Virtual Certificate for Supplier Registration with Ministry of Finance (MOF)

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Registration Name : eINDIA2011/AN/147
Project Category : eGov::Best Government to Business Initiative of the Year
Project Name : Virtual Certificate for Supplier Registration with Ministry of Finance (MOF)

Target group : The Virtual MOF Supplier Registration certificate is provided to the Supplier community and the information is being utilised by all Government Procurement offices and Ministry of Finance.
Geographical reach : The service is made available though Internet. This give access to approximately 180,000 Suppliers and 2,500 Government Procurement offices throughout the whole Malaysian country. In addition, the potential size of approximately 2 million companies registered in Malaysia can benefited from the service.
Date from which the project became operational : 12 July 2010
Is the Project still operational : YES

Details of Applicant :
Name : Y. Bhg. Dato Abdul Shukor Ibrahim
Address : eP Project Director Unit ePerolehan, Kementerian Kewangan Blok Helang, Cyberview Gardens
City : Cyberjaya
State : Selangor
Country : MALAYSIA
Zip Code : 63000

Details of Project/Implementing Agency :
Name of Organisation : Unit ePerolehan
Address : eP Project Director,Unit ePerolehan, Kementerian Kewangan,Blok Helang, Cyberview Gardens
City : Cyberjaya
State : Selangor
Country : MALAYSIA
Zip Code: 63000
Name of the head of Organisation: Y. Bhg. Dato Abd Shukor B. Ibrahim
Website: www.eperolehan.gov.my

Brief description of the programme/project/Initiative :
The Ministry of Finance Malaysia (MOF) would like to nominate the Virtual Certificate facility for the issuance of the MOF Supplier Registration. This initiative is made available through the electronic procurement system for the Government of Malaysia named as “ePerolehan”. ePerolehan is a complete electronic procurement system which enables the Government to buy goods and services from Suppliers through the Internet. It consist of comprehensive eProcurement modules that reflects the Government procurement policies and processes namely Direct Purchase, Quotation, Tender, Central Contract and eBidding. MOF manages the entire process from application to approval of Government Suppliers through the Supplier Registration module. Companies interested to participate in Government procurement and tenders are required to apply and subject to the approval as a legitimate Government Supplier by MOF. Upon approval, a certificate termed as ‘MOF Supplier Registration certificate’ will be issued by MOF to certify the validity of the Supplier to conduct businesses with respective Government agencies. It provides a 3-year validity period and is renewable upon date of expiry. The MOF Supplier Registration certificate among others contain information such as the name of the company, equity owner, date of incorporation, category of businesses, date registered and expiry as Government Supplier. Government Procurement Offices utilises the certificate as form of identification and verification prior to procurement engagement. In order to expedite the administrative process of handling the MOF Supplier Registration certificate, MOF has embarked to promote the use of technology and Electronic Data Interchange (EDI) for the issuance and delivery of the MOF Certificate to the Suppliers to replace the paper-based certificate.

Why was the project started :
MOF handles on average of 7,000 to 8,000 approved new and renew Supplier Registration applications on a monthly basis. Substantial administrative costs were involved for the issuance and delivery of the MOF Supplier Registration certificate to the respective Suppliers. The large volumes of physical certificates also requires longer time to be sorted and delivered to the Suppliers. In addition, errors and mistakes were unavoidable due to manual work involved throughout the delivery process. Once it has been received by the Suppliers, the certificate is also prone to fraud as it can be easily tampered and altered. Hence the authorities are required to perform a legitimacy identity check through Supplier Registration module. As a result, it created wastages as the physical certificate does not serve the purpose to provide as an adequate identification of the Supplier. MOF foresee that a virtual certificate is more effective to secure the information and to deter any data tampering from the issuance of the physical certificate.

Objective :

  1. To introduce the MOF Virtual Supplier Registration certificate as the official form of Supplier identification replacing the hardcopy certificate version.
  2. To provide efficient administration and services for the Government Supplier Registration process.
  3. To reduce the turnaround time on the issuance and delivery of MOF Supplier Registration certificate.
  4. To ensure the accuracy and effective delivery of the MOF Supplier Registration certificate to the applicants.
  5. To establish a central repository system for the storage, issuance and retrieval of Supplier Registration with MOF for all Government Procurement Offices.

10 points that make the programme/project innovative?

  1. The MOF Virtual Supplier Registration certificate replaces the traditional physical Supplier Registration certificate as the official and legitimate document.
  2. Companies able to obtain their MOF Virtual Supplier Registration certificate via online from the comfort of their office at their own convenience.
  3. Companies not require sending and posting a copy of their physical MOF Supplier Registration certificate to each Government Procurement offices.
  4. All authentication and validity checks of Supplier Registration by Government Procurement offices can be conducted online without the need to keep physical papers and filings.
  5. Provides assurance of the delivery of the MOF Supplier Registration certificate to respective Suppliers.
  6. Use of digital signature technology and eliminates the need for time consuming physical authority signatures on each MOF Supplier Registration certificate.
  7. Supported by the electronic data interchange (EDI) technology in the public sector where documents and information are being transmitted electronically.
  8. Data security through a centralised online database to access supplier information.
  9. Require less manpower as all data is maintained by the system.

List the 5 achievements of the programme/project?

  1. Faster issuance and delivery of the MOF Supplier Registration certificate from 2 weeks to instantaneous.
  2. The Government eliminates administrative costs of approximately USD 2,000 – USD 4,000 per month derived from the savings on printing, papers, handling and postage of the MOF Supplier Registration certificate to the Suppliers.
  3. Eliminates travel and administrative costs to the Suppliers without the need to collect and send their physical MOF Supplier Registration certificate to respective Government Procurement Offices.
  4. Guarantees standardisation of the MOF Supplier Registration certificate format
  5. Eliminate cases of forgery and fraud from the tampering of the physical MOF Supplier Registration certificate issued by MOF.

List the 5 key challenges faced while implementing the programme/project/initiative :

  1. The Virtual MOF Supplier Registration certificate replaces the physical certificate which has been operating more than 30 years. This new approach requires adaptation from both Government officers and Suppliers. Comprehensive change management programs have been deployed to accommodate the transition period including extensive pilot usages prior to the official launch.
  2. The service relies on the ICT infrastructure readiness of Suppliers in order to receive and print their physical MOF Supplier Registration certificate via online. Suppliers whom lacks ICT equipment can utilise the PC services provided free of charge at the physical counter centres currently available in major cities throughout Malaysia.
  3. Prior to the introduction of the Virtual MOF Supplier Registration certificate, the format of the physical MOF Supplier Registration certificate issued differs according to the respective States. A thorough exercise has been implemented to standardise the format, layout and design of the Virtual MOF Supplier Registration certificate.

List the 5 points how can the programme serve as a model that can be replicated or adapted by others?

  1. The Virtual MOF Supplier Registration certificate serves as reference model for effective administration and management of large volume public-related data and information.
  2. The issuance and delivery of online documentations by the Public sector can be regarded as official documents through the utilisation of digital signature and data encryption technology.
  3. Online documents provide additional security and reduced fraud cases through non-tampering of the physical documents.
  4. Official online documents distributed and dispatched in an electronic environment ensure transparency and speedy delivery to the respective recipients.
  5. The virtual and online document delivery can help organisations on enhancing their corporate social responsibility through promoting green initiative.

List 5 points to elaborate on the scalability of the programme/project/initiative :

  1. The Virtual MOF Supplier Registration certificate can be accessible to other agencies beyond the Federal Government. The system can be utilised by the Statutory Bodies, State Governments and other Government-linked companies.
  2. Information of the Supplier performance history can be accessible via online.
  3. Procurement offices can conduct procurement collaborations through information sharing.
  4. Information can be made available to financial institutions to carry out supplier performance history for loan and financing matters.
  5. To assist in various statistical studies on the performance of local Suppliers and businesses for various purposes.
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