FEBRUARY 3 — There is a need to relook at the current public-private partnership (PPP) model in Malaysia which has not been adequately inclusive and sustainable.

In the past, the focus has been on an infrastructure-driven economy, and hence the approach has been indirect and relying on the spill-over and multiplier effect.

For example, the past government’s preoccupation and attitude is exemplified by the conventional models and practices of build-operate-transfer (BOT), build-lease-transfer (BLT), build-operate-own (BOO), build-lease-maintain-transfer (BLMT), land swap, contract management, corporatisation, etc.

The inherent bias in the model has been geared towards the government-linked companies (GLCs).

But under the Pakatan Harapan government, there is now a recognition that as part of the strategy to foster an entrepreneurial economy (third focus under Budget 2019), small-and-medium sized enterprises (SMEs) should form the bedrock and backbone of the national economy.

Malaysian SMEs comprise 98.5 per cent of all businesses. They contribute to about 40 per cent of the GDP and the figure is expected to rise to 50 per cent by 2030.

Both the SME-friendly Budget 2019 and Budget 2020 allocated RM17.4 billion and RM13.1 billion, respectively — to ease the SME’s access to financing and credit alongside enabling them to make the transformational leap towards digitalisation of their business processes and system as well as productivity.

Among the highly commendable list of the Pakatan Harapan government’s — through the Ministry of Finance — initiatives are Budget 2019: