Page 56 - ANUAL REPORT MOH 2017

INITIATIVE IN IMPROVING PROCUREMENT MANAGEMENT
The Procurement and Privatisation Division has taken a continuous initiative in optimizing expenditures
by ensuring approved allocations are sufficient to meet the core services and patient care needs so that
healthcare is not affected. The initiative that has been taken to improve the efficiency of the procurement
process by updating the Standard Operating Procedures (SOPs) are as follows:

Outsourced Food Service
MoH has implemented Outsourced Food Service Policy in MoH hospitals involving new hospitals with
more than 250 beds. This initiative is carried out continuously through improvement of the Outsourcing
Food Service such as creating SOP, improving technical specification for government spending
optimization and others.

SOP Management for Approval of Procurement of Imported Goods, MoH Series 2
Ministry of Finance (MoF) in its letter dated 26 September 2014 has informed that Controlling Officer
is fully responsible for reviewing the status of local/import goods before the procurement is carried
out. Therefore, for goods that have been identified as not available in the country and worth more than
RM50,000.00, Controlling Officer’s approval shall be obtained prior to the acquisition. Controlling Officer
has been given authorization to consider and approve the acquisition of imported goods at the Ministry
level. To improve the application of imported goods, MoH Import Goods Procurement application has
been updated and SOP Management Approval for Procurement Of Imported Goods, MoH No. 2 was
distributed on 11 January 2017. In the year 2017, 3,417 applications for imported goods were received
and considered by the MoH Assessment Committee of Imported Goods. Of these, 3,316 applications
were approved whereby 101 applications were rejected. Table 8 shows a summary of the application
for import of MoH for the year 2017.

Table 8
Summary of Application for Imported Goods of MoH in 2017

Quantity / Result
Result Result Result Result

Medical/
Item Non Reagent/
Medical Approved Not Approved/KIV Medicines Approved Not Approved/KIV Consumables Approved Not Approved/KIV Others Approved Not Approved/KIV Total
Devices

Numbers of 429 416 13 1,223 1,173 50 1,437 1,408 29 328 319 9 3,417
Application
APPROVED 3,316
REJECTED 101
Source: Procurement and Privatisation Division, MoH

Off-Take Agreement Program (OAP)
Off-Take Agreement Program (OAP) by MoH is a program designed to help the local healthcare sector
to develop and compete internationally hence contributing to the country’s Gross National Income (GNI)
through investments and to provide job opportunities to the public. The program aims to encourage
local medicine manufacturers and medical devices with the Entry Point Project (EPP) status to produce
local products for export. OAP serves as a platform to help local manufacturers to be able to compete

MINISTRY OF HEALTH MALAYSIA ANNUAL REPORT 2017 55