Constraints in implementing public private partnership (PPP) in Malaysia
Purpose(s): There are two objectives of this present study. First, it intends to scrutinize the challenges in implementing PPP by examining the factors that hinder the successful adoption of PPP in Malaysia. Second, it aims to investigate the differences in the perceptions of the Government and the...
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| Format: | Article |
| Language: | English |
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Emerald Group Publishing Limited
2014
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| Online Access: | http://irep.iium.edu.my/37223/ http://irep.iium.edu.my/37223/ http://irep.iium.edu.my/37223/1/BEPAMVOl4Issue3.pdf |
| Summary: | Purpose(s): There are two objectives of this present study. First, it intends to scrutinize the challenges in implementing PPP by examining the factors that hinder the successful adoption of PPP in Malaysia. Second, it aims to investigate the differences in the perceptions of the Government and the private sector pertaining to the hindrance factors.
Methodology: A questionnaire survey was used to elicit the perceptions of the public and private sectors concerning the constraints of PPP implementation in Malaysia. A total of 122 usable responses were obtained. The mean score and mean score ranking were used to examine the importance of the hindrance factors. An independent sample t-test was used to examine the differences in the perceptions between the two sectors.
Findings: The overall results show that ‘lengthy delays in negotiation’, ‘lack of government guidelines and procedures on PPP’, ‘higher charge to direct users’, ‘lengthy delays because of political debate’ and ‘confusion over government objectives and evaluation criteria’ are the top five constraints for adopting PPP in Malaysia. In terms of the differences in the perceptions between the public and private sector groups, the statistical test results indicate that there are only significant differences in the perceptions for two hindrance factors.
Originality/value: The paper contributes to the existing literature on PPP, which is currently limited, by focusing on the challenges of implementing PPP in a developing country. More importantly, this paper provides evidence concerning the differences in the opinion of two key players (i.e. the Government and the private sector) on the PPP hindrance factors.
Keywords: Public Private Partnerships (PPP), constraints, negative factors, hindrance factors, Malaysia
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