KUALA LUMPUR (Oct 11): The government intends to table the Government Procurement Act (GPA) in the second quarter next year, addressing tender processes for public procurements, said Deputy Finance Minister I Datuk Seri Ahmad Maslan.

Therefore, there is no need to make open tendering mandatory in the Public Finance and Fiscal Responsibility Bill, he explained, addressing the proposal raised by former finance minister Lim Guan Eng [PH-Bagan] to make open tendering mandatory in the Bill.

Earlier during a debate session, Lim proposed that the government make open tendering mandatory in the Public Finance and Fiscal Responsibility Bill to prevent hindrances to the government's efforts in achieving fiscal responsibility.

He also recommended that the government publicise details of guarantee letters and support letters while making it mandatory for companies that receive these endorsements to provide periodic financial statements to the august house.

This will ensure that the financial performance of these companies is known to the public, Lim said.

"With this Bill, we can prevent another 1MDB or Jana Wibawa from happening again," he added.

Lim also expressed concern about the Bill's requirement for the fiscal deficit to GDP to be less than or equal to 3%. If the fiscal objective is not achieved, it will be used as a measure by rating agencies, potentially affecting Malaysia's credit outlook.

"What will happen if we need to engage in deficit spending? I hope there is some flexibility during urgent situations," Lim added.

Meanwhile, Radzi Jidin [PN-Putrajaya] also raised concern about the 'temporary deviation' if the government fails to achieve its fiscal objective.

The Bill states that the government may temporarily deviate from its fiscal objectives, and the finance minister shall present the fiscal adjustment plan to Dewan Rakyat for approval, upon green light by the Cabinet.

"But what will happen if Dewan Rakyat rejects the fiscal adjustment plan? What are the implications, and could it affect the budget for the respective year? We do not want a government shutdown, such as those that have occurred in other countries, to happen to us," Radzi stated.

In response, Ahmad Maslan said such a situation could be resolved by Dewan Rakyat quickly, as early as two weeks with a special sitting. “We could expedite the process,” he said.

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