Privatisation reversed! MPSP takes over rubbish collection, terminates private contractors


In a major exercise, the Seberang Perai Municipal Council (MPSP) is reversing the privatisation of rubbish collection and cleaning services, which were outsourced to private contractors during the Mahathir era.

The Council is hiring 1800 new workers and investing in its own equipment. By the end of last year, it had already recruited 1000 new workers while another 800 are in the process of being hired.

Meanwhile, the MPSP has been terminating the services of the 200-odd privatised rubbish collection contractors, a source familiar with the council revealed.

The idea for the Council to take over the previously outsourced work came from the MPSP councillors themselves a couple of years ago following public complaints of unsatisfactory rubbish collection and cleaning. (This blog had also highlighted the dismal conditions – overflowing rubbish bins, missing bins, clogged drains – at the Taman Tun Dr Awang low-cost flats in Bagan Ajam, Butterworth.)

Rubbish collection and cleaning services in Seberang Perai were originally privatised in the 1980s or 1990s. These privatised services account for well over half the MPSP’s annual budgeted expenditure, said the source.

By 2008, the MPSP was teetering on the brink of bankruptcy, its poor financial position aggravated by its spending on extravagant building and ‘beautification’ projects.

The council’s takeover of rubbish collection comes not a moment too soon. “Some of these (privatised) cleaning contractors, especially the cronies, were having a good life, driving fancy cars, while their workers were poorly paid, resulting in little motivation and an inability to attract younger workers,” said the source.

“With the takeover, the MPSP will be better able to control the rubbish collection and cleaning services and pay more decent wages to the workers and hopefully provide better service.” The Council may also be able to reduce the overall expenditure incurred on rubbish collection, the source said.

This is certainly a bold move in the right direction, and we wait and see how it will pan out. Other local councils, please take note.

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Anil, do you know how the cronies contractor keep the dumping cost even lower by saving the fuels?
Not through “green technology”, but dump rubbish/trash in remote area, some even burn them.

Phua Kai Lit

Yes, the privatization virus has even infected the Scandinavian
welfare states:


Privatisation under BN is always strange.
Proton asked the government for RM3 billion funding as reported on The Star today.
Why public fund is still being used if privatization has alreadt been done? Another fiasco like the MAS bail out case?

Anna Sternfeldt

Interesting move indeed! In Sweden our welfare system has been very severely degraded because of the widespread privatisation illness that has swept over our country since we got a right wing government in power.

eng hock

thks for reminding us that welfare system like BR1M in Malaysia may not necessarily be wise in long run as it makes the people too dependent for freebies.

Sweden not in World Cup 2014 BUT ABBA music is evergreen.

Anna Sternfeldt

I am not sure what you mean Eng Hock. I think we had (and still have but as I said, severely dismantled) a very good social security system in Sweden, with taxes from all people providing free schools, medical care, money support for unemployed and sick people and so on.
I don’t know anything about a World Cup 🙂 my interest here is zero. But I sure now ABBA, and will always be reminded when people hear I am Swedish 🙂


The beginning of the end of crony capitalisation in the garbage business in Penang. Good move, Locals will be employed and be given decent wages and benefits like EPF, SOCSO and medical benefits. They work 5 days a week and paid OT for working longer hours. One young man started as a garbage truck driver and today he is in the Enforcement Unit in MPSP. At first he was quite reluctant to be a driver but I told him to start from the bottom though he has good academic qualifications. Being disciplined and hardworking he made it to the Enforcement… Read more »


MPPP should now have the initiative to support effcient public transport system on the island.

YB Yap got the courage to speak up saying No to Tunnel Project.

Kelawai (eg Kee) & Pulau Tikus (eg tunglang’s ori-maestro hawkers) folks now know the traffic congestion and should lobby and support YB Yap.

As for Ananars who appears “lost”, pls refer to pics of LGE & Najib together lah 🙂

Awang Selamat Ori

I would like to hear from Yang whether this a move in the right direction. As Yang is nothing but a sycophant! He is yearning for the return of racial political parties like GERAKAN, MIC, MIC and UMNObaru! Parties like Gerakan, MIC, MCA, what can they do for Malaysians, Malaysia? We had given them more than 50 years and this is where we are, languishing at the bottom of the world. Malaysians must do away with race based parties, for a truly Malaysian society. Do away with these sycophants, who only want to win contracts from their political masters, and… Read more »

gtchye Eng Hock, Please read the above article, especially the part where Penang government offered RM10 million to federal government to improve public transportation but was rejected. Wi fi is not the same as public transportation. Let’s just focus. You can offer whatever incentives but it just doesn’t work. Try taking Rapid Penang from Tesco to Jetty. It goes through Gelugor, Island Glades, Green Lane, Island Park, back to Gelugor, Batu Lanchang, Trengganu Road, etc. It just take too long. I tried once but give up and got down at Penang Road instead. I am all for efficient public transport… Read more »


Public transportation is under the Transport Ministry of Federal government. The state government cannot do anything.

eng hock

The state government cannot do anything ???? sure or not ?

of course they can do something. For example, free wifi though not perfect but at least something.

state government can encourage people to take RapidPenang, buld more pedestrian friendly walkway with shady trees to encourage people to walk and stay healthy.


Yes, state authority cannot do anything about public transport in the state. Even a bus company, a taxi licence and a bus route have to be approved by PutraJaya.


Awang, If I am a sycophant, aren`t you also a sycophant to PR DAP, PKR & PAS. Let us compare BN with PR. BN coalition comprises 18 parties from all over Malaysia of various ethnicities from Kadazan, Murut, Iban, Chinese, Indian, Malay, Thai, Melanau etc who are Christian, Muslim, Buddhist and propagating a secular state. On the other hand, PR comprises 3 parties DAP, PKR & PAS, although propagating multi racial but fighting more for the Chinese/Indian, Malay and Muslim and their religion respectively. For 50 years we have no problem with Allah and other issue. After 308, we have… Read more »


Out parking attendants, In Alam Indah my people.
Out Makutty rubbish contractors, In my MPSP people
After my sandiwara in a few years, in my rubbish contractors.
Just like the sandiwara of how MPPP people go deep into the Prangin lonkang to collect the dirt. Now that longkang is as dirty. hahahah


The usual MO of BN at its worst. All their focus is on getting the contract and zero focus on delivering. No consequences for non-delivery so they didn’t care. A good move. You don’t see much of this in BN states unless its to shift to another crony company. Even if it doesn’t turn out to be ideal, in the short run, the state government have an immediate yardstick to be judged against and will be hell bent on making sure there is a positive result. This if done properly should provide a more more equitable deal for all. From… Read more »