ABSTRACT

The aim of introducing the PFI was to achieve closer partnering between the public and private sectors at both central government and local authority levels. Despite the PFI may have been tested for more than a decade in developed countries, the idea is just beginning to germinate in Malaysia. In all likelihood, Malaysia is coming up with its own version of PFI, which deviates somewhat from the ideal PFI principle. This is to take into account the business and political reality of the country. This is especially so in the first phase of the PFI, involving about Ringgit Malaysia (RM) 20 billion in projects under the Ninth Malaysia Plan (9MP).

Therefore, empirical research was undertaken based on a questionnaire survey to Main Board listed Construction Company in Malaysia to identify barriers, concerns, risks and benefits in the PFI. Among the concerns of PFI implementations in Malaysia are the government is not doing enough to promote PFI understanding and there are arguments that PFI in Malaysia may not successful. Among the barriers of PFI to construction companies are the cost of bid or proposal will be high and the financial institutions are not prepared to give commitment. Among the barriers of transparency in the concession project is the government has the tendency to select predetermined construction companies and the government have socio-political reason to help Bumiputera’s companies. PFI will benefit construction companies mostly through transfers of skills and technology. Finding from this research may also provide new insight on the theoretical perspectives on PFI implementation in a contractor perception and also other parties involve. Full Paper: [Pdf-1][Pdf-2]


To cite this paper: Shamsida Saidan Khaderi and Abdul Rashid Abdul  Aziz (2009) The Acceptability Of The Private Finance Initiative (PFI) In Malaysian Construction Industry. CIBW 107 International Symposium on Construction in Developing Economies: Commonalities Among Diversities, Penang Malaysia, October 2009.