Level of satisfaction and issues with procurement systems used in the Malaysian public sector

Abstract

Since the declaration of Malaysian independence, the public sector has significantly contributed to the country’s development. In the 1990s, a new procurement system was developed due to CIBD various changes in the construction industry. Since that period, the poor quality of public sector projects has started to attract public attention. This paper describes a study that was conducted to identify the dominant public procurement systems in place, the problems associated with these systems, and the satisfaction level of the industry players in the Malaysian construction industry. The results were drawn from 84 survey responses and interviews with industry players. The public sector is using a traditional system inherited from the British, with an intention to adopt new procurement systems. Aside from the disputes that are present in most systems, the public sector seems to encounter particular problems in relation to capabilities, time, and cost of the major procurement systems used. Traditional work culture and the industry environment influence public sector practice, which accounts for the modifications of each procurement system used. Thus, the full advantages of using an alternative procurement system may not be realised in public sector organizations. This produces an average level of satisfaction gained from the procurement system adopted. As a developing country, Malaysia needs to exert significant efforts to improve the public procurement system.