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Govt Procurement Bill 2025 to Enhance Public Procurement Transparency and Integrity

Kuala lumpur: The Government Procurement Bill 2025 is set to bring Malaysia in line with international public procurement standards, focusing on transparency, open competition, fair treatment, and integrity as per the UNCITRAL Model Law on Public Procurement 2011.

According to BERNAMA News Agency, Tan Hong Pin (PH-Bakri) emphasized that the bill mandates government procurement through open and fair competition, as outlined in Section 28, aligning Malaysia with global procurement standards. He highlighted past controversies involving projects awarded through direct negotiations without open processes, recalling the Auditor-General’s reports that frequently cited delayed projects due to issues like unqualified contractors and political interference.

The bill introduces several control mechanisms, including mandatory open tenders, the establishment of a Procurement Appeal Tribunal, and more severe penalties. These penalties include fines of at least three times the contract value or not less than RM1 million and up to five years of imprisonment for fraud or document falsification. Administrative penalties such as daily fines of up to RM500 for continuous violations are also introduced, underscoring the government’s intent to eliminate manipulation in procurement processes.

Tan also noted that the bill incorporates elements aligning with international best practices, encouraging SME participation, local product use, and green procurement, reflecting the MADANI Government’s commitment to integrity since taking office in 2022. There were also calls from MPs for the inclusion of public-private partnership projects under the bill.

Yeo Bee Yin (PH-Puchong) sought clarification on the delayed MEX 2 Highway Project, citing previous MACC investigations into false claims and financial concerns. Meanwhile, Datuk Mas Ermieyati Samsudin (PN-Masjid Tanah) proposed referring the bill to the Parliamentary Special Select Committee on Finance and Economy for further review and engagement.

Earlier, Prime Minister Datuk Seri Anwar Ibrahim presented the bill for its second reading in the Dewan Rakyat, aiming to establish obligations, governance, and transparency in government procurement, including a Government Procurement Appeal Tribunal. The Dewan Rakyat session will resume tomorrow.

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