Shocking rush to pass procurement bill unbecoming of ‘reformist’ government

We in Aliran are alarmed at today’s (28 August) rushed second reading and vote on the Government Procurement Bill 2025 in Parliament. This comes just three days before we celebrate National Day.

The 125-63 vote, which prompted opposition MPs to stage a walkout, represents a troubling departure from the reformist principles that some of those in government today once claimed to champion.

The speedy handling of this bill is totally unbecoming of a government that came to power on an anti-corruption and good governance platform.

For legislation that will govern billions of ringgit in public spending, many interested parties – including MPs, civil society groups, business groups and the public – were given little meaningful opportunity or time to scrutinise and provide input on this 93-clause bill.

This hasty approach mirrors the authoritarian tendencies that reform movements seek to dismantle.

A truly reformist government would have ensured extensive consultations, public hearings and transparency ahead of the tabling of the bill, especially on such a critical area. It would have sought vetting by a parliamentary select committee. It would also have provided sufficient time for a thorough parliamentary debate.

Fundamental flaws

Despite years of civil society advocacy for strong procurement laws following endless corruption scandals, this bill institutionalises the very weaknesses that have plagued Malaysia’s governance.

It unfortunately grants the finance minister and state chief ministers extraordinary discretion over procurement contracts above RM50m for goods and services and RM100m for works – with no upper limit. This shocking concentration of power is unbelievable, especially coming from a ‘reformist’ government.

Unlike procurement board members who face conflict-of-interest restrictions, these top ministers operate without such safeguards despite holding far greater authority.

READ MORE:Cracking down on misused public funds

The bill also establishes an appeal tribunal that is anything but independent. The very minister whose decisions may be challenged appoints its members, sets its procedures and controls its secretariat. How can this be? It creates a sham accountability mechanism where the executive essentially reviews itself.

The bill is riddled with provisions that allow ministers to exempt entire programmes from its application, bypass registration requirements (for politically connected actors?) and invoke extraordinary powers with no external oversight.

These loopholes render the bill’s supposed safeguards meaningless.

The bill’s concentration of power in the finance minister and state chief ministers carries chilling echoes of the 1MDB scandal. The 1MDB case showed how concentrated executive power over government spending – whether through state-owned entities or direct procurement – creates opportunities for staggering corruption.

By vesting similar unchecked discretion in future finance ministers over high-value procurement contracts, this bill recreates the very conditions that enabled 1MDB-type abuses in the past.

Government procurement extends far beyond buying office computers and stationery. It encompasses mega-projects for infrastructure projects, land reclamation construction contracts, IT systems and professional services that could cost billions of ringgit.

Without proper checks and balances, these contracts could become vehicles for rent-seeking, kickbacks and ‘commissions’, just as 1MDB’s procurement decisions facilitated massive financial misconduct.

While today’s vote in Parliament is a severe setback, opportunities remain to fix this deeply flawed legislation.

But it requires sustained public pressure ahead of the third reading and the Senate hearings. The public must voice their concerns to influence the final debates and demand a reconsideration of the most problematic provisions.

Senators can’t sit back. They should propose meaningful amendments or reject the bill entirely instead of rubber-stamping it or voting along party lines.

The committee stage review also offers an opportunity for detailed scrutiny and amendment of specific clauses that concentrate power, create conflicts of interest and undermine transparency.

Aliran calls on the government to:

• Allow genuine consultation and amendment during the Senate review process.
• Remove provisions that concentrate enormous unchecked power in the finance minister and state chief ministers.
• Establish truly independent oversight and appeals mechanisms.
• Close any loopholes that allow circumvention of procurement safeguards.
• Subject all high-value procurement and mega-projects to meaningful transparency requirements.
• Introduce iron-clad clauses to serve as a deterrent to present and future finance ministers and chief ministers.

The people of Malaysia deserve a procurement law that serves the public interest – not one that institutionalises the status quo or makes it worse.

The government must choose whether it will honour its reform commitments or worsen the conditions that allowed rampant corruption to flourish.

To meaningfully celebrate Merdeka for the peninsula and National Day on 31 August, let us be mindful of the need for genuine transparency and accountability.

Let us refrain from approving laws that will be potential enablers for abuse of power and corruption.

Merdeka must be for all and benefit all.

From the Aliran team
28 August 2025