THE RELATIONSHIP BETWEEN PERCEPTIONS AND LEVEL OF COMPLIANCE UNDER SELF ASSESSMENT SYSTEM – A STUDY IN THE EAST COAST REGION

Government procurement is a business process within a political system of a government. Failure to properly balance these elements can lead to wasted effort and poor development results within the most important single marketplace in developing countries. Procurement in Malaysia is largely decentralized. The Government Procurement Management Division of the Ministry of Finance sets the procurement policy and rules. The minister of finance or the chief minister for the state procurement boards appoints a tender board in each procuring agency to administer specific procurements. This project aims to explore the perception of suppliers towards the government procurement system. It also aims to evaluate the effectiveness and identify the obstacles arise in the existing government system in the perspectives of stakeholders and to suggest for improvements in terms service quality standards. The results of this study indicated that even though the perceptions of suppliers is good towards the Malaysia government procurement system, the level of effectiveness of the public procurement system is still at a satisfactory level since there are still loopholes which allow opportunity for corruption to occur. This is due to obstacles arisen in the existing government procurement system which need to be eradicated and improved. This study suggests that a major reform need to be in place in order to improve the level of effectiveness of the system