Malaysia's parliament approves law to regulate government procurement

28/8/2025 15:53

Malaysia's parliament on Thursday passed a law to better regulate government procurement processes, as rights groups and some opposition lawmakers raised concerns over potential loopholes and a lack of independent oversight.



The Southeast Asian country has been seeking to strengthen fiscal management and avoid the massive financial losses linked to corruption cases like the multibillion-dollar 1MDB scandal.



It has also long struggled to contain leakage and misappropriation from graft involving public officials, particularly through the awarding of government contracts through negotiations rather than open tenders.



The Government Procurement Bill is aimed at ending such practices, providing a framework for all government agencies and local authorities that utilise public funds.



It will also introduce penalties for wrongful practices like rent-seeking, sub-contracting, and interfering in procurement processes.



"This bill places the obligations and powers in government procurement matters according to uniform standards and procedures, thus reducing the room for different interpretations, non-compliance, or abuse of power," Finance Minister Amir Hamzah Azizan said while wrapping up a debate about the bill on Thursday.