Success Factor Of Public Private Partnership In Malaysia

Role of Government in Malaysia

Discuss about the Success Factor Of Public Private Partnership.

Malaysia, one of the Southeast Asian countries is holding good economic records with 6.5% average annual GDP growth considering the past fifty years. Currently Malaysia is ranked at the 4^th position in industrialized market economy within Southeast Asia and is facing sudden rapid development and industrialization. The country has been also recognized by the International Monetary Fund (IMF) as one of the gradual rising economy, however it is facing challenges from political differences (Ho et al., 2016). In order to identify the status of Malaysia, more in-depth analysis is required.

The most prominent actors that establish the status of Malaysia are government, private sector, family and civil society. Therefore, the following discussion will highlight the mentioned actors and their respective roles in Malaysia. Critical analysis will be done considering views from various authors and scholars for supporting the roles of the actors. 

Government is defined as the system or group of people, which governs an organized community, state or even a country. It forms the regulatory framework and policies of a country for keeping it organized. Therefore, the role of government plays an important role in developing a country. Likewise, role of government also plays significant role in keeping Malaysia organized and fostering its development. According to Hasan and Jahan (2016), Malaysian Government keeps Malaysia united and facilitate it in forming patriotism, community and national pride. It establishes an effective justice system at federal, state and local levels for having fair justice against any crime. It protects the individual people of Malaysia from any kind crime, unfair activity and injustice. In this way, it secures the blessing of liberty for the community people and gives them a sense of security. On the other hand, Ling et al. (2016) opined that government fosters societal development through improving the quality of infrastructure like housing, roads, offering basic service like water, electricity, telecommunication and educational services.

Xavier et al. (2016) opined that political figures and leading figures are responsible government stakeholders who are accountable for providing police and defense force and thereby ensuring safety and security to the people. However, the role of government is questionable when crime against foreign tourists in considered. The present government has failed in curbing the crime, making Malaysia as rank one in crime rate among Southeast Asian countries. Government of Malaysia also creates adequate job opportunities in the public sector for the unemployed persons. In this way, government contributes in the overall development of the country by increasing the employment rate. On the other hand, Manaf et al. (2016) opined that Malaysian Government is extremely significant for the economic development of the country. Moreover, the country has huge support industrialization, which enhances the contribution of various industries in the country’s economy and it leads to developed economic condition. Free trade agreement policy made by Malaysian government attracts foreign direct investment in Malaysia, which directly impacts in the development of countries economic condition. 

Role of Private Sector in Malaysia

Ahamat and Rahman (2017) pointed out that private sector helps in developing the economy and managing resources of any country. Considering Malaysia, the most important role of private sector has been to alleviate poverty. With the impact of globalization and domestic industrialization, private sectors of Malaysia support employment and mitigating the basic needs of citizen. However, Ismail (2017) pointed out that private sector of Malaysia accounts for better balance of payments (BOP) than the public sector. The public sector is running deficit for the past couple of years and therefore, it can be understood that private companies are creating more roles in economic leverage.

According to the viewpoint of Permarupan et al. (2013), it can be interpreted that public sector of Malaysia is limited to serve the basic needs of the people and this creates the opportunity for private sector to develop the nation’s economy through niche marketing. Malaysian public sector has a very limited vacancy for the new generation and therefore, the private sector has addressed the gap in unemployment rate, thereby serving the needs of local citizen more than pubic agencies. On the other hand, Naina Mohamed and Borhan (2014) pointed out that private sector of Malaysia has established the demand of latest products through niche marketing and therefore the economy is more sustained through the revenue earned. The nation’s rate of economy development is more dependent on private sector. It has been also found that the new generation of Malaysia get enough scope in private sector and therefore this has helped in establishing better strategies form the private entity perspective.

Considering the domestic sector upliftment, SheeMun et al. (2013) identified that the development of private schools, private hospitals, private hotels, private hostels and private entertainment entities has created the direct technique of payment financing, which is treated as the development expenditure. On the other hand, in the recent years, private firms of Malaysia are contracting more infrastructure development projects than in the past. However, most of the projects are being managed by other international private firms. Furthermore, Ismail (2013) argued that Malaysian government undergoes very limited public-private partnerships as it fails to create a differentiated accounting formula for operating expense and developmental expense. This has resulted in very limited governmental subsidy and support for private sector. However, since the public agencies fail to mitigate market demand, the scope of privatization and entrepreneurship is increasing rapidly in Malaysia. 

Role of Family in Malaysia

According to the viewpoint of Mansor et al. (2013), Malaysian families are becoming more nuclear with not more than two children. This has increased the rate of urbanization rapidly in the past decade. Increase in number of families has also led to the demand of more commodities along with basic need fulfillment. Eventually, such increase in population has resulted in more globalization and industrialization. Noor et al. (2014) pointed out that there has been steady rise in Malaysian population in the past decade with birth control strategies so that each nuclear family is well satisfied with their belongings. The GDP per capita was 9,502.57 USD ‎(2016); Gross Domestic Product 296.4 billion USD ‎(2016); and population of 31.19 million (2016). For each of the statistics it can be found that there has been gradual rise in economy in the past ten years.

Considering the viewpoint of Mansor et al. (2013), increase in family numbers have helped Malaysia in developing child career for better educational qualification. With more than 92% literacy rate, Malaysian families have helped their own nation in supporting the employment status. Using the national talent arising from urban families, Malaysia has able to develop its medical technology, travel and tourism, pharmaceuticals, light manufacturing, oil and rubber processing, agriculture and automobile manufacturing. On the other hand, Khan et al. (2014) pointed out that increased rate of national manufacturing in multiple sectors have helped Malaysia in supporting more export resulting in more gross domestic product. In the recent years, it is prominent that Malaysian families are taking pride in developing the career of female candidates, which raise female labor participation rate (FLPR) from 46.8% in 2010 to 54.1% in 2015.

Maintaining national culture and tradition is only possible by the native citizen of a country and as highlighted by Ishak and Jaafar (2016), it can be found that Malaysia is one such country that has mostly able to maintain its arts and architecture. Maintaining tradition in Malaysia is mostly entertained by native families, which makes the future generation understand the importance of arts, culture, architecture, literature, cuisine and clothing. The role of Malaysian families has largely contributed in maintaining the unique aspects of the nation that makes it different from other western countries and therefore, the country is gaining huge revenue from its cultural tourism sector. On the other hand, Scholes et al. (2016) pointed out that due to globalization, Malaysian families are trying to engulf and mix with the recent immigrants from other nations such as China, India and Indonesia. This has also led to the demand of latest cuisine and fashion mix, contributing in both employment and economy.

Success Factors of Public-Private Partnerships in Malaysia

According to the viewpoint of Khan (2014), Malaysia has focused to achieve economic performance and technological competence as per planned strategies by the end of the year 2020. In order to flourish the knowledge based economy, Malaysia needs conductive society including cultural and political norms. However, Yien et al. (2017) pointed out that considering the past six years Malaysia has dropped focus towards the civil society for enhancing the economic performance and competence. Considering the knowledge economy transformation, Khoo (2014) pointed out that Malaysia has failed to construct new strategies for sustaining the growth potentiality of middle-income economies. Malaysia thought of developing the civil society but lacks in technology adaptation and infrastructure development, which has also created challenges for less value-added products and labor force. The country does not have the ability to acquire enough resources for infrastructure development and therefore it is lagging behind the advanced economies. The role of civil society has become stagnant and Malaysia currently is facing huge economic competitiveness with futile strategies for international integration, structural reforms, political reforms, trade liberalization, macro-economic stability and production system.

According to Gerard (2014), Malaysia has been always found to have regular elections that create space for the citizen to articulate their interest and construct the political process. However, in the recent years it is prominent that the main driver of political reformation through liberalization and democratization, which is created by Civil Society Organization (CSO) is serving as the obstacles. Forsyth (2014) pointed out that from the late 1990s to 2010 Malaysia’s political system was quite optimistic towards becoming democratic and competitive, however, in the recent years the country has ramped restrictive law usage that goes against the civil society. Therefore, it can be said that the country is facing political turbulence where CSOs are not given the opportunity to show their ability. The role of civil society is considered extremely confined and therefore the nation is not able to rise its middle-economy status.

While considering the viewpoint of Xavier et al. (2016), it can be said that the civil society of Malaysia is weekly contributing for the development of national industries. The public sector of Malaysia is mostly focused on its supporting agencies and political parties that respect the current regime. Therefore, the civil society being more educated and of more independent thinking then of participative thinking, the candidates are neglected in government sectors. Eventually, the country is facing challenges in innovation, participative decision making, infrastructure development, technology adaptation and research and development sectors. On the other hand, Hasan and Jahan (2016) pointed out that based on the economic competitiveness, the role of Malaysian civil society is to act as the facilitating body, monitoring body, finance controller and wealth distributor so that private business enterprises can be capitalized in future. 

Conclusion

The above discussion gave a brief snapshot of the roles of different Malaysian sectors. It has been found that Malaysian government ensures protection of citizen from unfair activities and thereby fighting against crime. Government has fostered development of society through infrastructure development however, later it was found that there are lots of differences with civil society. Malaysia has been found to be more economically dependent on private sector than public sector because it provides more employment and mitigates more demand of citizen, however it gets very less support from the government. It has been identified that the role of Malaysian families is helping in developing the future resources of the nation by limiting birth rate, focusing more on being nuclear, providing proper education to children, developing female for participating in government agencies and finally sustaining the art, culture and tradition for future generation. Considering the role of civil society, it has been identified that the civil generation needs to emphasize more on private sector development so that right talent management is capitalized. Civil society needs to act as the facilitating body for infrastructure development and to monitor the financial aspects of the nation along with balanced wealth distribution. 

References

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