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Procedures of Procurement: Centralised and Decentralised

Malaysia has implemented e-Government initiatives since the mid-1980s to improve public services using IT. There were eight flagship projects under the e-Government initiative including an e-Procurement project to facilitate and improve government procurement. However, small and medium sized suppliers faced challenges adopting e-Procurement due to costs, lack of skills/infrastructure, and changes to business practices required. The government aims to promote e-Procurement but must address these supplier issues and ensure non-discriminatory policies to increase supplier participation.
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0% found this document useful (0 votes)
382 views6 pages

Procedures of Procurement: Centralised and Decentralised

Malaysia has implemented e-Government initiatives since the mid-1980s to improve public services using IT. There were eight flagship projects under the e-Government initiative including an e-Procurement project to facilitate and improve government procurement. However, small and medium sized suppliers faced challenges adopting e-Procurement due to costs, lack of skills/infrastructure, and changes to business practices required. The government aims to promote e-Procurement but must address these supplier issues and ensure non-discriminatory policies to increase supplier participation.
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PROCEDURES OF PROCUREMENT: CENTRALISED AND DECENTRALISED

It has stated that Malaysia had achieved the used of ICT in administration since mid-80s.
However, the main vision of the e-Government is to transform public sector service delivery by using
the IT and multimedia. There are eight projects that were implemented under the e-Government
initiative flagship. In addition, the aim of e-Procurement project is to facilitate as well as improve the
government procurement. Besides that, the government plan to improve the service quality that has
been provided under the Government-to-Business (G2B) setting.
As time passed by, we can see that technologies tend to be more advanced than before. Based
on the article that I have read, it has stated that there is an increased number of Electronic Government
(E-Government) that had been employed to improve the delivery service in public to serve the people
as well as to improve the potential synergy which has to do with new technologies, educator and
environment. It is also stated that we could see that ICT had been used in most government agencies
as well as the citizens, businesses, employees and other non-government agencies. In addition, there
were a technology that were design to enable the government to achieve its 2020 vision which is to
move to digital government. However, the process of moving from non-digital to digital consume a
slow time base strategies which effect the government-to-government (G2G), government-to-citizen
(G2C) and government-to-business (G2B). The launched of Multimedia Super Corridor (MSC) in
1996, there was a flagship of e-Government projects which is known as Management System, Human
Resource Management Information System, e-Procurement and General Office Environment which
aims in transforming government from paper based to integrated and networked government.
The Phase 1 of e-Procurement was close to 120 000 government that had link to suppliers
which only around 50 000 suppliers are e-Procurement. The first issue is cost. It has stated that
suppliers has to bear the cost of purchasing smartcard for any transaction, pay for training as well as
software renewal that took place. The second issue is skills and infrastructure. This is because most
supplier community are within a small-medium size industry company unlike other large company
which has lots of employees that are skills and has comfortable environment to do their job. It is
stated that this kind of industry does not have a well versed that uses the art of information systems.
For example, the lack of bandwidth support, poor computing as well as information systems
architecture that had prevent the suppliers to took part actively. The third issue is business
management changes. It has stated that most suppliers are not keen to do business with the federal
government due to the requirement that had been stated. Therefore, most suppliers tend to do business
with the local as well as the state government as they can used their own traditional ways to sell their
products. Lastly is the government policy. It is stated that the government encourage suppliers to be a
member of e-Perolehan as long as it is registered under the Ministry of Finance. However, there is
term and condition that the suppliers need to obey and applied which makes the suppliers to lost
interest in applying e-Perolehan.
The application is through E-Government Landscape which the mains is to lead Malaysia to be
digital. The objectives of electronic government are to improve the connectivity of all parties that
deals with the government either it is public or inter government agencies, private companies as well
as foreign country inter-relationship. High quality service, improvement with the quick process or
system, made good relationship between transparency and governance and empowering the
government office administration. This application helps in bringing the government, business and
citizen to work in a better and comfortable place with advance technologies that had been invented.
The second application is E-Perolehan Implementation. The objective of this application is to improve
the value of money for the purpose of the Government procurement as well as to received accurate
payment, ensure accountability and transparency and increase collaboration. E-Perolehan is known as
Government-to-Business concept which allow the suppliers to promote and sell their product online.
For example, Grab is known as a company that supplies lots of job to the citizen which could work as
a supplier to the customer. In addition, payment method can be done online as well as offline.
The recommendation is to promote more on e-Procurement project by using context tailored
strategy. This is because, every project must have its strategy that need to be implemented carefully,
analytical and dynamic. It can be a difficult task as it has to be done in long term strategy as well as
on how to attract suppliers to register under e-Perolehan. Government plays an important role in
promoting the e-Perolehan project as citizen will mostly trust the government but as the same time the
government need to proof the citizen that they can be trusted. This means that, there should no be lie
however, there should be promises that had or will be granted to the citizen. In addition, there should
be improved on the e-Perolehan program. The cost of registration should be re-considered if the
government want lots of suppliers to register their business under them. For example, for a starter, the
government plays an important role in convince suppliers that prefer the traditional way is selling
their products. This means that, the government should find other creative idea to show the suppliers
that their business income could increase with the help of e-Perolehan project. There should not be
favouritism under the policies as everyone should be treated the same.
In conclusion, the government should take part actively in promoting the project. This could
help in making sure the government’s policy are on procurement could be avoids in any contradiction
with the E-Perolehan implementation plan. In addition, issue regarding cost should be control within
the government to help in small scale suppliers to be become more active in participating the system.
METHODS OF PUBLIC PROCUREMENT: FOREIGN/INTERNATIONAL PURCHASE

The GDP for the public procurement account is 13% - 15% for the purpose of developing and
emerging market economies which could help in the economic and welfare to grains the achievement
of more transparent, competitive as well as efficient procurement can be considerable which we can
see that now the economic is uncertain or slow for the growth of the economic. It is known that public
procurement is one of the most challenging area under trade policy. This is because there is no quick
fix as well as no silver bullet that help in achieving the transparent, competitive and economic
efficient markets. The procurement uses formal and informal preferences which is known as de jure
and de facto. De jure is known as a buy national policies which has the power in granting the national
supply with a price preference. It is use for small and medium companies which helps in developing
the countries. De facto is known as a flexibility that helps in accommodate the diverse nature of the
public procurement. It is known as the most transparency which is the most effective approach as well
as it is the specification of objective criteria for the purpose of contract awards.
The EU/EC Supplies and Works Directives of the 1970s depended on rules created in the
OECD in arrangements principally with the United States, yet had restricted inclusion, left degree for
tact with buying elements, what split agreements to keep away from edges, or drafted specialized
details that inclined toward 'court providers' and subsequently settled in inclinations for public heroes.
Contenders from other EU Member States had little certainty they would get a reasonable possibility
thus didn't trouble offering. Accordingly non-public providers represented just 4% of public
agreements in Germany and under 1% in Italy and Britain preceding the SEM (European
Commission, 1986). The SEM Program tended to by law inclinations through a scope of Directives
(Arrowsmith, 1992), be that as it may, authentic rivalry came when the construction of supply
changed from shut public oligopolies to dish European rivalry because of organization consolidations
and speculation on an EU wide premise. The EU regulation accommodated straightforwardness and
standard agreement grant systems. Firms put resources into creation offices in other Member States
since they had certainty that they would have a reasonable shot at winning agreements. To the extent
that straightforwardness works with market opening the EU market thusly turned out to be more open
than numerous different nations. The SEM arrangements additionally altogether expanded inclusion
of the standards and subsequently worked with the expansion of the GPA. The EU incorporated all
degrees of government including sub-focal government.
As indicated in segment 2.0 the EU has advanced the incorporation of worldwide guidelines on
open acquisition in the WTO and drove endeavours to set up a WTO Working Group on
Transparency in Government Acquisition (WGTGP) after the Singapore (World Trade Organization,
1996). In any case, resistance from emerging nations to the incorporation of restricting guidelines
restricted the WTO work to transparency. An outline of the issues in the WTO banter is enlightening
in light of the fact that it practices a large number of the issues in the current discussion on EU
strategy versus developing business sectors. In the WTO in any case, market access issues
(characterized as the expulsion of by right inclinations for public providers) were off the arranging.
This choice did essentially nothing to make gives a lot more straightforward, as a result of the absence
of a reasonable qualification between market access and straightforwardness (Linarelli, 2003).
Straightforwardness viably builds contest and consequently the extension for progression, gave
potential providers adequately have trust in the decency of the interaction to offer for cross-line
contracts or to apply through a nearby associate. In the WTO the EU has contended that
straightforwardness ought to apply to all acquisition in view of the general monetary proficiency
gains. Be that as it may, creating and developing business sector nations considered the discussion to
be one with regards to complementary market access (not nonsensically given the way the past
arrangements on the GPA had been outlined) and contended to confine inclusion including
straightforwardness rules to acquisition covered by plans or more limits along these lines 'open to
contest.' The greater part view in the WTO likewise preferred restricting straightforwardness rules to
focal government, with numerous nations highlighting the difficulty and expenses of stretching out
straightforwardness rules to cover state or neighbourhood government (World Exchange
Organization, 1999). There was a wide agreement in the WTO on the proceeded with utilization of
adaptability in agreement grant techniques yet contrasts over the level of detail expected to guarantee
straightforwardness in the utilization of these methods. The EU (and US) contended for broad
straightforwardness arrangements. Creating and developing business sector nations contended for
wilful and less broad principles. At last, the WTO conversations included types of unique and
differential treatment for non-industrial nations, for example, an improvement exclusion from the
principles and higher limits for agricultural nations to decrease costs furthermore give more 'strategy
space'. The created nations offered specialized help with drafting acquisition laws and executing the
straightforwardness rules (World Trade Organization, 2002). The reaction from the developing
business sector individuals from the WTO was that while they acknowledged straightforwardness was
to be wanted, they didn't see the case for a multilateral arrangement in WTO settlement on the point
(Brazil). India contended it was untimely to go into dealings on the grounds that the extent of any
settlement on straightforwardness stayed hazy (World Trade Organization, 2003). Also, China was
ostensibly still dedicated to arranging promotion to the GPA as a feature of its responsibilities on
increase to the WTO.
Based on Article 16 said that the contract that were provided were included in violation of the
Regulation which to be declared as ineffective. This means that it could not be apply for the case of
purchasing any entity that apply for an exception under Article 13. We can understand that Article 13
means by ineffective. However, it has been practiced in Europe as well as other international countries
that provide a national interest exemption for the case of contracts that been declared void due to the
disruption that caused by a halfway project (stopped). For example, a shop lot is halfway done but it
had been stopped due to certain reason which led to the project need to be stopped immediately which
is known as ineffective.
In open acquisition advertises the authority by right segregation looking like announced
inclinations for public providers or value inclinations by and large addresses just the tip of the ice
sheet of casual de facto segregation that is made conceivable on account of the extension for tact in
deciphering contract grant methods. The way that a few nations utilize by right 'purchase public'
approaches doesn't change this reality. Previous involvement in endeavours to accomplish
straightforwardness and rivalry in open acquirement proposes that this can truly be accomplished
when key interests in government, industry and buying elements are convinced that this is the best
strategy. The utilization of correspondence-based influence is probably not going to accomplish this.
On the other hand, successful straightforwardness rules joined with the right of foundation for EU
providers are likely a best method for getting to acquisition markets. Straightforwardness works with
access, since without its unfamiliar organizations won't chance contributing and offering for contracts,
they have no certainty will be distributed by clear genuine measures and methodology. There should
stay some uncertainty consequently that the Regulation will empower the EU to arrange really
aggressive acquirement markets in nations like China or India. However, it offers a method for
tending to public boss or key exchange approaches.
Real aggressive acquisition markets might be made when there is critical 'purchase in' from
public providers and states/buying substances. Such conviction for more liberal strategies can best be
accomplished through influence as opposed to esteeming asserting through dangers of shutting the EU
market. The EU ought to their keep on putting forth the defence that straightforward, open serious
public business sectors are in light of a legitimate concern for the country that takes on them. The
Parliament should accentuation that the EU should keep on presenting the defence that open business
sectors are in the public interest, all things considered, and to arrange obtainment advancement
through the GPA and as a feature of FTAs. The Parliament ought to nonetheless, perceive that
peaceful accords are probably not going to give early answers for issues made by public top dog
approaches sought after by different nations dependent on special public obtainment. It ought to
thusly uphold the reception the Regulation yet stress that its utilization ought to be limited to
situations when there is an unmistakable instance of hostile public hero techniques. The European
Parliament should uphold reception of the Regulation, yet stress that it ought to just be utilized in
extremely excellent conditions The arrangements on treatment of agricultural nations could be grown
further to console those agricultural nations that have begun the course of change of public
acquirement that the EU is prepared to perceive that the difficulties of change take time. The
Parliament ought to suggest that the Regulation explains how the EU will uphold the progress to
open, cutthroat acquirement markets in emerging nations.
References:

https://d1wqtxts1xzle7.cloudfront.net/66026749/ICT_to_Enhance_Administrative_Performanc2021
0316-10595-feptl2-with-cover-page-v2.pdf?Expires=1640876953&Signature=X-
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2HMOCRKQI~ErntztRZaNmXCmp9-KII-
OgPnkQd2gMplMAECiEaSgu9lTSTR7dRUGjXO~zyhmPAYbX5wcqKiNLRzrKhGru~Ms5JIhVjBtOhnWwS6
v3ffQQeITu6NeQQjy-z2zN5XKPbV5gHLqasVjLnQ-
sBW38DkOidYfbuIHN5kdj3Wza~MLBxmZF~jgSjoOPGfi~ZhCG5v6x3C1ci2z6xYlAdkhLT13aZ6A~hbQ__
&Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA

https://www.europarl.europa.eu/RegData/etudes/etudes/join/2012/457123/EXPO-
INTA_ET(2012)457123_EN.pdf

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