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Dasar Penswastaan

Privatization is contrary to nationalization, which is a process that adds ownership and control
of the Government to the economy. Basically, privatization involves certain government
interests or investments to the private sector. The privatization policy was first announced as a
state policy by the Government in 1983. It symbolizes a new approach in national
development policy and it complements other national policies such as the Privatization of
Malaysia, developed to emphasize the role of the private sector role in Malaysia's economic
development

The Privatization Policy is introduced by having the following objectives:


(i) Reducing Government Finance Expenses
In the past, the Government has spent thousands of ringgit in the health, defense, water, fire,
railway, ports, airports and so forth, and these expenditures continue to rise from time to time
and the rate of return to the Government is slow and very low.

In addition, the Government is also required to maintain certain services and investments. The
amount of emolument is one of the largest items of more than one-third of total operating
expenditure. Expenses in the form of transfers have also been rising rapidly since recently and
have now become almost half of the operating expenses.

(ii) Raising Efficiency and Job Creation


The achievements of many public enterprises engaged in trade and industry are still
unsatisfactory although they have monopolistic positions and enjoy the Government's support.
By privatizing certain Government services, as well as with better expertise and opportunities
that can be provided by the private sector, it is anticipated that the services will be improved
further.
(iii) Promoting Economic Growth and National Treasures
The property or wealth owned by the country has not been fully exploited. Obstacles in the
public sector do not encourage the use of the resources of this country efficiently and
completely. More private companies can be realized which can indirectly increase the
country's economic growth. In addition, the Government can also enjoy the benefits of
collecting income tax from the companies concerned.

(iv) Distribution of Resources and Efficiency


More Government visions in the economy means more Government domination of national
resources. Decisions are usually made on non-market-based considerations. The bulk of the
goods and services issued by the Government reflects the market value. The price of the
goods is based on the subsidies and the resources allocated for their production can not be
efficiently distributed. The subsidy and retention of aspirational welfare will encourage
Malaysians to rely too much on Government assistance. This situation is incompatible with
the long-term interests of individuals and countries as a whole.

(v) Accelerate the achievement of the New Economic Policy Goals


Giving more opportunities to the private sector, the Government can create more Bumiputera
private companies or the number of Bumiputera managers to meet the requirements of the
New Economic Policy.
The Privatization Policy arises as there will be a number of national monopoly transfers that
should be handled by the public sector to private companies. The transfers are feared to result
in incremental costs, prices and income distribution unevenly caused by the monopolization.