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Identify factors influencing and barriers to the adoption of the private finance initiative in local government in Malaysia


Hasan, Maryadi and Salleh, Dani (2018) Identify factors influencing and barriers to the adoption of the private finance initiative in local government in Malaysia. International Journal of Law, Government and Communication, 3 (9). pp. 69-82. ISSN 0128-1763

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Abstract

The Implementation of the Private Finance Initiative (PFI) has been considered as an alternative to conventional procurement as it offers different financing mechanisms and management solutions to be considered. PFI has brought more advantages over traditional procurement systems in many countries at every level of government. At the local government level, PFI's revenue enables Local Authorities (LAs) to work with the private sector to provide public infrastructure and services more effectively and efficiently. In Malaysia, since its introduction in the Ninth Malaysia Plan in 2006, the PFI model has benefited the government as an alternative form of procurement, in particular to reduce government spending, and to provide more efficient public infrastructure and services. Apart from introducing the PFI method, PFI is said to be an efficient and effective model in the implementation of public procurement policy. However, LAs in Malaysia are very poorly using PFI as their procurement method. This study is to identify the factors influencing, and the barrier for adopting PFIs in LAs in Malaysia. In achieving this goal, a survey was conducted in LAs in Malaysia. 240 questionnaires were distributed by post to the department or division involved in project implementation at LAs. This finding identifies the major factors influencing the adoption of PFIs in LAs, as well as identifying major barriers for the implementation of PFIs in LAs in Malaysia. Finally, the framework for PFI's recruitment strategy at the LAs has been developed.

Item Type: Article
Uncontrolled Keywords: Private Finance Initiative, Public Private Partnership, Local Authorities, Local Government.
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: School of Government
Depositing User: Mrs. Norazmilah Yaakub
Date Deposited: 01 Mar 2020 01:25
Last Modified: 01 Mar 2020 01:25
URI: http://repo.uum.edu.my/id/eprint/26863

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