leadership in the privatization company in malaysia and the benefit of privatization: the experience...
TRANSCRIPT
UNIVERSITI SAINS MALAYSIA
SCHOOL OF SOCIAL SCIENCES
MASTER OF PUBLIC ADMINISTRATION
SPA 503 ORGANIZATIONAL MANAGEMENT
DR. RADZAK ABAQ SAM
LEADERSHIP IN THE PRIVATIZATION COMPANY IN MALAYSIA AND THE BENEFIT OF PRIVATIZATION: THE EXPERIENCE IN MALAYSIA AIRLINES
(MAS)
By:
MUHAMAD IZZWANDY BIN MAMAT (P-SM0081/09)
1
LEADERSHIP IN THE PRIVATIZATION COMPANY IN MALAYSIA AND THE BENEFIT OF PRIVATIZATION: THE EXPERIENCE IN MALAYSIA AIRLINES (MAS)
1.0 PRIVATIZATION
1.1 The Definition of Privatization in Malaysia
In Malaysia, privatization is generally defined as the transfer of ownership from public to
private sector. It could also be referred as changing status of a business, service or industry from
state, government or public to private ownership or control. Occasionally, the term privatization
is to include the use of private contractors to provide services previously rendered by the public
sector. Full privatization is not the norm in Malaysia; hence most privatization involves
transferring only some of the government ownership.
In sum, privatization is a policy of transferring government ownership to private
ownership through various methods. In this definition, privatization includes the transfers of a
full or partial government ownership to private ownership through the sale of equity in the
capital market. Privatization in state-owned enterprises is based on a strong proposition that
private sector enterprises are subject to economic disciplines which are not present in the state
enterprises. The disciplines of competition and the need to earn a profit in order to grow keep
private sector enterprises relatively more efficient than their public sector counterparts.
Therefore, one common objective of privatization by transferring state ownership to private
investors is to make the enterprise become more efficient and more profitable. The privatization
may also have other objectives such as changing behavior of economic agents and discipline of
the market, reducing budget deficit to harness savings and finally promoting wide share
ownership.
2
On the other hand, different countries have their own specific objectives of privatization
of state-owned enterprises. Those objectives depend upon the condition and the situation the
countries are facing. However, whatever the political motives of those countries toward
privatization policy, every country tends to have common objectives of increasing firm
efficiency and profitability and reducing government financial burden.
1.2 Privatization Policy in Malaysia
Privatization started getting attention in Malaysia from middle year 1983 when Tun Dr.
Mahathir Mohamed launched Malaysia Incorporated Policy who is also had alluded role of the
private sector in development and management of the country. Privatization was contrary with
nationalization, namely a process increase government ownership and mastery in economic.
Privatization involves several certain interest or government investments to private sector. Prime
Minister in opening speech conference “The Securities Industry in Malaysia” in 1984 said
government world over is notorious for inefficiency when running enterprises, even aided by
monopoly and authority of government. On other hand, private sector is better motivated and
generally more efficient. It is hoped that privatization will improve economic and general
performance of services, resulting in a more rapid growth of nation as a whole.
Privatization also defined as the transfer of the public sector activities and functions to
the private sector. This applies to the commercial and industrial enterprises which are often
owned, managed and implemented by the public sector which could otherwise be operated by the
private sector. Privatization is premised on the assumption of the superiority of market forces
over administrative directives in governing economic activity to achieve efficiency. The first
project of privatization is being upgrading of a public road into a tolled road by passing the town
3
of Klang, Selangor. From then on, the government has extended the privatization projects to
cover other sectors.
1.3 Objectives of Privatization
To relieve the financial and administrative burden of the government
To improve efficiency and increase productivity
To facilitate economic growth
To reduce the size and presence of the public sector in the economy
To help meet national development targets
1.4 Type of Privatization
By section - namely government sectors which are service based that had been
transferred to the private sector. Example: Airod Co. Sdn Bhd.
By choice - mainly government sectors that are partly privatized. Example: Klang Port in
Selangor.
Trade oriented - whereby the government still holds the company but the capital concepts
are privatized. Example: Tenaga Nasional Berhad (TNB)
By contract - whereby the private sector would prepare the services for the government.
Example: rubbish burning by Dewan Bandar Raya Kuala Lumpur (DBKL)
By mortgage - where by the facilities provided by the government would by rented by the
private sector. Example: Malaysia Airlines (MAS) and TV3 or Media Prima.
4
The Privatization Master Plan will chart the future direction of privatization to help ensure a
systematic and organized implementation of the programmed to be in line with the general
economic policies and development strategies. A Privatization Action Plan (PAP) which is a two
year rolling plan reviewed at the end of each year has also been formulated to also serve as a
feedback mechanism.
Privatization policy is in line with New Economic Policy (NEP) and The National
Development Policy (NDP) which is an effort of the government to be an industrial and business
country. Under NDP, privatization has geared up its focus on joint ventures companies between
bumiputra and non-bumiputra. Other than encouraging a united front in business, it also enables
a transfer of technology and experience between themed such as Indah water consortium for
waste treatment project. Privatization also enables the government to provide world class
facilities such as under concession scheme. Privatization also enables the government and the
nation to promote the abilities of private sector and private sector plays the role of the nation’s
engine of growth.
5
2.0 THE PRIVATIZATION OF MALAYSIA AIRLINES (MAS)
2.1 The Background of Malaysia Airlines (MAS)
Malaysian Airlines was established in 1937 under the name of Malayan Airways Limited.
After Malaysia gained its independence from Britain in 1957, the airline changed its name to
Malaysian Airways. It changed its name again in 1966 to Malaysia-Singapore Airlines as a result
of a joint ownership by the governments of Malaysia and Singapore. In 1972 when both
countries decided to create their separate airliners, Malaysia-Singapore Airlines became
Malaysia Airlines System. Fifteen years later the airline management decided to rename the
airline again, and from 1987 on it is known as Malaysia Airlines (MAS).
In the early 1980, Malaysia Airlines (MAS) suffered losses due to high interest rates and
fuel costs. In setting up the national airliner the government acted as the entrepreneur. Tun
Mahathir believed that the government would benefit more if part of MAS could be privatized.
By picking the aviation industry as a winner, the Malaysian government would support MAS,
which in essence became a mixed state-private sector company.
The government’s own financial difficulties and other priorities also limited the funds
available to MAS for expansion. An attractive solution to the problem was partial divestiture,
regarded by some as a form of privatization. In the case of MAS, therefore, privatization only
involved partial divestiture as majority ownership remained in the hands of the government.
6
3.0 THE LEADERSHIP IN PRIVATIZATION OF MALAYSIA AIRLINES (MAS)
3.1 The Definition of Leadership
Leadership is an art that is used by individuals in missions or tasks. It cited as an art
because not all individuals have the skills to influence other individuals to perform something
properly; perform the task with full willingness and without compulsion. To get individual's
willingness to work is not an easy thing. We may direct a person to work, but the result has not
been guaranteed as what we required.
Leadership is also known as a person who may have power but not necessarily have
influence. But the influential person will certainly have the power. With the influence owned, a
person has the power easily. Influence and power if used properly can persuade others to do
something as intended. The situation is similar between a manager and a leader. A manager will
not necessarily be a leader but a leader will certainly be a good manager. In this case, a manager
will be a leader when it has the characteristics of leadership, among the most important skills that
cover all areas and management functions such as planning, organizing, leading and controlling.
7
3.2 The leadership Style and Theory
The various assumptions have been made by researchers to highlight the arguments
justifying that someone is a leader. Theories given by them can be defined as a basis of accurate
and comprehensive understanding about leadership. Look to the authority of some world leaders
such as Gandhi, Napoleon, and others. The researchers assume them as the individuals which are
born as leaders. They are considered as a charismatic leader.
This assumption is reinforced by the argument which states that the leader has certain
characteristics that are not owned by others. They are said to be wise, have a high capacity,
initiative, skilled and knowledgeable and also have a certain character. The weakness of this
assumption is not all leaders have the same characteristics.
Other than assumptions above, the researchers felt that the leadership arises due to one
specific situation to solve one specific problem. This assumption associated with the function or
role of a leader to make decisions, advising, planning, implementing, and others.
Some theories and assumptions about leadership as presented above, if analyzed
separately has many disadvantages. Therefore, a comprehensive approach should be taken that
leadership is not commonly mistaken as a skill inherited solely, but must be recognized as the
characteristics that exist in each individual. Leadership can be learned, and through the process
of learning, leadership style can be shaped to achieve a goal.
As assumptions have been made about leadership, researchers also express some styles of
leadership. Two styles of leadership that many get highlighting is democratic and autocratic
style. Both styles of leadership is said to be a leadership style that is most widely practiced and
8
vice versa. For autocratic leadership, everything starts from the leadership itself. Followers
follow all instructions without protest. While a democratic leader concerned about his views in
addition trying to influence them with noble qualities such as caring, respect, and not use his
power to arbitrarily.
Between democratic and autocratic leadership style, emerged independent leadership
style (free-reign or laissez-faire) which is contrary to the democratic and autocratic style. They
have a style that gives freedom to his followers without control and supervision which led to the
situation become chaotic and chaos.
9
3.3 The Charismatic Leadership of Tun Dr. Mahathir Mohamed toward of
Development and the Rise of New Policy: Privatization Policy and The
Privatization of Malaysia Airlines (MAS)
The charismatic leader means a leader who has the ability to motivate subordinates to
transcend (greater) their expected performance. This type of leader can improve power to inspire
or attract others. The charismatic leaders pay a great deal of attention in scanning and reading
their environment, and are good at picking up the moods and concerns of both individuals and
larger audiences. Nowadays, many politicians use a charismatic style, as they need to gather a
large number of followers they create atmosphere of change by visionary ideas that excite,
stimulate people to work hard.
A charismatic leader uses a wide range of methods to manage their image and, if they are
not naturally charismatic, they may practice constantly at developing their skills. They may also
create trust through visible self-sacrifice and taking personal risks in the name of their beliefs.
They will show great confidence in their followers. Many politicians use a charismatic style, as
they need to gather a large number of followers. In order to increase the charisma, studying
videos of the great leader speeches and the way they interact with others is a great source of
learning. Religious leaders, too, may well use charisma, as do cult leaders.
Besides, charismatic leaders who are building a group whether it is a political party, a
cult or a business team, will often focus strongly on making the group very clear and distinct,
separating it from other groups. They will then build the image of the group, particularly in the
minds of their followers, as being far superior to the others.
10
3.4 The Charismatic Leader in Malaysia
The charismatic leadership of Tun Dr. Mahathir helps Malaysia succeeded in becoming a
developing nation. The life of the people under his government's leadership was also very
prosperous and comfortable. The ambitions of Tun Dr. Mahathir were very high and pure. He
wanted the people intelligent, clever, rich, highly educated, dynamic, efficient, strong religious
beliefs and morals. He did not want the people gullible, made fools of easily and stooges of other
countries. Besides, he did not want the people to give up easily without even trying hard.
Tun Dr. Mahathir had a far sighted vision on where he wanted to take the people and
nation in terms of a more meaningful mindset and lifestyle. Thus, he developed the Multimedia
Super Corridor (MSC) based on Silicon Valley in Sepang designed to enable Malaysia's foray
into Information Technology (IT). Developed countries looked up to Malaysia because of the
wisdom and braveness of him in his fast drastic action on 1 st of September 1997 by pegging the
Malaysian ringgit so that it could not be fixed by the market forces. He took this step to save the
nation’s economy from falling even more and eventually heading to poverty and thus creating all
sorts of problems.
Although many world leaders objected and made fun of his brave decision because he did
not want to consider their advice which was to get financial help from the International Monetary
Fund (IMF). However, they accepted the fact that the action he took was correct and exact to
curb a national recession. Since becoming the prime minister, Tun Dr. Mahathir has brought the
nation and people to the forefront of the world and showed that eventhough we have been seen
as backward but Malaysia is capable to compete with the other more developed nations of the
world. We can also be proud that it was in his era that the Islamic Centre, Islamic Bank,
11
International Islamic University (IIU), Malaysian Islamic Understanding Institute, Islamic
Museum.
Tun Dr. Mahathir also launched the ‘Look East Policy’ and the abortion of Islamic values
in the government machinery to pioneer in justice, honesty, hardworking and integrity to combat
corruption and other vices. He also pioneered in the corporatization and privatization where the
private sector was given a higher responsibility to develop and build the nation’s economy like a
privatizations Malaysia Airlines (MAS). All his hard work and vision clearly showed the ability
to succeed with the birth of fast development and conglomerates that were able.
The previous Prime Ministers before him had their own era and achievements. For
example, Tunku Abdul Rahman brought independence to Malaya, Tun Abdul Razak brought the
development and Tun Hussein Onn brought the unity whereas Tun Dr. Mahathir's era covered all
of it. There are so many landmarks of his ideas in developing the country such as the Kuala
Lumpur Tower, Kuala Lumpur International Airport (KLIA), Petronas Twin Towers and the
proudest of all the Putrajaya, Cyberjaya and the Formula 1 circuit. Thus, he is known as "Father
of Modernization".
12
3.5 The Leader and Elite Theory in Introduce of Privatization Policy
Generally, elite theory is a theory of the state which seeks to describe and explain the
power relationships in modern society. It is said to be the theory of the state of which a small
member of the population control the country. Elite groups constitute a distinct power-based
ruling class in terms of holding the highest status positions in the political, economic and social
structure of a society. By virtue of holding these positions, elite groups can also influence the
value system in a society so as to entrench and protect their social class positions by inculcating
an ideology of superiority that rationalizes and protects their dominant positions.
Essentially, this means that certain groups in dominant political, economic and social
institutions are able to assert themselves as elite groups, influencing and controlling the power of
decision making with the authority and the ability to get the things they want by exercising this
power. In introducing the Privatization Policy, Tun Dr. Mahathir Mohamed has a power as an
elite group. He is the forth Prime Minister when introducing the Privatization Policy. Thus, he
has an authority, ability and power during that time.
13
4.0 THE LEADER IN MALAYSIAN AIRLINES AFTER AND BEFORE
PRIVATIZATION
4.1 Dato' Haji Abdul Aziz bin Abdul Rahman
Dato' Haji Abdul Aziz bin Abdul Rahman was appointed managing director of
Malaysia Airlines (MAS) in 1982. Under his leadership, he took immediate steps to improve the
company’s position. He identified two major steps which had to be taken to turn the situation
around: stringent cost control and quick generation of revenue. With these strategies in mind,
Dato' Abdul Aziz established two committees and a cost control committee headed by the
director of finance, and a revenue generation committee headed by the director of customer
services. These two committees were responsible for identifying areas where costs could be
reduced and revenue generated.
The company froze staff recruitment while ruling out retrenchment. It also reduced
variable costs, such as in-flight meals and other passenger costs, without compromising on the
quality and standards of service. Other cost control measures were directed towards staff
overtime, communication costs and pure chasing. Dato' Abdul Aziz felt that it was important to
pay meticulous attention to details to realize cost savings He used tender committees to make
purchasing decisions and personally reviewed all decisions made. In his view, it was prudent not
to give power to just one or two individuals on such matters.
He also instigated surprise internal audit checks and "moved people around all the
time" to prevent corrupt practices in the purchasing division. All these steps, according to Dato'
Abdul Aziz, saved the company millions in expenses. To generate revenue, the company
14
introduced various promotional schemes to gain market share and made efforts to increase the
load factor.
To avoid losing market share, the company monitored routes closely on a daily basis. It
added services to sectors where demand was high and reduced services on sectors where demand
was inadequate to justify having a flight. In the words of Dato' Abdul Aziz, the strategy was "to
maximize revenue after identifying the tactical strategies on how to get market share in the
market place." Dato' Abdul Aziz also recognized the importance of the human element in the
achievement of the company's objectives. He expressed a strong commitment to establishing a
good employee-management relationship and believed that the key to the company's success was
employee support. As he went around talking to employees, he sensed deteriorating morale and
felt the need to rectify the situation quickly.
Dato' Abdul Aziz described how he approached the human challenge at that time.
According to the example gave by he, leadership means if a boss is lazy, employees will tend to
be lazy too but even a lazy employee will eventually work hard if he sees that his boss is hard-
working. To further boost employee morale and establish esprit de corps within the company,
MAS organized various social and sporting events.
Dato' Abdul Aziz made it a practice to attend all such activities. Although Dato' Abdul
Aziz felt the need for some management reshuffling, he waited a few months before making
substantial changes in the organization structure. This was because he felt that too many changes
at the outset would create additional problems and dampen morale at a time when the company
could least afford it. The most significant changes made were those affecting the sales,
marketing, and customer services divisions.
15
4.2 The Beginning of Privatization
In line with the Malaysian government's policy on privatization, the company was
privatized at the end of 1985 by an offer for sale of 30% of its capital to the Malaysian public..
The privatization, apart from injecting a substantial amount of cash into the company, had also
improved its debt equity ratio and Commenting on the privatization exercise. According to Dato'
Abdul Aziz, One possibility that can arise out of the privatization process is that the operations
of the airline will be based solely on economic fundamentals-with political considerations taking
a back seat. The privatization exercise had made MAS better off because through the injection of
equity, the company's cost of funds would be stabilized in the long run and so cushion the
company against fluctuations in interest and exchange rates.
4.3 Types of Leadership Style of Dato' Haji Abdul Aziz bin Abdul Rahman
In administration of this company, the leader is a democratic leader. This style
encourages employees to be a part of the decision making. This style is needed in dynamic and
rapidly changing environments where very little can be taken as a constant. In these fast moving
organizations, every option for improvement has to be considered to keep the group from falling
out of date.
The democratic leadership style also means facilitating to conversation, encouraging
people to share their ideas, and then synthesizing all the available information into the best
possible decision. The democratic leader must also be able to communicate the decision back to
the group to bring unity to the chosen plan. The democratic leader ship keeps the employees
informed about everything. This style requires the leader to be a coach who has the final
16
decision, but gathers information from staff members before making a decision. Democratic
leadership can produce high quality and high quantity work for long periods of time.
Most of admin and leader in company use the democratic style such as to develop plans
to help employees in order to evaluate their own performance, allows employees to establish
their goals and objective as well as to encourages employees to grow on the job and recognizes
encourages achievement in order to establish the company. According to this way, the
administration and the leader wants to keep employees informed about matters that affect them,
wants employees to share in decision-making and problem-solving duties and to provide
opportunities for employees to develop a high sense of personal growth and job satisfaction. On
the other hand, this style can bring the best out of an experienced and professional team. It
capitalizes on their skills and talents by letting them share their views, rather than simply
expecting them to conform.
17
5.0 THE PROBLEM AND CHALLENGES FACE BY MALAYSIA AIRLINES (MAS)
BEFORE PRIVATIZATION
Following the separation of Singapore from the Federation of Malaysia in 1965, the
Malaysia - Singapore Airlines (MSA) partnership was dissolved in 1971 when the two
governments decided to restructure the company into two separate airlines - Malaysia Airlines
Berhad and Singapore International Airways (SIA). Malaysia Airlines Berhad was renamed
Malaysian Airline System Berhad on November 1971 and started operations in October 1972.
The first stated of Malaysia Airlines (MAS) was face some problems like difficult to get new
destination and has to compete with the Singapore Airlines.
The first half of 1978 Malaysia Airlines and government witnessed a major confrontation
with Britain when Malaysia refused to back down on its decision on to permit the supersonic
Concorde to fly over Malaysia air space. Both governments were deadlocked in talks over
additional right for MAS peppered the negotiation with a political flavor. This confrontation
involved MAS into a big problem like difficult to get air space and place to landing their flight.
The governments of Malaysia did not allow the Concorde to fly over because it can harm the
environments and disastrous long-term ecological consequences for marine life. Thus, it gives
impact to the relationship between British government and Malaysian government.
In the early 1980, Malaysia Airlines (MAS) suffered losses due to high interest rates and
fuel costs. This sector plays an important role in the global development and travel because it is
the centre in the process of international trade.
In setting up the national airliner the government acted as the entrepreneur. Tun Mahathir
believed that the government would benefit more if part of MAS could be privatized. By picking
18
the aviation industry as a winner, the Malaysian government would support MAS, which in
essence became a mixed state-private sector company.
The government’s own financial difficulties and other priorities also limited the funds
available to MAS for expansion. An attractive solution to the problem was partial divestiture,
regarded by some as a form of privatization. In the case of MAS, therefore, privatization only
involved partial divestiture as majority ownership remained in the hands of the government.
With its ‘golden share’, ultimate control will continue to remain with the government even if it
loses majority ownership MAS’s post-divestiture experience has been different from Klang
Container Terminal (KCT). Management style has not changed significantly as virtually the
same people are still in charge.
Another problem which was faced by the MAS is the lack of passengers at that time. It
happens due to the increase of ticketing prices which gives burden to the passengers because
MAS had to face higher maintenance of aircraft as well as difficulties paying the staff salaries.
On that time, MAS only relay on the transportation of passengers rather than other services.
Nowadays, MAS not only focus on transportation of passengers but also cargo transportation and
air mail in local or international.
19
6.0 THE BENEFIT OF PRIVATIZATION TO MALAYSIA AIRLINES (MAS)
As the result of privatization, MAS increased its frequency to Tokyo with six weekly
flights, including one non-stop service, successfully negotiated more rights to the growing
markets of Europe, India and Australia, and introduced more jet services along its domestic
routes.
The impressive growth registered was due primarily to an overall increase in capacity
available arising from the increase in frequency on existing routes and additional capacity on
new routes. A ninth frequency to Tokyo was introduced, weekly flights to London increased to
six, and additional flights to Fukuoka, Seoul, and Los Angeles added. New routes included
services to Guangzhou, Ho Chih Minh City and Pontianak, Indonesia.
After privatization, British Prime Minister; Margaret Thatcher’s intervention to Kuala
Lumpur in April 1985 was to prove politically and commercially astute, resulting in first a thaw,
and later, substantially improved relations between the two countries which had been strained
since 1982. Thus, MAS have not encountered any difficulties to get air space and place to
landing flight.
The privatization policy give opportunity to MAS in developing tourism such as working
closely with the Tourist Development Corporation and numerous international agencies to sell
Malaysia as a major South East Asian tourist destination.
Apart of that, MAS introduced a total integrated passenger system which was fully
commissioned in October. It enabled the airline to be linked with all travel agencies on the
drawing board also were more plans for a new “image change” including new look uniforms for
flight crew, a total overhaul of first class in-flight service including new linen, cutlery and other
20
accessories. Aimed at protecting the friendly service of MAS, the new uniforms were designed to
echo the vitality, freshness and colors of the tropics, as well as the youth and dynamism of a
rapidly growing airline.
From privatization, MAS gain higher income. The money was used to build a new MAS
hangar workshop complex and the flight kitchen was expanded at a cost of $15 million at
Subang. Penang started its own $35 million flight kitchen while in Sarawak, the new regional
office and a catering/engineering facility at the airport was completed for about $8 million. A
new $3 million administrative building as well as a cargo cum hangar facility was built in Kota
Kinabalu.
As the result of privatization policy, the airline’s achievements have not gone unnoticed.
In March 1991, it received the prestigious Asian Institute of Management/World Executive’s
Digest Award for excellence in general management and for its success in positioning itself in
the industry. MAS was cited for its competence in virtually all management areas, from
operations to delivering high quality services which have helped ensure continued profitability.
This, in turn, has generated national pride in the carrier.
MAS have won the 1990 Tourism Gold Award given to a non-government agency for
outstanding contributions to the promotion of tourism. In engineering, MAS has received the
“Pride in Excellence Award” four times from the Boeing Commercial Airplane Company as far
back as in 1973, again in 1979, 1988 and recently in 1992.
21
7.0 CONCLUSION
7.1 Benefit of Privatization in Malaysia
The benefit of privatization policy to the government is decreasing the expanses in the
development of the country. Budget which is suppose been given to the government agency can
be use to another important government projects. This condition ensure the expanses does not
burden the government as well as it will not be the excuse for not proceed any project for
development. This policy also will ensure the entire development project run smoothly.
Moreover, the level of services in government agency which had been privatized will
increase drastically. This agency will gain profit if the performance of workers and their services
increase to a level much better than before the agency being privatized. Thus, the value of
services given to the public will increase and brings benefit to them.
The increment of the level of services will consequently bring to the competition among
the workers in the new privatized agency. This competition will generate an abnormal working
style until it brings to the increment in the productivity of the privatized agency in a short period.
Therefore, the workers will compete in order to maintain their performance in the privatized
agency. In addition, the tough competition will ensure the chances in working sector increase
due to the abundant of changes in open economy. Variety of new ideas produces through the
competition that needs higher level of skill. This aspect will encourage variety of new job
vacancy in this country.
Other than that, this policy gives new approach to the image of the country. The outsider
as well as the investor will see Malaysia as an effective and efficient country especially in the
management of the country. The ability of the country is through the systematic management, the
22
overall public transport, international level of services and high knowledge in human resources.
This country will be the example or the role model in the developmental to the other country in
the world.
In conclusion, this policy brings a lot of advantages and benefits to the government. The
companies such as Telekom Malaysia Sdn. Bhd., Tenaga Nasional Berhad (TNB), Pos Malaysia,
and Malaysia Airlines (MAS) are the government agency which has been privatized which has
resulted in the increment of their services. Until now all of the privatized company are well
manage.
23
REFERENCES
Abdullah, S. A. (1978). Kerajaan Pentadbirab dan Rakyat. Dewan Bahasa dan Pustaka,
Kuala Lumpur.
Gill, R. (1992). Airborne (The Evolution and Birth of Malaysia Airlines). Malaysia
Airlines.
Hussian, A. A. (1990). Politik dan dasar Awam Malaysia. Utusan Publication &
Distributor Sdn.Bhd.
Hussian, A. A. (1993). Pentadbiran dan Politik Pembangunan, Dewan Bahasa dan
Pustaka.
Hussain, A. A. (2000). Analisis Dasar Awam. Dewan Bahasa Dan Pustaka.
Hussain, A. A. (2002), Politik dan Dasar Awam Malaysia, Kuala Lumpur: Utusan
Publications. Kuala Lumpur: Dewan Bahasa dan Pustaka.
Ibrahim, A.R. (2007). A project report submitted for the award of the degree of Master of
Science (Construction Management) “The Privatization Projects Implemented by Ministry of
Defence”. Universiti Teknologi Malaysia.
24
Jani, G. (1991). Privatization Masterplan. Acting Director General, Malaysia.
Jomo, K. S., & Tan, W. S. (2010). Privatization and Re-Nationalization In Malaysia
MalaysiaAirlines.
Perkins, D. (1998). Ownership and control of Malaysian industry and business services:
Rents versus profits. Development discussion paper no. 617, Harvard Institute for International
Development, Harvard University, January.
Mokhtar, K. S. (2008). Privatising Malaysia Airlines (A Policy Transfer Approach).
Penerbit Universiti Kebangsaan Malaysia, Bangi.
Ramli, W. A. (1996). Pentadbiran Awam Malaysia. Golden Books centre Sdn. Bhd.
Shamsuddin, M. (1985). Guidelines on Privatization. Economic Planning Unit, Prime
Minister’s Department.
Tan, T. W. (1982). Income Distribution and Determination in West Malaysia. Kuala
Lumpur: Oxford University Press.
25
Website by Official Website of Economic Planning Unit, Prime Minister's Department,
History of Privatizations Programme. (http://pmproject.doubleukay.com/index.html, Father of
Modernization)
Zakaria, A. A. (1974). An Introduction to The Machinery of Government in Malaysia,
Dewan bahasa dan Pustaka, Kuala Lumpur.
26