Should Malaysian Government encourage privatizati

In 1983, the Malaysian Government introduced the privatization insurance policy. Governments main objective in introducing privatization policy is to relieve the financial and administrative burden of the Government, to facilitate bailiwick economic growth, to promote achievement of the New Economic policy targets, to improve the energy and productivity level of the country, and to mortify the sizing and presence of the public sector in the economy (www.jkr.gov.my).

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

        As a setoff step in implementing the governments privatization policy, the National electrical energy Board was corporative in 1990 as Tenaga Nasional Berhad (TNB) and subsequently privatized and floated on the Kuala Lumpur behave Exchange, with the Ministry of Finance holding about 70% of the shares. The Malaysian stumper of privatization of the power sector, which was designed to meet the countrys loving and economic objectives, has been able to secure adequate supply of sensible quality, ensure affordable and stable electricity prices, provide authority to the investors, meet the funding challenges, promote competition and improve efficiency and productivity(www.metering.com).

        Privatization in now a world phenomenon used to relate the transferal of ownership and operation from the public sector to private enterprise. It is used by former socialist countries to quickly introduce capitalism. Malaysia is development it to introduce new technology and expertise through government concessions and sub-contracts. It is also used to redress the capital ownership scattering among the ethnic groups, where the Malay Bumiputra are the main beneficiaries. The major hint of privatization is that it reduces the public sector, implying relief on the fiscal...

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