privatization
The problems and benefits of privatization of public sector organizations
Generally, privatization has been defined in provisions of the transfer of enterprise ownership from the public to the private sector. More generally, privatization refers to shifting the status of a business, service or industry from state, government or public to private ownership on control. Privatization can be strictly defined to include only cases of the sale of 100 percent, or at least a majority share of a Sale of Equity (SOE), or its assets, to private shareholder. Although the economic crisis affected the operation of some projects, remedial measures were undertaken promptly to revitalize the affected projects such as rescheduling their implementation and reducing the project scope. From the initiation of the privatization policy through 1990, a total of 37 projects were privatized. The momentum picked up in 1991-1995 when a total of 204 projects were put in private hands. The number of privatized projects dropped to 68 during 1996-1998, mainly due to the economic slowdown that hit Malaysia in the second half of 1997. There are several major methods of privatization in Malaysia, but those of significance are shares issued privatization (SIP) firms. These entities, such as Tenaga Nasional Berhad (the national power generator and distributor), Malaysian Airline System Berhad (the national airline), and Telekom Malaysia Berhad (the national telecommunications provider), are huge and highly visible, and they could be privatized only through a public share issue There are several benefits in privatization of public sector organizations.
Efficiency and productivity is one of the benefits of privatization. The services and administration of privatized entities improved significantly as evidenced by increases in the efficiency and productivity indicators of selected entities. This was due to the improvement of facilities by these companies which were also able to obtain new and modern
Generally, privatization has been defined in provisions of the transfer of enterprise ownership from the public to the private sector. More generally, privatization refers to shifting the status of a business, service or industry from state, government or public to private ownership on control. Privatization can be strictly defined to include only cases of the sale of 100 percent, or at least a majority share of a Sale of Equity (SOE), or its assets, to private shareholder. Although the economic crisis affected the operation of some projects, remedial measures were undertaken promptly to revitalize the affected projects such as rescheduling their implementation and reducing the project scope. From the initiation of the privatization policy through 1990, a total of 37 projects were privatized. The momentum picked up in 1991-1995 when a total of 204 projects were put in private hands. The number of privatized projects dropped to 68 during 1996-1998, mainly due to the economic slowdown that hit Malaysia in the second half of 1997. There are several major methods of privatization in Malaysia, but those of significance are shares issued privatization (SIP) firms. These entities, such as Tenaga Nasional Berhad (the national power generator and distributor), Malaysian Airline System Berhad (the national airline), and Telekom Malaysia Berhad (the national telecommunications provider), are huge and highly visible, and they could be privatized only through a public share issue There are several benefits in privatization of public sector organizations.
Efficiency and productivity is one of the benefits of privatization. The services and administration of privatized entities improved significantly as evidenced by increases in the efficiency and productivity indicators of selected entities. This was due to the improvement of facilities by these companies which were also able to obtain new and modern