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

Index 233rentier: activities 67; behaviour 47;bourgeoisie 65; business cadre 52;managers 46; rewards 65; sectors 53rents: and capital accumulation 26;construction rents (Malaysia) 106,110, 118, 124–5, 132, 193; dynamicrents 8; in Malaysia 51–2, 56, 65, 67,69, 70, 75, 192; inefficient rents 12, 32;management of rents 16, 25, 27, 31–3;management of rents (Malaysia) 159,160, 183, 187, 192, see also learningrents, conditional subsidies; monopolyrents (Malaysia) 78, 96–7, 103, 161;short-term rents (Malaysia) 154, 161,182, 185, 187, 192–3; unproductiverents 12rents for learning 7; see also learningrentsrent-seeking 12; in Malaysia 45, 65,67residual: claimant 13; control/returns 2,11, 13–14, 25, 158, 188; rights 12; value138RIDA see Rural Industrial DevelopmentAuthorityridership (urban rail): Bangkok Skytrain108, 111; challenges 107–110; LRT111, 114, 120–2, 125–8, 130, 191, 193Roxy Electric Industries 148; see alsoTRIRural Industrial Development Authority43Saga (Proton) see ProtonSaleh Sulong 166, 204–5sanctions see credible sanctionsSatria (Proton) see Protonselection process (transparent) 21–2,26–27, 34, 37, 68; see also nontransparentselection processsewerage services see IWKsewerage treatment plants see STPsSIA 138, 140, 143, 144, 146, 153signalling see stock market signallingSingapore: bus services 130; urban rail107, 109–110, 113–14, 117–120, 123,125, 130–2, 192–3Singapore International Airlines see SIASistem Transit Aliran Ringgan see STARsocial relations 4–6, 9, 26, 29; in Malaysia39, 41, 48, 52, 65–6, 69, 73, 75, 77, 79,190, 193–5SOEs 11–12, 14, 44–6, 48, 51, 54–5, 60–2,60, 71, 158, 190, 198South Korea 26, 29, 31–2, 47, 68–9, 183;see also HyundaiSports Toto 60–1STAR: background 76, 112–14, 116;construction and delivery 117–19;fares 118, 120; financial performance120–2; financing 114–16; ridership120–1; state loans 116state autonomy 30, 66state capacity 4, 6, 10, 29–34, 67, 125,193; ex post 3, 6, 9, 16, 23, 28–9, 33, 38;ex post (Malaysia) 40, 41, 69–70, 75,77; 79, 157, 187, 193–4; see alsoinstitutional capacity, politicalcapacity, disciplinary capacitystate failure 4, 8–9, 18, 29, 160, 189, 193;see also ex ante failure, ex post failurestate intervention: arguments against 2,7, 18, 20, 40; effective stateintervention 9, 31, 190, 194; ex ante16, 31, 33; necessity for 3–4, 7, 9, 13,16, 27, 33, 188–9; see also statecapacity, conditional subsidies,learning rentsstate intervention in Malaysia: early stateintervention 42–3; ex post state 74; inrelation to IWK 79, 105; in relation toLRT 131–2; in relation to MAS 157;under NEP 51, 55, 65, 66, 69; underprivatization 190state owned enterprises see SOEsstock market: listing 62; capitalization61–2; signalling 62, 192; see also KLSESTPs 83–9, 92, 96, 104, 199subsidies: for learning 7–8, 16, 40, seealso learning rents; for LRT 106,108–111, 125, 131; for MAS 133–3,137, 149, see also cross-subsidies;management and regulation ofconditional subsidies 3–4, 8, 12–13, 16,18, 24–5, 27–9, 33, 36, 40, see alsosubsidies for learning; management ofsubsidies in Malaysia 40, 47, 65, 70, 75,77; necessity of subsidies 2–3, 7,12–16, 18, 35–6; for Proton 158, 159,161, 163, 167, 183, 187–191, 195Tajudin Ramli 74, 139–140, 148–150,152–5, 203–4TaylorWoodrow see TaylorWoodrow-AdtranzTaylorWoodrow-Adtranz 112, 116, 200technical capacity (regulatory) 24–5, 37technological see technology