Privatization Action Plan

Topics: Public sector, Privatization, Public ownership Pages: 4 (827 words) Published: April 1, 2015
Privatization Action Plan (PAP) refers to the policy and objectives to be implemented which is in more systematic and organized. PAP consists of a two year rolling plan which is to be reviewed at the end of each year to determine the entities to be privatized in following two years. PAP is implemented to ensure that privatization efforts are channeled to appropriate priority areas. There are 6 major components of PAP. First is flagship. Flagships are Government Owned Entities that are importance in terms of size and complexity. Flagship companies include organizations such as Tenaga Nasional Berhad and Telekom Malaysia Berhad. Second is easily privatizable, which is refers to profitable government companies that already operating in competitive commercial environment. Third, restructuring projects that are refer to non profitable government companies operating in competitive commercial environment that need financial and operational restructuring. Next is service. Services refer to organizations that are protected from commercial competition, such as training, health services and veterinary services. Another component of PAP is new project. New projects are those that are to traditionally developed by the public sectors. It is usually involve infrastructure that is to be privatized by way of build, operate and transfer or build and operate. For example roads, bridge and water supply. Last one is listed and minority holdings, which are those that are to be given low priority since involvement of private sectors in these entities are substantial. In PAP, there are important criteria that are need to be focused on in determining the priorities. First is feasibility. The Government departments or statutory bodies that are going to be privatized, also known as candidates, must consider its ease of privatization, which is more on restructuring and legal changes, and attractiveness to the private sector, which is determined primarily by its...
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