MALAYSIA

Country Public Procurement Profile Survey (with E-Government Procurement Overview)
COUNTRY Malaysia
Respondent Agency Ministry of Finance, Unit ePerolehan / Ministry of Finance, Government Procurement Division
Date of First Submission Monday, June 06, 2011
Date of Last Update Friday, October 14, 2011
Part A.  Country Public Procurement Profile (Only those answers selected by the respondent from a multiple choice menu would appear below.)
1 Does your country have a central Public Procurement Authority (PPA) with legal authority through legislative enactment, executive decree or administrative regulation to act as functional and normative body in public procurement?
a.      Yes
2 The PPA’s mandates involve the following responsibilities (please select as many as applicable, one per line):
a.       formulation of procurement policy and regulations
b.      procurement prior reviews/no-objection
c.       procurement oversight and post reviews
d.      procurement audit
e.       procurement complaint review
f.       monitoring and evaluation at country, sector and procuring entity level
g.       professional advise and guidance in public procurement
h.      procurement capacity development and training
Others (please specify):
3 The PPA reports to:
a.       President/Parliament
c.      Ministry of Finance
Others (please specify):
4 Number of people employed by the PPA: (Please provide an organizational chart of the PPA and email address for communication, if possible)
d. 15 and more
Email address for communication with PPA:  azlan@eperolehan.gov.my / kumar.karuppiah@treasury.gov.my
5 Does PPA have a website?
a.      Yes
Link to PPA website:  www.treasury.gov.my  , www.eperolehan.gov.my
6 The PPA website covers the following areas (please select as many as applicable, one per line):
a.       procurement related regulations and documents
b.      news, events and policy initiatives related to public procurement
f.       specific opportunities and notices for bidders
g.       posting of contract award with name of the winning bidder and contract value
i.        centralized online system for procurement monitoring of procuring entities
j.        centralized online system for collecting procurement data and statistics
k.      linkage to an e-procurement system with actual procurement transactions
Other functions (please specify):
7 Do you have a public procurement law or any other regulatory act with legislative power? (Please provide a link or a scanned copy of its English version.) If yes, which of following are true (please select as many as applicable, one per line)?
c.       the law does not cover procurement conducted by state owned enterprises
f.       the law allows framework contracts
h.      the law establishes a decentralized system with prior review and approval procedures for large contracts
k.      the law mandates standardization of procurement practices mandating use of common procedures and standard bidding documents and forms
l.        the law currently provides principles and general procedures  that makes provision for the  use/adoption of e-procurement
n.      the law mandates the use of the registration and classification system as pre-qualification of contractors to bid
Note:  Government Procurement process in Malaysia is governed by the Financial Procedure Act 1957 which empowers Ministry of Finance Malaysia (MOF) to act as Central Agency and to formulate rules and regulations pertaining to all Government Procurement. Through the Financial Procedure Act, MOF have issued rules and guidelines on Government Procurement such as Treasury Instruction and Treasury Circulars which can be access through www.treasury.gov.my At present all the circulars pretaining to Government Procurement in our National Language (Bahasa Malaysia).
Link to public procurement law, if any:
8 Do you have a strategic plan or reform agenda for developing the procurement system in your country? (Please provide a copy or link)
a.       Yes, this is a long term procurement strategy updated 3-5 years and its key outcomes are incorporated into national development strategy documents of the country
Others (please specify):
9 What kind of initiatives and assistance in your view is needed to improve your public procurement system in the near future? [Please select your five most important initiatives among the choices, one per line.]
a.       Conduct an overall assessment of the effectiveness of the country’s public procurement system
b.      Assess compliance with country’s public procurement rules and regulations by procuring entities
d.      Create a sustainable training system for procurement practitioners to ensure compliance, professionalism and career development
e.       Create a single window for procurement related information and statistics led by PPA and connect with e-procurement system
h.      Analyze the structure and business practices of PPA and support efforts to improve its capacity and performance
Others (please specify):
Additional notes, if any:
10 What is the size of the public procurement of your country? Please select the closest corresponding values based on most recent available information or your rough assessment?
I. Average annual procurement under national and local budget
f.    more than US$ 1 billion
g. Other (please indicate a more specific amount, if available):
II. Average annual procurement by State Owned Enterprises (those who are subject to the procurement regulations)
c.       between  US$ 100 to 200 million
g. Other (please indicate a more specific amount, if available):
III. Average annnual procurement under Official Development Assistance (Donor-funded projects)
c.       between  US$ 100 to 200 million
g. Other (please indicate a more specific amount, if available):
Part B.  e-Government Procurement Planning (Only those answers selected by the respondent from a multiple choice menu would appear below.)
1 Has your government formed or implemented a concrete plan for development of e-Gp?  Please select only one answer.  (If yes, please email a copy of the plan to mkhaltarpurev@adb.org).
c.   Yes, both a and b are true
2 Which of the following best describes the functionality of your planned e-Gp initiatives? (Please select as many as applicable, one per line.)
b.      regional or local websites for publishing and sharing all local information related to public procurement
c.       e-publication system for real time procurement notices
d.      e-publication of procurement awards and results
e.        system for bidders to download bidding documents and RFPs in response to the published procurement notices
f.       e-bidding system for bidders to submit their bid or proposals online and observe the online public opening of the bid
h.      e-payment system which allows invoicing and payment through the system
i.        online reverse auctions or electronic negotiations
j.        online purchasing from e-catalogs or supplier marketplace
k.      electronic evaluation of bidders technical and financial proposals
l.        electronic supplier registration system
3 Do you have plans to implement any new e-Gp system at the national level? (Please select as many as applicable, one per line.)
n.      System for receiving bid securities or guarantees
4 Does the scope of your e-GP plans include the following? (Please select as many as applicable, one per line, and please provide a copy of the relevant documents if possible.)
b.   assessing e-readiness of procuring entities through surveys and feasibility studies
d.    creation of necessary IT infrastructure
e.   conducting user acceptance and testing
g.    piloting e-Gp module
h.   drafting amendments to the public procurement law and its implementing rules and   regulations to facilitate  e-Gp operations
i.   generating public awareness and conducting consultation with suppliers to promote development of e-Gp system
Part C.  e-Government Procurement System Implementation (Only those answers selected by the respondent from a multiple choice menu would appear below.)
1 General Information about the e-GP system presently in operation
a.  System Name:  ePerolehan
b.  Website Address:  http://www.eperolehan.gov.my
c.  Administration/Operator of the System:  Oracle 10G and Linux
d.  Agency(s) using the System:  2,536 or 99% procuring entities
e.  Year of launch:  2000
2 Brief description of the system in terms of coverage and main functional modules
a.  e-publication/downloading:  procurement document will be published in real time. Suppliers can view and download document.
b.  e-bidding:  allows suppliers to submit proposal online, bid online and selected supplier will be awarded online.
c.  e-contracting:  Contract management through central contract managed by Ministry of Finance for common items used by ministries and ministry’s contract managed by ministries.
d.  e-payment:  allows invoicing and payment through the system.
e.  e- reverse auction:  allows supplier bid online within time given and get immediate result.
f.  e-catalog purchasing:  allow procuring entity purchase online via supplier electronic catalogue.
g.  e-Guarantee/security:  not available
3 Other government IT systems that the e-Gp system links to (please select as many as applicable):
a.       National Treasury and Budget
f.       Contractors and Suppliers Registration and Classification
Others (please specify):
4 How do the bidders input and submit their proposal/tender documents into your e-Tendering  System, if any (please select as many as applicable)?
a.       web form
b.      upload files
Other methods (please specify):
5 If bid evaluation is carried out online, briefly describe the process of online evaluation.
Comparison table (both specification and financial) is automatically generated. Each suppliers proposal will be compared with criteria created earlier. This will help the committee to evaluate all suppliers.
6 Is bid security/guarantee required on your e-procurement system? (Please explain briefly.)
Not necessary.
7 Does the e-Gp system require specific operating system, browser?
Yes. Microsoft Windows and Internet Explorer.
8 Describe the security method (e.g. digital authentication) used in the e-Gp system.
Each user will be using smart card (Public Key Infrastructure – PKI) which contain specific digital signature. Every data send by the user will be encrypted.
9 Are electronic and paper documents legally equivalent in your country?
No. electronic document will supersede manual paper document.
10 Briefly describe the management of the e-Gp system in terms of :
a.  the business model (managed in house, outsourced etc.):  Outsource to local vendor appointed by government through BOT business model. eProcurement Unit have been set up to monitor the development and implementation of the system.
b.  users fee for suppliers or procuring agencies (if any):  Transaction fee will be imposed to the supplier. Supplier also has to register with government and a sum of fee will be collected.
c.  training (available programs, e-learning, manuals etc):  Yes. Training will be given through class room learning using training server and manuals, and self learning through Computer Based Training (CBT).
d.  certification ( if required who issues, how):  Certificates of participants issued by eProcurement Unit, Ministry of Finance.
e.  Call Center (Q&A for user requirements etc.):  Yes. Helpdesk been provided 24 hour.
f.  Self teaching (modules for user requirements):  Yes. CBT for each module can be downloaded by the user for free.
g.  Service centers (physical service centers to meet user requirements):  Yes. Service centre been set up at every state to give services both to government and suppliers.
h.  Any incentives offered to encourage adoption of this system by other procuring entities:  Available. Award in the form of certificates and cash to ministries based on their performance in adopting the system rated by category and criteria set.
11 Please provide the following statistics (if available):
a. number of procuring entities legally required to use the e-Gp system: 2550
b. number of procuring entities registered in the e-Gp system as of December 31 2010:  2534
c. number of procuring entities that actually used the e-Gp system since its inception:  —
d.value of the contracts awarded in 2010  (in USD):   6.5 billion
e. value of the contracts (awarded) registered in the e-Gp in 2010 (in USD):  3.5 billion
f. active business (contractors and suppliers) in the country as of December 31, 2010:  72,559
g. contractors/suppliers registered in the System as of December 31, 2010:  183,029
12 How do you encourage procuring entities and suppliers to use the e-Gp system?
a) Enforcement via treasury circular; b) System enhancement – more friendly and interactive
13 Do you allow individual procuring entities to customize national e-Gp systems? If yes, in what way(e.g. use a different website design with their logo)
Yes. Minimal customization for website design. E.g: change of layout colour, font size and selection of content.
14 Are individual agencies free to use different systems to those approved at the central level? If yes, is there any central approval procedure for this?
No
15 What are the key success factors you observe in introducing or implementing e-Gp in your public procurement system framework (please list them if any)?
a. Top management support
b. User friendly system
c. Various and continuous change management program
16 What are the major problems you faced in introducing or implementing e-Gp system under your public procurement framework (please list them)?
a. Resistance to change
b. Technology barrier
c. Third party dependencies
17 What approach to the e-Gp development is suitable for your country’s public procurement system and why? (Please briefly describe your answer.)  OPTIONAL
THANK YOU!