PETALING JAYA: While businesses are urging the government to swiftly gazette the Government Procurement Act 2025, anti-graft advocates are advising against a “rushed rollout”.
Each year, the government spends billions of ringgit on public infrastructure, healthcare, education and essential services.
The Act is expected to ensure that contracts are awarded with transparency, fairness and efficiency, while giving smaller businesses fairer opportunities to compete.
Stakeholders say the law’s success will depend on swift implementation and strong safeguards.
For small and medium enterprises (SMEs), the Act could help address concerns that government contracts are often difficult for smaller firms to access.
SME Association of Malaysia national president Dr Chin Chee Seong said a more transparent system would give capable SMEs a fairer chance to compete.
He said SMEs form the backbone of the economy but often lack the resources and networks enjoyed by larger companies.
“A more open system can encourage wider participation and create opportunities for deserving local businesses,” he said.
The Act was passed by Parliament earlier this year but has yet to come into force, pending gazettement and a commencement date to be set by the Finance Minister.
Previously, the Federation of Malaysian Manufacturers has also called for the Act to be gazetted without delay.
Its president, Jacob Lee Chor Kok, described the Act as Malaysia’s first dedicated public procurement law, providing a framework for transparency, fair competition and accountability across federal and state procurement entities.
Transparency International Malaysia (TIM) president Dr Raymon Ram said the Act introduces several reforms, including prioritising open tenders, requiring greater disclosure from bidders and allowing companies to challenge procurement decisions.
He said these measures could help address long-standing concerns over favouritism, hidden interests and questionable contract awards.
“TIM supports expediting the Act’s implementation. However, a rushed rollout without proper safeguards could undermine its effectiveness,” he said.
Raymon noted that many crucial details would still be determined through regulations and implementation guidelines, warning that broad exemptions could weaken the law if not properly monitored.
“Implementation is what will determine whether the law delivers on its promise,” he added.
Anti-graft advocate and former TIM president Dr Muhammad Mohan echoed those concerns, stressing that strong oversight would be essential.
“Enforcement is just as important. Even the best laws will have limited impact without consistent implementation and monitoring,” he said.
Federation of Malaysian Consumers Associations chief executive officer Saravanan Thambirajah said ordinary Malaysians stand to benefit from stronger procurement governance.
“When public money is spent wisely and transparently, consumers benefit through better services and reduced wastage. Taxpayers ultimately bear the cost of inefficiencies, waste and leakages in government spending,” he said.
