Introduction

Difference between private partnership and privatization

Public Private Partnership (PPP) and privatization   are completely two distinct modes. The privatization is a transfer of an ownership of public assets permanently to a private sector.  This transfer is also done under different methods. However, under the PPP, the government is constantly liable to perform certain tasks while the intervention of the private sector is obtained in different modes. At the same time, government has a responsibility in supplying the relevant service by having a direct contractual agreements between government and the service provider. But in the privatization, responsibility of providing the relevant service is assigned to the private sector. Nevertheless, in the country like Malysia where the privatization is widely implemented, there seem to be obtaining certain contribution from the private sector in investments under the PPP approach. These principles have been clearly spelt out in the 9^th Development Plan of Malaysia.  In the final analysis it is imperative to understand that PPP is not a synonym to privatization and privatization or divestiture denotes buying an equity state of a state-owned enterprise by a private entity.  

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