Transcript Document

PRIVATISATION ?
BRUNEI DARUSSALAM
7/17/2015
1
Titah
........Through the Ministry of Communications, the
Government is also implementing its plan to develop
the country to become the centre of services, trade
and tourism before the year 2003.
Titah on the occasion of His Majesty’s 50th Birthday Celebration on 15th July, 1999
7/17/2015
2
WHAT IS SHuTT ?
Promotes




7/17/2015
Import and Export Through
Brunei Darussalam
Travel To and Through Brunei
Darussalam
Business In and Through Brunei
Darussalam
Communication From and
3
Through Brunei Darussalam
THE STRATEGIES IN
REALISING SHuTT
Infrastructure Development
 Providing Competitive Services
 Privatisation and Liberalisation
 Safety and Environmental Care
 International Relation and Cooperation

7/17/2015
4
DEFINITION
TRANSFER
TO THE PRIVATE SECTOR
THE ACTIVITIES AND
FUNCTIONS
WHICH
HAVE
BEEN
IN THE
GOVERNMENT
TRADITIONALLY VESTED
7/17/2015
5
OBJECTIVES OF PRIVATISATION
Privatisation is the Engine for
Growth
 Relieve Financial and
Administrative Burden for the
Government
 Improve Efficiency and
Productivity
 Development of Private

7/17/2015
6
WISH
LISTS
...
“… as a mechanism for promoting efficient allocation of resources,
innovation, and flexible adjustment to changing technology, costs
and demand in both national and international markets ….”
“… as a means to revamp, revitalise and recapitalise the economy and
enabling private enterprises to operate more purposefully,
contribute to the national budget and also generate employment
….”
“… limited financial resources of the state, constraining Government’s
ability to reinvest, the capital structures of enterprises are seriously
eroded and their plants and equipment are outmoded and needing
replacements ….”
“… should show positive financial results improvements – in operating
efficiency, in the quality of its products and services, in its
responsiveness to market needs, in organisational morale, and in
entrepreneurship ….”
7/17/2015
7
METHODS OF PRIVATISATION
Sale of Equity
 Sale of Assets
 Lease of Assets
 Management Contract
 Build, Operate &
Transfer
 Revenue Sharing
Scheme

7/17/2015
8
EXPERIENCES SO FAR…






Public Transportation
Ports Operations
Lease of Container Yard
Lease of Facilities (Marine Passenger
Terminal)
Sale of Assets (DST)
Build, Operate & Transfer
 Trunk radio
 VOIP
7/17/2015
9
ISSUES

Management Methods
Government Business
Facility - Customer
Cash
Accrual

7/17/2015
Mind Set Change
Monopoly
Provider
- Regulator
Liberalisation
10
ISSUES (cont’d)…

Regulatory / Policy Setting
Service Quality &
Provision
Customer Safeguards
Monopoly Behaviour
Pricing Mechanisms

7/17/2015
Transfer of Assets
Book Value
Discounted Cash Flow
Potential Earnings
11
ISSUES (cont’d)…

Transfer of Staff
•Government Terms & Conditions
• Not ‘worse-off’
 Monetary
 Non tangible
Sense of Security
Competitive Environment

7/17/2015
Brunei Context
Government Sector
Private Sector
46%
54%
Local – 94%
Local – 22%
Non-local – 6%
Non-local – 78%
12
NEXT STEPS…
Political Will
 Implementation

 Industry Study
7/17/2015
 Regulatory Setting
 Incorporatisation and Law
 Asset Valuation
 Setting the Financial Targets and
Performance
Review

13
REALIZATION OF
SHuTT
7/17/2015
14