Performance objectives of public private partnership implementation in Malaysia: perception of key players
| Pages | 17-30 |
| DOI | https://doi.org/10.1108/JABS-09-2015-0167 |
| Date | 02 January 2018 |
| Published date | 02 January 2018 |
| Author | Rosnani Mohamad,Suhaiza Ismail,Julia Mohd Said |
| Subject Matter | Strategy,International business |
Performance objectives of public private
partnership implementation in Malaysia:
perception of key players
Rosnani Mohamad, Suhaiza Ismail and Julia Mohd Said
Rosnani Mohamad and
Suhaiza Ismail are based
at the Department of
Accounting, International
Islamic University
Malaysia, Jalan Gombak,
Malaysia. Julia Mohd
Said is Assistant
Professor at the
Department of
Accounting, International
Islamic University
Malaysia, Jalan Gombak,
Malaysia.
Abstract
Purpose –The objectives of this present study are twofold. First, it aims to investigate the performance
objectives of PPP implementation in Malaysia. Second, it aims to examine the differences in the
perceptions of two PPP key players – the public and private sectors – pertaining to the performance
objectives.
Design/methodology/approach –A questionnaire survey was used to elicit the perceptions of the
public and private sectors concerning the performance objectives of PPP projects in Malaysia; 237
usable responses were obtained and analysed using SPSS to rank the importance of the performance
objectives and to examine the differences in the perceptions between the government and private
sectors.
Findings –The results reveal that the five most important performance objectives for PPP
implementation in Malaysia based on overall respondents’ perceptions are “High-quality public
service”, “Provide convenient service for society”, “Within or under budget”, “On-time or earlier” and
“Satisfy the need for more public facilities”. As for differences in the perceptions of the two key players,
only one objective was perceived as statistically more important by the public sector respondents than
by their private sector counterparts.
Originality/value –The contribution of this paper is that it not only provides empirical evidence for the
performance objectives for PPP implementation in Malaysia, but also offers evidence concerning the
differences in the perceptions of the public and private sectors pertaining to the performance
objectives.
Keywords Malaysia, Public private partnership, Performance objectives
Paper type Research paper
1. Introduction
The Public Private Partnership (PPP) has been used worldwide as a mechanism for the
public sector to procure public facilities and services. Since the introduction of PPP under
the term “Private Finance Initiative” (PFI) by the Conservative Government in the UK in
1992, the scheme has been adopted by many other countries including France, China,
India, Singapore, Thailand, and also Malaysia. However, the characteristics and structure
of the PPP are unique to each individual adopting country. More importantly, different
countries have different objectives for adopting the PPP scheme (Winch et al., 2012). For
example, in the UK, when PPP was first introduced in 1992, the main two objectives were
to enable more investment to take place; and to provide an improved form of public
procurement, which under the right circumstances could yield improved efficiency savings
and greater value for money than traditional procurement (Robinson, 2000).
In Malaysia, the official introduction of the PPP under the Ninth Malaysia Plan in 2006 had
the main objective of encouraging greater involvement of the private sector in providing
infrastructure facilities and public services by streamlining the existing Privatisation Policy
Received 21 September 2015
Revised 26 January 2016
1 May 2016
Accepted 16 May 2016
DOI 10.1108/JABS-09-2015-0167 VOL. 12 NO. 1 2018, pp. 17-30, © Emerald Publishing Limited, ISSN 1558-7894 JOURNAL OF ASIA BUSINESS STUDIES PAGE 17
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