PRIVATIZATION Privatization in Malaysia, Regulation, rent-seeking and policy failure

226 IndexBumiputra National EconomicSymposium 197bumiputra see Malay corporateownership, Malay middle classbureaucracy: autonomous 30; Malaysia44–6, 49, 71, 186; meritocratic 30bus (LRT): feeder bus services 111, 127,201; mergers 112, 123, 124, 127;operators/services 107, 111, 124, 127,201; streamlined bus operations 125–6,127–8, 132, 202; see also Singaporebusinesses (Malay) 42–4, 47–8, 51, 66;see also businessmenbusinessmen (Malay) 42–5, 47–52,66–68, 72, 74, 96–7; see alsobourgeoisie, businesses, capitalist class,capitalists, entrepreneurs,industrialists, Malay middle classCampro engine see Protoncandidate choice see selection processcapacity utilization: MAS 142; Proton162, 168capital accumulation: in Malaysia 40–1,46, 53, 66, 135, 159, 182, 187–8 process7, 26, 30; state promotion of 30, 34;under privatization 8, 46capital costs: and privatization 2, 7, 10;and privatization design 35, 40; forairlines 74, 133, 135, 137, 192; for IWK81, 83, 87, 92, 104; for Proton 159, 162,184, 186; subsidies for 13–14, 18, 25,33, 191;capital formation 15; see also capitalaccumulationcapital gains (IWK) 64, 79, 97, 103capital intensive projects 12–14, 135, 162capital investment: for IWK 76, 78, 80,84, 87, 90–1, 102–4, 191; for LRT 125,131; for MAS 139; for Proton 159, 161,182, 184, 186, 191; measuring theperformance of 5, 60; and privatisation7, 12, 35; and regulation 80–1;subsidies for 7, 12–13, 82, 107–9capital works: for IWK 76, 79, 81, 84–8,90, 95, 97, 103, 199; for Proton 168capitalist class: in developing countries3–4, 31, 193; Malay 6, 50, 57, 63–65,161, 187, 190; state development of 3;see also bourgeoisie, businesses,businessmen, entrepreneurs,industrialists, Malay middle classcapitalists: domestic 3, 7, 15, 17; Malay39–40, 43–5, 47, 186, 190; see alsobourgeoisie, businesses, businessmen,capitalist class, entrepreneurs,industrialists, Malay middle classcapitalization see stock marketcar pooling see high occupancy vehiclescatching up 3, 7, 13, 16, 33, 40, 158;see also technologyCathay Pacific 138, 140–2, 144, 146, 153CDRC see Corporate DebtRestructuring CommitteeCEPT 173, 205Citroën 162, 166, 174, 176City Hall see DBKLCKD 165–6, 173, 180clientelism 19, 29clientelist 71clientelistic 30clients 32, 72, 125Common Effective Preferential Tariffsee CEPTcompetition: for MAS 135, 150, 152; inMalaysia 47–8, 52, 57, 65; for Proton162, 172, 179, 183–4, 186, 194;privatisation and 1–2, 20, 22, 194; forresources 26, 188, 190; regulation and3, 8, 18, 20, 24–5; for resources by theMalay middle class 5, 39, 45, 48–9, 58,68, 72, 75, 190; subsidies and 2; inUMNO 39, 45, 48, 58, 68, 72, 75, 190competitive: bidding 22, 37, 68;environment/markets 1, 8, 15, 21, 24,54; pressures 21, 70, 137competitiveness: Malaysia 47, 71; MAS149, 153; Proton 159–60, 163, 167, 171,174, 177, 181–3, 186–7; see alsoprotectioncompletely knocked down see CKDconcessionaires 22, 25, 33, 80–1, 106,110; in Malaysia 74–5, 77, 200; IWK78–9, 84, 92, 95–7, 103–4, 191, 199;LRT 106–7, 113–14, 120, 125–6,131–2, 192–3concessions: in Malaysia 66, 72; andprivatization 35–6, 81, 157; IWK 80–1,84–8, 90–1, 97, 99, 100–1, 199; LRT111–13, 117–18, 124–6, 132, 194; inurban rail 14, 22conditional subsidies 3, 16, 33, 40, 70, 76,158, 163, 183, 187; see alsoconditionality, learning rents, rents,subsidiesconditionality: failure of 3, 190–1;importance of 33, 68, 189, 194; inMalaysia 40, 70, 73, 75; LRT 132, 183,