Privatization Policy In Malaysia

1495 Words6 Pages
Privatization policy simply means a gradual shift of responsibility from the managing public sector enterprise towards the private sector. It has been playing vital roles to help meeting targets of national development plans in Malaysia. Former Prime Minister, Tun Mahathir Mohamad announced government commitment to privatization in March 1983, 2 years after he became Forth Prime Minister of Malaysia. Privatization was an approach of government in bringing Malaysia as a united nation with balanced development to support roles of private sector in increasing the economic development of the country. The current policy of Malaysia running that time was New Economic Policy (NEP), with the objective to eradicate poverty of irrespective race through…show more content…
NEP was aimed to promote growth with strong, harmonize and unity in a nation that consists of several ethnics and religious groups in achieving socio-economic goals. Thus, through NEP, government has put privatization as a strategy in increasing the property ownership of Bumiputera. Privatization, which generally known as a process of moving from government sector into private entity sector, has created economic opportunities for the poor and other disadvantaged groups to enable them to move out of poverty and to participate in the mainstream economic activities. Several initiatives under government such; absorbing poor rural household into modern sector which focusing in non-agricultural development; development of new land through replanting rubber tree to raise farmers’ productivity; and provide infrastructure including roads, electricity and water; and social services such as health, schools, food supplementary and squatters resettlement.. These were to ensure that the distribution of existing wealth can be expanded as a new source of capital that latter give positive influence to the…show more content…
Telekom Malaysia Berhad (TMB) or previously known before its privatization as Jabatan Talikom Malaysia has consistently maintained its market in the telecommunication industry. After it privatization, several new product and services has been introduced. In 1994, Ministry of Energy, Telecommunications and Posts issued the National Telecommunications Policy (NTP). The main objective of the policy is to encourage competition in the telecommunications sector in order to achieve efficiency and to provide excellent and quality service. It is recorded that productivity in the form of total revenue per worker had risen after privatization compared to pre-privatization. The privatization era having a mean figure of RM205, 767.78, meanwhile the corporatization era had RM72, 286. It has shown significant increase in labours productivity that contributed to eradication of poverty of the

More about Privatization Policy In Malaysia

Open Document