Privatisation means the public sector transfer its function or activities to the private sector. The government will provide funding for the private sector to implement and complete the projects.
Corporatisation involves the transfer of functions or activities of the public sector to a company fully owned by the government formed under the companies Act 1965.
PUBLIC-PRIVATE PARTNERSHIP (PPP (UKAS))
PPP means the private sector constructs and completes government projects with its own financial resources. In return the government will reimburse the company in the form of land swap or instalment payments via lease.
METHODS OF PRIVATISATION
- Land Swap
- Sales of Assets or Equity
- Lease of Assets
- Management Contract
- Built-Operate-Transfer (BOT)
- Built-Operate (B.O)
- Built-Transfer (B.T)
- Built-Lease-Transfer (B.L.T)
- Management Buy Out (M.B.O)
- Built-Lease-Manage-Transfer (B.L.M.T)
ROLE OF JPPH
JPPH’s involvement in the privatisation/public-private partnership includes:
- Valuation of assets
- Permanent member of the Privatisation Committee of the Public Private Partnership Unit (PPP Unit (UKAS)), Ministry of Finance.
- Member of the Financial/Technical Evaluation committee in the PPP Unit, Ministry of Finance.
- Negotiation with company on matters related to the valuation (if required).
TYPES OF PROPERTY VALUED
- Immovable: Land and Buildings
- Movable: Plant & Machinery, Equipment, Vehicles, etc.
BASIS OF VALUATION
- Market value of the asset based on:
- Existing use;
- Highest and best use; and/or
- Company’s proposal for the land
- Lease value
- Rental value
DATE OF VALUATION
The date of valuation is usually the current date or a date fixed by PPP (UKAS)/State Economic Planning Unit (SEPU).
APPLICATION OF VALUATION
Proposals for privatisation of land/federal agency must be fowarded to the PPP (UKAS) for consideration. At the state level it must be fowarded to the respective SEPU.
INFORMATION REQUIRED FOR VALUATION
- Proposal brief
- Copy of the title or documents supporting title particulars
- Location plan, site plan and building plans
- Layout plan and development plan
- Feasibility study, if any
- Business model,if any
- Consultant’s report, if any
- Valuation report, if any
All complete application shall be reported within 20 working days from the date of receipt.
APPEAL AGAINST VALUATION DONE
All appeals must be sent to PPP (UKAS)/SEPU with a copy to JPPH Malaysia for consideration.