Tuesday 23 May 2000

Business Times Singapore

KUALA LUMPUR - Privatised firms must be supported and even subsidised by the government to ensure consumers do not pay too much for the services received, Bernama news agency quoted Prime Minister Mahathir Mohamad as saying.

"Transferring assets which give no return to the government is not a big sacrifice but it helps in reducing capital costs," Dr Mahathir said.

He said the government sold completed portions of tolled expressways at below cost in order to lower the total cost of constructing the expressways, which would then keep toll rates low.

"Selling government assets at market prices will render services costly, making charges for public use high and... (the projects will therefore) probably end up with major losses and failure as usage will be low. "Privatisation therefore will become unpopular and so will the government," he added.