(From left) Chief Secretary to the Government Datuk Seri Shamsul Azri Abu Bakar, Deputy Prime Minister Datuk Seri Fadillah Yusof, Prime Minister Datuk Seri Anwar Ibrahim, Selangor Menteri Besar Datuk Seri Amirudin Shari, and Public-Private Partnership Unit (Ukas) director general Muhammad Razman Abu Samah on Monday. (Photo by Shahrill Basri/The Edge)

CYBERJAYA (Sept 9): The Malaysian government is aiming to increase private investment to RM78 billion by 2030, under the newly launched Public-Private Partnership (PPP) Masterplan 2030 (Pikas 2030).

The masterplan also aims for PPP projects to contribute RM82 billion to the nation's gross domestic product, and create 900,000 job opportunities by 2030.

Pikas 2030, spearheaded by the Public-Private Partnership Unit (Ukas) of the Prime Minister's Department, is part of the government's efforts to continue to strengthen governance in the implementation of PPP projects.

In order to achieve the objectives, Ukas said the government will prioritise the implementation of PPP project proposals through competitive bidding via requests for proposal.

This process will "enhance competition, innovation, service quality, and provide the best value-adding to the government and the people", it said in a press statement.

In addition, the government under Pikas 2030 will focus on the implementation of PPP projects that are 'user-pay' oriented, in line with its aim to reduce fiscal challenges.

It will also explore project financing alternatives, namely concession monetisation models such as business trusts and real estate investment trust financing.

New PPP models such as redevelop/regenerate-operate-transfer (ROT) and build-redevelop/regenerate-operate-transfer (BROT) will also be introduced under Pikas 2030.

At the launch, Prime Minister Datuk Seri Anwar Ibrahim said that Pikas 2030 "should also prioritise strict governance and workers' well-being", as they are integral to the success of these projects.

"When we first initiated privatisation, we made significant progress, but often overlooked the foundational framework and the nation's broader direction. This is why Pikas projects must adopt a governance approach that is stringent and resistant to misconduct.

"We must also consider the families of the companies' workers — meaning wage rates, housing, and education must be aligned with the companies' capabilities," he added.

Pikas 2030 is aimed at providing a robust and sustainable PPP landscape to drive the nation's prosperity.

The PPP model is applied in a wide range of sectors, including transportation, healthcare, education, waste, water, wastewater and telecommunications through various implementation models, such as build-own-operate (BOO), build-operate-transfer (BOT), build-lease-maintain-transfer (BLMT), lease, and the Private Finance Initiative (PFI) approach.

Traditionally, the infrastructure sector, including roads, power plants and airports, is where the PPP model is mostly used. Notable PPP developments in the past included the North-South Expressway (PLUS), the Light Rail Transit (LRT), and the Kuala Lumpur International Airport (KLIA).

Last year, Anwar announced in his Budget 2024 speech that the government will focus on public-private-philanthropy partnerships (PPPPs) to implement projects for the rakyat.

Malaysia introduced the Privatisation Master Plan in 1991 to outline the private sector's participation in public infrastructure development.

Former prime minister Datuk Seri Ismail Sabri Yaakob in 2021 announced the PPP 3.0 model under the 12th Malaysia Plan.