KUALA LUMPUR – The Government Procurement Bill 2025 has been described as a key step towards strengthening Malaysia’s financial integrity while safeguarding the autonomy of Sarawak and Sabah in development projects.
Senator Dato’ Ahmad Ibrahim said the existing procurement system has long been criticized for weaknesses that contribute to project delays, cost overruns and leakages.
“A study by the Malaysian Integrity Institute in 2023 revealed that almost 35 per cent of complaints were linked to manipulation of tenders, price fixing and control by certain groups. Contracts must be awarded on merit and free from political interference. It is not enough for projects to be completed — they must also be of high quality and truly benefit the people,” he said when debating the motion in the Dewan Negara today.
Dato’ Ahmad stressed that the new law must not affect state rights guaranteed under the Malaysia Agreement 1963 (MA63). This includes state jurisdiction over land matters, local government and project contracts.
He said several issues require urgent attention, including overlapping jurisdictions between federal and state contracts, delays in reimbursement for federal projects funded upfront by states, and the limited opportunities faced by small and medium-sized contractors in Sarawak and Sabah.
“This bill must be framed in the spirit of cooperation, not forced standardization. It must include clauses that recognize state autonomy, provide quotas for local contractors and ensure a proper reimbursement mechanism with periodic reviews,” he explained.
He further called for a transparent digital procurement platform to be developed, providing equal access for contractors from both states.
“This legislation should transform the system from relationship-based procurement to one driven by merit, integrity and measurable results,” he added.
The Government Procurement Bill 2025 is expected to be tabled for further discussion before being passed into law, marking a significant step in modernizing Malaysia’s procurement practices.
