| This is a study of two prominent features of the privatization policy in Malaysia: politics and efficiency. This dissertation puts forward the claim that political interference is detrimental in any privatization policy. Cronyism and nepotism have perverted free-market mechanisms---an underlying feature of privatization---resulting in inefficiency. This study is firmly anchored in two case studies, namely, privatization of Port Klang and hospital support services. The former explains the Malaysian blueprint for privatization while the latter highlights the implementation of this policy. The privatization policy in Malaysia is also allied to the New Economic Policy, an affirmative action policy to eradicate poverty and restructure society and especially targeted for Bumiputeras. In the midst of the Asian financial crisis in 1997, criticisms over Malaysia's privatization policy are coming to light. These include criticisms from Bumiputera themselves; thus the central thesis of this dissertation---privatization at the crossroads. This is where there is a need to re-evaluate institutions and policy actors---politicians, bureaucrats, and stakeholders. Subsequently, this dissertation will reveal the influence of 'soft' and 'hard' services in determining the feasibility for privatization. |
