Answers for Oral Questions PL209 & PL280

Reading Summary

📖 Reading time: 5 minutes
📊 Word count: 890 words

YANG BERHORMAT DR. AWANG HAJI MAHALI BIN HAJI MOMIN AND YANG BERHORMAT AWANG HAJI SALLEH BOSTAMAN BIN HAJI ZAINAL ABIDIN

QUESTION:

YANG BERHORMAT DR. AWANG HAJI MAHALI BIN HAJI MOMIN asked the MINISTER AT THE PRIME MINISTER'S OFFICE AND MINISTER OF FINANCE AND ECONOMY II to state what steps the Ministry is taking to expedite the payment of completed government projects to young local entrepreneurs and Malay traders. This is to ensure the continuity, progress, and development of these small and medium enterprises, considering the issue was raised during a discussion session with them.

YANG BERHORMAT AWANG HAJI SALLEH BOSTAMAN BIN HAJI ZAINAL ABIDIN asked the MINISTER AT THE PRIME MINISTER'S OFFICE AND MINISTER OF FINANCE AND ECONOMY II to state when the Ministry will implement a Service Level Agreement (example: payment within 30 days), real-time digital monitoring mechanisms, and consider interest for late payment or compensation for delayed contractors, considering there are still issues of delayed payments to local companies through TAFIS 2.0 that burden cash flow and business continuity.

YANG BERHORMAT MINISTER AT THE PRIME MINISTER'S OFFICE AND MINISTER OF FINANCE AND ECONOMY II

ANSWER:

Yang Berhormat Yang Di-Pertua,

Firstly, regarding Question PL209, concerning the Ministry’s steps to expedite the payment of completed government projects to young local entrepreneurs and Malay traders.

For the information of Your Honourable Members, the Ministry of Finance and Economy does not differentiate payment processes for businesses, whether they comprise young local entrepreneurs or Malay traders.

Regarding the issue of late payment due to TAFIS 2.0, the Ministry of Finance and Economy through the Treasury Department has taken proactive and effective steps since April 2024, such as introducing the Government Vendor Portal system which facilitates the submission of invoices and monitoring payment statuses online; and establishing Payment Clinics, User Clinics, and Vendor Clinics (GVP Clinic) that provide support and training directly to vendors and government officials, thereby increasing acceptance and expediting problem resolution.

Your Honourable Members, allow kaola to continue sharing the latest status of TAFIS 2.0. As of 31st July, 2025, the total number of claims/invoices paid since TAFIS 2.0 was introduced is 1,478,813 invoices, with only 1,363 payments experiencing problems and still in query status at the departmental level as of July 2025 (Financial Year 2025/2026).

This issue is partly due to the understanding of the TAFIS 2.0 system users, whether government departments or suppliers and the general public.

Now, as seen, there has been a decrease in the number of vendors visiting the Vendor Clinic (GVP Clinic), which is 232 people in July 2025 compared to an average of 457 people in previous months. For this Vendor Clinic (GVP Clinic), most vendors visit the clinic to inquire about the status of their invoice payments, get help to upload or submit invoices, and assistance in preparing Service Entry Sheets and Advance Shipping Notices. Meanwhile, for the Payment Clinic (formerly known as ICU Payment Clinic), considering the number of vendors who come to inquire about the status of their payment arrears has decreased since August 2024, the Clinic has been moved to the Payment Unit Counter for any inquiries from companies. In addition, the number of users from ministries and departments coming for help and guidance from the User Clinic provided has also decreased, with only 14 users visiting the Clinic for guidance in June 2025 to deal with the problems they faced.

Furthermore, the Treasury Department has also developed TPOR Reports for each Ministry within the TAFIS 2.0 system and continues to conduct ongoing monitoring.

Any entrepreneur, not just young local entrepreneurs or Malay traders who require any assistance or inquiries, can directly contact the Treasury Department or attend the clinics provided.

Secondly, regarding PL280, about mechanisms such as moderate interest charges or compensation to address situations where government payments to suppliers are delayed. This matter was raised during the First Session of the 21st Legislative Session in 2025, and kaola had already provided an answer on the 10th of March 2025. However, allow kaola to provide a bit more explanation on this matter.

For the information of Your Honourable Members, payment processes can be expedited if the claims comply with the financial rules that have been set. The Ministry of Finance and Economy through the Treasury Department is continuously striving to ensure that existing payment processes can be carried out in a more orderly and efficient manner, based on financial rules.

As for the compensation mechanisms, they are typically included in the supplier's contract or claim invoice. However, this compensation clause needs to be agreed upon by both parties either at the time the contract is signed or when accepting the offer.

In addition, Kaola would like to share that the Ministry has also found that some of the issues are not caused by the TAFIS 2.0 system itself, but by a lack of experience and knowledge in using the TAFIS 2.0 system. Thus, through the clinics provided, most of these issues have been successfully resolved in recent months. Therefore, this Ministry urges those who are still facing issues or problems in using the system to also visit the clinics provided so that this Ministry can help expedite the payment process further.

Insya-Allah, the Ministry of Finance and Economy is always committed to improving and expediting payments to relevant parties. Accordingly, continuous cooperation from all relevant parties is greatly needed to further facilitate the approval and payment processes.

Thank you, Yang Berhormat Yang Di-Pertua.