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The Malaysian government has established an official system of procurement which conforms to a certain extent to international standards. However, Auditor General Reports repeatedly highlight cases of procured goods, services and works that are being paid for well above market prices, under-utilised, and substandard. The paper argues that these problems may be caused by inadequate procurement planning and poor drafting of specifications, insufficient use of open competitive tendering and lack of monitoring and evaluation. The paper further argues that by putting more comprehensive transparency measures and addressing problems that have been hampering transparency initiatives such as political interference and continued use of direct negotiation, Malaysia will be able to address those problems and reap full benefit of transparent procurement system.

Among transparency measures specifically recommended by this paper are disclosure of procurement planning and non-performing contractors and suppliers, and allowing outside observers such as representatives from the Auditor General’s Office or the Malaysian Anti-Corruption Commission (MACC), and relevant business organisations to attend procurement board meetings.

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2 Comments

  • wilfred netto 2013 Oct 04 / 18:31

    These recommendations are long overdue. There is a sense of urgency to get these recommendations adopted into the procurement system. This can be done through a Gateway platform to source supplies and to obtain volume and price discounts by combining ministries purchase through one order.

  • Richard Teo 2013 Oct 05 / 15:57

    Sir,

    In general the points presented are fair.

    However, the comparison to OECD countries on the percentage of GDP on the procurement of goods, works and services is perhaps not accurate. I would think OECD being more developed would require less goods, works and services compare with a developing country like Malaysia.

    A comparison with countries with similar level of development would provide a more accurate assessment.

    Thank you.

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