KUALA LUMPUR: The government has tabled the Government Procurement Bill 2025 to strengthen fiscal management and complement existing financial legislation.
Prime Minister Datuk Seri Anwar Ibrahim stated the bill aims to address financial leakages and optimise national resources for economic reforms.
He emphasised that rushed direct negotiations without due diligence waste public funds and benefit only a small wealthy elite.
“From the first year, I halted the practice of direct negotiations and shifted to an open tender procurement system for regular development projects,“ he said during the bill’s second reading in the Dewan Rakyat.
Anwar noted that large-scale infrastructure projects like flood mitigation, schools, roads and healthcare require significant public spending.
“In the past, it was not unusual for projects like roads, schools and hospitals to be awarded through direct negotiations,“ he added.
The bill forms part of the MADANI Economy framework designed to restructure the economy towards higher value activities.
This economic restructuring aims to deliver spillover benefits that improve people’s standard of living.
Anwar highlighted the government’s creation of the Public Finance and Fiscal Responsibility Act 2023 as a historic milestone for fiscal management.
The government has advanced several key frameworks including the MADANI Economy and the 13th Malaysia Plan to address structural economic issues.
Stakeholder engagement involved federal and state governments, local authorities, contractors’ associations, professional bodies, NGOs and academics.
This comprehensive consultation process helped present the government’s intent and gather feedback on the procurement legislation. – Bernama
