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Privatization

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4.0 GOVERNMENT PRIVATIZATION POLICY; SUCCESS OR FAILURE?

The implementation of Government Privatization Policy in Malaysia can be considered as success. This is because, this policy design able to achieved almost all the objective of government privatization policy. Therefore, our opinion about the government privatisation policy is success due to achievement of these objectives.

4.1 Relieve the financial and administrative burden of government
The successful privatization should bring gain to the government in term of reduce financial burden of those entities that suffer losses .For example is Malaysia Airlines (MAS). According to Tun Dr Mahathir, MAS should be privatize since ten years ago due to loss of RM 10 billion in term of capital injection and government also did not received dividend during the 5 years to 1985.
As we can see now days, there are so many problems facing by MAS. For instance the accident of MH370 and MH17 that make MAS become worse. In order MAS to success they need to reconstruct the management structure from top to bottom to make a better decision making and become more perform.
Besides that, the privatization also undertaking and maintain services and infrastructure, for example according to the Privatization Master Plan Policy (PMP), proceeds from sale of government equity in privatize companies has generated RM1.88 billion, while the government is said to have saved more than RM8.2 billion in capital expenditure for infrastructure development through privatize (Build- operate-transfer (BOT) project and a further RM7.45 billion of the government’s outstanding debt is said to have been transferred to the private sector (New Straits Times 10th August 1989).
Other than that, with privatization the government also now enjoys revenue from lease payment as well as corporate taxes. Moreover, with the ability of private loan financing

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