The Government Procurement Bill 2025, passed by the Dewan Rakyat on Thursday, August 28, 2025, does not expand the finance minister’s authority but codifies existing powers with greater clarity, according to the Treasury.
Treasury Secretary-General Johan Mahmood Merican explained during a virtual media briefing on Friday that the bill aligns with global best practices. It enables enforcement actions against former public officers, including those who have retired, and holds the finance minister accountable for offenses under the legislation. “We are not broadening the minister’s powers but enshrining them in law,” he clarified.
The bill, designed to enhance transparency in public spending, faced criticism from civil society groups for provisions perceived to grant the finance minister excessive discretion. The Institute for Democracy and Economic Affairs (IDEAS) raised concerns about clauses allowing the finance minister or state chief ministers to exempt “one-off allocations” to government-linked companies and statutory bodies from the bill’s requirements. Additionally, the think tank noted that the bill permits the finance minister to select procurement methods beyond competitive bidding, potentially opening the door to political influence.
Approved by a bloc vote of 125 MPs in the Dewan Rakyat, the bill is slated to take effect in early 2026, pending Senate approval and gazetting. Johan stated that the Treasury will update relevant circulars and regulations to support implementation. “The bill will be accompanied by Treasury instructions and guidelines,” he said, adding that adjustments could be made based on parliamentary feedback, such as publishing names of blacklisted companies if requested by MPs.
To address concerns about impartiality, Johan clarified that tribunal hearings under the procurement law will be held privately, but decisions will be publicly disclosed. Tribunal members, including the chairman and deputy chairman, must have judicial or legal service backgrounds, while other members cannot be active civil servants and must possess expertise in finance or procurement. “This structure ensures independence in reviewing complaints from procurement teams, ministries, or other parties,” he said.
The bill introduces stricter blacklisting rules, with enforcement supported by agencies like the Construction Industry Development Board (CIDB). Johan reassured honest contractors that the law aims to improve governance without imposing undue burdens. “Those who violate the rules should be concerned, but the goal is to strengthen accountability,” he emphasized.
