MYNIC Berhad (735031-H)

STRATEGIC PROCUREMENT POLICY AND

FRAMEWORK

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REVISION HISTORY

Version
Description of Change(s) Author Process Owner Date
No.
1  First release. Muhammad Mohamad dd.mm.yyyy
Rostam Affendi Farizul Bin
Yahaya

PREPARED BY RECOMMENDED BY RECOMMENDED BY

Muhammad Rostam Affendi Juliany Yaacub Mohamad Farizul Bin Yahaya

Executive, Procurement Head, Finance & Procurement Chief Financial Officer

RECOMMENDED BY APPROVED BY (BOARD)

Datuk Ts. Hasnul Fadhly Hasan BOARD OF DIRECTORS

Chief Executive Officer

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TABLE OF CONTENTS

1. DEFINITION OF TERMS.....................................................................................................................3

2. OVERVIEW..........................................................................................................................................4

3. GENERAL PRINCIPLES.....................................................................................................................4

4. BACKGROUND...................................................................................................................................5

5. STRATEGIC PROCUREMENT FRAMEWORK..................................................................................6

6. RISK SPEND ANALYSIS..................................................................................................................13

7. SCOPE...............................................................................................................................................15

8. PROCUREMENT GUIDELINE..........................................................................................................16

9. PROCUREMENT STRATEGY..........................................................................................................19

10. REVIEW OF POLICY AND FRAMEWORK.......................................................................................21

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1. DEFINITION OF TERMS

# TERMS DEFINITIONS
1 AA Approving Authority
2 BTC Board Tender Committee
3 BOD Board Of Directors
4 CEO Chief Executive Officer
5 CFO Chief Financial Officer
6 COO Chief Operation Officer
7 CMO Chief Marketing Officer
8 CIO Chief Innovation Officer
9 DO Delivery Order
10 FIN Finance Unit
11 FPC Finance & Procurement Department
12 PPL People Department
13 IMS Integrated Management System
14 LIG Legal, Integrity and Governance
15 LOA Limit of Authority
16 MOM Minutes of Meeting
17 MTC Management Tender Committee
18 PO Purchase Order
19 PR Purchase Requisition
20 PRC Procurement Unit
21 TEC Technical Evaluation Committee
22 CEC Commercial Evaluation Committee
23 RFP & RFQ Request for Proposal
24 RFQ Request for Quotation
25 RFI Request for Information

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2. OVERVIEW

2.1 This Procurement Policy applies to and binds all Directors, Management and Employees of
MYNIC Berhad in any situation where they are involved in a procurement process, whether
as requisitoners or specifiers, purchasers or negotiators, or those who validate or approve
any of the process that related to procurement.

2.2 It confirms to all Directors, Management and Staff, to actual and potential suppliers and
vendors, to customers, to governmental and other regulators, the principles on which this
organisation procures and contracts.

2.3 Procurement includes all procure process of goods and services including leasing and hiring,
and may where appropriate include other activities accompanying the life cycle of goods (or
service contracts) and the end-oflife disposal of goods which have been procured (whether
or not they remain in MYNIC’s ownership).

2.4 Adherence to the Procurement Policy is both an individual and a corporate responsibility.
Willful breach of this policy, or unauthorised departure from the procedures derived from this
Policy, may constitute a disciplinary offence.

2.5 The Strategic Procurement Policy Statement can only be revised or altered by Procurement
Department with the authority of MYNIC’s Management in which need to be revised first by
Head of Department of Finance & Procurement and verify by Chief Financial Officer. Any
changes of modification shall be permitted only if such changes do not conflict with the aims
and objectives of the Procurement Policy Statement.

2.6 The enforcement of this policy will be in line with the approved MYNIC's Limits of Authority
(LOA). Any act of splitting the procurement with the intention of avoiding the requisite
authority limit is strictly prohibited and any non-compliance shall be subject to disciplinary
action.

3. GENERAL PRINCIPLES

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3.1 This policy is developed in consideration of existing procurement process. As an when

required, the policy shall be updated accordingly to reflect any changes in either internal or
external circumstances to avoid conflicts or inconsistencies.
3.2 The policy shall be reviewed in its entirety on an annual basis or as an when required to
ensure to ensure continued relevance and appropriateness of its contents. The annual
review shall consider the continued practicality of the policy.

3.3 The ownership of the policy shall be under the purview of the Board of Director (‘Board’), who
shall be responsible to approve the document and changes thereto. The Strategic
Procurement Policy and Framework can only be revised or altered by Procurement
Department with the authority of MYNIC’s Management in which need to be revised first by
Head of Department of Finance & Procurement and verify by Chief Financial Officer.

3.4 The Strategic Procurement Policy and Framework is confidential and contains proprietary
information and is the intellectual property of MYNIC. The Policy and Framework and any of
the information contained therein shall not be reproduced and / or disclosed under any
circumstances without the express written permission of MYNIC.

4. BACKGROUND

4.1 This Strategic Procurement Policy provides the overall framework and direction for the
sustainable, systematic and disciplined performance, management and governance of
procurement in MYNIC Berhad (“MYNIC”).

4.2 Procurement encompasses the whole process of obtaining goods and services from the
market. It includes assessing and understanding what needs to be acquired and where it can
be sourced from; developing and adopting a strategy to engage with the market to meet
identified demand; contracting with suppliers; processing purchase transactions; and
managing supplier performance and relationships.

4.3 A strategically focused and well-managed procurement function can significantly improve
MYNIC's financial performance and overall value.

4.4 The Policy commits the Company, and every individual involved in procurement processes
within MYNIC to use their best endeavours to ensure that MYNIC procurement activities are:

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4.4.1 Legally Compliance.

4.4.2 Accountable and Auditable Procurement Process for Goods Governance and
Transparency.
4.4.3 Economically effective.
4.4.4 Conducive to maintaining technological, commercial and organisational
developments.
4.4.5 Capable of identifying, minimising and managing risks that may risk MYNIC
financially and productivity.
4.4.6 Open to continuous improvement and development, in particular by the training,
development and support of staff.
4.4.7 Ethically responsible.

5. STRATEGIC PROCUREMENT FRAMEWORK

5.1 The Strategic Procurement Framework outlines the broad governance and process
requirements that MYNIC Procurement Stakeholders must comply with in order to ensure
effective, efficient and consistent procurement activity across the Company.

5.2 The framework is founded on the following key objectives which are further described in this
Policy:

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5.2.1 Ensuring a strategic focus in procurement.

5.2.2 Seeking value for money.
5.2.3 Ensuring responsible purchasing.
5.2.4 Engaging with reliable and reputable suppliers.
5.2.5 Ensuring effective governance and management of the procurement function.

5.3 These objectives are implemented through key procedural requirements to be followed
throughout the Plan, Source and Manage stages of the procurement lifecycle. MYNIC’s
procurement objectives are to:

5.3.1 Advance MYNIC’s strategic and operational objectives, including by pursuing

viable sourcing opportunities and ensure that resources are acquired
economically, used efficiently and managed effectively.
5.3.2 Deliver value for money from procurement activities and outcomes, whilst
ensuring agility in responding to the highly specialised and fast moving,
competitive sector that MYNIC operates in.
5.3.3 Engage in economically, socially, environmentally and ethically responsible
procurement (sustainable purchasing).
5.3.4 Purchase only from reliable and reputable suppliers and supply chains that are
consistent with MYNIC’s responsible and sustainable purchasing principles.
5.3.5 Demonstrate effective procurement governance, through:

5.3.5.1 Meeting all applicable compliance obligations relating to purchasing,

including compliance with laws, regulations and contracts;
5.3.5.2 Ensuring integrity, probity, fairness, transparency and accountability
in all purchasing decisions and activities; and
5.3.5.3 Effective management of procurement related risks.

Strategic Focus

5.4 MYNIC will achieve its Procurement objectives through the following strategic approaches:

5.4.1 Holistic and robust demand planning, including through aggregating MYNIC wide
procurement demand to identify and optimise procurement efficiency
opportunities where feasible.

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5.4.2 Efficient, flexible and adaptable category-based procurement plans, sourcing

strategies and processes.
5.4.3 Effective and efficient category and supplier performance management and
monitoring.
5.4.4 Adopting procurement practices and appropriate systems that enable efficient
and innovative solutions to meet University needs and challenges.

Value for Money

5.5 In terms of building procurement, there are a number of strategies that typically contribute to
value for money outcomes, including:

5.5.1 Optimising risk allocation between the parties.

5.5.2 Using performance specifications, where appropriate, to encourage maximum
innovation.
5.5.3 Ensuring the flexibility to secure scope changes at a reasonable cost.
5.5.4 Using incentives to reward ‘better than business as usual' outcomes.
5.5.5 Setting an appropriate contract period.
5.5.6 Ensuring participants have the required skills and capabilities to deliver the
planned project outcomes.
5.5.7 Adopting a procurement strategy appropriate to the complexity of the project.

5.6 The impact of these strategies on the achievement of value for money will depend upon the
nature and specific circumstances of each building project. Departments should adopt the
strategy/strategies that can best achieve value for money and ensure probity and
accountability.

Responsible Purchasing

5.7 MYNIC must ensure all procurement practices reflect a commitment to sustainable
procurement principles, including:

5.7.1 Not engaging with suppliers who have supply chains that utilise modern slavery,
as defined by applicable legislation, or suppliers who are from countries covered
by applicable sanctions legislation.

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5.7.2 Proactively ensuring that small and medium enterprises, as well as enterprises
owned and operated by community groups such as people from culturally and
linguistically diverse backgrounds.
5.7.3 Giving priority to the acquisition and use of goods and services that have a lower
environmental impact over their product life cycle.

Credible Suppliers

5.8 The purchase only from suppliers who are known to be reputable and reliable and who
demonstrate corporate values and commercial practices that are consistent with MYNIC’s
responsible and sustainable purchasing principles. This includes:

5.8.1 Prior to contracting, testing the market in a consistent manner without any bias,
or perception of bias, so that potential suppliers have confidence in the outcome.
5.8.2 Undertaking appropriate due diligence investigation of suppliers before engaging
with them, to assess their ability, capacity, reputation and authority required by
law to provide the goods or services reliably and professionally.
5.8.3 Proactively managing supplier performance against contractual terms and
conditions and agreed key performance indicators. Any significant unfavourable
variances in supplier performance will be escalated to higher level management
for prompt resolution.
5.8.4 Collaborating with key suppliers for efficiency, innovation and improvements to
UQ’s procurement strategies, processes and systems.

Effective Governance

5.9 The Policy commits the company, and every individual involved in procurement processes
within MYNIC to uphold the following core Procurement Policy Principles that encapsulate
Good Governance & Transparency and Developmental aspects of procurement.

5.10 Legally Compliance.

5.10.1 Procurement activities and proceses will uphold with fully respect and comply
with:

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5.10.2 All Malaysian laws and regulations applicable to all procure activities at the
international, national, states, provincial and local levels.
5.10.3 The relevant laws, regulations and so on of other territories in which
organisations operate, to MYNIC source for goods and services.
5.10.4 International laws, treaties and trade agreements to which the Malaysian
governments party.
5.10.5 MYNIC will not be a party to the evasion of income, sales, corporate, value
added or other taxes, customs duties, or other charges, by suppliers.
5.10.6 It is not acceptable to source goods or services in a foreign territory solely which
would not be permissible in Malaysia.

5.11 Accountable and Auditable Procurement Process for Goods Governance and Transparency.

5.11.1 MYNIC Berhad always upholding a good governance and transparency in all
transaction and activities, by which all department including Procurement
maintains a system (Ivanti LanDesk) that will record and monitor all historic and
current procurement activity, and that are capable of generating appropriate
reports to inform and improve future activity.
5.11.2 Refer document name ‘Ivanti Procurement Management User Manual’. Please
refer to the latest version.
5.11.3 All requisitions shall be made through Purchase Requisition (PR) which must be
raised by the requestor. The duly approved PR with the required number of
quotation(s) will serve as authority to raise Purchase Order (PO) by Procurement
Department.

5.12 Economically effectiveness.

5.12.1 All goods and services shall be procured at the most economical cost (value for
money), taking into consideration price, quality, delivery, performance, back-up
services, warranty and financial terms. In carrying out this role, all those involved
in procurement will have regard to the following:

5.12.1.1 The desired outcome by value gained at the lowest Total Cost of
Ownership (TCO).

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5.12.1.2 It is vital to all parties that involve in procurement process advisable

to find alternative(s) to reduce where possible the cost of acquiring
and owning goods and services.

5.13 Conducive to maintaining technological, commercial and organisational developments.

5.13.1 The company will be supportive and conducive in promoting technology, process
and system improvement innovation to ensure sustainable competitive
advantage.
5.13.2 Those responsible for procurement will promote competitive development within
the supply base, ensuring that the supply chain does not lose the ability to adapt
to new or emerging technologies and processes.

5.14 Risk Management.

5.14.1 Procurement Department and all related parties shall abide by the following
general principles and standards:

5.14.1.1 Confidentiality Undertaking Of Company Information Agreement

(‘Akujanji’) duly signed by all staff of MYNIC Berhad.
5.14.1.2 To consider the interest of MYNIC Berhad at all times.
5.14.1.3 All vendors are advised to register in MYNIC online vendor portal
‘MYPRO’ at http://mypro.mynic.my Please refer MYNIC Intranet
Portal for MYPRO process flow
5.14.1.4 The Supplier Evaluation Form (Purchase Without Agreement) can be
accessed mykite.
5.14.1.5 Please refer to the latest version of the document.
5.14.1.6 All non-performance suppliers shall be blacklisted from MYPRO with
regards CFO approval.
5.14.1.7 Risk assessment in the procurement is necessarily subjective: it is
nonetheless required that where a significant risk is identified, the
nature of the risk shall be identified to stakeholders, and where
possible alternative solutions or fallback positions considered and
documented.

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5.15 Ethically responsible.

5.15.1 Any purchase shall be procured without prejudice and at optimum value for each
unit of expenditure and to maintain high integrity and confidentiality at all times.

5.15.2 A direct negotiation due to time constraint is NOT ALLOWED as this is deemed
as poor planning.

5.15.3 Information relating to requisition of purchase shall not be communicated to

unauthorized persons.

5.15.4 Purchases shall NOT be fragmented (into small orders) to circumvent the
requirement of competitive bidding or to circumvent the Approving Limit
requirements and Approval Authority delegated to the various management
levels for approval of PR.

5.15.5 Staffs are not allowed to purchase items which are procured by the Company.
E.g. stationery, courier services, IT paraphernalia such as mouse, laptop/charger.

Procurement Strategy

5.16 It is imperative that the procurement process starts with a suitable procurement strategy. The
formulation of procurement strategy for the company must be based on focus knowledge on
supply versus market demand through detail analysis of the overall supply market, vendor
profiling and detail spend analysis. In developing procurement strategy, it is imperative that:

5.17 Procurement Department shall be responsible for documenting and formalising a

procurement strategy for each category of spend.

5.18 A spend analysis shall be conducted by Procurement Deparment for MYNIC. The spend
analysis shall facilitate the following:

5.18.1 The most efficient and effective method of procurement, minimising total cost of
ownership.

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5.18.2 New opportunities for contract negotiation, for example improved terms of
payment.
5.18.3 The vendors selected for each type of purchase and the optimal number of
vendors for each category.
5.18.4 The value of purchases per year.

5.19 There must be a thorough analysis of vendor profiling & performance.

5.19.1 Vendor performance need to be evaluated for every year. LIG will conduct for
any purchase which required an Agreement/Contract whereas PRC will evaluate
those vendors which do not require any Agreement/Contract

5.20 The strategic analyses are not, in essence, quantifiable exercises - they involve a large
degree of subjective judgement, and it is vital that those carrying them out receive the
necessary training and support.

6. RISK SPEND ANALYSIS

6.1 Tactical Routine:

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6.1.1 The amount spent on an item is a low percentage of the ‘total spend’ by
Procurement and there are low risks in doing business.
6.1.2 The sourcing strategy is to make buying a routine process. Simplify all processes
so that minimal attention is required. Examples are trading and lower value items.

6.2 Tactical Competition:

6.2.1 The risks remain low. The sourcing strategy is to achieve the lowest Total Cost of
Ownership (TCO). Encourage competition between suppliers to reduce costs.
6.2.2 If the buyer has commodity expertise and knowledge of the market, include
global sourcing. An example is laptops for office use.

6.3 Strategic Security:

6.3.1 The risks associated with the buy are high, yet the percentage spent is a low
percentage of the ‘total spend’ by Procurement. There are limited alternatives for
the item.
6.3.2 The sourcing strategy is to recognise that security of supply is important. Develop
a reliable relationship with the supplier. Remove bottlenecks in the supply chain
and other impediments to doing business. A possible approach is to develop an
early supplier involvement (ESI) program, to ensure that limited or restrictive
supply market conditions are avoided or removed.

6.4 Strategic Critical:

6.5 Involves items which are critical to success of the enterprise. Risks are high and the
percentage of annual spend is also high. The sourcing strategy is to develop a long-term
relationship, based on a mutual dependence and sharing of risks between the parties.

6.6 Work closely with suppliers to improve the total performance of the relationship, managing
power and dependency issues. Consider developing a strategic alliance.

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7. SCOPE

7.1 This Policy serves as the basic to be adhered by all staff of MYNIC Berhad in the
requisitioning of goods and services, which requires payment.

FIN will NOT be able to process payment without any approved PO (if applicable).

7.2 Authority to approve the requisition against budgeted expenditures for the above goods and
services should be in accordance with the Approving Limit:

7.2.1 Purchase value of up to RM100,000 is to be carried out via quotation exercise.

7.2.2 Purchase value of more than RM100,000 is to be carried out via Open Tender.

7.3 The procurement process does NOT apply for the following items:

7.3.1 Electric supply, telephone and hand phone bills, fax, photocopier charges and
other utilities.

7.3.2 Newspaper subscription.

7.3.3 Office rental.

7.3.4 Postage charges and contract stamping charges.

7.3.5 Company vehicle service and maintenance and charges.

7.3.6 Petrol and toll charges for company vehicle.

7.3.7 Monthly allocation for pantry expenses.

7.3.8 Purchase of stationery items for daily MYNIC Berhad staff use. If the Stationery
items are purchased for a specific event or value per item is more than RM 100,
Standard Operating Procedure for PRC applies.

7.3.9 Purchase of item under interest free loan scheme, provided by MYNIC Berhad to
staff.

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7.3.10 Any form of sponsorship, donation or collaboration.

7.3.11 Training/seminar/conference for staff (Please refer PPL SOP).

7.3.12 Appointment of recruitment agencies.

7.3.13 Purchases which are deem as petty purchases determined by PRC.

8. PROCUREMENT GUIDELINE

8.1 Any purchase made shall be governed by:

8.1.1 Approval Limit

8.1.2 Approval Authority
8.1.3 Availability of budget
8.1.4 All purchases are to be made in accordance to this Standard Operating
Procedure
8.1.5 Limit of Authority (LOA)

8.2 Approval Limit

8.2.1 There are two types of procurement which is based on the requisition value.

8.2.1.1 Purchase value of RM 100,000 AND below shall be via quotation(s)

8.2.1.2 Purchase value of above RM100,000 will be via open tender.

8.2.2 This Approving Limit does NOT apply to Overseas Travel except for ASEAN
Countries such as MYNIC Berhad staff attending training /Conference
/Seminar /Workshop or any other events held overseas. All Overseas Travel
except for ASEAN countries requires approval from BOD.

8.2.3 This Approving Limit does NOT apply for renewal with existing vendor of the
following items. Requestor shall raise PR and attach quotation from existing
vendor only. For amount above RM 100,000 the Approving Authority, no tender
process is required:

8.2.3.1 Renewal of Customer Call Centre services

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8.2.3.2 Renewal of datacenter services

8.2.3.3 Renewal of license fees, support and maintenance
8.2.3.4 Renewal of medical insurance and group term life
8.2.3.5 Renewal of insurance for PC & notebook, lab equipment, server,
software, office renovation, office building, furniture & fittings and all
office equipment

8.2.4 A Variation Order (V.O.) is allowable up to 15% from the original approved
amount only. The Approving Authority for the various procurement requisition
value for V.O is as stated in the Approving Limit. The documents required are PR
and only one Quotation (i.e. from the existing vendor) is required.

8.3 Approval Authority:

The Board is requested to consider and, if thought fit, approve the proposed Approving Limit
Authority as per Table below:

Approving Authority Minimum

Approving Limit Documents No. of
Requestor Recommended Approver *Verifier Quotation
Requisition value Staff Manager Head Head of PR only 1 (One)
up to RM5,000 FPC
Requisition value Staff Head 1 SMT CFO PR only 3 (Three)
above RM5,000 up
to RM20,000

Requisition value Staff Head 2 SMT CFO PR only 3 (Three)

above RM20,000
up to RM50,000
Requisition value Staff Head CEO & 2 CFO PR only 5 (Five)
above RM50,000 SMT
up to RM100,000

Requisition value Staff TEC & CEC MTC CFO PR and Open
above RM100,000 RFP & RFQ Tender
up to
RM 1,000,000

Requisition value Staff TEC & CEC BTC CFO PR and Open
above RFP & RFQ Tender
RM1,000,000

Notes:
i) In the absence of any position(s) stated above, please get recommendation or approval by a person with an authority of

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at least one (1) level up.

ii) Approving Limit excludes all taxes, dues, duties and/or other levies imposed by the relevant authorities in Malaysia
iii) *Verification shall be on budget availability only.

8.4 Availability of budget:

8.4.1 All expenditure must be limited to the approved budget and the requisition of
goods and services must be properly specified by the requestor and approved by
the appropriate Approving Authority. In situations where there is insufficient
budget on unavailability of budget, requestor has to prepare a board paper for
approval by BOD.

8.4.2 Budget owner must approve the related purchase if the budget is to be utilized by
other division / department / unit.

8.4.3 Please refer shared folder by Finance in MYNIC Drive

8.5 All purchases are to be made in accordance to this Standard Operating Procedure:

PROCESS METRICS

PROCESS/TASK KPI TARGET MONITORING

Issuance of PO
5 Working 85% Monthly
Note: days

The 5 working days starts upon submission of

complete documentation and information by Requestor.

Cut-off date for Requestor to submit document for PO

processing is every Wednesday before 12pm.
Example: If Requestor submitted complete document
to Procurement Unit on 19th April 2012 (Thursday), PO
processing will only start on 25th April 2012 and the 5
working days starts from 25th April 2012.

8.6 Limits of Authority (LOA):

8.6.1 The LOA establishes a sound framework of authority and accountability within
MYNIC, which facilitates timely, effective and quality decision-making at the
appropriate levels of MYNIC's hierarchy. The LOA also provides a single
mandatory document that shall be used consistently throughout MYNIC.

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8.6.2 In exercising the LOA, all staff shall act in good faith and with responsible care, in
the best interest of MYNIC. Any non-compliance to the approval levels as set out
in the LOA shall be viewed seriously and Is subject to disciplinary action.

9. PROCUREMENT STRATEGY

9.1 Roles and Responsibilities:

# ROLES RESPONSIBILITIES
1 PRC a) Prepare PO and ensure accuracy of information stated on the PO and get
verification from CFO and approval from CEO.

b) Submit a copy of the approved PO to the vendor, requestor and FIN.

c) Set up a TEC and CEC, coordinate procurement meetings, communicate with

vendor if their tender is successful or otherwise, inform requestor and LIG of
successful vendor name, advertise open tenders in company website and other
media deemed necessary.
d) TOR for PRC is as per Appendix 1.

2 Requestor a) The gatekeeper to receive ordered goods/services from supplier or designated

freight forwarding company.

b) Perform physical checking of goods/services.

c) Verify and acknowledged on supplier’s DO/service sheet/other document(s).

Submit original invoice, acknowledge suppliers’ DO/service sheet/other
document(s) required to FIN for payment process.

3 TEC a) Proposed by PRC and approved by MTC for procurement value above
RM 100,000.

b) Elected from staff of Executive level and above.

c) TOR for TEC is as per Appendix 1.

4 CEC a) Proposed by PRC and approved by MTC for procurement value above
RM 100,000.

b) Elected from staff of Executive level and above.

c) TOR for CEC is as per Appendix 1.

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INTEGRATED MANAGEMENT SYSTEM
STRATEGIC PROCUREMENT POLICY AND FRAMEWROK

# ROLES RESPONSIBILITIES
5 MTC a) MTC consists of a minimum of three SMT level and above for procurement
value above RM 100,000 up to RM 1,000,000 where the CEO will be one of the
compulsory committee members (MTC Chairman).

b) TOR for MTC is as per Appendix 1.

6 Board a) Procurement value above RM 1,000,000 where the Chairman will be one of the
compulsory committee members (BOD Chairman).

9.2 Procurement Process

9.2.1 Purchase Requisition (PR)

9.2.1.1 All requisitions for goods and/or services shall raise PR. The duly filled up
PR must be approved in accordance to Approval Limit.
9.2.1.2 Requestor is to raise one PR for each vendor.
9.2.1.3 No PR is required for the following (requestor to prepare BOD paper for
approval by Directors):

9.2.1.3.1 Overseas Travel (except ASEAN countries)

9.2.1.3.2 Training/Seminar/Workshop

9.2.1.4 Any direct purchase only applicable for the following categories in which
requestor need to provide only one (1) quotation:

Category Definition
Sole Proprietary The patented or proprietary features of goods and services that give the state of
superior and necessary utility that cannot be obtained from others. It is a sole
trader by which the individual or organization are the only source of service
provider

Government / Any kind of services or instructions from the government or local authority that
Local Authority need to be implemented or procure.
Service

Procurement Product that are made special and full filling MYNIC requirement where in the
Consultancy action for replacement or upgrade the goods and services it is not possible for
(niche) inter-changeablility vendor occurs as it would not meet MYNIC requirement.

Procurement To appointment any of vendors appointed by the host i.e KKMM to support their

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Category Definition
Good & Services programs and agenda.
appointed by
HOST

Goods / Services Any form of goods or services that is deemed as emergency which requires
required under immediate action. These circumstances would generally apply in emergency
Emergency situation requiring urgent purchasing to protect life, health, security or safety due
situation to unforeseen event or incident.
(reference made
to BCMS)

Note: For purchases which require more than 1 quotation but justifies under the Direct Purchase definition hall also require the approval of
CEO.

10. REVIEW OF POLICY AND FRAMEWORK

10.1 The policy shall be reviewed in its entirety on an annual basis or as an when required to
ensure to ensure continued relevance and appropriateness of its contents. The annual
review shall consider the continued practicality of the policy.

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