Privatization of Selangor Water Supply Distribution: An Analysis from the Political Economy Perspective

The privatization of water supply distribution has been carried out in the Selangor state since 2004. The agreement of treated water distribution concession by the Syarikat Bekalan Air Selangor (SYABAS) demonstrates the existence of conflict from the political economy perspective. First, an active government intervention in the water privatization program is against the aspirations of neoliberalism agenda. Second, within federalism framework which involving federal government and state government from different political party showed a political conflict. Using qualitative method through content analysis approach from Elite Theory and Public Choice Theory, this study argues at two points. First, some distinctive approach applied by both Barisan Nasional (BN) of federal government and Pakatan Rakyat (PR) of state government worth to be discussed. Second, the failure of neoliberal agenda due to approach taken by this two different parties has prevail, but it also argued the importance of the role and state control in privatization program which aimed at gaining political support of relevant political parties. Suggestions are further discussed. DOI: 10.5901/mjss.2015.v6n6s4p42