THE Government Procurement Bill (RUU PK) has been described as a crucial step towards strengthening financial governance in Malaysia by placing all procurement transactions under a clear, transparent legal framework.
Angkatan Muda Keadilan (AMK) Chief of Legal and Public Complaints Bureau head Khairul Naim Rafidi said the bill addresses a long-standing legislative vacuum that has allowed government-linked entities and special purpose vehicles (SPVs) to operate with minimal oversight.
“Financial decisions were previously made through SPVs without clear legislative control, which exposed weaknesses in governance structures,” he said in a statement.
“The Government Procurement Bill is the answer to those gaps. It ensures all procurement dealings, including high-value contracts, are monitored within a transparent legal framework.”
Khairul stressed that the bill should not be viewed as weakening checks and balances. Rather, he argued, it represents a critical institutional reform to tighten accountability mechanisms and safeguard public funds.
He added that the bill is a key component of the Malaysia Madani agenda, aimed at ensuring public money is managed prudently, transparently, and free from leakages.
The Ministry of Finance previously announced that the bill is being introduced to enhance transparency in the public procurement process.
A number of engagement sessions have been held with state governments, government agencies, government-linked companies, and industry stakeholders to ensure the proposed legislation meets wide-ranging needs.
Lawmakers has since heard that the Bill comprises 12 parts and 93 clauses, covering areas such as accountability, oversight, and legal action against parties who breach procurement regulations.
The government has emphasised that the bill does not confer new powers upon the Finance Minister, whose authority remains bound by the Financial Procedure Act 1957 (Revised 1972).
Furthermore, decisions made by tender boards or ministers may be challenged through the establishment of a Government Procurement Appeals Tribunal, thereby strengthening oversight mechanisms.
The legislation also aligns with the National Anti-Corruption Strategy (NACS), led by the Malaysian Anti-Corruption Commission (MACC), to ensure public expenditure is carried out with integrity, transparency, and without misappropriation.
On Friday, the Dewan Rakyat passed the Government Procurement Bill 2025 despite calls from civil society organisations to delay the legislation for further refinement and consultation.
In a bloc vote, 125 Members of Parliament supported the bill, 63 voted against, and one abstained. Thirty-two MPs were absent from the vote.
Following the result, opposition MPs staged a walkout in protest, led by opposition leader Hamzah Zainudin (PN–Larut). - August 31, 2025
