While these partnerships have helped ease the government’s fiscal burden, concerns over the affordability and long-term financial sustainability of PPP projects are mounting. Rising fiscal commitments and budgetary strainOne of the main affordability issues surrounding PPP projects in Malaysia stems from their financial structure. Cost overruns and renegotiationsCost overruns have further exacerbated affordability concerns in Malaysian PPP projects. The way forward: Enhancing PPP affordabilityTo address these challenges, policymakers must carefully assess the financial feasibility of PPP projects before implementation. Some potential measures include:Strengthening cost-benefit analyses: Ensuring that all PPP projects undergo rigorous affordability assessments to prevent long-term fiscal burdens.

Source: The Edge Markets December 31, 2025 04:30 UTC