FACULTY OF ADMINISTRATIVE SCIENCE AND POLICY STUDIES

DIPLOMA IN PUBLIC ADMINISTRATION

PAD370 : PUBLIC FINANCIAL ADMINISTRATION
TASK 2 : PROCEDURES OF PROCUREMENT: CENTRALIZED AND
DECENTRALIZED

PREPARED BY:
NAME STUDENT ID GROUP
RADIN MOHAMAD NOOR BUDIMAN 2022966467 AM1105A
BOLKIAH BIN RADIN NARAWIE
MOHD DZA’IM DZULHELMI BIN ROSLI 2022168545 AM1105A
MOHD NORFADHILLAH BIN PAUZI 2022518147 AM1105A
NUR SYAZWANI BINTI HAMZI 2022791905 AM1105A
PATRICIA ANAK RAFAEL 2022931979 AM1105A

SEMESTER: MARCH 2024 – AUGUST 2024

PREPARED FOR:
MADAM SAREHAN
DATE OF SUBMISSION:
WEEK 10

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No. Content Pages

1. Introduction 3

2. Background of Articles 4-8

3. Analysis of procedures of procurement 9-16

4. Recommendations of procedures of procurement 17-20

5. Conclusion 21

6. References 22-23

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1 . INTRODUCTION
Public procurement can be described as the process by which the government spends
money to acquire goods and services required for public programmes or initiatives. The
procurement process involved generating an annual budget, designing procurement
strategies based on budgetary allocation, and carrying out procurement plans. The
procurement plan also specifies a procurement cycle that must be followed, which includes
tendering or bidding, contract management, and contract award. The primary goal of these
operations is to provide people with high-quality services through public programmes or
projects. The procurement activity begins with the identification of inputs, such as cost
estimation, supplier selection, contract administration, and contract award, all of which are
necessary for the implementation of public programmes or projects. Good procurement may
assure the quality of works, goods, and services, which can help with the implementation of
public programmes and initiatives. It can also boost competitiveness, facilitate international
trade, and attract investment. Furthermore, the goal of public programmes and projects is to
improve inhabitants' quality of life. As a result, it contributes to the conversion of limited
resources into timely, cost-effective, and efficient services. Public procurement can also help
and assist with economic and social development, as well as increase public faith in the
government. Centralised and decentralised procurement refer to how a company organises
its purchasing procedures. A centralised procurement system is one in which a central
authority or department within an organisation makes buying choices. This central body is in
charge of obtaining products and services for the organisation as a whole. Centralised
procurement can bring to economies of scale, increased bargaining strength, and process
standardisation. On the other hand, decentralised procurement enables separate departments
or divisions within an organisation to make purchase choices independently. Each department
is responsible for its own procurement requirements, which can lead to more flexibility but can
also result in duplication of work, increased prices, and a lack of uniformity in purchasing
processes across the organisation.

Strong public procurement is crucial for countries looking to reform or modernise their
procurement processes. A focal point is formed at a specific degree of centralization, such as
a centralised department. Centralised public procurement involves a single government entity,
such as an agency, body, or department at the state level. Many developed nations use a
decentralised management style. Countries that do not like centralised approaches are
expanding decentralisation in public services. Procurement can solve issues and overcome
challenges associated with centralised approaches. Some nations blend centralised and
decentralised approaches in public procurement to get the benefits of both while minimising
downsides.

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2 . BACKGROUND OF ARTICLES

Article 1

According to Smith and Manor, local governments often fail to enhance the quality of public
services. The initial success of "the big bang" decentralisation policy in Indonesia was praised
by international experts for its lack of consequences. However, the goal of creating more
responsible local governments and better public services for citizens was met with
disappointment. Central government ministries sometimes refuse to delegate authority to local
governments. Providing additional authority to present local leaders might be challenging for
individuals who previously held privileges and powers. It's crucial to acknowledge the progress
made in decentralising politics and inter-governmental cooperation. As previously indicated,
cities and regions are now the principal administrative units responsible for providing
government services.

Article 2

Based on Sherman. After selection, announce the contract award results, including the name
of the winner firm, price given, and contract terms. The contract award results, including the
names of the winner party, the price given, and contract details, should be made public.
Transparency International (2006) defines transparency as making laws, rules, procedures,
and decisions available to the public for monitoring, evaluation, and discussion. This allows
stakeholders to hold decision-makers responsible. Tenderers should be notified of necessary
processes for providing relevant details. It is also necessary to notify the potential tenderer
about the criteria used to assess submissions. Tender conditions may include evaluating price
and quality, applying preferred margins, or excluding specific tenderers. If tendering is not
practicable, direct negotiations should be made public.

Article 3

The National Treasury helps in assisting the government departments, municipalities and
municipal organizations in order to fully achieve the Supply Chain Management (SCM)
objectives through the encouragement in producing the relevant training materials, by National
Treasury (2005). In South Africa, skills and capacity shortages is known as the single greatest
impediment to the success of public procurement. An adequate capacity in the form of
appropriate structures with fully qualified and professional Supply Chain Management (SCM)
staff, is the critical success element for efficient Supply Chain Management (SCM)
deployment. According to Sheoraj (2007), the level of Supply Chain Management (SCM)
personnel’s skills and abilities falls well short of expectations in certain government agencies.
Furthermore, many Supply Chain Management (SCM) actors in the South African public

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sphere have attended several training workshops for Supply Chain Management (SCM), but
the actors still lack the must learned knowledge for proper implementation, said Migiro and
Ambe (2008). McCarthy (2006) conducts research that having the result where there is a lack
of capacity and knowledge by Supply Chain Management (SCM) actors when handling the
procurement processes which led to bad governance. The South African government embarks
on programs to train practitioners; however, these programs are not able to be fully
implemented.

Article 4

Transparency is still regarded as a sensitive issue in the public sector procurement according
to Wee Shu Hui (2010). The lack of transparency may be happening from a failure of the
procurement system. Due to ambiguous information and processes, the lack of transparency
procurement activities caused the delay of procurement progress. As stated in the article,
transparency issues can lead to unwholesome behaviours such as corruption, scandal, and
misappropriation of public funds; yet this is true since transparency is crucial in the
procurement system whether procurement officers or contractors, everyone concerned must
carry out their tasks with honesty and complete integrity in this setting. The shortcomings will
cause delays in developing projects and purchasing product and services, this is the reason
why those participating in procurement activities or contractors should not be dishonest, which
might bring to the corruption and controversy. The list that should be sufficient and transparent
is all the requirements for procurement activities provided by the individual concerned, which
is budget, cost, and project information.

Article 5

It is claimed, based on Lessman and Markward (2009), that the monitoring of bureaucrat
behaviour is a key determinant of the relationship between decentralization and corruption.
The absence of accountability in the purchase of goods and services in local government is
identified as the source of corruption in this article. Similar trends were discovered in studies
of Aceh's products and services procurement conducted by the Anti-Corruption Agency in
2012. Furthermore, it is noted by Gordon (2007) that a bias always exists in empirical e-
procurement studies. Market shaping, contestability, and shared services are not addressed
by the researchers. The process of e-procurement in both the corporate and public sectors is
also found to have flaws in the literature. In comparison to the private sector, the public sector
is found to have a lot of political interests. Another flaw in prior studies is that the e-
procurement strategy emphasized operational rather than strategic procurement decision-
making. Thus, even though e-procurement has been implemented, it is plausible to assume

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that corruption in the procurement of products and services in Indonesia began with the
planning and actuating done by politicians.

Article 6

Based on Marko Sostar and Ana Marukic (2017), errors in the implementation of public
procurement form a significant share of all irregularities related to the use of EU funds. One
major issue in public procurement, which leads to the full withdrawal of funds, is the violation
of the principle of equal treatment of all bidders. A discriminatory approach is often taken,
where particular bidders are given preference, and tenders are tailored for them by creating
artificial conditions in bidding documents that favour a small number of bidders. In public
procurement tenders, it is common for one bidder to benefit by lowering prices up to 70%
below all value criteria, often resulting in unpaid work or other forms of illegal activities.
Consequently, while national budgets lack funds, large sums of money end up in the accounts
of the privileged, while common citizens bear the cost. Corruptive behaviours in public
procurement often result in displeased bidders filing an appeal, extending the deadlines of the
procedure until a final decision is made. As a result, the deadlines for the implementation of
certain project activities defined in the project timeline are delayed, and the project holder
faces financial corrections.

Article 7

According to Pavel (2007), the evaluation of the public procurement process should not solely
rely on cost savings achieved through competition among potential providers. Estimating
pricing is challenging, especially when differentiating between estimated and achieved prices.
However, this issue has been examined in several quantitative research studies and practical
evaluations. The academic literature unequivocally demonstrates that transaction costs
significantly influence the outcomes and procedures of public procurement, including the level
of competitiveness and pricing provided, for both the buyer and the seller. Contract
management is associated with transaction costs. There must be a clear connection between
these expenses and the benefits derived from competition in any contractual agreement.
Moreover, many researchers believe that contracting encompasses two distinct categories of
transaction costs: those associated with the creation of a contract and those linked to the
execution of a contract. In addition, the data from the Czech Republic indicated that firms held
particularly unfavorable opinions regarding the magnitude of indirect transaction costs. The
high forecasts can be attributed to the common occurrence of less-developed administrative
public procurement procedures in nations with weak "rule of law." The prevailing assertion put
out by the firms was that during tender processes, construction companies are subjected to
unscrupulous competitive practices.

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Article 8

The main impediment that prevents government and corporations from fully capitalizing on the
potential value of e-procurement systems is the significant financial investment needed to
rapidly implement e-procurement initiatives, as demonstrated by various studies (Reddick,
2004; Hiller and Belanger, 2001; Layne and Lee, 2001; Neef, 2001; Moon, 2003; Gansler et
al., 2003). Before being allowed to use e-Perolehan, a provider must bear the costs that are
related to it. Every business is obligated to remit a sum of RM1,500 in order to access and join
the e-Perolehan initiative. Suppliers assume the financial responsibility of obtaining a smart
card for transactions, including the price of training and any fees associated with software
renewal. Suppliers must pay a service charge of 0.08 percent of the procurement value, up to
a maximum limit of RM9,600, in addition to the enabling fee. Commerce DotCom Sdn. Bhd.
receives this money. Given the substantial expenses associated with implementing e-
Perolehan, it is understandable that most providers in traditional categories are not motivated
to take part in e-Perolehan.

Article 9

Based on (Thai & Grimm, 2000), the basic requirement for implementing e-procurement
process cannot be overemphasized as procurement in the public sector Is large and complex.
It is equivalent to 20 and 30 percent of the gross domestic product (GDP). According to IKEA
survey (2013), Kenya's state-owned enterprises have numerous agencies that completely
cover the economic and social sectors. Furthermore, the article pointed out that state-owned
enterprises are performing poorly and some parastatals are the source of revenue for the
Kenyan government. About 80 percent of public companies worldwide have already
implemented e-procurement. According to Ruth (2012), the proper use of information
technology ensures faster and smoother process flows, efficient decentralization of tasks and
decision-making, and better control in public procurement. It is based on research into
procurement processes and information technology in Kenya. The article also noted that the
implementation of e-procurement in Kenya will take time due to insufficient IT expertise and
staff with low basic information and communication technology skills.

Article 10

According to Toor and Ogunlana (2008), the critical problems plaguing many construction
projects are lack of understanding of procurement systems, scarcity of resources, mismatch
between design and construction, poor project management practices, and large number of
changes. For instance, the significant issues which is instruction, communication barriers,
cultural issues, diverse interests of participants, low labor productivity, and lack of qualified
contractors. According to Mastura Jaafar and Nurhidayah Mohd Radzi (2013), procurement
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systems can be classified into her two groups: traditional systems and alternative systems.
While Lump Sum Firm Bill of Quantities (LSFBQ), Lump Sum Estimate Bill of Quantities
(LSABQ), and Lump Sum Total Drawings and Specifications (LSDS) are traditional
procurement processes, D&C and Turnkey are alternative procurement systems. In traditional
systems, design and construction are separated. However, in modern systems both occur at
the same time. Since then, Malaysia has introduced new public sector procurement
mechanisms to meet increasing demand and reduce project completion times.

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3 . ANALYSIS OF PROCEDURES OF PROCUREMENT

Article 1

Name: The Dilemma of Public Procurement Reform and Anti-Corruption Initiatives in

Indonesia.

Author: Wahyudi Kumorotomo.

This article highlighted how the performance of the decentralisation policy continues to
fall short. Decentralisation has failed to improve local government accountability and
public services. As previously mentioned, cities and regions have become the primary
administrative units for providing a variety of government services. Inter-governmental
payments climbed from 5% to 47%, mostly benefiting the country's weakest areas. Currently,
provincial and district administrations can spend a record 40% of public revenues. Indonesia
has a greater level of fiscal decentralisation compared to the OECD average and other East
Asian countries.

According to the article, fiscal decentralisation has led to major improvements in

Indonesia's economy following the East Asian financial crisis. Prudent macroeconomic
measures and an exceptionally low budget deficit were critical for economic recovery. There
were internal shocks. The 2004 tsunami, earthquake in Central Java, floods in Jakarta,
terrorist attacks in Bali, avian flu outbreak, worldwide gasoline price hike, and global economic
crisis in 2008 all offered significant challenges to economic policies. Despite internal and
external disruptions, Indonesia's economy has successfully recovered. In recent years, the
economy has risen at a rate of around 5% while the debt ratio has consistently declined. The
decentralisation of public policy means that economic success and national development are
no longer only dependent on central government policies. New legislation granting regional
autonomy significantly boosted the authority of district government officials. However, these
policies exacerbate Indonesia's already complex procurement system, which is governed by
several laws and regulations. Rapid decentralisation raises problems about overlapping
jurisdiction, perhaps leading to market and legal framework fragmentation.

Article 2

Name: Public Procurement in Southeast Asia: Challenge And Reform

Author: David S. Jones

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This article discusses the problem of transparency. Tender submissions should include the
names of tenderers and the pricing they are providing, as well as the tender review and
selection procedure. Those who were unsuccessful in a tender should be provided an
explanation for their failure to get tenders. It is also necessary to publicise registration methods
and criteria, as well as the processes for a pretender qualifying exam and the qualifications
required to fulfil those standards. Procurement information should be made public through
official channels, including bulletins, government gazettes, websites, and newspapers. More
extensive information may be included in the call to tender and bidding materials. The essay
highlights limited and inconsistent progress in increasing procurement transparency in
Southeast Asia. Several nations have implemented new procurement laws and procedures
that prioritise disclosure and openness. Disclosure standards vary in scope and depth, as
does the implementation of transparency rules.

Next, the report noted that Cambodia is the most recent example of decentralisation. After the
first local elections in 2002, commune councils were established as an elected local
government organisation. Each commune council receives a block allocation from the
Commune Fund, which is handled by the national government. The commune council has
limited authority to acquire goods and services and award contracts for local public works but
can use this money to support poverty reduction and job development initiatives.
Decentralised administration was enhanced in 2004. In Indonesia, the benefits of
decentralisation have been hindered by a shortage of skilled procurement people, few local
suppliers and contractors, and pervasive corruption.

Article 3

Article title: Procurement Challenges in the South African Public Sector

Written by: Intaher M Ambe and Johanna A Badenhorst-WEISS

This article covered supply chain management (SCM), which is a crucial component of
South Africa's procurement procedure. It is a tool for policy that is employed in the
administration of the procurement process. Procurement in South Africa is still challenging,
even with the government's efforts to enhance it through initiatives like SCM and the
importance of procurement as a policy tool. The reason for this is a lack of appropriate
information, expertise, and capacity; however, a variety of factors could be taken into account
to enhance procurement in the public sector of South Africa. Hence, in order to accomplish
their goals, policymakers and decision-makers need to think about incorporating stakeholders
in the bidding process, gaining knowledge and experience through specialized training
programs, and combining centralization and decentralization. Subsequently, this article states
that public procurement practitioners in South Africa need to have specific knowledge about
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the procurement purpose, SCM policy, preferential procurement legislation, and other related
topics in order to handle the procurement process effectively. Specialized training programmes
are therefore needed to give actors the skills they need to accomplish procurement objectives.
Issues that need to be solved include hiring skilled procurement specialists, training
learnership participants and putting them into practice, creating an efficient monitoring and
assessment system, and introducing incentive schemes to reward exceptional work. Higher
education establishments and other service providers should also create curricula that give
practitioners and students the abilities and information needed to advance sustainable
procurement in South Africa. Centralization and decentralization should be applied for different
kinds of goods and services, and stakeholders should be included in the bidding process.

Article 4

Title: Procurement Issues in Malaysia

Written by: Wee Shu Hui, Radiah Othman, Norman Hj. Omar, Rashidah Abdul Rahman and
Nurul Husna Haron.

In this article talked about that one complaint had been gotten from Melaka‟s
neighbourhood specialist officer on granting tenders to meriting temporary workers.
He expressed that his organization places a premium on esteem for cash but does not utilize
open offering. He claimed that the nearby government's official vehicles were not acquired
through an open offering handle. The auto merchant chosen who gave the foremost critical
cost (Wee Shu Hui, 2010). There's no straightforwardness in this circumstance since the
ultimate choice is made by comparing estimates from multiple car merchants. It ought to not
be based on the most excellent cost advertised but on the auto dealers' keenness.
Recognizing the vital things for the acquirement prepare is the starting step toward victory.
The decision-makers ought to not base their extreme judgment on individual pick up or the
activities of other untrustworthy people. This circumstance is unjustifiable to other parties that
have endeavoured to be acknowledged for a extend. Due to the benefits that would be gotten,
such a choice does not take after a arrangement normally, and it'll make unpicked contractors
despondent, possibly causing another issue of disappointment. In this sense, all acquirement
forms must be conducted impartially, as expressed within the article, emphasizing
straightforwardness over privacy. Choosing qualified providers through open offering can
disentangle all acquirement forms since they have more skill than merchants picked for
individual pick up. Moreover, the issue of openness will not be settled in case there's no even
handed get to data and all acquirement records are not publicly available. This is often
because people will be uninformed of any information or advance on particular ventures. In
this manner, officers and suppliers ought to be learned and responsible amid procurement

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processes, where they must guarantee that all vital data is obvious and open to the public.
Also concurred that the officers must take after the arrangements that have been built up,
particularly within the provider choice handle (Small Shu Hui, 2010). When it comes to
selecting the proper providers, the authorities must follow to the arrangements that have been
built up. Since all rules and directions are taken after, the arrangements will guarantee the
viability of procurement activities. As a result, it can be claimed that the issue of
straightforwardness will be minimized on the off chance that controls are taken after that make
all procurement procedures, counting data, specificity, and esteem of open obtainment, plain
and straightforward. On the other side, upgraded straightforwardness diminishes the
probability of procurement-related debasement and outrages.

Article 5

Title: Re-examined e-procurement in decentralized – Indonesia‟s local government

procurement system

Written by: Achmad Nurmandi, Sunhyuk Kim, Arrachman Mardiansyah, Zuly Qodir and
Muhammad Khozin Dalari.

According to the principal-agency theory, some anti-corruption policies fail due to a lack of
stakeholders (government, civil society, non-governmental organisations, and citizens) willing
to act as "principals" and enforce existing laws. Public involvement is crucial in Indonesia's
decentralised procurement system to prevent theft of local monies. Decentralisation can
benefit areas with strong local competence and engagement. Decentralisation can reduce
corruption by aligning programme implementation with effective anti-corruption regulations.
According to the article, there is often a paucity of public information on products and services
procurement. Even those who are regarded winners of a bad organisation are well-known.
The Anti-Corruption Agency carried out a study on public perceptions of corruption revealed
fascinating findings, notably in the field of goods and services procurement.

The study suggests that gathering additional information on public perceptions of potential
corruption in procurement procedures can provide a summary of either successful or
unsuccessful e-procurement efforts to prevent corruption. Certainly, public participation and
public competency in public policy in Riau Island Province, the country's newest local
government, are still in their early stages. Developing community capabilities in this province
will take time.

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Article 6

Title: Challenges of Public Procurement in EU Funded Projects.

Written by: Marko Sostar and Ana Marukic.

This article discusses how successful applicants seeking to acquire products, services, or
works of a specific value must adhere to public procurement guidelines. Procurement
problems might prevent EU money from being returned even years after the project ends.
Proper understanding and execution of public procurement is crucial for successful project
implementation. The study surveyed 30 entities involved in public procurement in Croatia to
assess their current absorption capacity and identify key obstacles for stakeholders. Research
findings imply the poor quality of public procurement in the implemented projects, which often
results in financial corrections, disapproving project reports and etc.

Article 7

Title: Transaction costs in Czech and Slovak public procurement

Written by: Juraj Nemec, Filip Busina, Matus Grega, Marta Orviska and Marketa Sumpikova

This article explores how transaction costs can restrict the potential savings in public bids.
Research suggests that transaction costs in the Czech Republic and Slovakia could be
exceedingly high. Regarding the Czech Republic, corporations' perspectives on the presence
of indirect transaction costs was unexpected, even though they were able to establish a
connection between these costs and crucial components of a dysfunctional public
procurement system. There was a significant number of complaints, numerous procedures
were cancelled, a substantial amount of distrust was there, and there was a high degree of
bureaucratization. The data indicates that Slovakia had comparatively high transaction costs.
According to them, the costs associated with constructing and upkeeping a current web
platform could be equal to or even exceed the immediate benefits or cost reductions achieved
through competition using the tool. Their findings are noteworthy, and their research team
plans to further investigate and build upon them in future studies.

This article also emphasized the importance of including both quantitative and qualitative data
on certain components of public procurement transaction costs in the Czech Republic and
Slovakia. This study examines the transaction costs associated with a recently established e-
market in Slovakia, as well as the Czech Republic's data on the attitudes of construction
companies towards transaction costs. The data indicates that there are relatively large indirect
transaction costs, which are attributed to a dysfunctional public procurement system. Slovakia
collected data through an autonomous analysis, relying on publicly accessible material from

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the regulator's website. Within the public sector, a decision was made to assess a specific
aspect of the total costs associated with transactions. This involved determining the expenses
related to the construction and maintenance of an e-procurement website, using data from the
year 2015. Additional transaction costs, such as the requirement for contractors and suppliers
to acquire IT knowledge or pay fees, were not examined.

According to this article, Slovakia initiated an electronic procurement market in 2014. The
objective of this electronic procurement solution was to expedite government procurement
processes and achieve cost savings. The entire costs for the e-procurement web market
platform in 2015 consisted of six fundamental components, representing 10% of the overall
costs. The cost does not include VAT. The data presented is an estimation, but it should be
reasonably precise. The transaction costs emanating from the online platform are the
expenses and projected or claimed savings that we calculate the link between

Article 8

Name: Electronic procurement: a case study of Malaysia‟s e-Perolehan (e-Procurement)

initiative,

Writers: Maniam Kaliannan, Halimah Awang and Murali Raman

This essay explores the need for the government to play a more proactive role in the
development of e-Perolehan in the country. This entails ensuring that the government's
procurement strategy aligns seamlessly with the e-Perolehan deployment plan. Moreover, it
is imperative for the government to have authority over issues such as regulating the cost. To
ensure the active participation of small-scale suppliers in the system, it is necessary to provide
them with training and the necessary equipment. There are two categories of e-Perolehan
adopters based on vendors (suppliers). The first group consists of the early adopters, who are
fully committed and involved. There are a total of 3000 providers in this group. These suppliers
seem to be making a profit from e-Perolehan and are trying to obtain a competitive advantage
by incorporating technology into their procurement process. Nevertheless, there exist prudent
adopters (laggards) who are adopting a 'wait and observe' approach prior to making a
deliberate decision to actively engage in the system. In general, both the groups of people
who buy and sell things agree that e-procurement will become a necessary instrument for
managing and improving the performance of the supply chain, especially in the public sector.
Given this perspective, we expect that an increasing number of providers will capitalize on the
opportunity and maximize their gains from Malaysia's e-Perolehan plan in the coming three to
five years.

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Article 9

Article Title: Effect of Governance Structure on e-procurement implement by state corporations

in Kenya.

Written by: Jeptoo Naomi and Dr. Kabare Karanja

This article was about electronic procurement (EDI). EDI is an electronic data interchange
development that allows consumers and suppliers to send and receive orders and invoices
through secure stores and call transfer networks. E-procurement also refers to procurement
processes via electronic platforms. For example, Internet or Communication Technology and
Other Information (PPOA 2015). E-procurement is used by suppliers for the management of
all processes related to purchasing (Kinoti 2013). In addition, e-procurement as an automated
business process that includes purchase requisitions, proposals, contracts, receipts, supplier
management, and even procurement planning is changing to improve its effectiveness and
also make online transactions cost-effective (Mutegi, 2014). However, in this article has
mentioned that e-procurement in the public sector is on the rise internationally and is being
implemented in various countries around the world. For example, e-procurement has been
introduced in Australia, the United Kingdom, Malaysia, the United States, and even the
European Union. E-procurement and e-government initiatives aim to better serve citizens and
businesses in the digital economy. Hence, in this article we have found it very useful to develop
a classification method that helps relate forms of procurement to the resulting governance
structure. For instance, there are four key pillars to measure good governance which is
predictability, participation, accountability, and transparency. If these four pillars and their
components are not in place, the public sector cannot function properly as a system. On the
other hand, as barriers to electronic trading fall, the propensity to participate in market trading
will increase.

Article 10

Article Title: Level of Satisfaction and Issues with Procurement Systems Used in the Malaysian
Public Sector

Written by: Mastura Jaafar and Nurhidayah Mohd Radzi

This article discusses the prevailing procurement system, related issues, and satisfaction level
of Malaysian government procurement mechanism for the construction industry. In Malaysia,
public sector customers prefer his LSDS system over traditional procurement systems. In line
with the transition to new and traditional private sector procurement structures in other
countries, alternative procurement structures need to be introduced to accelerate the country's
growth. There is no optimal procurement system as each has its weaknesses. This study

15
found. Hence, this problem can also be attributed to industry players with little expertise in
procurement procedures. The study also found that the public sector maintains the same work
culture across generations. Their traditional sourcing knowledge is embedded in their work
culture, which explains the challenges of change. This point emphasizes the importance of his
traditional LSBQ and LSDS programs in the industry.

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4 . RECOMMENDATIONS OF PROCEDURES OF PROCUREMENTS

Article 1

The improvement suggested in this article is structural modification. Development often

entails structural changes to the political system. This shift is not a fundamental change in
the regime's essence, although it may result in significant policy and other political outcomes.
The structure of a political system, including formal and informal institutional structures, has a
significant role in driving policy outcomes, making it a target for political intervention.
Political activists, reformers, and revolutionaries understand that changing a government's
institutional structures may successfully alter its policies.

Legal methods have been utilised to implement structural changes in different systems.
In the United States, constitutional amendments led to significant institutional reforms such as
direct election of the Senate and term limits for presidents.

Article 2

In this case, we suggest for publicizing and informing people about the method as an
improvement. Furthermore, the public has the right to know about bids. Tenders for public
contracts must be publicized either online or in the government portal. Procurement
professionals must not only understand the regulations that govern their decisions, but also
be mindful of how they interact with external suppliers on a regular basis. Showing favouritism
might harm their professional reputation. Laws exist to regulate procurement choices and
promote fair competition by prohibiting bribery and prejudice. The public will remain oblivious
of any project information or progress.

Article 3

This article suggested that South Africa's public procurement practices be improved in order
to give teachers of two model curricular the opportunity to gain knowledge and skills. a
curriculum with two models, where students can select to concentrate on the public or private
sector. In this paradigm, both industry-specific and general procurement capabilities are
required. While the public sector-focused curriculum focuses on the legislative environment
(to sensitise learners to an integrated approach in the management of procurement within the
highly regulated public sector environment), the private sector-focused, program-specific
abilities require a comprehensive understanding of the business environment (enterprise
management).Broad procurement skills are required for both programs, including knowledge
and comprehension of globalization, technological innovation, sourcing tactics, purchasing
and supply positions, integrated supply management, and the environment surrounding
purchases and supplies.

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Article 4

This article suggested that the Malaysian government plan and implement controls to
administer the e-procurement prepare in their state enterprises, too known as e-Perolehan in
Malaysia, to supplant the ancient obtainment framework dynamically. E-procurement
employments electronic implies in all stages of the buy prepare, from necessity distinguishing
proof to instalment and conceivably contract organization (Tonkin, 2003). A unstable
environment, serious worldwide competition, and the rising and broad utilize of data innovation
require a worldview move in financial intelligent over the proficient virtual web. In spite of the
beginning costs and work required to set up the framework, e-procurement has been
connected to time investment funds, expanded efficiency, and lower costs for both
governments and providers. E-procurement, on the other hand, might make strides openness
and give private undertakings with an rise to chance to compete on government contracts.
Within the long term, great e-procurement will make an environment conducive to robust
competition, pulling in the leading providers and resulting in cash admirably went through. The
e-Perolehan framework permits government services to choose things to be obtained online
from their computers, begin an electronic endorsement prepare, and electronically plan, yield,
and get buy orders, conveyance orders, and other related printed material (Maniam et al.,
2006). Presently that manual documentation has been killed. The specialized and estimating
survey committee can as it were alluded to what is given on the screen, making the method
more straightforward.

Article 5

First of all, raising public knowledge and involvement is critical. Regular public communication
campaigns should be performed to educate individuals about the procurement process as well
as their rights to participate in and oversee such operations. Furthermore, training
programmes for local stakeholders, such as community leaders, civil society organisations,
and individuals, are required to strengthen their ability to properly oversee procurement
procedures. Second, improving openness and accountability is critical. Creating and
maintaining transparent procurement portals that make all procurement-related information
publicly available can greatly limit potential for corruption. Furthermore, requiring mandated,
frequent audits of procurement procedures and publicising the findings can improve openness
and accountability. Finally, community monitoring and feedback systems should be built to
oversee the process. Citizen oversight committees can be formed to monitor procurement
procedures and give input. Furthermore, safe, anonymous means for reporting suspected
corruption or anomalies in procurement procedures can increase public engagement and
accountability.

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Article 6

To improve the efficiency of public procurement operations, this article suggests eliminating
administrative or technical weaknesses. It's crucial for key stakeholders in public procurement
to stay up-to-date on developments. Managers must be well-informed to grasp public
procurement segmentation and make commercial judgements. Identifying organisational
issues is a crucial step towards developing an effective public procurement system and
strategy. Organisations that understand their aims and constraints with public procurement
view it as a challenge rather than a problem.

Article 7

First, standardisation and best practices must be enforced. Creating similar procurement
procedures and best practices for all government entities may improve uniformity and limit
potential for corruption. Centralised training programmes for procurement personnel can help
to guarantee that procurement laws and regulations are consistently followed, lowering
indirect transaction costs. Next, effective monitoring and evaluation should be prioritised.
Establishing a centralised organisation to monitor and evaluate procurement activity across
all government departments can assist in identifying and addressing inefficiencies and
corruption. Creating explicit performance measures and indicators may help analyse the
efficiency and integrity of procurement processes, hence increasing overall effectiveness.

Article 8

This article proposed an enhancement for the e-Perolehan effort in Malaysia. Despite
significant investments in terms of time, finances, and resources, Malaysia's e-Perolehan
initiative is still in its early stages of development. To fully exploit the potential and benefits of
e-procurement, the Malaysian government should follow the successful examples of e-
procurement efforts in West Australia and Andhra Pradesh. Initially, traditional suppliers need
to undergo a fundamental change in their mindset. One way to achieve this is by actively
advocating and informing both the supplier community and the government about e-Perolehan
and its advantageous features. In addition, service providers, such as Commerce.com, should
contemplate reducing the expenses associated with training and the acquisition of smart
cards, especially for small-scale suppliers. Ultimately, it is crucial for the federal government
to establish policies that align with and support the policy objectives and implementation plan
of the e-Perolehan initiative, without creating any conflicts.

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Article 9

This article recommended improvements needed for the Kenyan government to develop and
enforce policies to fully control the implementation of e-procurement processes in state-owned
enterprises. Additionally, Kenyan state-owned enterprises need to decentralize their
procurement functions. This moves to decentralize the procurement function allows each
department within the organization to perform procurement independently, without having a
single department solely focused on performing procurement. This increases efficiency and
ensures procurement accuracy. This is because each department focuses on its own
procurement, which reduces error rates and improves the accuracy of work. It also reduces
the workload, expedites the procurement process, and creates more talented people to drive
this process, as opposed to previously being carried out by only one department responsible
for procurement.

Article 10

The article recommends improving Malaysia's public sector procurement system to be on par
with international standards. The report also found that procurement practices in Malaysia's
construction sector have not evolved significantly since the UK government. The same can be
seen in other developed countries. Despite the public sector being the largest customer in the
construction industry in developed countries, there is a strong tendency for political
favouritism. These people prefer to pursue their goals with the help of a large number of people
using a recruitment approach. This situation can lead to bias in contract awarding and project
implementation. According to the authors, it will not be able to follow the correct methodology
and will need to switch to a hybrid framework. This decision results in inconsistencies as well
as project management flexibility and time and cost implications. The latest in his construction
system and e-procurement are examples of innovative procurement processes used to meet
business needs, but the company's work style remains the same. From another perspective,
this paper highlights the relevance of human factors in procurement process management.
Procurement reform will change the mindset and work culture of the entire industry.

Therefore, this survey is based only on the responses of a small number of people with no
experience in procurement methods. To find out the real hurdles to successful procurement
solutions, it is necessary to consult industry experts and conduct a comprehensive analysis of
the procurement problem. Another option would be to study the private sector's procurement
practices, as they have contributed significantly in adapting procurement systems to ensure
successful completion of projects. Therefore, in addition to significant improvements in the
industry, there will also be a continuous analysis of environmentally friendly procurement
procedures.

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5 . CONCLUSION

In conclusion, the articles reviewed above each offer unique challenges, analyses, and
recommendations for improving procurement systems, both centralized and decentralized.
Procurement processes can be centralised through treasury, central, contract, and procedures
or decentralised which is through direct purchase, quote, and tender procedures. Procurement
is a crucial activity that helps government departments get services, equipment, and supplies
to fulfil their missions as well as to ensure effective and accurate procurements. Procurement
plays a crucial role in a country's quick development. The articles addressed above provide
comprehensive advice for addressing the topic at hand. Article 9 identifies an issue with public
procurement processes that are not smooth.

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