When Penang CM Lim Guan Eng first made the call to implement open tender policy for the island state there were all sort of reactions. From the cries of the naysayers and political opponents who were on the brink of inciting tension to the warning from the prime minister himself – Guan Eng certainly did not expect to get such a vast reaction.
And yet as the days go by and as the political driven rhetoric take a back seat, the staunch support of the business community has come to the fore. From the various economic chamber and communities to big business, one and all have lauded the move to ensure a more transparent and open method for project tenders to be issued. What’s more is that the initiative is both parallel and complementary to the policy previously put in place by the Finance Ministry which sadly has previously taken too long to get any visible traction under the federal government.
Now following in the tracks of those who have come forward in support of the open tender policy is the ICT associations who represent the ICT industry – an industry that is both a major presence in and also a big stakeholder of Penang and its economy. This new show of support only strengthens the support advocated thus far for the open tender policy and bodes well for the economic future of Penang under the Pakatan Rakyat(PR) rule. On the flip side, if PR manages to implement and properly manage the open tender policy in Penang as the first test bed state, Barisan will be in dire straits if they continue to dilly-dally on the matter in all other states they control.
The following article from The Edge Daily provides the details which is brutally frank and to the point on the difficulties faced previously without the open tender policy. This is a must read for those of you who have not quite grasped what the open tender policy will mean for Penang.
ICT firms back call for open tender
KUALA LUMPUR: Two of the nation’s premier ICT associations have come out in support of the open and transparent tender system that has been adopted by the Penang state government.
Among the reasons cited are increased business confidence in the government as well as taxpayer protection via increased accountability in government expenditure.
Association of the Computer and Multimedia Industry (Pikom) chairman David Wong said transparency will project a good image and boost confidence among investors.
“If you don’t practise open tenders, you risk a loss of public confidence in the government,” he said. “By being open and transparent, you also help prevent corruption, although it cannot be 100% foolproof.”
President of the International Association of Software Architects (IASA) Malaysia Timothy Nam has a similar view.
“Seeing how an increasing amount of essential government services are dependent on IT, this is the best thing that could happen,” he said. “It will give citizens an insight into the actual value and service quality they are getting.”
Nam said the cost of not practising open tenders in the country can be clearly seen in the number of public sector IT projects that have experienced cost overruns and cancellations.
Wong said closed tenders runs a higher risk of the project being awarded to an incompetent vendor and the lack of options will lead to overpaying and limit the government’s ability to get the best possible deal.
“Many contractors choose not to participate in government bids because they know they do not stand a chance of winning, even though they can offer quality services and competitive prices.
“The perceived lack of transparency and corporate governance in project tenders has negatively affected the ICT industry,” he said.
IASA Asia Pacific president Aaron Tan said the cost is not calculated only in financial terms, but also leads to erosion in Malaysia’s reputation.
“A lack of transparency and clarity in tenders do not bode well for Malaysia which is intent on becoming a regional ICT hub.
“Via open and transparent tenders, the public will benefit from companies providing quality services to the government. This will strengthen the local ICT industry and positively impact other sectors as well. Such a move will reflect maturity and confidence that speaks well of Malaysia’s goal of becoming the region’s ICT hub,” he said.
While there is fear among some segments of the bumiputera community that they may be disadvantaged by the move to implement openness and transparency, Wong said anybody with competitive services has nothing to fear.
“The decision on the successful bid should be made clear and all should be informed of the processes and criteria involved,” he said.
Furthermore, he said, the government has a duty to assist small and medium enterprises develop their capabilities to gain market access.
Nam said that this change will benefit the majority and they will appreciate that such a move by the government has the public’s interest at heart.
Wong also called for a single destination Web portal to manage the tender process in an orderly manner.
Pikom represents the ICT industry in Malaysia through its 750 member companies that comprise 80% of the total ICT trade in Malaysia.
It is best known among the public for its popular PC Fair event which attracts thousands of shoppers in search of tech bargains.
It is also co-organiser of the upcoming WCIT 2008 on May 18 in Kuala Lumpur. WCIT is the world’s largest gathering of ICT leaders and decision makers held every two years and is billed as the Olympics of ICT.
IASA Malaysia, the country chapter of IASA, is the premier association for IT architects. It has about 6,000 members in 50 countries, including 400 in Malaysia.
IASA is organising the IT Architect Regional Conference in Kuala Lumpur on April 22, bringing together government officials from Thailand, Indonesia, India, Singapore, India, Vietnam, Korea and Malaysia to address the needs of the various national ICT initiatives.
