The document discusses land privatisation in Malaysia. It began in 1985 to reduce the government's financial burden, increase efficiency, and expedite private development. Lands eligible for privatisation include unused state land and reserved lands. Developers are attracted to privatisation because of viable locations and perceived easier negotiations. The government benefits from developed lands and increased taxes and profits. The process involves applications, approvals, and signing agreements, with evaluation based on return, market resilience, funds, track record, and cost-benefit analysis. Transparency is needed and failed projects must be addressed.

1. LAND PRIVATISATIONLAND PRIVATISATION
LECTURE TO 4SPB STUDIOLECTURE TO 4SPB STUDIO
UTMUTM
Mohd Anuar A. WahabMohd Anuar A. Wahab

2. LAND PRIVATISATIONLAND PRIVATISATION
 IntroductionIntroduction
 Policy of privatisation started in 1985Policy of privatisation started in 1985
 ObjectivesObjectives
1.1. To reduce administrative and financial burdenTo reduce administrative and financial burden
of government machineryof government machinery
2.2. To increase efficiencyTo increase efficiency
3.3. To expedite development with private capitalTo expedite development with private capital
4.4. Distributional policy-to increase bumiDistributional policy-to increase bumi
stakeholding in the economystakeholding in the economy

3. Forms of PrivatisationForms of Privatisation
 Sale of govt companiesSale of govt companies
 Lease of assets including privatisation ofLease of assets including privatisation of
lands for developmentlands for development
 Contract servicesContract services
 Management servicesManagement services

4. Lands that can be privatisedLands that can be privatised
 State land (including land under water)-lands yetState land (including land under water)-lands yet
to be alienated or reserved. Alienated lands onto be alienated or reserved. Alienated lands on
expiry of lease, revert back to become state landexpiry of lease, revert back to become state land
 Reserved lands either state or federal reserves.Reserved lands either state or federal reserves.
These reserved lands are either already built-upThese reserved lands are either already built-up
or remain only as reserves.or remain only as reserves.
 Indirect corporatisation of alienated lands viaIndirect corporatisation of alienated lands via
compulsory land acquisitioncompulsory land acquisition

5. Purpose of usePurpose of use
 CommercialCommercial
 ResidentialResidential
 Mixed useMixed use
 TourismTourism
 ServicesServices
 QuarryQuarry
 IndustrialIndustrial

6. Why developers select privatisationWhy developers select privatisation
 Lands located in economically viable locationsLands located in economically viable locations
 Perception that it is easier to negotiate with thePerception that it is easier to negotiate with the
government rather than private partiesgovernment rather than private parties
 Perception of easier cooperation and lowerPerception of easier cooperation and lower
demands of technical depts.demands of technical depts.
 Enhance developers’ standingEnhance developers’ standing
 Consideration in kind will enable costs to beConsideration in kind will enable costs to be
spread therefore lower costspread therefore lower cost

7. Benefits to the governmentBenefits to the government
 Lands belonging to govt. could beLands belonging to govt. could be
developed and optimised in terms ofdeveloped and optimised in terms of
economic usageeconomic usage
 Decentralisation and relocation policiesDecentralisation and relocation policies
 Social and other infrastructures could beSocial and other infrastructures could be
realised without govt. budgetary spendingrealised without govt. budgetary spending
 Govt. can earn cash consideration,Govt. can earn cash consideration,
premium, increase in taxes and share inpremium, increase in taxes and share in
profitprofit

8. Privatisation MethodologyPrivatisation Methodology
 Open tender systemOpen tender system
 Close application systemClose application system
 Direct invitation systemDirect invitation system
 IssuesIssues
1.1. ApplicationApplication
2.2. Approval and exclusivity rightsApproval and exclusivity rights
3.3. Land ownership vs development rightsLand ownership vs development rights
4.4. Variation in development configuration and considerationsVariation in development configuration and considerations
5.5. Intervention in some technical aspectsIntervention in some technical aspects
6.6. Construction and abandonmentConstruction and abandonment

9. ProceduralProcedural
 Application submission to UPEN, 21 setApplication submission to UPEN, 21 set
 Approved by technical committee,Approved by technical committee,
proposal granted development exclusivityproposal granted development exclusivity
rightsrights
 Detailed Proposal, Preparation andDetailed Proposal, Preparation and
signing of privatisation agreement andsigning of privatisation agreement and
Exco Approval- Implementation,Exco Approval- Implementation,
Coordination and Monitoring CommitteeCoordination and Monitoring Committee

10. Evaluation CriteriaEvaluation Criteria
 Value of return/consideration to the stateValue of return/consideration to the state
 Competitive resilience of the project in theCompetitive resilience of the project in the
marketmarket
 Source of project fundsSource of project funds
 Track recordTrack record
 Financial/Cost benefit analysisFinancial/Cost benefit analysis

11. ConclusionConclusion
 Privatisation – private and public jointPrivatisation – private and public joint
venture in urban developmentventure in urban development
 Needs transparencyNeeds transparency
 Issues of failed projectsIssues of failed projects