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The Adoption of Private Finance Initiatives in Local Authorities in Malaysia: Understanding the Barriers Factors

Author :Maryadi Hasan, Dani Salleh
Subject Heading :Public Service [Browse more..]
Law [Browse more..]
Sociology [Browse more..]
Type :Journal Article
Source :MALTESAS Multi-Disciplinary Research Journal (MIRJO) [Browse more..], Vol. 3, Issue 2, pg. 50-61
ISSN/ISBN :0127-6271
Date of Publication :2018/08/27
Publisher :MALTESAS
PDF Full Text :


The Government of Malaysia embarked on the adoption of the Private Finance Initiative (PFI) as one of the methods of procurement for the provision of public infrastructure development and service delivery. Since its introduction in Malaysia, PFI's project method has leveraged the government as an alternative form of revenue, primarily to reduce government spending and to provide public infrastructure and services more efficiently. PFI is now one of the new alternatives often used by many local governments in many countries for various reasons. In addition to being a way to reduce government spending, PFI also helps in modernizing public services and infrastructure by achieving the best value for money. In addition to receiving many publications as an efficient and effective model, the PFI method is less considered as a method of procurement in the context of local authorities (LAs) in Malaysia. There are studies showing that the PFI procurement method is still under consideration, and is seen to be in the early stages of implementation although this model has long been introduced in Malaysia since 2006. This has created an interest in conducting research to identify barriers to adoption of PFIs in LAs in Malaysia. To obtain such information, surveys were conducted in LA in Malaysia, where 240 questionnaires were distributed to the relevant departments. Research findings have revealed eight key obstacles to the implementation of the PFI approach in LAs in Malaysia. From the findings of this study, the discussion was based on the previous statement.

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