This paper attempts to measure the performance of all privatized firms which are listed on Bursa Malaysia (Kuala Lumpur Stock Exchange). Privatization programme in Malaysia started in 1983 with the objective of improving the performance both in term of efficiency and effectiveness of the firms. This study attempts to analyse the performances of the privatized firms in Malaysia using two different measures. First, financial performance is measured using Wilcoxon matched-pairs signed rank test. Second, the welfare effect is measured using a divestiture equation, which have been applied in many welfare effect studies. The results show improvements in performances after privatization. However, welfare improvement is higher than financial improvement.