Byline: Mohd Anwar Yahya
The Ninth Malaysia Plan stated that private finance initiative (PFI) will be introduced as a new measure under the privatisation programme to enhance efficiency in the public sector infrastructure and delivery service. This article addresses some of the common queries and concerns.
Global and regional trends
Many countries which have adopted the PFI/PPP framework are at different stages of development. The UK leads in terms of market maturity, closely followed by the Australian market. Regionally, South Korea and Japan are slightly more advanced in terms of number and size of deals closed. Singapore started its PPP programme in 2004 and has launched a number of deals.
Some of the key benefits of PFI are:
The question then is: Should all government projects be procured under PFI?
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This article first appeared in The Edge, 13 Aug 2007