eGovernment Systems Development in Malaysia
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eGovernment Development and Malaysian eGovernment Systems
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This chapter presents the current research in e-government development and
online reverse auctions system, the problem and goals of the study and the
significance of the research. An overview of Malaysia's e-government
initiatives and Multimedia Super Corridor (MSC) applications, particularly
ePerolehan is provided in the chapter together with an overview of reverse
auctions system and eBidding benefits. A description of the status of
eBidding usage and the transactional value are also included.
2. Global e-Government Use
e-Government facilitates governments to provide services to business,
government agencies and citizens by leveraging on information communication
technology (ICT) and the Internet. e-Government is referred to as public
service delivery to the public, citizens and private sector via the
internet (Ahmad and Othman, 2007). e-Government is defined as the use of
Internet as venue for more efficient administration and governance (OECD,
2003). Moon (2005) argues governments employ the system as a strategy to
response to public expectations for enhanced and better public service
delivery. The government is facing increasing expectations by the public
for fast and efficient services similar to the quality offered by the
private sector. The citizens who had experienced of the ease and
flexibility of using online banking services want similar experience in
government delivery systems. As a response to public expectations, the
government has embarked on the development of e-government to improve
service delivery (MAMPU, 2010).
The implementation of e-government is expected to bring many advantages and
benefits to the government and the public. The government's aspirations to
implement e-government are to improve the internal operations by
transforming the processes, reduce paperwork, increase the number of
services to the public and reduce the response time (Maniam, 2008). As e-
government improves, the interaction quality and work processes within and
inter-agencies, the results are in terms of speedier policy development,
better coordination and enforcement (Kaliannan et al., 2007). In addition,
e-Government provides opportunities for citizens and business communities
to access government services and enhance the transactions between business
and governments (UN, 2005).
The e-Government supports good governance, strengthens existing
relationships and builds new partnerships within civil society. e-
Government facilitates the introduction of new enhanced services to the
public and increases citizen participation in the policy making (Gupta and
Jana, 2003). Siddiquee (2008) argues that by increasing consultations and
collaborations among various parties and agencies, the citizens can enjoy
better quality services and increased business efficiency.
The global governments' effectiveness in delivering online services is
tracked in a few studies, for example, e-Government initiatives in 22
nations were examined in the Accenture Study in 2011. The study finds that
leading world governments are modifying the traditional models of service
delivery to a higher level to strengthen their relationships with citizens
(Accenture, 2011). e-Government relationships with the stakeholders can be
briefly categorized as Government-to-Citizens (G2C), Government-to-
Businesses (G2B) and Government-to-Government (G2G) (Jeong, 2007).
In a Government-to-Citizens (G2C) relationship, user-friendly one-stop
services centers are employed to facilitate citizens' interactions with the
government. In a Government-to-Businesses (G2B) relationship, government
and the private sector communication are improved to facilitate business
transactions between parties. In a Government-to-Government (G2G) category,
collaborations between governmental agencies are enhanced to increase data
sharing and electronic transactions. MAMPU (2010) contends that in G2G,
these relationships cover more integrated agencies in terms of
collaboration between officials, departments, ministries and foreign
1.3. e-Government Development
e-Government evolves through a series of stages, from basic information,
communication feedback to conducting transactions and finally the
interactive web presence (Siau and Long, 2009). e-Government development
stages can be depicted in stages of development model as shown as Figure 1.
The United Nations' Five-Stage Model (UN, 2005) summarizes the
developmental stages any government may experience as the e-government
evolves. The first three stages cover automation and digitization while the
following stages cover government transformation, in terms of the internal
operations and citizen's participation in policy-formulation and decision-
Figure 1. UN's 5-Stage Model of e-Government Development
Source : (UN, 2005)
Various government researchers have developed numerous stage models for e-
government developments, for example, Layne and Lee, (2001) Four-Stage
Model and Moon (2002) Five-Stage Model, Layne and Lee's (2001) Four-Stage
Model and Moon's (2002) Five-Stage Model. These models are based on a
combination of technical, organization and managerial factors. IBM Four-
Stage Model comprises automate, enhance, integrate and on demand stage (IBM
Business Consulting Services, 2003). Belanger and Hiller (2006) Five-Stage
Model considers political participation by citizens in the highest stage by
offering services such as online voting, online registration, or posting
comments on line. Lee (2010) study compares twelve different e-government
stage models and classify e-government stage models based on two themes:
operation and technology theme on one side and citizen services on the
other. According to the author, five distinct correlated metaphors,
presenting, assimilating, reforming, morphing and e-governance will dictate
the relationship between each themes. These models embrace the concepts of
interaction, transaction, participation and involvement of the citizen with
integration, transformation and process management.
Table 1. Comparisons of Stage Models in e-Government Development
"Model "Stages "
"UN (2005) 5-Stage " i. emerging web presence, "
"Model "ii. enhanced web presence, "
" "iii. interactive web presence, "
" "iv. transactional web presence; "
" "v. seamless integrated web presence "
"Layne and Lee's 4-Stage" i. catalog; "
"Model "ii. transaction; "
"(2001) "iii. vertical integration; "
" "iv. horizontal integration "
"Moon's 5-Stage Model " i. simple information dissemination; "
"(2002) "ii. two-way communication; "
" "iii. service and technical transaction;"
" " "
" "iv. vertical and horizontal integration"
" "; "
" "v. political participation "
"IBM Study (2003) " i. automate ; "
" "ii. integrate ; "
" "iii. enhance ; "
" "iv. on demand "
"Belanger and Hiller " i. web presence; "
"(2006) "ii. interaction; "
" "iii. transaction; "
" "iv. transformation ; "
" "v. political participation "
"(Lee, 2010) "i.presenting; "
" "ii. assimilating; "
" "iii. reforming; "
" "iv.morphing ; "
" "v. e-governance "
As seen in Table 1, there are "leaps" between each of the stages. The
development stages of e-government follow several phases from "access"
level that allows citizens and business access to government information;
"interaction" level, which allows interactions with government through
email or download forms; "transaction" level that allows users to conduct
transactions online; and "integration level", which integrates all services
in different e-government organizations and governance. Based on the models
developed by the researchers, e-government development occurs in stages
from access level to transaction and integration level and finally e-
governance. Government-to-Business (G2B) systems are grouped in the
"integration" stages of development due to the capabilities and services
offered to the business community and citizens.
1.4 Malaysia's e-Government Initiatives
The Government of Malaysia envisions a modern government enabled by
technology through its Vision 2020. The Government launches an ambitious e-
government project to increase the quality and public service delivery by
leveraging on the capabilities offered by Internet and multimedia
technologies (Hazman et al., 2006). The e-Government aspires to improve the
ease of use, access and interaction quality with the public and private
sector by improving the process within the government. These factors will
result in speedier policy development, coordination and enforcement. Ramlah
et al., (2007) contend the government's overall aim is to build an enabling
environment to achieve a knowledge-based economy. As such, e-government
programs are introduced to offer better services and harness the potential
benefits of interactions with new IS innovations with an increasingly well-
Multimedia Super Corridor (MSC) Flagship Applications were launched with e-
government as one of the key applications to spearhead the ICT industry. e-
Government application was developed with the aims to re-invent the
government and improve citizens and business interactions with the
government. The overall vision is to create an efficient administration and
excellent service delivery in an enabling environment. The aim is an
enhanced collaboration between government, businesses and citizens for the
benefit of the country. The e-government aims are to re-invent government
and leverage the industrial capabilities of Multimedia Super Corridor (MSC)
by addressing the following areas (Siddiquee, 2008):
1) Improving accessibility between the stakeholders and government, that
is to enable the public, business and foreign governments have better
access to government services;
2) Enhancing public services quality;
3) Improving the processes or system work flows that are important in the
betterment of the government service deliveries;
4) Creating greater transparency and governance; and
5) Empowering government officials at the implementation level towards
faster decision-making by reducing bureaucracy in daily transactions
with the public.
The Government of Malaysia has also lined up several flagship e-government
projects aimed at transformation from manual and paper-based process,
standalone agencies to a seamless and integrated government. The
initiatives launched under the e-Government Flagships since 1997 are
explained as in Table 2.
Table 2. Modules the e-Government
" " " "
"No. "Projects "Characteristics "
"1. "Generic Office "Provides a platform for collaboration for "
" "Environment (GOE) "enhanced communication, interactions and "
" " "sharing of data for the agencies. "
"2. "ePerolehan (eP) "Connects the registered suppliers and the "
" " "public sector via the internet where "
" " "agencies could source for goods and "
" " "services offered by the suppliers. "
"3. "Project Monitoring "Offers the capability for projects "
" "System (PMS) "monitoring and implementation with built-in"
" " "knowledge depository and management "
" " "functions. "
"4. "Human Resource "Facilitates government employee day to day "
" "Management "human resource development functions in an "
" "Information System "online platform. "
" "(HRMIS) " "
"5. "Electronic Services "Provides direct transactions and "
" "(e-Services) "communications capabilities between the "
" " "citizen, the public sector and the service "
" " "providers on an online platform. "
"6. "Electronic Labour "Connects the labor market data to the "
" "Exchange (ELX) "public sector, private sector and the "
" " "public. "
"7. "E-Syariah "Reforms administrative services of the 102 "
" " "Syariah courts to increase the capabilities"
" " "of the Islamic Affairs Department's in "
" " "terms of monitoring and coordination of its"
" " "branches. "
Source: (Maniam et al., 2006)
Off all the above-mentioned projects, the focus of this study will be on
ePerolehan, followed by eBidding which is a reverse auction system module
1.5 Overview of ePerolehan
The Government aspires to re-invent the way in which it operates to be more
responsive to the needs of the business community and to increase
transparency and efficiency in procurement process. As a major purchaser
of goods and services from the private sector, the government needs an
efficient procurement service. For example in 2010 alone, total government
spending was RM206.2 billion
ePerolehan is defined as the official electronic procurement system and
provides a secure end-to-end Internet transaction process from the buyer to
the sellers (MAMPU, 2009). ePerolehan aims to re-engineer and automate the
traditional way of manual procurement system by transforming the system
into an online marketplace for suppliers and government agencies.
ePerolehan promises increased value for government spending, as well as
transparency and accountability in the procurement and sourcing processes
(Kaliannan et al., 2007). ePerolehan is an innovation by re-inventing
government procurement processes to ensure better collaboration between
public and government for higher quality and more efficient public
services. Ahmad and Othman (2007) argue ePerolehan is an inter-
organizational system (IOS) that has been successfully deployed in the
government as a venue to improve the services to the public.
ePerolehan was launched in several phases in 1999, and thus far the
application has successfully allowed the government and suppliers to
electronically conduct procurement activities. The system allows the
suppliers to offer their services, advertise, transact and receive the
payments from the departments through the web. ePerolehan supports the
entire procurement chain from submission of tender and contracts to
approval and payment including alert notifications to potential bidders.
The objectives of ePerolehan are as follows (Maniam, 2008):
1) To offer best returns for Government procurement;
2) To facilitate the suppliers to receive faster payment;
3) To enhance accountability and transparency in public sector
4) To improve cooperation between the private sector and the public
Table 3 outlines the description of the modules under ePerolehan. The
following sections will focus on electronic reverse auctions and eBidding,
which is one of the modules under ePerolehan.
Table 3. Types of Module Services Under ePerolehan
" " " "
"No"Module "Services "
". " " "
"1."Supplier registration"Register new contractors or consultants, "
" " "renewal, online updates of latest supplier "
" " "information "
"2."Central contract "Facilitates in the requisition services from"
" " "acceptance and delivery of order to "
" " "confirmation of invoice of purchased items "
" " "by the agencies. "
"3."Direct purchase "Performs requisition processing that starts "
" "(procurement value up"when procuring officials choose goods or "
" "to RM50,000.00) "services or products and the cycle is "
" " "complete when the supplier receives the "
" " "purchase order. "
" " " "
"4."Quotation system "Provides quotation process for procurement "
" "(procurement value up"from RM100, 000 to RM200,000. Invites are "
" "to RM200,000.00) "forwarded to suppliers for their replies to "
" " "the requests. "
"5."Tender "Performs tendering process for procurement "
" "(more than "from RM200, 000 or higher. "
" "RM200,000.00) " "
"6."eBidding (from "Provides services to qualified suppliers to "
" "RM50,000 and above) "bid online, in a specified pre-determined "
" " "period. eBidding allows the bidders to see "
" " "their status and other bidders offers "
" " "online. "
Source: (Kassim et al., 2010)