The Idea Bank is a compilation of selected feedback by the public received through PEMUDAH Website which might be useful for information and reference purposes. The compilation includes complaints, inquiries and suggestions addressed to various Government Agencies which have been appropriately edited for general viewing.

Please also be informed that the information, relevant acts, rules and procedures provided therein may have been reviewed, revised or updated by the respective Government Agencies. You may want to visit the relevant websites for information or submit your inquiries through our  Feedback Form.


Most of the government agencies are still not using e perolehan system to display their tenders and quotation.The tenders/ quotation are still confined to whoever in contact with the respective division of the Ministry. Pemudah should ensure that all Agencies should immediately start using the system to ensure transparency. The e perolehan system has been improvised a lot and it is about time to get it be used for the good of transparency.


The Ministry of Finance has issued Treasury Circular No 6 2008 (Surat Pekeliling Perbendaharaan (SPP) Bil 6 Tahun 2008) concerning Procedures for Management of Government Procurements for Tenders and Quotation through e-Perolehan System on 29 September 2008.

With the enforcement of the Treasury Circular, Ministry and Agency are responsible to ensure that the procurement of products and services are implemented via e-Perolehan. The Internal Audit of the respective Ministry and Agency would have to advise and monitor the full implementation of the SPP.


On the use of performance bond in contracts, some Government Departments use:

    • insurance guarantee;


  • deduct the % from the monthly repayment (for maintenance) or % from the project.

Certain Department / Ministry still use performance bond.

Propose that:

    • performance bond for amount exceeding RM 50,000.


  • for amount less than RM 50,000, pay by cash, insurance or deduct from the clams.


The current practice as stipulated in Para 50 of the Treasury Circular Letter (TCL)No. 5 2007 dated 27 February 2007 states that:

  • Performance bonds only apply for procurement above RM200,000, which can be obtained from locally incorporated banks, insurance companies, takaful companies and financial institutions that are licensed to operate in Malaysia.
  • In addition, the Government introduced performance guarantee or Wang Jaminan Pelaksanaan (WJP) as an alternative instrument for procurement of works only in order to help contractors in the event they fail to produce performance bond.
  • Through the WJP, a deduction of 10% is made from progress payment until it reaches the amount of performance bond rate.

The current rates of performance bonds are as follows:

Contract Type Contract Value (RM) Deduction (%)
Supplies and services between 200K and 500K 2.5
more than 500K 5.0
Work Contract value 5.0


The Registrar of Franchise (RoF) should come up with a proper, clear and transparent guidelines on how to prepare a Disclosure Document (BAF1) and Franchise Agreement and make such guidelines available to the general public.

Such guidelines should also be reviewed from time to time to suit the present/current business


The sample of Dokumen Penzahiran (BAF1) can be obtained from the Franchise Registrar Office or from the MECD website.  In the Akta Francais 1998 BAF 1 is one of the form under the Peraturan-Peraturan Francais (Borang dan Fi) 1999 Akta Francais 1998.


A contractual party wants to additionally charge a service charge but according to contract, it is actually included in the rental as stated in the relevant appendix and none of any clauses allow either party to additional charge.


Public Complaints Unit is accessible via the Court website strictly concerns complaints on the administration of justice of the Judiciary throughout the country. As indicated in the website, its objective is to resolve any such public complaint applicable only to the administration of justice, and is not an Advisory or Legal Advice Unit.

As such, we are unable to provide Legal Advice to you on this issue as this is beyond our jurisdiction. The issue that your company is facing with the contractual partner is a private contractual issue. Therefore, you are best advised by a lawyer.

A lawyer is entitled to charge fees as he deems fit for a particular matter. We understand that the amount may be high. However, we are unable to comment any further on this issue as the appropriate body to contact would be the Bar Council, as it deals with all complaints made against an Advocate & Solicitor.

We also wish to bring to your attention that you may consider referring your queries to the Bar Council Legal Aid Centre which seeks to provide equal access to the law, particularly for deserving persons. They can be contacted at 03- 26913005.

Disclaimer : Malaysia Productivity Corporation ( MPC) shall not be liable for any loss or damage caused by the usage of any information obtained from this web site.
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Last Updated: 16 January 2017