Privatization For IJN

First and foremost, please allow me to explain what is "Privatization". According to the wikipedia Privatization is the incidence or process of transferring ownership of business from the public sector (government) to the private sector (business). In a broader sense, privatization refers to transfer of any government function to the private sector including governmental functions like revenue collection and law enforcement.

Recently, there are so many Hoo Haa buzzing about the IJN privatization, where one of the leading company in Malaysia (Sime Darby) are interested to acquire this institution. Frankly speaking I am not so flavor with this privatization thing because IJN from government suppose to take care of the citizen and public welfare without bias toward status, racist, complexion and level of a person.

In my point of view, this is indeed a stupid act for government to privatise the IJN because this institution have maintain a good reputation in providing services and welfare as well with proven record. IJN is also is one of the government institution that we had to applause for how the government (BN) care for the citizen. IJN under government govern it will provide affordable medical care for the citizen because privatization only will make the institution materialise.

As a economic student, let me give you guys a clear picture what will happen to the IJN, where it had been privatised. Privatization of IJN will trigger monopoly, in fact this is very true because in Malaysia, there is no much competition in Malaysia heart surgeon except if you willing to pay a huge amount of money to undergo the surgery in oversea countries.

Monopoly is not necessarily and it's a bad thing but better privatization method could have been employed to encourage competition in the market but the problem is there is no competitors. For instant, electricity by TNB will like to increase their tariff until 100%, whether we like it or not we still need to absorb the tariff, where this is what monopoly all about. Nevertheless, the creation of monopoly through privatization could be defended by resorting to the natural monopoly argument. But we really can sense or feel there is a hidden agenda towards this privatization things...please pray for god to scrap this proposal.