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MALAYSIAN GOVERNMENT PROCUREMENTMALAYSIAN GOVERNMENT PROCUREMENT

Government Procurement Division, Government Procurement Division, Ministry of Finance, MalaysiaMinistry of Finance, Malaysia

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PROCUREMENT OBJECTIVESPROCUREMENT OBJECTIVES

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THE PROCUREMENT PRINCIPLES

1) Public Accountability;

2) Transparency;

3) Best Value For Money ;

4) Open and Fair Competition; and

5) Fair Dealing

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GP REGIMEGP REGIME

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FINANCIAL AUTHORITIES

1) Federal Finance

• Financial authority for federal government is vested with the Minister of Finance

2) State Finance

• Financial authority for state government is vested with the Chief Ministers

“The establishment of financial and accounting procedures concerning public monies and Federal & State Assets are under the jurisdiction of

Federal Government. However, State Governments may execute/establish their own financial procedures as long as the procedures do not contravene

with the procedures set by the Federal Treasury”

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LAWS & REGULATIONS GOVERNING GOVERNMENT PROCUREMENT

1) Financial Procedure Act 1957;

2) Treasury Instructions;

3) Treasury Circular Letters;

4) Government Contracts Act 1949; and

5) Federal Central Contract Circulars

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CATEGORIES OF MALAYSIAN GOVERNMENT PROCUREMENT

1) Works;

2) Supplies; and

3) Services

- Consultancy services

- Non consultancy services

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- - Companies Commission of Malaysia Companies Commission of Malaysia (business with (business with Malaysia)Malaysia)- - Ministry of Finance Ministry of Finance (business with Malaysia & (business with Malaysia &

government)government)

FOREIGN/LOCAL INCORPORATED COMPANY REGISTRATIONS

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REGISTRATION OF FOREIGN COMPANIES INCORPORATED IN MALAYSIA (www.ssm.com.my)

-Any companies wishing to do business with Malaysia , must register with the Companies Commission of Malaysia (CCM) under the Companies Act 1965.-Foreign company desiring to conduct business or establish a place for one in Malaysia must register with the CCM. An application must be submitted on Form 13A to the CCM in Kuala Lumpur or any of its branch offices in Malaysia, with a payment of RM30. If the intended name of the foreign company is available, the application will be approved and the name reserved for three months.

-Upon approval, applicants must lodge the following documents with CCM:

•A certified copy of its Certificate of Incorporation (or a document of similar effect) from the country of origin •A certified copy of its Charter, Statute or Memorandum and Articles of Association or other instrument constituting or defining its constitution •A list of its directors and certain statutory particulars regarding them (Form 79) •Where there are local directors, a memorandum stating the powers of those directors •A memorandum of appointment or power of attorney authorizing one or more persons resident in Malaysia to accept on behalf of the company, service of process and any notices required to be served on the company •A statutory declaration in the prescribed form made by the agent of the company (Form 80)

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REGISTRATION OF LOCAL COMPANIES/FOREIGN COMPANIES INCORPORATED IN MALAYSIA WITH FEDERAL TREASURY

(BASIC REQUIREMENT ONLY)

1)Works – Contractors Services Center (CSC) & Construction Industry Development Board (CIDB)

2)Supplies – Ministry of Finance; and

3)Services – Ministry of Finance

Any companies wishing to do business with the government needs to be registered first with Ministry of Finance as follows:

Application forms and steps of registration are available on the electronic procurement website, www.eperolehan.gov.my

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PARTICIPATION IN LOCAL GOVERNMENT TENDERS (BASIC REQUIREMENT ONLY)

If a local or foreign company wishes to participate in a local government tender must fulfill one of the following requirement:

1.A Malaysian Incorporated Company must be registered with MOF

2.A Foreign Based Company must have an agent in Malaysia and be registered with MOF and certified as Original Equipment Manufacturer

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THE MALAYSIAN GOVERNMENT E-PROCUREMENT PORTAL

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PARTICIPATION IN INTERNATIONAL GOVERNMENT TENDERS (BASIC REQUIREMENT ONLY)

If a local or foreign company wishes to participate in a international government tender must fulfill one of the following requirement:

1.A Malaysian Incorporated Company must be registered with MOF

2.A Foreign Based Company must comply to all the other requirements stated in the tender ads except registration with CCM and MOF and place a tender deposits.

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• Direct Purchase

• Quotations

• Tender

MODES OF PROCUREMENT

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PROCUREMENT OF SUPPLIES/SERVICES)

- Up to RM50,000 per item per year – from any supplier (with or without registration with Ministry of Finance)

Direct Purchase

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PROCUREMENT OF SUPPLIES/SERVICES

Quotation

- above RM50,000 to RM500,000 among any 5 registered companies with Ministry of Finance

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PROCUREMENT OF SUPPLIES/SERVICES

Tender

-above RM500,000 (among registered companies with Ministry of Finance)

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PROCUREMENT OF WORKS

Threshold Value

Minor works not involving alterations to original structures :

Schedule of Rates (SOR)-direct appointment/direct purchase for value less than RM20,000-Rotation/balloting for value of RM20,001 up to RM100,000

W/O Schedule of Rates (SOR)-quotation for value of RM20,001 up to RM500,000

With or W/O Schedule of Rates (SOR) -tender for value above RM500,000

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PROCUREMENT OF WORKS

Threshold Value

Major works (involves alterations to original structures)

- Regardless of values, Agencies must refer to Technical Department i.e. Public Works Department (PWD) / Department of Irrigation & Drainage (DID)

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TENDER PROCESS

1. Confirmation of allocation

2. Preparation of specifications

3. Preparation of tender

4. Advertising tender

5. Sale of tender documents

6. Submission/receipt of tenders

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TENDER/QUOTATIONS PROCESS (CONT.)

7. Opening of tenders

8. Evaluation of tenders

9. Preparation of tender brief by Secretariat

10. Issuance of Letter of Acceptance (Binding)

11. Signing of Contract (Binding)

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ADVERTISING TENDERS

• Local Tenders - Published in at lease 1 prominent local Malay daily and websites of agencies

- Minimum tender submission period: 21 days

- Copy of tender notice to be published in the web-site MyGovernment Portal (www.gov.my)

• International Tenders - Published in at lease two prominent local dailies (both Malay and English language dailies) and websites of agencies

- Minimum tender submission period: 56 days

- Copy of tender notice to be published in the web-site MyGovernment Portal (www.gov.my)

- For tender of works, apart from publishing it in the MyGovernment website, it also has to be published in the Construction Industry Development Board website.

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SALE OF TENDER DOCUMENTS

-A copy of tender document needs to be placed at the sales counter to allow buyers scheme through the document to get a clearer picture and understanding.

- All tender documents need to be coded with a unique serial number to increase security and avoid duplication.

- Every tenderer are allowed to buy only 1 tender document.

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EVALUATION OF TENDER

Establish 2 Evaluation Committee :

-Technical-Financial

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Thank You