Success in privatization
1.0 INTRODUCTION OF GOVERNMENT PRIVATIZATION POLICY
1.1 History of Government Privatization Policy
The Government Privatization Policy was first announced as a national policy by Prime Minister of Malaysia, Tun Dr Mahathir Mohamad in 1983. It represents a new advent of preceding government policy although it was very much consistent with his own personal ideological and policy preferences as well as new wave of conservative market reforms beginning in the West. Thus, in the Eighth Plan period, privatization will continue to be applied to facilitate economic growth in Malaysia in line with the Vision 2020.
1.2 Key concepts of Government Privatization Policy
Government Privatization Policy can be defined in terms of the transfer of enterprise ownership from the public to the private sector. This means the enterprise which already posses by the Government and to new project which normally have been carry out by the public sector. This transfer takes the form of issue and sale or outright distribution of shares to the general public.
Broadly used, the term privatization includes other policies such as "contracting out" that is, the process by which activities, while publicly organized and financed, are carried out by private sector companies. For example, street cleaning, garbage collection, housing, education. In addition, a private company is when a publicly traded company become private; investors can no longer invest a share in that company.
Besides, Government Privatization Policy means the transfer of three components, namely government management responsibilities, assets or rights to use the assets, and personnel to the private sectors.
2.0 OBJECTIVES OF GOVERMENT PRIVATIZATION POLICY
There are five objectives of Government Privatization Policy. Firstly, the policy is designed to relieve the financial and administrative burden of government. The policy is implementing to hand over government management to the private sector and let to
1.1 History of Government Privatization Policy
The Government Privatization Policy was first announced as a national policy by Prime Minister of Malaysia, Tun Dr Mahathir Mohamad in 1983. It represents a new advent of preceding government policy although it was very much consistent with his own personal ideological and policy preferences as well as new wave of conservative market reforms beginning in the West. Thus, in the Eighth Plan period, privatization will continue to be applied to facilitate economic growth in Malaysia in line with the Vision 2020.
1.2 Key concepts of Government Privatization Policy
Government Privatization Policy can be defined in terms of the transfer of enterprise ownership from the public to the private sector. This means the enterprise which already posses by the Government and to new project which normally have been carry out by the public sector. This transfer takes the form of issue and sale or outright distribution of shares to the general public.
Broadly used, the term privatization includes other policies such as "contracting out" that is, the process by which activities, while publicly organized and financed, are carried out by private sector companies. For example, street cleaning, garbage collection, housing, education. In addition, a private company is when a publicly traded company become private; investors can no longer invest a share in that company.
Besides, Government Privatization Policy means the transfer of three components, namely government management responsibilities, assets or rights to use the assets, and personnel to the private sectors.
2.0 OBJECTIVES OF GOVERMENT PRIVATIZATION POLICY
There are five objectives of Government Privatization Policy. Firstly, the policy is designed to relieve the financial and administrative burden of government. The policy is implementing to hand over government management to the private sector and let to