Page 53 - ANUAL REPORT MOH 2017

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MoH Financial Managament Course

Source: Finance Division, MoH

PROCUREMENT PERFORMANCE

The procurement value of MoH’s tender in year 2017 is RM4.56 billion, which includes the procurement
of pharmaceutical, medical equipment, services, ICT, vehicles and Approved Products Purchase List
(APPL). In line with Government’s optimization policy, MoH has implemented government revenue
savings of RM537 million in 2017 to ensure that approved allocations are adequate to meet the core
services and patient care needs so that healthcare is not affected. The savings obtained are based on
the comparison between the department’s price estimate and the contract price offered as well as the
price negotiation mechanism held with the company appointed following the special approval by the
Ministry of Finance (MOF). The procurement of MoH by category in the year 2017 managed by the
Procurement and Privatisation Division is shown in Table 6.

Table 6
Procurement of MoH in 2017
No Category Procurement (RM) Savings (RM)

1. Pharmaceutical 1,603,922,603.43 250,080,232.66
2. Medical Equipment 130,012,214.00 13,424,862.80
3. Services 395,902,368.44 42,438,739.72
4. ICT 217,299,246.63 7,903,246.27
5. Vehicles 13,440,000.00 60,000.00
6. APPL 2,200,000,000.00 223,000,000.00
Total 4,560,576,432.50 536,907,081.45

Source: Procurement and Privatisation Division, MoH

52 ANNUAL REPORT 2017 MINISTRY OF HEALTH MALAYSIA