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TRJ 2002 Vol XIV No 1: Privatization Practices in Malaysia, Philippines, Thailand: A Comparative Framework

The study presents the privatization practices in the Philippines, Malaysia and Thailand. It notes that the Asia-Pacific experience redefined the concept of privatization from its traditional approach, confined to the narrow realm of sale of public enterprises, to one whose enlarged scope encompasses any roll-back of state involvement in any activity. Findings derived from the experiences of various countries and varying programs on privatization suggest that privatization achieved higher levels of efficiency; and relieved the government of the financial burden of maintaining inefficient public enterprises. However, in the case of other countries including the Philippines, it notes that there is generally no indication of any offer of tax concessions to effect privatization. In the absence of empirical evidence relating privatization to tax concessions, it remarks that the policy to offer tax concessions on an across-the-board basis to all cases of privatization may not be viable. If desired and if warranted, it recommends that tax concessions may be granted but only to expedite privatization and to immediately relieve the government of further financial burdens relative to the assets in question.

National Tax Research Center
Authors Keywords
National Tax Research Center; privatization; taxation; tax;
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