Malaysia to rent rarely used govt assets

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(Xinhua)
Updated: 2009-10-26 15:08

KUALA LUMPUR: The Malaysian government is looking at possibilities of renting its assets to the private sector to increase the government's revenue, a Malaysian official said here on Monday.

Malaysian Deputy Prime Minister Muhyiddin Yassin said this was to reduce the Malaysian government's expenditure and maximize the use of public facilities as well as raising asset values.

When delivering his opening address at the National Asset and Facility Management (NAFAM) Convention 2009 held here, Muhyiddin said everyone should be creative and innovative through the concept of monetization.

He said this was to find better ways to finance the operation and maintenance costs of assets.

"Private sector or interested parties may reap benefits from the many public facilities that are used only at a certain time. Charges incurred on the using of these facilities may generate returns for the government," said Muhyiddin.

On the other hand, Muhyiddin said the Malaysian government was adopting the Comprehensive Asset Management Concept to manage the country's assets, both private and public.

The concept, widely accepted in developed countries, could prevent bureaucracy and low efficiency while strengthening competency, added Muhyiddin.

He said that the holistic and inclusive nature of the concept possessed a complete surveillance mechanism, integrating all main components of asset management to enhance values.

Muhyiddin hoped that the management concept could be utilized during the implementation of the country's Tenth Malaysia Plan whose drafting process is underway.

A Malaysia plan is a five-year plan carried out to develop various sectors in Malaysia such as education, infrastructure, healthcare and economy for the well-being of Malaysians and the country.

The two-day NAFAM Convention 2009 drew over 1,500 delegates from the Malaysian government machinery comprising of ministries, state governments, local governments, local councils and municipal councils.

Private sector, industry related vendors and smart partners are also attending to listen to experts on the merit of asset management as well as play pivotal roles in helping shape the country's development plan.