This article first appeared in The Edge Malaysia Weekly on May 13, 2024 - May 19, 2024

On May 8, the Ministry of Home Affairs (KDN) inked 14 contracts worth RM2.156 billion with local companies in conjunction with the Defence Services Asia (DSA) Exhibition & Conference 2024 and National Security (NATSEC) Asia 2024. The contracts signed include those for information technology, logistics as well as asset upgrade, Home Minister Datuk Seri Saifuddin Nasution Ismail reportedly said.

Of the 14 contracts, 12 worth RM1.57 billion — which include the acquisition of a multipurpose police transport vessel as a cargo carrier (mother ship) and for training — are for the Royal Malaysian Police. The RM529.66 million contract going to the Malaysian Maritime Enforcement Agency is to buy four medium lift helicopters to be delivered within two years for deployment to help safeguard the nation’s territorial waters. The last contract worth RM52.36 million is for the National Registration Department (JPN), which Saifuddin said is to ensure that JPN remains an important registration agency for keeping the records and data of Malaysians.

Only three of the local companies that bagged these 14 contracts were named — TM Technology Services Sdn Bhd, Telekom Malaysia Bhd (KL: TM) and Labuan Shipyard Engineering Sdn Bhd — without specifics of the size of the contracts won. At the time of writing, TM had not made any announcement to the stock exchange on the matter.

Apart from that, not much is known about the local companies or their track record and expertise in delivering on the contracts.

Why were the rest of the winners not named? Is it not natural to want to publicise local companies that have the expertise to win large contracts from the government? Were the rest not named because they were mere middlemen “local partners” of foreign contractors? Were the contracts assigned following a competitive tender or directly negotiated?

Two billion ringgit is no small sum. Any negative thoughts would have been nipped in the bud had the rest of the winners been named with the relevant details, thus leaving no doubt that the public money being spent was not only going to worthwhile projects that will benefit the people but also to companies that can best deliver the job at the best price.

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