Government Procurement Bill - tabled on 25/8/2025, and passed by Dewan Rakyat (House of Representatives) on 28/8/2025 > WHY SO FAST, WHY DID THE PEOPLE WHO FIRST SAW IT WHEN IT WAS TABLED AND PUBLISHED IN THE PARLIAMENT WEBSITE PASSED SO FAST - NO TIME FOR THE PEOPLE TO EVEN LOOK AT IT AND GIVE THEIR COMMENTS...
The FIRST MAJOR CONCERN IS THE APPROVING AUTHORITY AND THE AMOUNT THEY CAN APPROVE (This is the First Schedule) especially the MINISTER(meaning the Finance Minister) and the Chief Minister/Menteri Besars - for others there is a stated LIMIT.
10. (1) Subject to subsection (2), an approval for a Government procurement under this Act may be given by—
(a) the Minister or, in relation to a State, the Menteri Besar or Chief Minister or any other authority as may be determined by the State Government, as the case may be;
(b) a procurement board established under section 11;(c) a committee established by a controlling officer under paragraph 7(1)(f); or
(d) a controlling officer.
(2) The approval threshold of each approving authority under subsection (1) shall be as specified in the First Schedule....
Look at who is the Minister given so much powers - it ts the Finance Minister - and now it is Anwar Ibrahim. The Bill tells us who is this Minister is
“Minister” means the Minister charged with the responsibility for finance;
# The danger is that there is NO UPPER LIMIT.
For Procurement of Goods and Services, they can approve anything More than RM50 million - NOTE NO UPPER LIMIT
For Procurement for works, they alone can approve More than RM100 million - NOTE NO UPPER LIMIT
DANGER...DANGER - this means any MINISTER alone can approve even RM50 Billion spending - without any checks and balance. YES there is NO LIMIT - only says more than...
The approval of the Prime Minister(relevant if the Finance Minister is not the PM) or the Cabinet is NOT needed.
So, the FINANCE MINISTER can act ALONE legally if this Bill is made law. This is NOT RIGHT. So who prevents the Finance Minister from spending too much - It would have been better if ALL government procurement needed at the very least the CABINET approval - it could be the first check and balance against abuse of power of ONE Minister, the Finance Minister.
REFORMS NEEDED
1 - LIMIT what the Minister of Finance, or the Chief Ministers/Menteri Besars can approve alone - maybe a RM1 million limit, and ANY OTHER HIGHER SUMS should require CABINET or State EXCO Approval;
2 - And if the SUM exceeds RM10 million, then it should require the approval of Parliament or the State Legislative Assembly
# The Government Procurement Bill FAILS to put the relevant checks and balance to prevent ABUSE...and, we are looking for another 1MDB like scandal where the cause of it was because the Finance Minister/Prime Minister could act alone without even Cabinet's knowledge and consent, or better still Parliament's approval - we suffered a loss of about RM50 Billion or more...
Did we not learn from the 1MDB Scandal - where the Finance Minister caused us so much loss...now, are we going to make it LEGAL through an Act of Parliament?
YES, the NEW BILL is worse, because it LEGALIZES the ability of the Finance Minister to act alone, not even needing to inform Cabinet or get its approval.
SECOND PROBLEM - Who appoints the Procurement Board - it is interestingly the same Minister, or Cm/MB. And worse, when the Board cannot make a decision, the decision is made by the Minister or relevant Chief Minister/MB
Establishment of procurement board
11. (1) The Minister or, in relation to a State, the Menteri Besar or Chief Minister, as the case may be, may, by notification in the Gazette—
(a) establish a procurement board for every Ministry or, ministry or department of a State, as the case may be; and ...Section 12(8) If a procurement board fails to reach a unanimous decision on any matter being deliberated in a meeting, the procurement board shall refer the matter to the Minister or, in relation to a State, Menteri Besar or Chief Minister or any other authority as may be determined by the State Government, as the case may be, for a decision.
If UNHAPPY, can apply for a REVIEW, and the REVIEW PANEL decides, and if still not happy, can appeal to Appeal Tribunal - again the problem is that the same Minister or Chief Minister/MB picks and appoints the Procurement Board, the Review Panel and the Appeals Tribunal... This is a problem...which also means the FINANCE MINISTER is way too powerful, and can act on his own.
The REVIEW Panel and the APPEALS Tribunal really has to be INDEPENDENT, and must be appointed not by the same Minister or Chief Minister....maybe by Parliament?
- REASONABLY the approval of Parliament should be sought for HIGHER AMOUNTS, for after all it is Malaysia's and Malaysians' MONIES...
NO OPEN TENDER?? Only SELECTED can bid?
OPEN TENDER was what we wanted - but here again this is not specified CLEARLY in the Bill, and in fact the BILL allows the procurement to be done other ways - should situation where procurement be done other ways be specified - maybe certain high national security matters..
Open and competitive procurement
28. (1) Subject to the provisions of this Act, the open and competitive procurement method shall be the primary method in conducting Government procurement.
(2) Notwithstanding subsection (1), the Minister may prescribe the methods other than open and competitive procurement taking into consideration the objectives of this Act.
(3) For the purposes of this section, “open and competitive procurement method” means a procurement method where all registered persons may participate
# Would it not be better to clearly explain what is meant by 'open and competitive procurement'? Is it by way of OPEN Tender..
# Now, only persons or entities that are REGISTERED PERSONS be allowed to participate - ODD again because normally companies and persons would be interested when they know what exactly the government is intending to PROCURE - is it better to KEEP it open to all Malaysian persons or companies, rather than requiring a prior registration??? Registration is also a means to exclude some companies? Is procurement restricted to just Malaysian companies, or is it also open to Foreign companies?
NO CRIMES and punishment?
Yes, another interesting feature is that there is NO crimes/offenses, and sentence if convicted, mentioned - if it is committed by the Minister OR Chief Ministers, a member of the Procurement Board, the Review Panel, the Appeals Board - does that mean that they can commit NO crime?
So, what happens when the Finance Minister abuses power, and procures money at an OVER-PRICED rate? A thing worth RM10, is procured for RM100???
WHY did the MPs from Pakatan Harapan(including DAP and Amanah), BN,....pass this potentially most dangerous BILL so fast?
Surely, if they read it, they would have acted smarter...If they acted according to principles and values, they would have not passed it so FAST..
The people pick their PEOPLES' REPRESENTATIVE in Parliament - but do they act in the best interest of Malaysia and the people of Malaysia? OR do they 'loyally' follow what Anwar or their party leaders tell them to do...
People must start looking at MP candidates - VOTE only for the 'BRAVE" ones, those who are even willing to VOTE not as their leader or party wants, when they know that 'the orders' are wrong. Be peoples' representatives - not party representatives, or party leader's YES MEN
TRUE - the new BILL may not bestow any NEW POWER on the Finance Minister - but that is NOT the issue. What happens NOW is the BILL makes transparent the process of procurement with an Act of Parliament..
Can the Finance Minister NOT require Cabinet approval - and can act as he pleases spending BILLIONS of our money? I am very uncomfortable with this - we do not want a repeat of 1MDB...???
Government should withdraw this BILL, make needed 'repairs' and re-table it again - allow a LONGER period of DEBATE, and time for Public Feedback...
If a Minister or anyone on behalf of government procures any GOODS, Services, etc for a HIGHER VALUE compared to the normal market value, it should be a CRIME, which carries heavy penalty...
Reform movement Aliran has sounded the alarm over the rushed passage of the Government Procurement Bill 2025, warning that the sweeping powers it hands to the finance minister and state chief ministers carry chilling echoes of the 1MDB scandal.
“The 1MDB case showed how concentrated executive power over government spending - whether through state-owned entities or direct procurement - creates opportunities for staggering corruption.
“By vesting similar unchecked discretion in future finance ministers over high-value procurement contracts, this bill recreates the very conditions that enabled 1MDB-type abuses in the past,” it said.
Aliran criticised the government for forcing the second reading and vote just three days before National Day, calling the move unbecoming of an administration that came to power on an anti-corruption and good governance platform.
“For legislation that will govern billions of ringgit in public spending, many interested parties - including MPs, civil society groups, business groups and the public - were given little meaningful opportunity or time to scrutinise and provide input on this 93-clause bill.
“This hasty approach mirrors the authoritarian tendencies that reform movements seek to dismantle,” it added.
The group stressed that a genuinely reformist government would have held extensive consultations, public hearings, and ensured transparency before tabling such a far-reaching bill, including seeking vetting by a parliamentary select committee and allowing sufficient time for debate.
“Despite years of civil society advocacy for strong procurement laws following endless corruption scandals, this bill institutionalises the very weaknesses that have plagued Malaysia’s governance.
“It unfortunately grants the finance minister and state chief ministers extraordinary discretion over procurement contracts above RM50 million for goods and services and RM100 million for works, with no upper limit.
“This shocking concentration of power is unbelievable, especially coming from a ‘reformist’ government,” it said.
Loopholes
Aliran highlighted that procurement board members face conflict-of-interest restrictions, yet ministers, who wield far greater authority, operate with no such safeguards.
It further noted that the bill creates an appeal tribunal that is not truly independent.
“The very minister whose decisions may be challenged appoints its members, sets its procedures and controls its secretariat. How can this be? It creates a sham accountability mechanism where the executive essentially reviews itself.
“The bill is riddled with provisions that allow ministers to exempt entire programmes from its application, bypass registration requirements (for politically connected actors?) and invoke extraordinary powers with no external oversight. These loopholes render the bill’s supposed safeguards meaningless,” it warned.
The group stressed that government procurement involves far more than office supplies, extending to mega projects, land reclamation, IT systems and professional services worth billions.
“Without proper checks and balances, these contracts could become vehicles for rent-seeking, kickbacks and ‘commissions’, just as 1MDB’s procurement decisions facilitated massive financial misconduct,” it said.
Still, Aliran noted that opportunities remain to fix the flawed legislation if there is sustained public pressure ahead of the bill’s third reading and Senate hearings.
The group urged Malaysians to speak out and push for major revisions.
“Senators can’t sit back. They should propose meaningful amendments or reject the bill entirely instead of rubber-stamping it or voting along party lines.
“The committee stage review also offers an opportunity for detailed scrutiny and amendment of specific clauses that concentrate power, create conflicts of interest and undermine transparency,” it said.
Demands
Founded in Penang in 1977, Aliran also laid out several demands for the government, including:
Allowing genuine consultation and amendment during the Senate review process.
Removing provisions that concentrate enormous, unchecked power in the finance minister and state chief ministers.
Establishing truly independent oversight and appeals mechanisms.
Closing loopholes that permit circumvention of procurement safeguards.
Subjecting all high-value procurement and mega-projects to meaningful transparency requirements.
Introducing iron-clad clauses to deter present and future ministers from abusing their powers.
“The people of Malaysia deserve a procurement law that serves the public interest – not one that institutionalises the status quo or makes it worse.
“The government must choose whether it will honour its reform commitments or worsen the conditions that allowed rampant corruption to flourish,” it said.
The Dewan Rakyat passed the bill yesterday. In a bloc vote, 125 MPs voted in favour of the bill while 63 voted against it and one abstained. A total of 32 MPs were absent.
Opposition MPs subsequently staged a walkout in protest. - Malaysiakini, 29/8/2025
Procurement bill gives finance minister too much power, says Hassan Karim
The outspoken MP from PKR says one section of the bill effectively puts the finance minister above the law.
Hassan Karim (PH-Pasir Gudang) said that under the proposed legislation – which was tabled for a first reading on Monday – Parliament would not be able to debate government tenders and purchases.
“One section of the law effectively puts the finance minister above the law,” he said during the debate on the bill in the Dewan Rakyat today.
Hassan, who has not shied away from criticising the government in the past, also felt that the bill was being bulldozed through.
Yeo Bee Yin (PH-Puchong) defended the bill, saying critics were being unfair and misunderstood the reforms.
“To claim this bill maintains the status quo is like an ostrich burying its head in the sand,” the former minister said.
She said the bill introduced better internal checks, oversight, and transparency compared with the past.
“If you really read the bill, you will see that it is more structured, it is more transparent,” she said.
Yeo also said the proposed procurement board and tribunal would create new layers of review and scrutiny.
She said the tribunal was also open to public scrutiny, even more transparent than the parliamentary select committees.
Saifuddin Abdullah (PN-Indera Mahkota) said the bill should have gone through a parliamentary select committee, as it was too important to be rushed.
He said people were not properly consulted, and warned of confusion over how the bill would align with existing state procurement laws, especially in PAS-led states.
He also asked if the new law would replace the current e-Perolehan system or work alongside it.
The proposed law aims to regulate how the government buys goods and services. It sets out clear rules for tenders, contracts, and payments to make the process more transparent and fairer.
The bill also outlines penalties for corruption and gives power to a new tribunal to handle procurement disputes.
Critics say it gives too much power to the finance minister, including the ability to exempt certain deals from the law, and that the bill is being debated with haste.- FMT,27/8/2025
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