Procurement Bill to end decades of leakages, ensure no repeat of 1MDB

Tuesday 22 Sep 2026

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KUALA LUMPUR (Aug 27): Prime Minister Datuk Seri Anwar Ibrahim said that the Government Procurement Bill 2025 is critical to prevent a repeat of financial scandals that have plagued Malaysia over the decades.

Citing a litany of past failures, ranging from the 1Malaysia Development Bhd (1MDB) scandal to foreign exchange losses at the central bank decades ago, Anwar said the bill underscores that transparency and accountability in the use of public funds are no longer optional, but mandatory.

“The culture of awarding contracts through direct negotiation cannot continue,” Anwar said on Wednesday. “This law will cancel the absolute discretion of the finance minister or any authority to award contracts without transparent procedures, public disclosure and open tender.”

Anwar was speaking when tabling the bill for its second reading in the Dewan Rakyat.

The proposed legislation, comprising 12 parts and 93 clauses, provides a full legal framework for government procurement at both federal and state levels. It applies to all ministries, statutory bodies, government-linked companies and local authorities that utilise public funds.

Under the bill, the Treasury’s Secretary General will oversee procurement and be empowered to issue directives, monitor compliance and initiate investigations. Approvals will follow a tiered structure involving controlling officers, procurement boards and ultimately the minister or chief minister, depending on thresholds.

A mandatory registration regime for suppliers and contractors is also introduced. Registration may be refused, suspended or revoked if applicants are found guilty of corruption, anti-competition practices, bankruptcy, or providing false information.

Anwar stressed that penalties spelled out in the bill will deter misconduct, with fines ranging from RM250,000 to three times the contract value or RM1 million, whichever is higher and jail terms of up to five years. The provisions apply not only to contractors but also to ministers and public officials, even if they have retired.

While acknowledging concerns that stricter procedures might delay procurement, Anwar said efficiency would not be compromised if the process is executed properly.

Exceptions are allowed only in cases involving national security, urgency such as natural disasters, or international obligations — but must still be justified and transparent, he noted.

The bill builds on the reform agenda under the Public Finance and Fiscal Responsibility Act 2023 and the Financial Procedure Act 1957. “Its purpose is clear: to embed integrity, prevent leakages and restore public trust in how the government spends taxpayers’ money,” Anwar said.

The Ministry of Finance is expected to wind up the debate before the end of Wednesday's parliamentary session, after being debated by 20 members of Parliaments.

For more Parliament stories, click here.

Edited ByJason Ng

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