Constraints to incorporate competition in Public-Private Partnerships (PPP) in Malaysia

Abstract

Competition in procurement not only benefits government and taxpayers but also provides an equal market for the private sector. Competitive procurement stimulates market creativity, as it discourages anti-competitive behaviour. Despite the complexity of the PPP procurement process, the world is now promoting competition within it, an element yet to be fully implemented in Malaysia. This paper analyses the constraints that Malaysia faces in effectively maintaining PPP competition. Within the case study research strategy, semi-structured interviews and content analysis were used as data collection and analysing methods. The study found that in its efforts to make the PPP program a success, the Malaysian PPP has followed flexible implementation, with less emphasis on competition. The effect of focusing only on PPP's macro aim has resulted in a lack of competition in practice. The current challenge is to strike a balance between achieving aims and maintaining governance and therefore getting the best out of PPP in Malaysia.