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ETP ANNUAL REPORT 2011
This list of initiatives will be constantly reviewed and enhanced
periodically depending on the latest economic scenarios to
achieve the best outcome and impact for the country.
Achievements
Immediate results were shown with the implementation of
Widening E-bidding. With the lab initiative, the E-bidding’s original
threshold value was reduced from RM200,000 to RM50,000 for
the procurement of goods and services and implemented on 5
April 2011. As of 31 December 2011, a total of RM25.34 million
was saved compared with the target of RM20 million, 26.7 per
cent above target.
E-bidding is a more transparent procurement methodology where
biddings are carried out online among qualified companies for:
1. Generic goods with a standard set of specification without
the need to go through a complex and complicated technical
evaluation
2. Goods and services which are managed under the panel
system
3. Generic types of services with a common set of scope and
specification
A capacity building programme for procurement officers is being
developed as part of an on-going process at the Ministry of
Finance. In addition, a new training program is being developed
together with National Institute of Public Administration (INTAN)/
Public Service Department (JPA), Department of Works (JKR)/
Ministry of Works (KKR) and other core Ministries to further
strengthen the capacity building of procurement officers.
Through the new training program, all aspects of Government
Procurement will be covered to ensure that procurement officers
would be equipped with the necessary knowledge and skills. The
new training programme will enable trained officers to implement
“Value Management for Operating Expenditure Procurement” as
part of the procurement planning initiative from 2012 onwards.
The Ministry of Finance will monitor the execution of procurement
plan by government agencies as stated in the Treasury’s circulars.
In 2011, 53 awareness programmes were conducted to educate
the public sector, business community and rakyat on the initiative
to implement the Goods and Services Tax (GST) to replace the
current sales tax and service tax. The programmes attracted an
audience of 4,941 people, and feedback obtained has been taken
under consideration by the relevant parties involved.
Exhibit 13.6
Target Group No. of
Programmes
220
No. of Attendees
Government 22 1,620
Industry 28 2,997
Consumer 3 324
Total 53 4,941
A broad-based consumption tax, GST will be levied on the ‘value
added activities’ along the delivery chain. Most basic products and
services such as rice, raw meat, fresh fish, vegetables, domestic
public transportation and healthcare services will be exempted or
zero-rated. The estimated additional revenue from implementing
the GST in its first two years is between RM6-10 billion. This is
dependant on the rate implemented, anticipated at four to five
per cent.
The Inland Revenue Board (IRB) has completed the groundwork
necessary to implement its initiatives to improve tax administration
and compliance for direct tax collection from 2012. Amongst the
initiatives is to widen field audit & investigation coverage. The IRB
has implemented measures which include:
1. Redeployment of auditors from field audit to transfer pricing
and specialised industries
2. Re-engineering of desk audit process
3. Enhancing usage of data warehouse in order to identify highrisk
cases to be audited
Similar to the IRB, the Royal Malaysian Customs Department
(RMCD) has also started implementing initiatives to improve tax
administration and compliance for indirect tax collection. One
such initiative, the enhancement of audits and enforcement was
implemented in the second half of 2011. This has resulted in an
additional collection of RM67.39 million, 81.2 per cent of the target
of RM83 million. The enhanced enforcement came in the form of:
1. Informing businesses of new requirements in conducting
audits:
• Special audit (joint operation)
• Periodic audit
2. Increasing audit coverage on registered licensees and
importers:
• Reviewing audit targets
• Enhancing competency of audit officers through capacity
building
3. Improving audit mechanisms:
• Increasing the number of licenses of computer Assisted
Audit Techniques (CAAT) software
Revising standard auditing procedures
• Issuing internal guidelines on auditing
• Enhancing e-Audit for audit report and risk assessment
• Enhancing risk management system
• Developing a networked system for information sharing.
• Enhancing tax compliance
• Developing a systematic and efficient debt management
• system.