Academic journal article Academy of Accounting and Financial Studies Journal

Malaysian Public Private Partnership

Academic journal article Academy of Accounting and Financial Studies Journal

Malaysian Public Private Partnership

Article excerpt


Provision of public infrastructure is the prime responsibility of the government, however, due to budgetary pressure different government tend to involve private sector for public services by implementing the tool; Public Private Partnership (PPP). Likewise, Malaysian government has adopted PPP for public service and development of infrastructure due to innovation, reduction of public money tied up in capital investment and reduction of the total project cost (Ismail, 2013a). Though, Malaysian government has been employing PPP since the mid-1980s the allocation of funds in Ninth Malaysian Plan (Plan, 2006) and inclusion PPP projects as strategy in Tenth Malaysian Plan (Plan, 2010) were the vital steps towards the enhancement of PPP projects in Malaysia (Ismail, 2013b). Furthermore, in year 2009 Unit Kerjasama Awam Swasta (UKAS) was developed as a separate department under the direct supervision of Prime Minister of Malaysia (About Ukas, n.d). The recent literature for Malaysian PPP projects describes the problems in PPP projects (Khadaroo, Wong & Abdullah, 2013; Markom & Ali, 2012; Abdul, Memon & Zulkifli, 2014; Takim, Ismai & Nawawi, 2013), critical success factors (Ismail, 2013b), risks (Ahmad, Ibrahim & Minai, 2017) and evaluation of value for money (Ismail, Takim & Nawawi, 2011). However, the recent literature lacks the description of the process for Malaysian PPP projects. In addition, the questions like; what the phases of Malaysian PPP projects are and how does each phase is carried out, are unrevealed. Therefore, this study attempts to describe the Malaysian PPP project that may help to develop the better understanding for future researchers.


In literature, the consensus on one definition of PPP does not exist but all researchers and practitioners are certain on the fact that the PPP arrangements mean involvement of both public and private sectors, since, the level of involvement differs from region to region and project to project. Therefore, for a better understanding of concept Peter (1998) elucidated five characteristics that describe PPP projects. Firstly, a PPP partnership comprises of two or more players; one of them is public and the other is private. Secondly, each partner acts as a principal. Thirdly, PPP is a continuous partnership that creates long-term relationships, whereas, the relationship is a one-off transaction. Fourthly, in PPP agreement, each player/partner contributes something in terms of resources such as capital or land for the creation of a partnership. Lastly, the most important feature of PPP that differs from others is transfer and sharing of risks. The Prime Minister PPP Department (UKAS) Malaysia describes PPP as:

Public Private Partnership (PPP) is a form of cooperation between the public and private sector whereby a stand-alone business is created, funded and managed by the private sector as a package that encompasses construction management, maintenance and repair works as well as replacement of public amenities comprising buildings, infrastructures, equipment and facilities (Definition, n.d.).


The main objective of this research is to describe the PPP project process. Creswell (2017) suggests that phenomenological research method is helpful to inquire about any phenomenon. Therefore, the current study adopts the phenomenological method to describe PPP project process. In this method, based on guidelines of Groenewald (2004), first the 28 semi-structured interviews were conducted. The interviewees were UKAS personals, PPP experts in Ministry of Health, PPP experts in Ministry of Public works and PPP experts from Private companies that involve in PPP projects. Atlas-ti 8.0 has been used to arrange the interview data and to generate the themes/codes that helped to describe PPP process.


Based on the findings of interviews the PPP process is composed of five phases; Pre-Project Planning phase and selection of Private Partner or SPV (Special Purpose Vehicle), Planning Phase, Construction Phase, Commencement of Operation and transfer to government. …

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