Problem overview:

     Policies and measures: Privatization of waste management/garbage collection may seem to have an advantage edge over public services, because since Malaysia has adopted the privatization system, garbage collection standards and customer satisfaction have been raised.

Background:

Operational efficiency

     Alam Flora Sdn Bhd is responsible for the management of solid waste for the central and eastern region which takes in not only those areas under City Hall jurisdiction but also the entire states of Selangor, Pahang, Terengganu and Kelantan, covering a total area of 72,263 km2. Such extensive coverage provides an economy of scale and enables the company to undertake more efficient and effective management. It has enabled the company to use its resources efficiently and to improve productivity. Previously, when the solid wastes were managed directly by City Hall, at times the job was carried out by ill-equipped, undertrained and understaffed individual private contractors who covered fragmented collection areas in the Federal Territory. Under the privatization scheme, those contractors have now been placed under the management umbrella of Alam Flora Sdn Bhd. The company trains the contractors and provides them with modern technology to enable them to carry out their work professionally. As a result of its economies of scale, Alam Flora Sdn Bhd is motivated to introduce up-to-date technology to this field of management.With better scheduling and manpower and equipment use, the turnaround in the collection time and the increase in tonnage collected have improved. Those changes are reflected in the decreasing number of complaints received from the public with regard to service by the company.

Waste disposal sites

     Despite the obvious operational efficiency of a private organization, the management of solid waste in the Federal Territory of Kuala Lumpur still faces the problem of final disposal. Like many other cities all over the world, land is scarce in Kuala Lumpur and the land-fill method is increasingly becoming an unacceptable option. Some States or districts are not in favour of having such sites in their areas of jurisdiction for the obvious reasons, and particularly from an environmental perspective. The other alternatives such as using incinerators has to contend with the high proportion of PVC materials that give off poisonous dioxin fumes when burnt. The other problem which renders the use of incinerators unsuitable is the high water content of the wastes, which prevents complete combustion. In addition, an active garbage separation programme, under which recyclable materials can be selected, has yet to be introduced. Those difficulties are compounded by indiscriminate dumping that shopkeepers and squatters practice as a matter of course as well as the shortage of labour as waste disposal jobs are considered to be dirty and unrewarding.

Service fees

     After one year of operation, the fees to be charged by the company had still not been settled. In the past, the semi-annual assessment rates imposed by the local authorities included garbage collection. However, with privatization, householders and commercial property owners now have to pay a separate fee for solid waste collection. The questions regarding the amount to be collected and the basis on which the fees are to be collected have not been settled yet. The issue has to be treated with the utmost care as it has political-social implications.

Press reports and feedback

     Judging from press reports, the expectations of Kuala Lumpur residents are very high, in as far as solid waste collection is concerned. They expect regular collection and are quick to complain to the local media. On the part of Alam Flora, the company has initiated several programmes for communicating with the public and publicizing its services. Customer complaint counters have been set up, and some educational programmes on solid waste have been initiated. In response to customer expectations, the company has increased the number of collections, provided standard collection bins as well as large collection points in inaccessible areas. To a large extent, the privatized services are under public scrutiny and the company has responded well to public complaints.

     However, improvement is still needed in a number of areas. The turnaround time for each garbage truck is severely hampered by the worsening traffic conditions in the city. The company could reschedule collection times to avoid peak hours including collection at night or very early in the morning. The number and location of transfer stations should also reconsidered as a way of helping to increase turnaround time.

     In conclusion, it is too early to make a concrete assessment of the privatization programme for solid waste management. However, interviews and reporting in the local media have revealed that the move has resulted in better community services. With a better work culture among the workers and the contractors, and the gradual introduction of modern technology into solid waste management, the service is becoming more reliable and there has been positive improvement. Based on press reports, the service has been receiving lesser complaints from the public. However, it is necessary to wait for the company to start imposing charges for the service and the reactions of the public. The real success of privatization will be measured by the quality of service and, in most cases, the savings it brings about for consumers.