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the importance given to public-private partnerships (PPP) in the development process, a
Privatization Master Plan was initiated in 1991 and a Private Finance Initiative was introduced
in the Ninth Malaysia Plan 2006-2011. To deal with the enhanced role, a PPP Unit (Unit
Kerjasama Awan Swasta or UKAS) was established under the Prime Minister’s Department in
2009. The PPP Unit acts as the central organ for planning, facilitating and coordinating PPP
projects in the country (Hamsa 2014). To further encourage private participation, the Tenth
Malaysia Plan (2011-2015) allocated an RM 20 billion Facilitation Fund to bridge the viability
gap in private sector investments in infrastructure projects that have high strategic and
developmental impacts.37
4.2.4. Legal and Regulatory Framework for Infrastructure Investments
The Land Acquisition Act 1960 (amended in 1991) provides the broader conditions under
which the state can acquire land for infrastructure projects in Malaysia. While there are no
specific laws governing private sector involvement in the infrastructure sector in the country,
the relevant government bodies have issued several Guidelines that deal with different aspects
of private sector involvements and the financing of infrastructure projects. The Privatisation
Guidelines issued in 1985 provide a framework of policies governing privatisation and
implementation mechanisms.38 The Public Private Partnership (PPP) Guideline was issued in
2009 by the Public Private Partnership Unit, Prime Minister’s Office to facilitate the Private
Finance Initiative Programme that was a part of the Ninth Malaysia Plan. The Guideline
distinguishes between PPP and privatisation and provides the key principles on how
infrastructure projects are procured and implemented under the former. The Guidelines for
Integrity Pact Implementation in Government Procurement was issued by the Ministry of
Finance in 2010 and covered different stages of government procurement processes to
enhance transparency and mitigate corrupt practices. The Facilitation Fund Guidelines were
issued in 2011 for the RM 20 billion fund that was created under the Tenth Malaysia Plan.
At the operational level, various Commissions were established to deal with the specific
sectors. For example, the Energy Commission (Suruhanjaya Tenaga) was established with the
enactment of the Energy Commission Act 2001 to regulate the energy (electricity and gas)
sector.39 While the Land Public Transport Commission (SPAD) was established in 2011 with
the objective of developing public transport policies, plans and regulations related to land
public transportation,40 the Malaysia Aviation Commission was established in 2016 to regulate
commercial and economic matters related to civil aviation.41 Similarly, the Malaysian
Communications and Multimedia Commission was established under the Communications and
Multimedia Act (1998) to establish Malaysia as a global hub for communications and
multimedia content and information services by instituting a national infrastructure that
would provide affordable and equitable services. 42
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