Privatisation
Privatisation is the act of reducing the role of government or increasing the role of the private institutions of society in satisfying people’s needs (Shehnaz, 2010).
Government take privatization stance to reduce its burden in terms of underutilization of resources, over and redundant employment, fiscal burden, financial crisis, heavy losses and subsidies in order to improve and strengthen competition, public finances, funding to infrastructure and quality and quantity of services in terms of management (Kouser, Azid & Ali, 2011). Privatisation was incorporated in Brunei Darussalam in the Fifth National Development Plan (1986-1990) undertaken by Islam Bank Brunei Berhad, promotes saving and productive uses of capital ((brunei company laws and regulation handbook). Other than giving opportunities for private companies sector to grow, privatisation is being pursued for its contribution to many other policy objectives (Hjh Zainab, 2001). As to the acting director-general of the department of economic planning and development (JPKE), “privatisation is recognised as an important strategy particularly as the private sector has been perceived as the engine of growth for further development of the sultanate” (Suhaimi, 2009).
This essay will explain further why privatisation is a good policy in Brunei Darussalam. Firstly, it helps to boost the economy in Brunei Darussalam as it reduces the spending and improves efficiency in public services. The Minister of Development said during the opening two-day seminar on privatisation in June “Through privatisation, government could optimize spending in providing services to the public” (Hjh Zainab, 2001) Secondly, private investment will relieve government burden in terms of administrative and financial cost in Brunei Darussalam. Therefore, through this government will be in a better position to manage its resources for the development of other strategically important sectors to help diversify the economy.
Government take privatization stance to reduce its burden in terms of underutilization of resources, over and redundant employment, fiscal burden, financial crisis, heavy losses and subsidies in order to improve and strengthen competition, public finances, funding to infrastructure and quality and quantity of services in terms of management (Kouser, Azid & Ali, 2011). Privatisation was incorporated in Brunei Darussalam in the Fifth National Development Plan (1986-1990) undertaken by Islam Bank Brunei Berhad, promotes saving and productive uses of capital ((brunei company laws and regulation handbook). Other than giving opportunities for private companies sector to grow, privatisation is being pursued for its contribution to many other policy objectives (Hjh Zainab, 2001). As to the acting director-general of the department of economic planning and development (JPKE), “privatisation is recognised as an important strategy particularly as the private sector has been perceived as the engine of growth for further development of the sultanate” (Suhaimi, 2009).
This essay will explain further why privatisation is a good policy in Brunei Darussalam. Firstly, it helps to boost the economy in Brunei Darussalam as it reduces the spending and improves efficiency in public services. The Minister of Development said during the opening two-day seminar on privatisation in June “Through privatisation, government could optimize spending in providing services to the public” (Hjh Zainab, 2001) Secondly, private investment will relieve government burden in terms of administrative and financial cost in Brunei Darussalam. Therefore, through this government will be in a better position to manage its resources for the development of other strategically important sectors to help diversify the economy.
Bibliography: HH, A. (2010, Nov 14). Challenges in achieving Wawasan Brunei 2035 goals. Borneo Bulletin. Retrieved November 14, 2013. (n.d.). Brunei company laws and regulation handbook. USA: International Business Publication. Retrieve November 14, 2013. Masalkovska. D. & Masalkovska. A. (2010). The microeconomic and macroeconomic effects of the privatization process. St. Clement of Ohrid University, Macedonia. Retrieve November 14, 2013. S-cool Revision Website. (2013). The disadvantages of privatisation. Retrieve October 14, 2013 from http://www.s-cool.co.uk/a-level/economics/privatisation/revise-it/the disadvantages-of-privatisation. Shehnaz, S.I. (2010). Privatisation of Medical Education viewpoints with global perspective: From Sultan Qaboos University. Retrieve from Medical Journal Database. Retrieve November 14, 2013. Zainab.H. (2001). PRIVATISATION AND CORPORATISATION. BRUNEI DARUSSALAM’S EXPERIENCE. Retrieve from Department of Policy and Coordination Economic Planning and Development Department, Brunei Darussalam. Retrieve October 20, 2013.