Budget 2024: Public-Private Partnership Key To Financial Sustainability, Innovation

Cooperation between the public and private sectors through a public-private partnership (PPP) needs to be the main mechanism in the financing and implementation of infrastructure projects in Malaysia under Budget 2024.

This cooperation via PPP provides many benefits, said associate professor Rohafiz Sabar, a senior lecturer at the Centre for Logistics and Transport Studies, School of Technology and Logistics Management, Universiti Utara Malaysia.

“The first benefit is financial sustainability, where this collaboration provides an alternative to traditional financial sources and helps reduce the government’s debt burden.

“This allows infrastructure projects to continue moving without affecting public finances.

“Project financing by the private sector can help provide additional sources of financing for infrastructure projects. In PPP, private investment can be used to cover most or all of the development costs,” she told Bernama.

She said the next benefit is that the private sector can provide the latest innovation and technology to the country’s infrastructure projects.

“They may be able to introduce more efficient construction methods, the use of green technology, and best practices in project management.

“After the development of a project is carried out, the private sector can also be responsible for the ongoing maintenance and management of the project.

“This can involve asset maintenance, repair, and preservation for the long term. This can also ease the government’s financial burden,” she added.

Rohafiz also emphasised that Budget 2024 should provide incentives and financial facilities to attract private investments in infrastructure projects, including tax exemptions or various financial advantages for the companies involved.

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