Public Sector Infrastructure and Public Private Partnership (PPP)
The 10th Malaysia Plan (10MP) sets the platform to transform the economy towards a high-income nation via full employment, a private sector-led economy, strong support for an innovation-led growth and the restructuring of subsidies. For this reason, 52 projects worth RM62.7billion have been identified and a RM20billion Facilitation Fund has been established for the 2011 to 2015 planning period where development covers the area of transportation, waste management, healthcare and hospitals, master planning, education and other public infrastructure and services.

The Federal Government further embarked on an Economic Transformation Programme (ETP), build upon the policy directions, strategies and programmes of the 10th Malaysia Plan. By changing the government’s role from an active player to a supporter and facilitator of private sector-led growth, it is envisaged that Private sector investment will account for 92% of the RM1.4 trillion investment required and public funding will account for only 8%.

Indeed, the 6% annual growth envisioned under the 10MP hinges on the success of its implementation and execution. Four strategic missions has been formulated to guide the process, approach, evaluation and selection of a Public Private Partnership (PPP) model, they are:

  • to strengthen and foster strategic public private partnership with transparency and integrity to stimulate the economy for the well being of the rakyat;

  • to enhance service delivery through speedy execution and implementation;

  • to uphold value for money principle; and

  • to achieve the set vision through a recognised centre of excellence for PPP initiatives at national and international level.

Development Concept of a PPP Model

At RSM, we understand the increasing need for closer public-private relationship in developing the economy. The PPP model will continue to be one of the key instruments in implementing Government projects. We can value add into the process because we are innovative and specialise in the areas of:

  • Business strategy – realigning PPP objectives to the 10MP, project scope and different modes of the PPP mechanism, Value for Money (VfM)

  • Business model structuring – governance structure, risk management, payment mechanism and tax efficient structure, competitive pricing

  • Project management and evaluation – assessing the strategic impact and economic spill over

  • Project financials – financial modelling and analysis, revenue and risk sharing, fund raising and budget planning

  • Collaborative engagement with key agencies

  • Implementation and performance delivery – KPI tracking, improved efficiency, training and capacity enhancement