The CSO Platform for Reform, a coalition of over 72 civil society organisations committed to advancing institutional reform and accountability in Malaysia, is deeply concerned with the government’s tabling of the Government Procurement Bill 2025 for first reading in Parliament.
While the Bill has been presented as a step towards strengthening transparency and accountability in public procurement, closer examination reveals troubling provisions that risk undermining these very objectives.
Key concerns raised by civil society include excessive ministerial control. The bill grants ministers the power to approve mega-contracts without financial ceilings, overrule procurement boards, and influence their appointments.
This undermines safeguards against conflict of interest and centralises procurement decisions in political offices.
Second, there is a lack of independent oversight. The proposed government procurement appeal tribunal is not structurally independent, with all appointments controlled by the minister. Complainants must first lodge grievances with the same agencies they are challenging, eroding the credibility of the complaints process.
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Furthermore, there are loopholes and exemptions. The bill allows ministers to exempt entire programmes from procurement rules and issue “public interest certificates” that override objections or appeals. These provisions weaken accountability and risk perpetuating opacity.
Treasury officers may be granted sweeping investigative powers, including warrantless searches and seizures, with minimal safeguards. This concentration of powers risks abuse and selective enforcement.
The procurement of defence assets, one of the most corruption-prone areas of public spending, has been cited as falling under the bill.
Yet without genuine checks and balances, such procurements may remain shielded from scrutiny, raising alarm for national integrity and financial accountability.
Our position
Public procurement is one of the largest avenues of government expenditure and a sector most vulnerable to corruption. Any legislation governing it must not only safeguard efficiency but also ensure institutional accountability, transparency and public trust.
The current draft of the bill falls short. Instead of rushing it through Parliament, we strongly urge the government to:
- Introduce structural safeguards to limit ministerial discretion, guarantee the independence of the appeal tribunal, and close loopholes that enable exemptions from procurement rules.
- Strengthen transparency and disclosure requirements, particularly in high-risk areas such as defence procurement, to prevent abuse of public funds by adopting an open tender policy.
- The bill should be delayed to fix the gaps mentioned above before the second reading. Reiterating the above points, the excessive ministerial power, lack of oversight, investigative powers for the Treasury, and transparency in the procurement award process should be addressed.
Malaysia needs procurement laws that reflect best practices in integrity and accountability.
Institutional reform requires that Parliament, civil society and the public have a meaningful role in shaping such laws.
The CSO Platform for Reform calls on MPs to ensure that the bill is subjected to robust, transparent scrutiny through the select committee process before it proceeds any further. – CSO Platform
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