization of specified public enterprises.
EIGHT CRITICAL CHALLENGES
• Political Interference: Political meddling can disrupt privatization plans, especially when dealing with private developers.
• Company Internal Problems: Issues like conflicts among colleagues or poor job performance can derail privatization efforts,
requiring smooth resolution.
• Communication Between Parties: Poor communication can stall privatization projects, hindering agreement and goal
achievement.
• Current Financial Situation: Financial imbalances within involved companies can hamper privatization progress, as money is
vital for project execution.
• Existing Experts: Difficulty in finding the right expertise for privatization tasks can slow down projects due to competition for
skilled workers.
• Compliance with Prescribed Conditions: Not sticking to agreed terms and conditions can cause problems in privatization
implementation, disrupting the process.
• Land Status Issues: Problems with land ownership or status can delay or even halt development projects, demanding proper
resolution.
• Objections and Complaints from the Community: Public opposition can create procedural hurdles in land development,
requiring careful handling.
THE ENTIRE PROCESS FROM THE BEGINNING TO THE END OF
THE DEVELOPMENT PROJECT, THERE ARE EIGHT MAIN
CHALLENGES ARE IDENTIFIED
• Political Interference: Interference from politicians can disrupt workflow and hinder project execution.

• Company Internal Problems: Issues like employee relations and commitment can complicate human resource management
and affect project progress.

• Communication Issues: Ineffective communication can lead to misunderstandings and inefficiencies in project coordination.

• Financial Instability: Despite appearing financially stable, initial financial challenges can arise during project development.

• Limited Expertise: Narrow expertise focus may necessitate involvement of multiple parties, slowing down project execution.

• Non-Compliance with Local Authority Conditions: Failure to meet local authority requirements can lead to project failure.

• Land Status Issues: Resolving land ownership and status problems is crucial before project commencement to avoid delays.

• Community Objections: Public opposition may arise if projects negatively impact the surrounding area, requiring careful
planning and engagement.
CHALLENGES WHICH INTERSECT BETWEEN PUBLIC-PRIVATE PARTNERSHIP AND
PRIVATIZATION

• Political Interference: Interference from politicians can disrupt workflow and hinder project execution.
• Company Internal Problems: Issues like employee relations and commitment can complicate human resource
management and affect project progress.
• Communication Issues: Ineffective communication can lead to misunderstandings and inefficiencies in project
coordination.
• Financial Instability: Despite appearing financially stable, initial financial challenges can arise during project
development.
• Limited Expertise: Narrow expertise focus may necessitate involvement of multiple parties, slowing down project
execution.
• Non-Compliance with Local Authority Conditions: Failure to meet local authority requirements can lead to project
failure.
• Land Status Issues: Resolving land ownership and status problems is crucial before project commencement to avoid
delays.
• Community Objections: Public opposition may arise if projects negatively impact the surrounding area, requiring careful
planning and engagement.
THE CHALLENGES WHICH INTERSECT BETWEEN PUBLIC-PRIVATE PARTNERSHIP AND
PRIVATIZATION.