The proposed government procurement law which was passed in the Dewan Rakyat yesterday will not give the finance minister more power but makes his existing powers clearer under the law, says the Treasury.
Treasury secretary-general Johan Mahmood Merican said the Government Procurement Bill 2025 was based on global best practices and allows for action to be taken against former officers who have retired or left the public service.
“Even the (finance) minister is subject to offences under this bill. What we are doing in this bill is not expanding the minister’s powers, but putting them in law,” he said during a virtual media briefing today.
The bill, aimed at boosting transparency in public spending, drew flak from civil society groups for appearing to give the finance minister too much unchecked power.
The Institute for Democracy and Economic Affairs said a key concern was the wide discretion granted to ministers, such as allowing the finance minister or chief ministers of states to exempt “one-off allocations” to government-linked firms and statutory bodies from the bill.
The think tank said the bill also allowed the finance minister to determine procurement methods beyond competitive bidding, leaving decisions open to political influence.
The bill was passed in the Dewan Rakyat yesterday in a bloc vote, with 125 MPs in support.
Takes effect early 2026, adjustments possible
Johan said the law, once approved by the Senate and gazetted, is expected to take effect early next year after the relevant Treasury circulars and regulations are updated.
“What we intend to implement under this bill will be followed by Treasury instructions and various guidelines,” he said.
Johan added that some parts of the rules could be adjusted based on feedback from Parliament. “For example, if an MP asks for blacklisted company names to be published, we will look into it.”
Johan also said that tribunal hearings under the procurement law would be held behind closed doors, but decisions would be made public.
He sought to allay concerns that tribunal members would be selected by the finance minister, saying its members would not be civil servants while its chairman and deputy chairman must come from the judicial or legal service.
“The remaining members also cannot be serving civil servants, to at least ensure independence from the ministry. They must also demonstrate experience or capabilities in the areas of finance and procurement, and so on.
“We believe that this provides that level of independence to review and release complaints from the procurement team and whichever ministry or party that will participate in them,” he said.
Johan said there would also be tighter blacklisting rules under the new law, and that those found guilty could be banned with the help of agencies like the Construction Industry Development Board, or CIDB.
He said honest contractors need not worry about the law, but that those who break the rules should. “The aim is not to burden, but to improve governance.”
