Although the Federation of Malaya is a developing nation, it is just as vitally concerned with the importance of its decisions regarding capital investment in transportation facilities as is any other country in the world. The technique of benefit-cost analysis is of assistance to all organizations making major capital investment decisions. This paper, after a general explanation of the analysis technique, uses three transportation case studies in Malaya, to demonstrate the use of this technique in practice. The first case is a comparison of four proposed routes that would improve an existing stretch of road on the main east-west highway in Malaya, between the two towns of Setapak and Karak. This case, the Setapak-Karak Road, is unique in comparison to the other two cases inasmuch as it arrives at an economically efficient alternative. The second and third cases are studies of recently completed highway projects in Malaya. The second, the Dungun Bridge case, looks at the recently (June 2, 1964) opened bridge at Kuala Dungun on the east coast of Malaya and compares this with the previous ferry operation. Here a benefit-cost ratio was arrived at through the consideration of the time saving, accorded users by the new structure. The third and final case, the Slim River By-Pass, is also a study of a recently completed facility. Here, the new high-speed, direct by-pass, opened in June 1964, is compared to the old slow and circuitous road between the two towns of Slim River and Tanjong Malim. Savings in this instance were found in increased speed and reduced curvature. All three of these studies are practical applications of the benefit-cost analysis technique and as such, bring to light the internal problems and solutions which have a world-wide application. It is to this end that these three cases are presented. / Business, Sauder School of / Graduate