Procurement Bill to strengthen fiscal management, curb leakages - PM

The Government Procurement Bill is being proposed to strengthen fiscal management and address leakages, said Prime Minister Anwar Ibrahim.

He said the bill also aims to optimise national resources to continue driving economic reforms and improving the quality of life for the people.

He was speaking during the tabling of the bill for its second reading in the Dewan Rakyat today.

Anwar stressed that rushed direct negotiations without due diligence would waste public funds and only benefit a small group of wealthy elites.

He also noted that large-scale projects such as flood mitigation, schools, roads, and healthcare require significant spending.

“From the first year (of the current federal government), I halted the practice of direct negotiations and shifted to an open tender procurement system for regular development projects.

“In the past, it was not unusual for projects like roads, schools, and hospitals to be awarded through direct negotiations,” he said.

He said under the Madani Economy: Empowering the People framework, which serves as a major transition strategy, the government’s goal is to “raise the ceiling and the floor” and to restructure towards a higher value economy.

This will ultimately deliver spillover benefits to improve the people’s standard of living, Anwar said.

“The Madani government created a historic milestone by boldly enacting the Fiscal Responsibility Act 2023, which introduced strict benchmarks for fiscal management and restored the finance minister’s accountability to Parliament for oversight.

“The government has already advanced several key frameworks, including the Madani Economy and the 13th Malaysia Plan, designed not only to strengthen the economy but also to untangle long-standing structural issues that have plagued the nation,” he added.

In drafting the Procurement Bill, Anwar said the government conducted thorough reviews and engaged stakeholders across federal and state governments, local authorities, contractors’ associations, professional bodies, NGOs, and academics.

- Bernama

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