Pre-conditions for pro-poor PPPs in Penang were comparatively good. The Penang government is sophisticated and technically well capacitated, the private sector is active and well capacitated, organizations like SERI exist, and many communities are well organized. Also, there are a number of PPP arrangements already existing in Penang and also in the solid waste sector. At a broad level Malaysia and Penang have an established basis of cooperation between government and the private sector. The country has high levels of economic growth and while the involved communities are relatively poor in Malaysian standards, in international standards they are comparatively well resourced.