KUALA LUMPUR: The government is reviewing the current model of public-private partnerships (PPP) for the 11th Malaysia Plan (11MP), potentially changing it to a user-pay scheme versus the public-financing initiative.

Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar (pic), who is in charge of the Economic Planning Unit, said the current approach worked through grant awards.

“The government is exploring the possibility of introducing “quasi equity or loans” in order to reduce the capital requirements of the promoter. We are making the necessary adjustments on the PPP concept,” he told reporters after the opening of the International Directors Summit 2015 on “Inculcating Innovation, Catalysing Growth through Public-Private Partnerships” yesterday.

“We would like to emphasise more on the user-pay concept as opposed to using public-financing initiative. We will continue to review and make the facilitation fund more effective than what we have today,” Abdul Wahid said.

The five-year 11MP outlines Malaysia’s growth initiatives from 2015 to 2020.

Abdul Wahid said the government is setting aside RM11.2 billion for the facilitation fund.

He said the fund was traditionally aimed at encouraging the implementation of high-impact private-sector projects.

“At the same time, if the project is getting superb returns, the money can be repaid to the government,” he added.

This article first appeared in The Edge Financial Daily, on March 3, 2015.