Rationales for public private partnership (PPP) implementation in Malaysia

This paper aims to, first, examine the rationale for implementation of public private partnerships (PPP) in Malaysia. Second, it investigates the differences among perceptions of the public and private sectors, in relation to the rationales for implementing PPP in Malaysia.

A questionnaire survey captured the perceptions of the public and private sectors concerning the rationales for PPP implementation in Malaysia. Of 250 questionnaires distributed, 122 usable responses were obtained and analysed using SPSS to rank the importance of the rationales and to examine differences in perceptions between the government and private sectors.

Results show that “to enhance private sector involvement in economic development” is the only rationale that was rated as most important by all respondents. While other rationales were perceived as important, “to reduce the role of the Government in providing public services and facilities” was regarded as the least important rationale by both parties. The results also reveal significant differences between public and private perceptions for the least important rationales.

This paper offers empirical evidence on the concept and the rationales for implementing PPP in Malaysia, and also provides evidence on the differences in the perceptions of the public and private sectors in relation to these rationales.