ABSTRACT

This chapter provides an evaluation of the privatization of infrastructure facilities in Malaysia. After a brief historical survey of infrastructure development by the public sector in the pre-privatization period, the discussion goes on to assess the extent of private sector involvement in Malaysian infrastructure. The road network of Malaysia comprises 50 thousand kilometers of roads. The financing of road construction and their maintenance has traditionally been a public sector responsibility in Malaysia. With the commencement of privatization, however, a policy of awarding concessions to private companies for the construction and operation of tolled roads was introduced in the mid-1980s. The 1985 Guidelines on Privatization identified the provision of port services as an important area of private sector participation. The first case of privatization in the ports sector was that of the container terminal at Port Klang, also discussed elsewhere in this volume.