1. Task 3: Privatisation
Question: Kajang Municipality intends to redevelop the stadium into an Innovative Research
Park. The park is intended to take advantage of a number of universities and research centres in
Kajang area to turn the municipality into centre for innovative, high value added industries.
However the administration is in no position to fund the proposed project. You are required to
propose a viable solution to ensure the success of the project. Explain the responsibility of all
parties involved in the project, project component, the benefit of your proposal and the problem
that might occur in the future.
Answer:
A research park is a research facility that is often linked with a major research university. It
exists to create linkages between the university, industry and the community. Combining the
knowledge assets of a community with local business expertise in order to create high-paying
jobs is the aims of research parks.
Most of the research park is focusing on protect, preserve and conserve the natural
environment as they are located in the forest or some kind of similar place where the place can
be called as undisturbed area. But for this case, it has a bit different where the location of the
stadium is located in the middle of Kajang town and the capacity of the population is high.
Therefore, this research park should be more focus in the development of Kajang town.
There are a few steps that we can do to ensure the success of the project. First, we do a
privatisation programme. This approach is to facilitate the Kajang Municipality economic
growth, reduce the financial and administration burden of the municipality, lower the level and
scope of public spending and allow market forces to govern economic activities and improve
efficiency and productivity. The privatisation develops the project in short term duration where it
can be done in fast track in term of development. Together with the lower cost consumption and
optimization on man workers. A full responsibilities given to the private sector to make the
project planning succeed with under supervision from the government sector. Task or work given
includes the developing, operating, maintaining and solving a potential problem. The advantages
or benefits is gained by both parties in term of economical profit share and being able to work
under one roof.
Next is implementation, where in implementing the policy, the Government can publish
statements from time to time to explain to the public the objective and content of the policy as
well as to keep the general public informed. The Government published the Malaysian
Privatisation Master Plan (PMP) in 1991 followed by Guidelines on Privatisation to ensure that
the privatisation effort is channeled to appropriate priority areas to optimize the impact of the
policy implementation in terms of the achievement of the policy objectives. The Master Plan
explained the implementation of the policy as well as the progress achieved and addressed the
future direction of the programme.

2. The Guidelines on Privatisation detailed among others, the objectives of the policy, the
methods applicable and the implementation machinery. Several developments have taken place
since the policy was first announced. The significant changes which have been introduced by the
Government include the amendments of the various laws to allow privatization to take place and
the commissioning of a study to help in the drawing up of a privatisation Master Plan.
Privatization can be implemented by several methods as follows:
- Sale
- Lease
- Management Contract
- Build- Build-Operate-Transfer (BOT)
- Build-Operate-Own
- Build-Operate
- Build-Lease-Transfer
- Land Development/Land Swap
There are some advantages of privatisation which are increase in efficiency and
profitability, decrease in political pressure and use of latest technology and know-how.
1. Increase in efficiency and profitability
Most Govt. industries and services are inefficient and running in losses, when these will be
transferred to private sector, their administration will improve and non-development
expenditures will be reduced, their efficiency will increase and will be converted into
profitable ventures.
2. Decrease in Political Pressure
There are always political pressures on Govt. owned industries, banks and other institutions
for employment of political workers and loan facilities
from banks. When these enterprises will go in the hands of private owners then these illegal
pressures will be reduced to a great extent.
3. Use of Latest Technology and Know-How
Private domestic investors and foreign investors will adopt latest technology and know-how
for the increase in output and their profits. This will result in the increase in national product,
thus national income of the country will grow.