KUALA LUMPUR, August 29 — The Government Procurement Bill 2025 was tabled in Parliament by Prime Minister Datuk Seri Anwar Ibrahim to curb inefficiencies, end direct negotiation contracts, and strengthen transparency in public spending.
Anwar, who is also Finance Minister, stressed that projects involving schools, highways, hospitals, and flood mitigation works should no longer be hastily awarded through direct negotiations, a practice he said wasted public funds and benefited only a select elite.
The Bill also mandates civil servants to report procurement violations to enforcement agencies while ensuring that Bumiputera empowerment policies remain protected. Lawmakers debating the Bill said it brings Malaysia closer to global procurement standards by mandating open tenders.
Creating a Procurement Appeal Tribunal, and introducing strict penalties, including fines up to three times the contract value or imprisonment for fraud. They highlighted that the reforms would help eliminate the long-standing “Ali Baba” contract culture.
Reduce political interference, and promote fairer opportunities for SMEs, local industries, and green initiatives. The government said the move reflects its MADANI commitment to integrity and accountability in public governance.
