Risk Management in the Malaysian Public Private Partnership Projects

Usman Ahmad, Yusnidah Ibrahim, Arpah Abu Bakar



The Malaysian government has been implementing Public Private Partnership (PPP) program since 1980s for infrastructure development. The literature shows that quite a number of PPP projects failed to achieve their objectives due to lack of risk management. Nonetheless, literature on risk management process for different type of PPP projects is lacking. In addition, the literature does not provide the robust measurements to study PPP risk management as a variable in the field of risk management. Therefore, this study aims to describe risk management practices for PPP projects in Malaysia. To facilitate the empirical research, the current study develops a set of items for describing PPP risk management processes by employing exploratory sequential research design. The findings show existence of some forms of risk management in PPP projects where the agreement and design concept form a vital role in risk management.

Keywords: Public private partnerships; agreement; design concept; risk management.


Kerajaan Malaysia telah melaksanakan Perkongsian Persendirian Awam (PPA) sejak tahun 1980 untuk pembangunan infrastruktur di negara ini. Kajian terdahulu menunjukkan beberapa projek PPA telah gagal mencapai objektif kerana ketiadaan pengurusan risiko. Walaubagaimanapun terdapat sangat sedikit karya mengenai proses pengurusan risiko untuk setiap jenis projek PPA. Tambahan pula, kajian terdahulu tidak menyediakan alat pengukuran yang mantap untuk mengkaji proses pengurusan risiko PPA sebagai pembolehubah dalam bidang sains sosial. Untuk membolehkan perlaksanaan kajian empirikal ini, satu set item pengurusan risiko telah dibangunkan melalui kaedah penyelidikan secara jujukan penerokaan Penemuan kajian menunjukkan kewujudan amalan pengurusan risiko dalam projek-projek PPA, di mana konsep perjanjian dan konsep kaedah memainkan peranan penting.

Kata kunci: Perkongsian persendirian awam; perjanjian; konsep kaedah; pengurusan risiko.

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