KINIBIZ The Malaysian negotiators have secured a significantly higher threshold for participation in government procurement under the Trans-Pacific Partnership Agreement (TPPA), said the International Trade and Industry Ministry (Miti).

This effectively secures a substantial portion of government procurement to be exclusively for bumiputera contractors, though this will be lowered over time. The full text of the agreement was released to the public earlier this evening.

One of the major criticisms and cause for concerns from Malaysian detractors had been that the deal would affect the privileged position of bumiputera companies, state-owned enterprises and small and medium enterprises (SMEs). However, Malaysia was able to secure among the highest thresholds out of the 12 negotiating countries in the area of government procurement.

Upon entry into force, the threshold for TPPA member participation in government construction services will only be allowed for above the special drawing rights (SDR) 63 million (RM374 million) level for the first five years.

The threshold will then be reduced over a 21-year transitional period before settling at SDR 14 million. The threshold level is only second to Vietnam.

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