DIPLOMA IN PUBLIC ADMINISTRATION

FACULTY OF ADMINISTRATIVE SCIENCE & POLICY STUDIES

UNIVERSITI TEKNOLOGI MARA, MACHANG CAMPUS, KELANTAN

GROUP ASSIGNMENT
PAD370
PUBLIC FINANCIAL ADMINISTRATION

ASSIGNMENT TOPIC:
PUBLIC PROCUREMENT

PREPARED FOR:
NORHAYATI BT YAACOB

DATE OF SUBMISSION:
21 JUNE

PREPARED BY:
NO. NAME UiTM NO. GROUP
1. NUR IZZATI BINTI MOHD ASRI 2017163885 5B

2. NUR SYAFINAZ FAMILLIA BINTI MAHAMAD ROSLI 2017378195 5B

3. NIK NURUL EMILYANA BINTI NIK NASHARUDDIN 2017366463 5B

4. AFIFAH BINTI CHE YUSOF 2016733397 5B

Table of Contents
1.0 DEFINITION................................................................................................................................3
2.0 IMPORTANCE OF PUBLIC PROCUREMENT.................................................................................3
3.0 TYPES OF PUBLIC PROCUREMENT.......................................................................................3
3.1 SUPPLIES................................................................................................................................3
3.2 WORK....................................................................................................................................4
3.3 SERVICES...............................................................................................................................4
4.0 CATEGORIES OF PUBLIC PROCUREMENT..................................................................................5
4.1 CASUAL/DIRECT PURCHASE.............................................................................................5
4.2 QUOTATION....................................................................................................................5
4.3 TENDER............................................................................................................................6
4.4 EMERGENCY PURCHASE..................................................................................................7
4.5 FOREIGN PURCHASE........................................................................................................7
5.0 ARTICLE REVIEW ON PUBLIC PROCUREMENT IN MALAYSIA.....................................................8
5.1 ISSUES AND STRATEGIES TO IMPROVE PUBLIC PROCUREMENT ORACTICES IN MALAYSIA.10
6.0 CONCLUSIONS.........................................................................................................................12
7.0 LEARNING REFLECTIONS.........................................................................................................13
8.0 REFERENCES............................................................................................................................13
1.0 DEFINITION

Public procurement is known as the purchasing of goods and

s e r v i c e s f o r p u b l i c p u r p o s e s . I t i s a s u p p o r t f u n c ti o n m e a n t t o
make available supplies, equipment and other materials when
required the purpose of procurement in the public sector is to
enable government agencies providing various services and
n e c e s s a r y g o o d s t o p e o p l e . T h e c e n t r a l o b j e c ti v e o f p r o c u r e m e n t
is to obtain material and supplies of the right quality, in the right
q u a n ti t y a t t h e r i g h t ti m e , f r o m t h e s u p p l i e r a n d t h e r i g h t p r i c e .

2.0 IMPORTANCE OF PUBLIC PROCUREMENT

The important of public procurement where it is to ensure

c o n ti n u o u s s u p p l y o f m a t e r i a l s a n d s e r v i c e s t o m e e t t h e
Government needs from the best and reliable sources. Then it is
a l s o t o e n s u r e e ffi c i e n c y , e ff e c ti v e n e s s a n d e t h i c a l p r o c u r e m e n t
p r a c ti c e s t o e n a b l e t h e G o v e r n m e n t t o a c h i e v e b e s t v a l u e f o r
money without compromising on quality, delivery and other price
a n d a l s o n o n p r i c e f a c t o r s . T h e n , s ti m u l a t e a n d e n c o u r a g e t h e
g r o w t h a n d d e v e l o p m e n t o f l o c a l i n d u s t r i e s t h r o u g h t h e o p ti m a l
usage of local resources and materials. To expand and invigorate
the local industrial sector by means of transfer of technology and
e x p e r ti s e t o s u i t t h e n a ti o n n e e d s . T h e o t h e r i m p o r t a n c e i s t o
p r o m o t e a l t e r n a ti v e a d m u l ti p l e s o u r c i n g t h r o u g h s u p p l i e r
d e v e l o p m e n t a c c o r d i n g t o t h e a s p i r a ti o n a n d v i s i o n o f t h e
Government.

3.0 TYPES OF PUBLIC PROCUREMENT

3.1 SUPPLIES

S u p p l i e s i n c l u d e t h e s u p p l y o f r a w , i n t e r m e d i a t e o r fi n i s h e d
g o o d s a n d p r o d u c t s f o r a n y a c ti v i t y o f u s e r s . G o o d s a r e p h y s i c a l
products purchased or manufactured on request. There is usually
an element of service involved, such as when the agreement is for
the purchase of goods to be assembled and/or installed. However,
the extent of the service provided is directly related to acceptance
o f t h e g o o d s p u r c h a s e d . T y p i c a l e x a m p l e s o f g o o d s a r e : o ffi c e
supplies and equipment, furniture, IT equipment, books, vehicles,
m e d i c a l s u p p l i e s a n d o t h e r c o m m o d i ti e s .
3.2 WORK

Works are related to civil works; this includes new

c o n s t r u c ti o n o f s t r u c t u r e s o f a l l k i n d s ( b u i l d i n g s , h i g h w a y s ,
b r i d g e s , e t c . ) , r e n o v a ti o n s , e x t e n s i o n s , a n d r e p a i r s . T h i s c a t e g o r y
c a n a l s o i n c l u d e , w a t e r a n d s a n i t a ti o n , t r a n s p o r t a ti o n a n d
electrical plant infrastructure. Works contracts include
c o n s t r u c ti o n a n d e n g i n e e r i n g a c ti v i ti e s i n v o l v i n g i n f r a s t r u c t u r e
and structures such as buildings, airports, roads/highways, dams,
drainage etc.

3.3 SERVICES

S e r v i c e s i n c l u d e e n g a g e m e n t o f m a n p o w e r , e x p e r ti s e a n d
consultants in the areas of feasibility studies, research, designing,
s u r v e y i n g , m a n a g e m e n t e t c . S e r v i c e s a r e c l a s s i fi e d a s c o n s u l ti n g
s e r v i c e s a n d n o n - c o n s u l ti n g s e r v i c e s . I n s o m e c a s e s , t h e y a r e
s i m p l y c l a s s i fi e d a s s e r v i c e s b e c a u s e o f t h e d i ffi c u l t y , a t ti m e s , i n
c l e a r l y d e t e r m i n i n g t h e d i ff e r e n c e . T h e d i s ti n g u i s h i n g f a c t o r
between the two, however, is the degree of importance of the
m e a s u r a b l e p h y s i c a l o u t p u t o f t h e r e q u i r e m e n t . C o n s u l ti n g
services are usually intellectual in nature and are considered
technical services the output of which is not equipment intensive.
A d v i s o r y a n d p r o j e c t r e l a t e d s e r v i c e s a r e t y p i c a l c o n s u l ti n g
services; which includes: feasibility studies, project management,
e n g i n e e r i n g s e r v i c e s , fi n a n c e a n d a c c o u n ti n g s e r v i c e s , t r a i n i n g a n d
d e v e l o p m e n t , t o m e n ti o n a f e w . N o n - c o n s u l ti n g s e r v i c e s , o n t h e
o t h e r h a n d , u s u a l l y i n v o l v e t h e u s e o f e q u i p m e n t a n d s p e c i fi c
m e t h o d o l o g i e s t o a c h i e v e t h e i r o b j e c ti v e s . S o m e t y p i c a l e x a m p l e s
o f n o n - c o n s u l ti n g s e r v i c e s a r e : e q u i p m e n t m a i n t e n a n c e a n d r e p a i r ,
o p e r a ti o n and maintenance services, u ti l i t y management,
i n s t a l l a ti o n and maintenance services, surveys and fi e l d
i n v e s ti g a ti o n s , a n d s i m i l a r .
4.0 CATEGORIES OF PUBLIC PROCUREMENT

4.1 CASUAL/DIRECT PURCHASE

Purchase order will be prepared by the department by

i d e n ti f y i n g t h e t y p e o f g o o d s , s i z e , q u a l i t y , q u a n ti t y a n d s u p p l i e r .
T h e fi r s t s t e p o f t h e p r o c e d u r e s i s t h e d e p a r t m e n t w i l l p r e p a r e t h e
purchase order and submit to the suppliers. The suppliers must
revert within 14 days. Purchase below RM10,000, can purchase
from any vendors or suppliers. But, when the purchase is
RM10,000 to RM50,000, it must be purchase from Bumiputera
suppliers that registered with Ministry of Finance and provide a
r e a s o n a b l e p r i c e . T h e p a y m e n t o f t h e p u r c h a s e w i l l b e m a d e a ft e r
the goods are received accordingly and purchase order and
i n v o i c e s h a v e b e e n p r e p a r e d a n d s i g n e d b y b o t h p a r ti e s .

For the casual or direct purchase, the amount must not

exceed RM50,000 per year. Goods purchased normally used by the
d e p a r t m e n t t o b u y s t a ti o n e r y a n d o ffi c e e q u i p m e n t . H e a d o f
Department could source procurement from any company that was
k n o w n t o o ff e r r e a s o n a b l e p r i c e s . F o r p r o d u c t s o r s e r v i c e s , t h e
range between RM10,000 to RM50,000 can be procured per year
f o r a n y i t e m o r c l a s s o f i t e m . T h e r e s p e c ti v e g o v e r n m e n t a g e n c y
could purchase directly from any Bumiputera supplier who was
r e g i s t e r e d f o r t h a t p a r ti c u l a r c l a s s . P r o c u r e m e n t o f w o r k s u p t o
the value of RM20,000 may be done through the issue of a Works
Indent to a contractor who is registered with the Contractors
S e r v i c e s C e n t r e ( P K K ) a n d C o n s t r u c ti o n I n d u s t r y D e v e l o p m e n t
Board (CIBD) Malaysia.

4.2 QUOTATION

Q u o t a ti o n i s a p r o c u r e m e n t o f g o o d s r a n g i n g f r o m R M 2 0 , 0 0 0
t o R M 5 0 0 , 0 0 0 s u c h a s f a c i l i ti e s a n d e q u i p m e n t f o r o r g a n i z a ti o n s ’
o p e r a ti o n . T h e d e p a r t m e n t n e e d e d t o g e t q u o t a ti o n s f r o m a t l e a s t
fi v e s u p p l i e r s w h o w e r e r e g i s t e r e d w i t h M i n i s t r y o f F i n a n c e f o r t h e
s p e c i fi c c o d e o f i t e m s i f t h e p u r c h a s e s a r e r a n g i n g f r o m R M 2 0 , 0 0 0
t o R M 2 0 0 , 0 0 0 . Q u o t a ti o n a l s o r e q u i r e d f o r w o r k p r o c u r e m e n t .
These costs should fall into the range of RM20,000 and RM100,000
and based on the Civil Engineering Standard Methods of
Measurement (CESMM). Procurement of works above value of
RM20,000 and up to RM500,000 is done through calling of
q u o t a ti o n s a n d t h e m i n i m u m n u m b e r o f q u o t a ti o n s t o b e i n v i t e d i s
fi v e .
 A l l c o n t r a c t o r s w i s h i n g t o t a k e p a r t i n q u o t a ti o n m u s t b e
registered with the Pusat Khidmat Kontraktor (PKK) and
C o n s t r u c ti o n I n d u s t r y D e v e l o p m e n t B o a r d ( C I B D ) . T h e c o n t r a c t o r
m u s t b e c h o s e n b y r o t a ti o n o r v o ti n g f r o m t h e ‘ C l a s s F ’ c o n t r a c t o r s
in the district or the nearest district. However, any work on
r e p a i r s , m a i n t e n a n c e o r r e n o v a ti o n t h a t r e q u i r e d c h a n g e s m u s t b e
fi r s t r e f e r r e d t o t h e T e c h n i c a l D e p a r t m e n t o f t h e T r e a s u r y f o r
t h e i r a p p r o v a l b e f o r e q u o t a ti o n s w e r e o b t a i n e d .

4.3 TENDER

Tender processes are must to the procurement of works,

supplies and services above the value of RM500,000. All
c o n t r a c t o r s t h a t w a n t t o p a r ti c i p a t e i n t h e l o c a l t e n d e r s m u s t b e
registered with the government. If there is no local producers of
s u p p l i e s a n d s e r v i c e a v a i l a b l e , o n l y t h e n t h e i n t e r n a ti o n a l t e n d e r s
w i l l b e i n v i t e d . I n t e r n a ti o n a l t e n d e r s f o r w o r k s m a y o n l y b e c a l l e d
w h e n t h e l o c a l c o n t r a c t o r s d o n o t h a v e e x p e r ti s e a n d c a p a b i l i t y
and a joint venture is not possible. The limited tender was for
product and services must get the approval from Procurement
Board and must not exceed RM5 million. It is normally limited for
Bumiputera suppliers only. All tender that exceed RM5 million
must get the approval from the Treasury.

T h e r e 4 t y p e s o f t e n d e r w h i c h a r e o p e n t e n d e r , s e l e c ti v e
t e n d e r , n e g o ti a t e d t e n d e r a n d s i n g l e - s t a g e a n d t w o - s t a g e t e n d e r .
All types of the tenders must follow the tender procurement
p r o c e s s s t a r t e d w i t h t h e t e n d e r s p e c i fi c a ti o n a n d p r e p a r i n g t h e
t e n d e r d o c u m e n t s . T h e n , a l l t h e t e n d e r s w i l l b e a d v e r ti s e d t h r o u g h
w e b s i t e s , n e w s p a p e r a n d h a v e t o m a k e s u r e t h e a d v e r ti s e m e n t
m u s t a d v e r ti s e i n a t l e a s t o n e l o c a l d a i l y i n t h e M a l a y l a n g u a g e .
A ft e r t h e t e n d e r s a r e s o l d , t h e I n t e r n a ti o n a l b i d d e r s m u s t f u r n i s h
a tender deposit ranging from RM60,000 for bids below RM5
million, to RM1 million for bids exceeding RM30 million for
supplies and services. RM60 million for contracts below RM10
million, to RM 1 million foe contracts exceeding RM100 million for
the works contracts. Local suppliers and contractors that
registered with the Government does not have to pay the tender
d e p o s i t s . N e x t , a T e n d e r O p e n i n g C o m m i tt e e w i l l b e o p e n , a n d a l l
t e n d e r w i l l b e s c h e d u l e w i t h t h e q u o t e d p r i c e s . A ft e r t h a t , a l l
t e n d e r s w i l l b e e v a l u a t e d b y t h e c o m m i tt e e b a s e d o n t h e c r i t e r i a
s e t i n t h e t e n d e r d o c u m e n t a n d t h e e v a l u a ti o n r e p o r t w i l l b e
s u b m i tt e d t o t h e P r o c u r e m e n t B o a r d s o f M i n i s t e r o r D e p a r t m e n t s .
 Last but not least, the successful bidder will be selected by
The Agency Procurement Boards. In certain cases, the tender value
is above than RM50 million, the Agency Procurement Board will
s e n d t h e t e n d e r w i t h r e c o m m e n d a ti o n t o t h e M i n i s t r y o f F i n a n c e
f o r fi n a l d e c i s i o n .

4.4 EMERGENCY PURCHASE

Emergency purchase will only be use during emergency

period or when it must to be made immediately such as when
t h e r e i s d e l a y i n p r o c u r e m e n t t h a t w i l l a ff e c t n a ti o n a l i n t e r e s t .
T h e p u r c h a s e d u r i n g e m e r g e n c y c a n o n l y b e u s e d t o f u l fi l l t h e
emergency requirement. The report of emergency purchase also
h a s t o b e p r e p a r e d a n d s u b m i tt e d t o t h e C o n t r o l l i n g O ffi c e r ,
S e c r e t a r y G e n e r a l o f T r e a s u r y a n d S t a t e F i n a n c i a l O ffi c e r w i t h i n
one month.

4.5 FOREIGN PURCHASE

F o r e i g n p u r c h a s e m e a n s t h e g o o d s p u r c h a s e d a r e n o t o ff e r e d
from the local suppliers. Local supplier will be made the
a d v e r ti s e m e n t s l o c a l l y a n d e x t e r n a l l y t o a d v e r ti s e t h e o ff e r . T h e
purchase must start with preparing what to buy, determining the
q u a n ti t y a n d c o s ti n g o f t h e g o o d s a n d s e l e c ti n g t h e s u p p l i e r s .
Then, the suppliers’ past performance will be evaluated, and the
contract of agreement will be prepared. Next, the services or
c o m p l e ti o n a s p e r a g r e e m e n t m u s t b e m o n i t o r a n d e n s u r i n g t h e
g o o d s a r e r e c e i v e d o n ti m e . T h e g o o d s m u s t b e i n a g o o d c o n d i ti o n
and meet the quality standard as stated in the contract.
5.0 ARTICLE REVIEW ON PUBLIC PROCUREMENT IN MALAYSIA

T h e fi r s t r e v i e w o f p u b l i c p r o c u r e m e n t i n M a l a y s i a i s
accountability on public procurement. For example, Pua said Pembinaan
BLT Sdn Bhd, a special purpose vehicle owned by the Ministry of Finance
I n c , w a s g i v e n a g o v e r n m e n t g u a r a n t e e t o b u i l d 7 4 p o l i c e s t a ti o n s f o r
RM8.5 billion. These bonds were secured by guaranteed rental payments
from the government for the use of the police quarters. In this case, its
m e a s u r e a l l o w e d t h e g o v e r n m e n t t o a v o i d s c r u ti n y o f s u c h p r o j e c t s i n
the Auditor-General’s Report, which covers expenditure under the
f e d e r a l b u d g e t . [ CITATION San18 \l 17417 ]. A c c o r d i n g t o [ CITATION Ali10 \l 17417 ],
Problems of accountability arise when governments ignore ethics and
c o n s ti t u ti o n a l a n d l e g a l p r o v i s i o n s i n c o n d u c ti n g p u b l i c m o n e y a n d
a ff a i r s . W h e n t h e p r o b l e m s o f a c c o u n t a b i l i t y o c c u r , t h u s t h e r e a r e m a n y
p o t e n ti a l o f u n e t h i c a l b e h a v i o u r t o o c c u r t h a t w i l l i n fl u e n c e t h e e t h i c a l
d e c i s i o n m a k i n g i n p l a n p r o c u r e m e n t . T h i s a r ti c l e s s t a t e d t h a t e t h i c a l
i s s u e s i n p r o j e c t p r o c u r e m e n t a r e n o t o n l y a b o u t b r i b e r y o r c o r r u p ti o n
b u t a l s o c o n fl i c t o f i n t e r e s t s a n d c o l l u s i v e t e n d e r i n g . T h e e x a m p l e s
project is MRR2, the Matrade Building and the Navy recruit training
C e n t r e ( B e h , 2 0 0 7 ) . T h i s h a s l e a d t o a l l e g a ti o n s o f c o r r u p ti o n w h e r e b y
t h e P u b l i c W o r k s D e p a r t m e n t o f M a l a y s i a i s u n d e r s i e g e f o r t h e m u l ti -
b i l l i o n r i n g g i t fi a s c o s T o d a y , t h e M a t r a d e p r o j e c t s h a v e n o t y e t b e e n
completed and the MRR2 project is facing a problem with the cracks that
w e r e f o u n d a t t h e p i l i n g . H o w e v e r , a r ti c l e t h a t a r e a c c o r d i n g t o [ CITATION
Gra12 \l 17417 ] stated that Malaysia, especially Kuala Lumpur, has
e m b a r k e d o n a m u l ti - b i l l i o n R i n g g i t 4 t r a n s p o r t a ti o n s y s t e m , w i t h t h e
building of the building of the Light Rail Transport and the Mass Rapid
T r a n s p o r t C o r p o r a ti o n ( M R T ) . P u b l i c p r o c u r e m e n t r e f o r m a n d r e g u l a ti o n
m a y r e s u l t i n b e tt e r g e n e r a l g o v e r n a n c e a n d a c c o u n t a b i l i t y b e n e fi ti n g
s u p p l i e r s a s w e l l a s p r o c u r e r s a n d u l ti m a t e l y t h e e n d u s e r , t h e p u b l i c .

T h e s e c o n d r e v i e w i s t h e c o r r u p ti o n t h a t h a p p e n i n p u b l i c p r o c u r e m e n t
o f M a l a y s i a . T h e A u d i t o r - G e n e r a l ’ s R e p o r t a l w a y s m e n ti o n e d a b o u t
p u b l i c p r o c u r e m e n t c o r r u p ti o n i s s u e s r e l a t e d t o t h e g o v e r n m e n t s e r v a n t .
H o w e v e r , i t s e e m s n o a c ti o n i s t a k e n , w i t h t h e p u b l i c p r o c u r e m e n t r a t e
a r e s ti l l i n c r e a s i n g a n n u a l l y . T h i s h a s b e e n d i s c u s s e d i n d e t a i l s i n t h e
b a c k g r o u n d o f t h e s t u d y . T h e r e f o r e , t h i s s t u d y i n v e s ti g a t e s t h e
r e l a ti o n s h i p o f i m p a c t b e t w e e n d e t e r m i n a ti o n a n d p e r c e p ti o n o f c h i e f
i n t e g r i t y o ffi c e r s ( C I O s ) i n g o v e r n m e n t a g e n c i e s o n p u b l i c p r o c u r e m e n t
c o r r u p ti o n i n M a l a y s i a . T h e f a c t o r s a r e p e r c e p ti o n o f p u b l i c p r o c u r e m e n t
c o r r u p ti o n a s d e p e n d e n t v a r i a b l e a n d t h e e c o n o m i c s , p o l i ti c s , s o c i e t y ,
o r g a n i z a ti o n a n d r e l i g i o u s b e l i e f a s i n d e p e n d e n t v a r i a b l e s . U l ti m a t e l y ,
the success of each of government department lies in the hands of its
employees. There is an increasing awareness of the urgent need to
address the issue of “misconduct” among its employees. As shown by the
KPMG Forensic’s 2008-2009 Integrity Survey, the prevalence of serious
m i s c o n d u c t i n p u b l i c s e c t o r s t o o d a t 5 6 % . A s t h o u g h t o a u t h e n ti c a t e t h e
s u r v e y , 2 0 1 0 C o r r u p ti o n s . T h e M a l a y s i a n g o v e r n m e n t i s u n w a v e r i n g o n
i t s c o m m i t m e n t f o r p r u d e n t s p e n d i n g a n d t h e i n s p i r a ti o n i s c h a n n e l e d t o
a l l d e p a r t m e n t s . M o s t o f t h e ti m e , p u b l i c s e c t o r o p e r a ti n g b u d g e t
c o n ti n u e t o g r o w ti g h t e r . A c c o r d i n g t o P r o f e s s o r S u e A r r o w s m i t h , t h e
t e r m P u b l i c P r o c u r e m e n t r e f e r s t o t h e e n ti r e p r o c e s s o f g o v e r n m e n t
a c q u i s i ti o n s . P u b l i c p r o c u r e m e n t r e f e r s t o t h e p u r c h a s e o f g o o d s a n d
s e r v i c e s b y a u t h o r i ti e s i n t h e m a r k e t p l a c e f r o m a n o t h e r l e g a l e n ti t y ,
generally by contractual agreement. The example from South Africa has
a d o p t e d a n u m b e r o f i n i ti a ti v e s w i t h t h e a i m o f c o m b a ti n g c o r r u p ti o n
especially in the public sector. In order to further prevent, combat,
i n v e s ti g a t e a n d p r o s e c u t e p u b l i c s e c t o r c o r r u p ti o n , t h e g o v e r n m e n t
h a r m o n i s e d t h e l e g i s l a ti v e f r a m e w o r k o n c o r r u p ti o n a n d c a m e u p w i t h
t h e P r e v e n ti o n a n d C o m b a ti n g o f C o r r u p t A c ti v i t y .

T h e r e v i e w o f a r ti c l e s a l s o b a s e d o n t h e t r a n s p a r e n c y o f t h e p u b l i c
p r o c u r e m e n t . T h e c o r r u p ti o n c a n b e r e d u c e d b y i n c r e a s i n g t h e
t r a n s p a r e n c y a n d p a r ti c i p a ti o n t h r o u g h w i d e p u b l i c a ti o n s o f t e n d e r s
a c c o r d i n g t o [CITATION Wee \l 1033 ]. U n d e r M a l a y s i a n r u l e s , l o c a l t e n d e r s
m u s t b e a d v e r ti s e d i n a t l e a s t o n e l o c a l n e w s p a p e r i n t h e M a l a y
l a n g u a g e . I n t e r n a ti o n a l t e n d e r s m u s t b e a d v e r ti s e d i n a t l e a s t o n e
Malay-language newspaper and one English-language newspaper. This is
t o m a k e s u r e a l l t h e c o n t r a c t o r s r e c e i v e d t h e p u b l i c a ti o n s o f t h e t e n d e r s
and ensure there is the transparency of the tenders. However, the way
i n w h i c h a g o v e r n m e n t b o d y i n v i t e s p a r ti c i p a ti o n o f t h e b i d d e r s w o u l d
b e d i ff e r e n t d e p e n d i n g o n t h e m a n a g e m e n t o f t h e l o c a l a u t h o r i t y . M o r e
o p p o r t u n i t y g i v e n w i l l c r e a t e c o m p e ti ti o n a n d u l ti m a t e l y t h e b e n e fi t w i l l
g o b a c k t o t h e l o c a l a u t h o r i t y . [ CITATION Wee \l 1033 ]. [CITATION Roh10 \l 1033 ]
s a i d t h e t r a n s p a r e n c y o f t h e p u b l i c p r o c u r e m e n t w i l l b e q u e s ti o n a t t h e
s t a g e 3 r i s k o f t h e p u b l i c p r o c u r e m e n t . T h i s i s b e c a u s e i f t h e v a l u a ti o n
o f t h e s e l e c ti o n p r o c e s s o f p r o c u r e m e n t w a s n o t c l e a r l y s t a t e d a n d n o
j u s ti fi c a ti o n w e r e m a d e . D e s p i t e c l a i m s o f o p e n n e s s a n d t r a n s p a r e n c y o f
the public procurement system, it was found the current system is
r e p l e t e w i t h t h e r i s k o f a b u s e , u n e t h i c a l m a n i p u l a ti o n s a n d c o r r u p t
p r a c ti c e s . T h i s r e s e a r c h i s l i m i t e d t o t h e a n a l y s i s o f d a t a a n d p r o c e s s e s
related to the Malaysian Government public procurement system.
[CITATION Roh10 \l 1033 ]

Last but not least, the fourth review of public procurement in

Malaysia is integrity. Integrity in public procurement is public funds
s h o u l d n o t b e u s e d t o p r o v i d e f a v o u r s t o s p e c i fi e d i n d i v i d u a l o r
c o m p a n i e s ; s t a n d a r d s a n d s p e c i fi c a ti o n s m u s t b e n o n - d i s c r i m i n a t o r y . A s
said, the procurement should be economical. It should result in the best
quality of goods and services for the price paid, or the lowest price for
t h e a c c e p t a b l e . [ CITATION Wan12 \l 17417 ]. F u r t h e r m o r e , f o r a r e a s t h a t a r e
m a i n t a i n e d b y p r o c u r i n g e n ti t y , r e s e a r c h / a n a l y s i s s h o u l d b e c a r r i e d o u t
t o e s t a b l i s h t h e a p p r o p r i a t e n o r m s o f p r o d u c ti v i t y a n d o p ti m a l n u m b e r
o f s t a ff t o c a r r y o u t m a i n t e n a n c e ; a n d t h e r e s h o u l d b e a d e q u a t e
c o o r d i n a ti o n e s t a b l i s h e d b e t w e e n a l l g o v e r n m e n t d e p a r t m e n t i n o r d e r t o
r e d u c e m i s c o n d u c t b y i r r e s p o n s i b l e t h i r d p a r ti e s w h o d a m a g e d p u b l i c
p r o p e r t y a n d f a c i l i ti e s . [ CITATION Gra16 \l 17417 ]. H o w e v e r , o n 1 9 6 0 s
0 n w a r d s , a l l p r o c u r e m e n t r e f o r m r e g u l a ti o n a tt e m p t e d t o f u r t h e r a l l o f
these principles.one the principle is integrity. Meaning that
p r o c u r e m e n t r e g u l a ti o n s h o u l d e n s u r e p r o b i t y : t h e r e s h o u l d b e n o
p e r s o n a l o r p o l i ti c a l c o r r u p ti o n , a n d i m p r o p e r c o l l u s i o n b e t w e e n
g o v e r n m e n t a n d p a r ti c u l a r s u p p l i e r s s h o u l d b e e l i m i n a t e d . [ CITATION
Cri06 \l 17417 ]

5.1 ISSUES AND STRATEGIES TO IMPROVE PUBLIC PROCUREMENT

ORACTICES IN MALAYSIA

 Issues Accountability

A c c o u n t a b i l i t y c o n ti n u e s t o b e a c o n c e r n i n p u b l i c p r o c u r e m e n t . I t
is crucial that the issue of transparency and accountability to be focus
on especially when it comes to public expenditure. Problems of
a c c o u n t a b i l i t y a r i s e w h e n g o v e r n m e n t s i g n o r e e t h i c s a n d c o n s ti t u ti o n a l
a n d l e g a l p r o v i s i o n s i n c o n d u c ti n g p u b l i c m o n e y a n d a ff a i r s . W h e n t h e
p r o b l e m s o f a c c o u n t a b i l i t y o c c u r , t h u s t h e r e a r e m a n y p o t e n ti a l o f
u n e t h i c a l b e h a v i o u r t o o c c u r t h a t w i l l i n fl u e n c e t h e e t h i c a l d e c i s i o n
making in plan procurement.

There have certain strategies to avoid this accountability issues in

public procurement. This is important in order to encourage
accountability in the public procurement. Firstly, establish clear lines
for oversight of the public procurement cycle. It is to ensure the chains
of responsibility are clear and that oversight mechanism are in place.
S e c o n d l y , h a n d l e c o m p l a i n t s o n a f a i r , ti m e l y a n d t r a n s p a r e n t w a y
t h r o u g h t h e e s t a b l i s h m e n t o f e ff e c ti v e c o u r s e o f a c ti o n f o r c h a l l e n g i n g
procurement decision to correct defects and prevent wrongdoings of the
accountability public procurement system. Last but not least, the
strategies is they need to ensure that internal controls which is
i n c l u d i n g fi n a n c i a l c o n t r o l s , i n t e r n a l a u d i t a n d m a n a g e m e n t c o n t r o l s .

 I s s u e s o f c o r r u p ti o n
 T h e i s s u e s a c c o r d i n g t o t h e c o r r u p ti o n w h e r e t h e c o r r u p ti o n a r e
w i d e l y h a p p e n i n M a l a y s i a . T h e c a u s e o f t h e c o r r u p ti o n i s b e c a u s e o f t h e
f a c t o r s a r e p e r c e p ti o n o f p u b l i c p r o c u r e m e n t c o r r u p ti o n a s d e p e n d e n t
v a r i a b l e a n d t h e e c o n o m i c s , p o l i ti c s , s o c i e t y , o r g a n i z a ti o n a n d r e l i g i o u s
belief as independent variables.

The strategies that we can do to prevent this from happening

where we can take for example when South Africa the government
h a r m o n i s e d t h e l e g i s l a ti v e f r a m e w o r k o n c o r r u p ti o n a n d c a m e u p w i t h
t h e P r e v e n ti o n a n d C o m b a ti n g o f C o r r u p t A c ti v i ti e s A c t . 5 7 . T h e n , t h e
employees should be awareness for not misconduct in their
responsibility.

 Issue of Transparency

Transparency is a core principle of high-quality public

procurement. Transparency supports the wise use of limited
development funds, from planning investments in advance to measuring
the results. An open and transparent procurement process improves
c o m p e ti ti o n , e n s u r e s v a l u e f o r m o n e y , i n c r e a s e s e ffi c i e n c y a n d r e d u c e s
t h e t h r e a t o f u n f a i r n e s s o r c o r r u p ti o n . A c c o r d i n g t o [ CITATION DrK20 \l 1033 ],
t h e b r i g h t l i g h t o f p u b l i c s c r u ti n y k i l l s t h e d e m o n s o f c o r r u p ti o n a n d
poor government, but alas, Malaysia does not have a good track record
of transparency.

In order to have a good transparency, the tender documents must

be publicly published. This is to make sure the public know the
t r a n s p a r e n c y o f t h e p r o c u r e m e n t a n d d i d n o t h a v e a n y c o r r u p ti o n i s
happening. A further aspect of a transparent procurement system is the
announcement of the company awarded the contract, and contract value,
with reasons for the award sent to other tenderers. In public works
projects, records should be kept of the progress of the contractors and a
f o r m a l e v a l u a ti o n u n d e r t a k e n o f t h e c o n t r a c t o r s ’ p e r f o r m a n c e . [ CITATION
Pro13 \l 1033 ] The transparency of Malaysian Procurement System also
has been increased with the e-procurement system as the medium to the
contractors and evaluators to review the tender’s and procurement’s
documents. The usage of the e-procurement system can reduce the
c h a n c e o f c o r r u p ti o n f r o m h a p p e n a s t h e r e c o r d o f t h e c o n t r a c t s i s i n
the system.

 Issue of integrity
 The issue of integrity in public procurement is when the
s o l i c i t a ti o n d o c u m e n t s a r e i s s u e d b y t h e p r o c u r e m e n t e n ti t y , t h e
i n f o r m a ti o n p r o v i d e s h o u l d b e r e l i a b l e a n d f r e e o f u n c e r t a i n t y o r
p r e d i s p o s i ti o n . T h e b i d d e r s s h o u l d h a v e a c l e a r u n d e r s t a n d i n g o f t h e
r e q u i r e m e n t , a n d k n o w h o w t h e y w i l l e v a l u a t e d . D o t h e e v a l u a ti o n a n d
s e l e c ti o n s h o u l d b e c l e a r l y e x p r e s s e d i n t h e s o l i c i t a ti o n d o c u m e n t .
B e c a u s e i t w i l l c o m e t h e i s s u e o f f a v o u r i ti s m i n t e r m o f s e l e c ti o n . W h i c h
i s w h e n t h e a g e n c y m a k e t h e p r o c u r e m e n t , t h e y w i l l o ff e r t o m a n y
bidder to join already give the criteria, but actually they already choose
the company they want from the beginning

T o p r e v e n t t h i s i s s u e , w e n e e d t o m a k e a n e w r e g u l a ti o n t o t h e
public procurement in term of integrity by law that can be follow by all
p e o p l e . A n d a l s o p r o c u r e m e n t o ffi c i a l s n e e d t o b e e q u i p p e d w i t h
adequate tools, to be professional and have ethical guidance to prevent
c o r r u p ti o n . T h i s i s t o m a k e s u r e t h e y d i d n ’ t m a k e a f a v o u r i ti s m a g a i n
a n d t o m a k e s u r e t h e f a i r n e s s i n s e l e c ti o n o f p r o c u r e m e n t

6.0 CONCLUSIONS

In general terms, public procurement referred to purchases of

goods and services from suppliers on behalf of the government, which
w a s r e p r e s e n t e d b y t h e v a r i o u s m u n i c i p a l i ti e s , p r o v i n c e s , s t a t e s ,
n a ti o n a l o ffi c e s a n d a l s o t h e f e d e r a l o ffi c e s . I n M a l a y s i a , t h e M i n i s t r y O f
Finance (MOF) was responsible for all the procurement procedures, both
internally and outside of Malaysia. Guidelines had been published by the
MOF that acted as the legal framework for public procurement. The
i s s u e s s u c h a s a c c o u n t a b i l i t y , t r a n s p a r e n c y , c o r r u p ti o n a n d i n t e g r i t y
that exist in the procurement system in Malaysia are the main concerns
that disturb the public. Public procurement involved large amounts of
p u b l i c m o n e y t h a t m a d e p r o c u r e m e n t h i g h l y v u l n e r a b l e t o c o r r u p ti o n . I t
w a s n o t e d t h a t g o v e r n m e n t p r o c u r e m e n t a ff e c t e d t h e e ffi c i e n c y o f
public spending due to the huge loss of public funds Malaysia
g o v e r n m e n t n e e d e d t o t a k e t h e a p p r o p r i a t e a c ti o n t o o v e r c o m e t h i s
i s s u e s i n t h e p u b l i c p r o c u r e m e n t a c ti v i ti e s t o e n s u r e a m o r e t r a n s p a r e n t
a n d e ffi c i e n t s y s t e m .

7.0 LEARNING REFLECTIONS

 Through this assignment, we learned so many knowledge about the
details of the public procurement, types of public procurement and
categories of public procurement that we does not know before. By
doing this, we know the current issues that have happen in the Ministry
of Housing and Local Government. Not just that, we also learned how to
r e v i e w t h e a r ti c l e s . W e g a i n s o m a n y k n o w l e d g e a s w e n e e d t o s e a r c h 1 0
a r ti c l e s . T h e m o s t i m p o r t a n t t h i n g s i s w e h a v e l e a r n h o w t o w o r k i n a
team. Since Covid-19 happen, we need to communicate through online.
We learned that communicate and commitment is the key in order to get
work done. Each members need to give full commitment and must know
t h e i r r e s p o n s i b i l i ti e s .

8.0 REFERENCES

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Amarthalingam, S. (2018, October 12). Retrieved from Remaking Malaysia: No more getting
around procurement rules?: https://www.theedgemarkets.com/article/remaking-
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C.Gan, M. T. (2015). 344TOWARDS AN EFFECTIVE LEGAL AND REGULATORY FRAMEWORK

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Grace Xavier, Jason Chew. (2012). Retrieved from Public Procurement In Malaysia: Is There A
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Gross, C. M. (2006). WTO Government and The Local Dynamics of Procurement Policies. The
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Jones, P. D. (2013). Key failings in the Malaysian public procurement system and how they can
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