Private Finance Initiative Research Articles

Malay Entry into Business through Scaling the Heights of Corporate Malaysia from mid-1980s – An Assessment

The aim of this paper is in identifying and analysing, from an economic perspective, the policies, programs and instruments the government used in promoting Malay entry into business, the form of this entry, including of rent-seeking, the extent to which Malays have scaled the heights of Corporate Malaysia as well as of the factors accounting for the success or failure of this agenda in the post-1985 period after the launch of the corporatisation and privatisation era. The discussion on the performance as well as of the key problems and issues encountered from the country’s use of the corporatisation or privatisation route to promote entry, is also combined with a similar discussion on its use of: (a) government linked investment companies (GLICs) in promoting Malay entry into business from an almost non-existent level in 1957, (b) the private finance initiative (PFI) or the build, lease, maintain and transfer (BLMT) model in promoting entry as an owner-manager in the era of corporatisation and institutional fund management, as well as (c) multiple instruments in aggressively promoting entry within an industry or sector with multiple goals.

Perceptions of Public and Private Sector Stakeholders on the Benefits and Challenges of Public-Private-Partnerships in Nigeria

Nigeria’s infrastructure deficit has become acute because of the country’s burgeoning population. The Public-Private Partnership (PPP) model, under labels such as Private-Finance Initiative (PFI) and Build Operate-Transfer (BOT), has been touted as the solution to the funding and other challenges confronting the country with regard to infrastructure development. This research sought to examine stakeholder experiences and perceptions on the benefits, abuse and challenges of deploying PPP for infrastructure procurement. The stakeholders investigated were in Lagos and Ogun States of Nigeria, although some of the experiences transcended the two states. Copies of the questionnaire were purposively administered to 115 professionals drawn from the built environment as well as from the legal and financial sectors of the Nigerian economy; the professionals were from the private and public sectors. Eighty-six (86) copies of the questionnaire were returned, with the data subjected to descriptive and inferential statistical analyses. Ranking highest among the list of thirteen identified challenges investigated was ‘political interference outside the agreed rules of running the PPP framework’, while ‘inability to initiate or package PPP projects’ ranked least. The most significant form of abuse or disadvantage was ‘embezzling of public funds and reinvesting in PPP as private sector investor’, while the least significant form of abuse was determination of the concession period. The inferential statistical analyses found no significant difference between both sectors in the assessment factors except in the matter of ‘more careful approach in investing funds in infrastructure’. It is therefore recommended that there should be a continuous audit of stakeholder perceptions on various PPP issues that can form the baseline for impactful improvement and intervention in PPP projects.

Service Quality in Planned Preventive Maintenance: A Preliminary Study at UiTM Campuses

Planned Preventive Maintenance (PPM) is an essential component under facilities management (FM) carried out to ensure the functionality, effectiveness, reliability and safety of the asset and facilities. Poor service quality, lack of monitoring and performance assessment, low level customer satisfaction are among issues arises and has gained a lot of attention, especially among interested parties. In Universiti Teknologi Mara (UiTM) campuses context, FM normally outsourced to third parties namely concessionaires under Private Finance Initiative (PFI) campuses and contractors for conventional campuses. The main objective of this preliminary study was to investigate current practices in terms of service quality aspect of PPM works delivered by concessionaires and contractors in UiTM. A questionnaire was distributed to 27 respondents consist of 12 engineers and 15 assistant engineers from Office of Facilities Management UiTM and analysed using descriptive analysis. Based on the results, current practice to measure PPM work performance is by the number of works completed. Apart from that, there is no defined standard method available to be used as performance measurement in the aspect of service quality of PPM works delivered by concessionaires and contractors in UiTM. In addition, all the respondents agreed that there is indeed a necessity to develop a standard performance measurement in the aspect of service quality of PPM works delivered by concessionaires and contractors. The impact of this finding is to the Office of Facilities Management UiTM, in which they can focus and start to develop standard performance measurement in the aspect of service quality of PPM works delivered by concessionaires and contractors, so the services provided commensurate with the payment made and satisfy customer needs.

The Significance of Facilities Management Aspect in Developing Maintenance Management Plans during Pre- Development Stages of Educational Private Finance Initiative (PFI) Projects

Facilities Management (FM) is one of the essential aspects that needs to be considered in the building maintenance management plan. Generally, the scope of FM involves thorough and effective administration, finance, operation and maintenance of the building. In the context of the Private Finance Initiative (PFI) projects, the operation and maintenance stage is longer compared to the design and construction stages. Therefore, the focus during this stage should be emphasised proactively. This research aims to determine the significance of FM aspect towards maintenance management plan of PFI projects during pre-development stages. This research used previous literature, mainly from journals articles to construct the models and formulate the literature reviews. Additionally, a quantitative approach was employed as the research methodology. A questionnaire survey was distributed to the maintenance personnel involved in the PFI projects in Malaysia. The survey was conducted towards the educational PFI projects only. This research also used Partial Least Square-Structural Equation Modelling (PLS-SEM) software to perform data analysis. There are two constructs in this research which are the FM aspects and maintenance management plan. The measurement and structural models were developed to determine the significance of the FM aspect towards the maintenance management plans. There are five indicators that represents FM aspects and six indicators of maintenance management plan highlighted in this research. All these indicators are proven to be reliable and valid through the internal consistency, convergent validity, cross loading value. The Fornell Lacker Criterion was conducted to prove discriminant validity between FM aspect and maintenance management plan. The findings of this research found that the FM aspects are very significant towards the maintenance management plan of the PFI project during the predevelopment stages. It was proven through structural model analysis using p and t-value. This research can be beneficial for better implementation of maintenance management.

A critical analysis of public private partnership model in energy from waste projects

The Public Private Partnerships (PPP) and the Private Finance Initiative (PFI) have been significantly adopted over the last three decades as a mechanism for the delivery and financing of projects. Various infrastructure project types in the energy and the transport sectors have adopted this procurement system for their ‘anticipated’ effectiveness in risk distribution and value for money. Yet, their acclaimed benefits, particularly in ensuring value for money in the waste to energy – or energy-from-wastes (EfW) – sector are under significant scrutiny. Governments and investors are increasingly questioning their fiscal efficiency and overall benefit to taxpayers. Despite these concerns, studies investigating whether PFI provides value of money of PFI in EfW are lacking. This study addresses this gap by comparing the PFI models used in the UK and Canada in currently operative EfW projects using mixed risk epistemology approach combining methods that provide both a real and objective evaluation of issues and risks and a subjective (or opinion-based) evaluation. The former is achieved through a quantitative probabilistic model for simulating EfW feasibility at the operation phase. The quantitative probabilistic model is capable to model and capture how operational phase costs and profitability are affected by lifecycle risks (such as quality of service driven by contractual requirements that are usually passed on to the Operation and Maintenance (O&M) contractor) and a range of technical, payment and incentive dynamic variables and their fluctuations. If the impact of these variables is not considered and modelled accurately, the O&M contractor could incur significant losses undermining the viability of the EfW project. The latter employs a psychometric methodology to delve into the primary concerns of professionals involved in EfW projects regarding associated risks. The results show that common O&M risks identified in EfW PPP projects in UK and Canada prevail around unplanned maintenance, infeed waste reduction, market price, unsustainable debts, and policy changes.

Financing ecosystem restoration

The global community has outlined ambitious ecosystem restoration targets. Yet implementation is slow, and a lack of funding is a key barrier to upscaling restoration activities. Most restoration projects are funded by public institutions and recent high-level initiatives have emphasised the need to scale private finance in restoration. Private finance can be channelled into restoration through various financial mechanisms but is held back by a lack of return-making investment opportunities. Various institutions have now been created to commodify previously non-market ecosystem services and make them investable, most prominently voluntary carbon markets and biodiversity compliance market-like mechanisms, such as biodiversity-offsetting systems targeting the achievement of 'no net loss' of biodiversity for a given regulated sector. However, attracting private finance into restoration comes with risks, as private finance objectives in restoration often are misaligned with wider social and ecological objectives. Private finance mechanisms to date have tended to underinvest in monitoring and impact evaluation mechanisms and to favour investments in cost-effective nature-based solutions such as plantation monocultures over naturally regenerated ecosystems. Many technological and institutional solutions have been proposed, but these cannot mitigate all risks. Therefore, scaling of ecosystem restoration through market-like mechanisms requires substantial fundamental investments in governance and civil society oversight to ensure that ecological integrity and social equity is safeguarded. Here, we outline the high-level policy landscape driving restoration finance and explore the roles and potential of both public and private investment in restoration. We explain how some common mechanisms for drawing private investment into restoration work in practice. Then, we discuss some of the shortcomings of past private finance initiatives for ecosystem restoration and highlight essential lessons for how to safeguard the ecological and social outcomes of private investments in ecosystem restoration.

A Review of Customer Satisfaction Survey on Facilities Management Performance within Private Finance Initiatives (PFI) at Malaysia Public University

The purpose of this paper is to provide an overview of the primary research undertaken to establish customer satisfaction survey (CSS) for the facilities management practices and performance at Malaysia private finance initiatives (PFI) university campus. The single case study approach is a research method used in this research to analyse a single case or phenomenon in depth. In this approach, a single unit of analysis, such as, a case study of PFI campus of a public university in Malaysia is studied in detail to gain a deep understanding of the case and its context. The findings of this paper revealed that the overall, FM Company ‘A’ CSS increased from 3.26 in 2014 to 3.94 in 2022, with some fluctuations over the years. It is a positive trend that indicates that the company has been improving its services over the years and meeting stakeholder expectations. This paper reached out to address the CSS for FM practices and performance under the Private Finance Initiatives (PFI) at Malaysia Public University after 9 years of its implementation. It gives a better understanding of PFI concept and FM practices in the country. The review also helps to identify practices and measures to the FM performance impact to the university operations.

공공의료기관 체계에 참여하는 주체들의 역할과 참여 방법에 관한 행정법적 연구

In Korea, it is urgent to establish a sound public health care system, because total number of public hospitals is not sufficient & facilities are aging. In particular, with the COVID-19 pandemic, national & local government's limitation in providing public health care only through public hospitals had been revealed. Therefore, national & local government & various actors in society to participate in establishing a sound public health care system is necessary. In administrative law, Network Theory(Netzwerktheorie in German) is a theory that has attempted to discuss the participation of not only states(includes local governments) and private enterprises, but also more diverse social subjects such as residents in administration. Network theory(Netzwerktheorie in German) means a theory that includes “building a long-term relationship while interacting with a number of independent subjects in society for important resource exchange.
 To establish public health care system, the writer suggests the roles and methods of participation performed by each subject based on Network Theory. For this discussion, the subjects participating in establishing system of public hospitals are divided into ① states and local governments, ② private enterprises, ③ residents and general public, and ④ non-profit private organization. The roles of each subject are below: First, states and local governments plays roles in providing public health care service through public hospitals as before, and provides and maintains a place for cooperation for various subjects to participate in cooperation with the system of public hospitals that are converted to network relations. The method of participation of states and local government focuses on legislation to improve the legal system of public hospitals. Second, private enterprises are in charge of commissioning work related to facilities of public hospitals from the states and local governments. The method of participation of private enterprises focuses on the Private Finance Initiative(PFI) to ease the financial burden administered to facilities of public hospitals and to ensure that public hospitals can properly provide public health care services. Third, residents and the general public play a role in deciding jointly with the states and local governments on the establishment or operation of public hospitals. The method of participation of residents and the general public shall be discussed focusing on the residents-participation in the planning stage. Fourth, non-profit private organizations play a role in monitoring whether the establishment and operation of public hospitals are properly carried out. The method of participation of non-profit private organizations will be discussed focusing on class action.
 By clarifying the roles and methods of the subjects participating in establishing the system of public hospitals, it is expected to be able to effectively respond to the pandemic that may occur again in the future. In addition, it is expected that public hospitals can provide high-quality public health care service to the public and protect the lives and bodies of the people.

Value for money (VFM) in private finance initiative (PFI) implementation in Malaysia

PurposeDrawing on institutional work (Lawrence and Suddaby, 2006; Lawrence et al., 2011), this study aims to explore how the concept of value for money (VFM) is understood in terms of the private finance initiative (PFI) implementation in Malaysia.Design/methodology/approachIn-depth interviews with 25 actors involved in the implementation of PFI projects at two public universities in Malaysia were conducted. The interviews focused on the ways in which participants in the projects make sense of VFM in their ongoing involvement with the projects. In addition, a review of publicly available documents was conducted to understand the ways in which the notion of VFM is reflected in the policies and procedures of the government. Data from the interviews and documents were analysed using thematic analysis.FindingsIt is found that the advocacy work of macro-level actors, as well as micro-level actors, has promoted PFI implementation to achieve VFM. However, to the micro-level actors, VFM is just a concept that carries different interpretations, depending on how PFI fits their everyday functional discourses. In addition, direct negotiation and lack of commercial appreciation are disruptive not only to the achievement of VFM but also to the public sector reform agenda of the country.Originality/valueThe present study contributes to the discourses on the concept of VFM that is assumed to be inherent in PFI. The findings are based on micro- and macro-level actors and cover both advocacy and disruption of VFM achievement.

PRIVATE FINANCE INITIATIVE AS A TOOL FOR BRIDGING THE INFRASTRUCTURAL DEFICIT IN DEVELOPING ECONOMIES

A critical factor in the economic growth of any nation is its infrastructural development. For most developing countries, such as South Africa, the infrastructural deficit has been experienced over the years mainly due to low gross domestic savings. A viable tool in shoring up for the shortfalls of infrastructural investment is the private finance initiative (PFI), as it makes provision for private sector financing of construction projects. On this basis, this study seeks to assess the drivers of PFIs in the South African construction industry. Using a quantitative approach, the study elicited data from relevant stakeholders in the built environment. Retrieved data were subjected to data analysis methods such as mean item score, Kruskal Wallis h-test, and SNK post-hoc test. The analysis findings show that the most significant propelling measure for PFIs in the South African construction industry is overcoming public sector budget constraints, timely project completion, and improved service delivery. Based on the study’s conclusion, recommendations were made to help propagate the inclusion of PFI as an alternative for project financing in South Africa.

Sustainable Cities and Communities from Malaysian Local Authorities Perspectives

Perspectives of Malaysian local authorities on the development of sustainable cities and communities (SCC) are examined in this study, with a focus on the effects of cost-benefit analysis (CBA), private finance initiatives, and risk management. Additionally, the challenges faced by local authorities in developing SCC are presented. A qualitative method was used, involving face-to-face interviews with local authorities. Content analysis was conducted, and the results show that CBA, private finance initiatives, and risk management have a significant impact on the development of SCC. The primary challenge in implementing SCC is the limited funding available to support their implementation. This study sheds light on the importance of considering CBA, private finance initiatives, and risk management in developing SCC from the perspective of Malaysian local authorities. The findings also highlight the need for more funding and resources to support SCC implementation in Malaysia.

A Review of Facilities Management Performance within Private Finance Initiatives (PFI) at Malaysia Public University

This paper aims to assess the facilities management (FM) practices and performance at Malaysian private finance initiatives (PFI) university campus. This paper critically analysed the current FM practices and performance of the FM company. The single case study approach is a research method used in this research to analyse a single case or phenomenon in depth. In this approach, a single unit of analysis, such as, a case study of PFI campus of a public university in Malaysia is studied in detail to gain a deep understanding of the case and its context. The findings of this paper revealed that the state of FM practices and performance is based on the Concessionaire Agreement (CA) within the appointed FM Company and the University. The extent of its implementation and understanding are significantly important to the university management. The FM Company performance increased towards the year and recorded high level performance with Key Performance Indicators (KPI’s) average score within 9 years around 98.45%. However, the FM company received a total of 773 demerit points and incurred a deduction of maintenance charges amounting to RM319,153.23 suggesting that there were some areas of improvement can be made. This paper reached out to address the FM practices and performance under the Private Finance Initiatives (PFI) at Malaysia Public University after 9 years of its implementation. It gives a better understanding of PFI concept and FM practices in the country. The review also helps to identify practices and measures to the performance impact to the university operations.

Energy-Use and Indoor Thermal Performance in Junior High School Building after Air-Conditioning Installation with the Private Finance Initiative

Japan’s government has adopted the “Private Finance Initiative (PFI)” as a project method for monitoring “air-conditioning (AC)” performance after AC installation projects to overcome heatstroke increase in schools during the summer. However, this project was conducted long after schools were built, which raises the question: what is the AC “energy-use (EU)” and how comfortable will the classroom be when it is installed without going through the planning stage? Minimizing AC EU while keeping indoor thermal comfort is the main concern for low-carbon building design technology development. This research aims to evaluate the AC EU and summer indoor thermal comfort in classrooms by position and zone. This research method analyzes PFI monitoring data, field measurement data, and questionnaires with sensitivity analysis. It found that AC EU in the summer was higher than in the winter. In addition, the AC setting temperatures in the summer (cooling) were below the government-recommended value of 28 °C. Although the indoor thermal comfort percentage in the summer had reached 75.3%, there was a seating position with a smaller comfort percentage than others. The result further shows that most students felt “neutral”. However, the number of students who felt “slightly cool” and “cool” were more than those who felt “slightly warm” and “warm”.

Research on air conditioning energy use and indoor thermal environment with Private Finance Initiative data monitoring of junior high schools before and during the COVID-19 pandemic in Japan

The COVID-19 pandemic began to spread at the beginning of 2020 in the world and in Japan, which is expected to impact the air conditioning (AC) energy use (EU) in educational buildings when AC and natural ventilation are used together as a new regulation to decrease infectious disease transmission. Furthermore, this regulation of natural ventilation is expected to impact the AC EU when the outside temperature affects indoor comfort causing changes in the regular AC setting temperature and AC operating times. This study aims to evaluate the AC EU, and the indoor thermal environment changes with Private Finance Initiative (PFI) data monitoring in junior high schools in Oita City before and during the COVID-19 pandemic during summer and winter through a sensitivity analysis method. The result found that AC EU significantly increased during the pandemic, 2 times escalation in summer and 1.9 times in winter. Besides, during the pandemic, indoor air temperature comfort was achieved with longer AC operation time, lower AC setting temperature in summer, and higher AC setting temperature in winter. The result of this research can be expected to be beneficial for future studies regarding AC energy saving and indoor thermal comfort-related investigation and valuable for new regulations related to air conditioner settings and operations for the new normal during the pandemic.

Communication Challenges in Private Finance Initiative Projects at Facilities Management Stage

Facilities management is one of the scopes of work under the Private Finance Initiative Projects. The success of the facilities management work depends on various factors. Communication is among the factor. This paper will highlight what are the challenges faced during the communication between the client and facilities management managers in UiTM projects and also ways to overcome the challenges. The research is carried out by using the qualitative method. The interviews were done with the engineers and facilities managers. From the interviews, the challenges are the breakdown of communication, human error, lack of understanding, time-consuming, and misunderstanding. deal with lack of understanding, it is best to deal with it through meeting or discussion, inspecting the real problem, and issuing a letter or reminder. To sum up, these strategies are being used because to clarify the root cause of the lack of understandings and to get rid of disputes that happen between both parties. To ensure smooth communication when conveying information during the operational and maintenance, the following item suggested being done by the respondents; verification from the end-user, conducting a technical meeting, following the procedure in executing works, and having a good relationship between both parties. To improve communication, the suggestion is the use of the mobile application, integrated system, roles of the concessionaire in understanding the Concession Agreement, minimize human error and improvement of CFMS as well as preferably direct communication using instant messages.

일본 민간투자법제에서의 불가항력에 관한 비교법적 연구

Recently, many unexpected variables have occurred in public projects-such as COVID-19 and weather changes caused by climate change. The representative of these unexpected variables is force majeure. Force majeure means an unexpected event regardless of the responsibility of the parties to the contract. Force majeure is a matters, especially when public projects are performed by Private Finance Initiative(PFI) scheme. This is because PFI is performed over a long period of time(approximately 20 to 30 years), so there is a high probability that force majeure occurs during the project. Force majeure hinders the implementation of PFI projects, making it difficult to properly provide public services to the people. In this reason, we can say that the discussion on force majeure has an important meaning, especially in PFI projects. In addition, force majeure itself damages PFI projects, but it also causes legal disputes over force majeure, which hinders the implementation of the project. Therefore, in order to reduce legal disputes related to force majeure in PFI projects, it is necessary to clearly determine the following matters. First, which event will be viewed as force majeure, that is, the reason for force majeure. Second, when damage or additional costs occur due to force majeure reasons, how the public sector and private sector will share and deal with them, that is, force majeure risk sharing and handling. In this motive, the writer compares force majeure in PFI legal system between Korea and Japan so that it can quickly and stably provide public services to the public. To this end, the contents of the reasons for force majeure in the PFI legal system of Korea and japan and sharing and handling of force majeure risks are compared, and implications of the Japanese PFI legal system are derived.

Public-school infrastructure ageing and current challenges in maintenance

PurposeSchool infrastructure is one of critical factors that significantly contribute to the educational outcomes, and therefore, maintaining the high quality of school infrastructure becomes of critical importance. Due to the ageing of school assets over time in combination with budget constraint and rapid growth of student enrolment, many public schools are currently struggling to maintain the required standard for long term. However, to date, the goal of providing the best maintenance practices to public schools has not been achieved.Design/methodology/approachThe present study focuses on studying the balance between the asset and maintenance management strategies and the funding model through conducting state-of-the-art literature review and qualitative analysis in the context of public schools in Australia and other developed countries around the world. Review of journal articles, different government reports and other available resources were used to collect and analyse the data in this study.FindingsAs part of this review, significant under investment in maintenance and asset renewals were identified as main challenges in asset management in public school facilities. Although different maintenance strategies were used in school infrastructure, adequate funding, adequate robust asset management plans (AMPs) and the involvement of private sectors have been identified as the key factors that govern the success in school infrastructure maintenance. It also shows that funding of approximately 2–3% of asset replacement value (ARV) on school infrastructure is required to maintain school facilities for long-term. Further, the procurement methods such as public private partnership including private finance initiatives (PFIs) have shown great improvements in maintenance process in school infrastructure.Originality/valueThe study provides a review of different AMPs and funding models in school infrastructure and their efficiencies and shortcoming in detail. Different states and countries use different maintenance models, and challenges associated with each model were also discussed. Further this study also provides some conclusive evidence for better maintenance performance for school buildings.

공공의료기관의 노후화 해결에 관한 비교법적 고찰

Public medical institution means medical institutions established and operated by the state or local governments to provide public health care to the people. Public medical institutions play a role in supplying inexpensive and good quality medical services to the public and supplying medical services to residents or socially disadvantaged people where the medical environment is weak. In addition, in the event of an infectious disease or other disaster, it is in charge of preventing and managing infectious diseases and treating victims affected by the disaster, and plays a role in responding to the crisis systematically at the national level. In particular, public medical institutions play an important role in preventing polarization in the medical field because they generally provide medical services to the public without considering profitability. Public medical institution that play such an important role are having difficulties in solving the aging of public medical institutions due to chronic deficits. In recent years, regional variations in the degree of aging have intensified, resulting in regional imbalances in medical service quality. Therefore, it is necessary to solve this problem by preparing a plan to solve the aging of public medical institutions by attracting private capital. However, under the current Act On Public-Private Partnerships In Infrastructure(2020), only the Private Finance Initiative(PFI) scheme accompanied by construction is used. So, in this scheme, new facilities such as hospital wards must be built or if old facilities exist, new building after full demolition of old one must be made. Therefore, it is necessary to omit the construction stage and introduce an operating Private Finance Initiative(PFI) scheme that allows the private sector to repair the ward, supply and maintain new medical devices, etc. In this motivation, the writer suggests to solve the aging of public medical institutions through comparison with Japan's public-private partnership law so that public safety can be secured from various risks such as COVID-19. Particularly, “The Right to Operate the Public Facility”(公共施設等運営権制度), which is a Japanese operating Private Finance Initiative(PFI) scheme, is reviewed, and the implications and limitations of this system on the Korean Private Finance Initiative(PFI) legislation are discussed.

Private finance essential to provide stimulus to post-Covid-19 rebuilding

The Covid-19 pandemic has resulted in Britain’s biggest debt in over 60 years. However, the country also needs to invest over £600 billion in infrastructure to stimulate economic recovery as well as meet its target of net zero greenhouse gas emissions by 2050. While the UK government’s private finance initiative model for procuring public infrastructure has fallen out of favour, private investment can deliver major public benefits if properly managed. This paper highlights both good and bad outcomes of private finance initiatives around the world, and suggests how they can best be used to support the UK government’s long-term aspirations to ‘build back better’ and meet its climate targets. The key is to focus on specific projects and to structure deals to provide quality, value for money and longevity.

Facility Management in Private Finance Initiative Project in UTHM Pagoh Campus

Facility management (FM) in Private Finance Initiative (PFI) involved a long-time process and duration in improving the infrastructure and associating the facilities. FM will give a support role or service within an organisation that have been strategically integrated approach to operating, maintaining, improving, and adapting the buildings and supporting services in order to create natural environment. In a long-term relationship, facility management need to evolve to a higher strategic level in compliance with the organisation’s strategy. At the end of the process, it will achieve best value and performance on delivery of support services. In this research, direct observation has been done to analyze facility management provided in UTHM Pagoh Campus. Furthermore, the satisfaction level of building occupants also was investigated by using different measurement factors in a structured questionnaire to measure the effectiveness. Hence, the results concluded that the total overall satisfaction of users towardsfacility provided by private sector are mostly satisfied among building occupants. From the results obtained, outdoor area was ranked first out of eight measurement factors. An interview has been done in order to clarify the success of facility management. It can be summarized that all the facility supplied by private sector were meets Key Performance Indicators (KPIs), by meant it also need to improvise their services provision.