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Comments by Datuk Azizan Ayob:
With ePerolehan, suppliers can look forward to receiving
their payments within an average of 14 days

I refer to the article “Pay up, PM tells govt bodies” (The Star, Oct 3). The Prime Minister’s call for ministries, departments and agencies to expedite payments for the supply of goods and services is an appropriate move towards improving the end-to-end procurement cycle in Government and to further advance the agenda for an efficient civil service.

One of the factors leading up to the implementation of ePerolehan in 1999 was the need to transform the Government into a rakyat-serving entity by improving the delivery of services to the people of Malaysia and thus enabling the Government to become more responsive to the needs of the rakyat.

ePerolehan is an end-to-end electronic procurement system that brings together the Government and suppliers in a virtual trading environment and enables the Government to procure goods and services electronically. ePerolehan influences far more than process efficiencies that create savings from lower operating costs and shorter turnaround time. It facilitates accountability and transparency in Government procurement activities as well as compels Malaysian suppliers to take an important step into the realm of e-commerce thus allowing them to be more competitive and to reach a much broader base of buyers than before.

ePerolehan by its very nature of being electronic and online, facilitates simpler and faster processing and therefore shortens the entire procurement cycle from purchase inquiry to delivery and finally to payment. In ePerolehan, the payment process is facilitated as agencies are able to acknowledge receipt of goods or services, perform matching of relevant documents and initiate the generation of payment advice in real-time. Furthermore, the final payment to suppliers is done via electronic funds transfer (EFT) which is prompt and secure. Suppliers who have used ePerolehan to deal with the Government have reaped the benefits of a shorter payment cycle. With ePerolehan, suppliers can look forward to receiving their payments within an average of 14 days (compared to the 30-day payment cycle before ePerolehan was implemented).

Given that the Government is one of the largest buying entities in the country, it plays an important role in the survivability of its suppliers. As highlighted by the Prime Minister, when payments are not made in a timely manner, everyone is affected and anger and dissatisfaction againts the Government sets in. Government ministries, departments and agencies together with Government suppliers must be committed to using ePerolehan as it will facilitate the achievement of shorter payment turnaround time in line with the Prime Minister’s call for expediting payments to suppliers. Faster payment improves the economic cycle for suppliers as well as for the country.

Since the launch of the first ePerolehan module in 2000, system usage has since grown from strength to strength. In 2005, 107,033 number of transactions at a procurement value of RM1.08 billion were recorded. This year, the company expects to reach RM2 billion worth of Government transactions.

DATUK AZIZAN AYOB
Chief Executive Officer
Commerce Dot Com Sdn Bhd

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