Privatisation a burden on workers: MTUC
Leong Kar YenPublished: Jan 30, 2001 9:49 AM | Updated: Jan 29, 2008 6:21 PM
Privatisation policies advocated by international financial institutions (IFIs) provide more bane than boon to the already marginalised position of Malaysian workers, according to a Malaysian Trades Union Congress (MTUC) official.
"Privatisation of transport, energy, telecommunications, sewage treatment and the corporatisation of healthcare and education has dramatically increased the costs of these goods and services, adding a strain on workers," said MTUC secretary-general G Rajasekaran at a seminar organised by MTUC and the International Confederation of Free Trade Unions.
Rajasekaran added that privatisation ideally was to increase efficiency, productivity and lower costs, but in the case of Malaysia, privatisation allowed private monopolies to arise and this increased costs for consumers.
"The Asian Development Bank (ADB) continues to support privatisation by focusing narrowly on the topic," Rajasekaran told participants at the three-day seminar entitled "Fiscal and Monetary Issues and IFI's policies in Malaysia" in Petaling Jaya.
Demands of the state
According to Rajasekaran, ADB in November 1998 issued a Country Assistance Programme that prescribed projects covering a three-year period, consisting of loans and technical assistance programmes.
The programme was written in "close consultation with the government of Malaysia and other stakeholders", he added.
"Often the IFI puts the demands of the state and the private sector before that of the communities. Who actually becomes the beneficiaries?"
Many of Malaysia's privatised industries, such as transport, have been in the media limelight due to controversial buy-back schemes offered by the government.
One such scheme involved a bailout of RM1.79 billion to ailing national carrier Malaysia Airlines. Another bailout amounting to RM6 billion was for light rail transit operators Putra and Star.
Competitiveness in danger
Rajasekaran stated that Malaysia's international competitiveness is in danger as corrupt politicians make short-term profits in exchange for long-term gains in productivity and efficiency.
"Stronger businesses are killed in favour of businesses linked to powerful politicians," he added.
Rajasekaran also cited cases where ADB-endorsed projects, such as the Klang River Flood Mitigation and Environmental Management Project, did not consult local non-governmental organisations (NGO) and the people they represented.
"The project report indicates that the Committee to Support Urban Settlers as well as the effected settlers themselves were consulted.
"Speaking to the NGO concerned, we were told that they only had a brief discussion on the matter and were not informed or consulted during the implementation," he said.
"Privatisation of transport, energy, telecommunications, sewage treatment and the corporatisation of healthcare and education has dramatically increased the costs of these goods and services, adding a strain on workers," said MTUC secretary-general G Rajasekaran at a seminar organised by MTUC and the International Confederation of Free Trade Unions.
Rajasekaran added that privatisation ideally was to increase efficiency, productivity and lower costs, but in the case of Malaysia, privatisation allowed private monopolies to arise and this increased costs for consumers.
"The Asian Development Bank (ADB) continues to support privatisation by focusing narrowly on the topic," Rajasekaran told participants at the three-day seminar entitled "Fiscal and Monetary Issues and IFI's policies in Malaysia" in Petaling Jaya.
Demands of the state
According to Rajasekaran, ADB in November 1998 issued a Country Assistance Programme that prescribed projects covering a three-year period, consisting of loans and technical assistance programmes.
The programme was written in "close consultation with the government of Malaysia and other stakeholders", he added.
"Often the IFI puts the demands of the state and the private sector before that of the communities. Who actually becomes the beneficiaries?"
Many of Malaysia's privatised industries, such as transport, have been in the media limelight due to controversial buy-back schemes offered by the government.
One such scheme involved a bailout of RM1.79 billion to ailing national carrier Malaysia Airlines. Another bailout amounting to RM6 billion was for light rail transit operators Putra and Star.
Competitiveness in danger
Rajasekaran stated that Malaysia's international competitiveness is in danger as corrupt politicians make short-term profits in exchange for long-term gains in productivity and efficiency.
"Stronger businesses are killed in favour of businesses linked to powerful politicians," he added.
Rajasekaran also cited cases where ADB-endorsed projects, such as the Klang River Flood Mitigation and Environmental Management Project, did not consult local non-governmental organisations (NGO) and the people they represented.
"The project report indicates that the Committee to Support Urban Settlers as well as the effected settlers themselves were consulted.
"Speaking to the NGO concerned, we were told that they only had a brief discussion on the matter and were not informed or consulted during the implementation," he said.
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