KUALA LUMPUR, Aug 27 — The government has introduced the Government Procurement Bill 2025 as part of its ongoing efforts to enhance fiscal discipline.
Prime Minister Datuk Seri Anwar Ibrahim, who also serves as Finance Minister, explained that the Bill is designed to tackle inefficiencies.
He also reaffirmed that direct negotiation contracts will no longer be tolerated, stating that the practice wasted public funds and benefited only a wealthy elite.
“Large-scale projects such as flood mitigation, schools, highways and hospitals involve huge sums.
“Awarding them hastily through direct negotiations only squandered the people’s money,” he said when tabling the Bill in Parliament today.
Anwar highlighted the following actions the government has taken since 2023:
- Halted direct negotiations for regular development projects
- Cancelled and retendered rushed approvals to ensure better value and higher impact for the rakyat
- Introduced open tenders to promote competition and fairness, while ensuring procurement still supports Bumiputera entrepreneurs, local industries, SMEs, and green initiatives.
He also stressed that Bumiputera policies remain protected despite international trade negotiations.
“The government will not compromise on Bumiputera empowerment.
“Procurement opportunities must not be monopolised by a handful of big contractors,” he said.
The Bill also mandates that civil servants report procurement violations to enforcement agencies like Malaysia Anti-Corruption Commission, police or Malaysia Competition Commission (MyCC) and establishes enforcement units to curb abuses.
