Defence procurement freeze thaws under tighter MOF grip

Procurement freeze lifted; new MOF framework enforces transparency, accountability in defence spending

PETALING JAYA: Defence procurements for strategic assets are set to resume but under tighter Finance Ministry (MOF) oversight following a government review of acquisition framework, the Dewan Negara was told today.

Defence Minister Datuk Seri Mohamed Khaled Nordin said the move follows the implementation of Controller’s Instruction No. 2/2026 (Arahan Pegawai Pengawal Bil. 2/2026), which had earlier imposed a temporary freeze on procurement approvals.

“The government, on Feb 12, 2026, agreed that procurement involving strategic assets may proceed subject to compliance with the new governance framework set by the Finance Ministry.

“The improvements introduced ensure the procurement process remains transparent and conducted with integrity while safeguarding defence readiness,” he said.

Khaled said the enhanced framework introduces stricter evaluation layers to reinforce accountability in defence spending.

“Among the new framework set by the MOF, additional membership has been introduced to incorporate cross-ministry and cross-service participation to strengthen checks and balances.

“For example, the Army Tender Committee will now include a representative from either the Navy or the Air Force, while the Procurement Board at Defence Ministry (Mindef) will also include a representative from the Home Ministry.

“In open tender and quotation processes, the technical and financial evaluation stages have been tightened. The composition of the Specification, Technical Evaluation and Financial Evaluation Committees has been revised and is no longer limited to the user agency.

“For procurement finalisation, quotation procurements valued between RM300,000 and RM500,000 for supplies and services, and between RM300,000 and RM3 million for works, must now be decided at Procurement Board level chaired by the ministry’s deputy secretary-general.

“For procurements involving products manufactured overseas, the acquisition must be conducted through international open tender among the foreign manufacturers concerned,” he said.

The matter was raised by Senator Datuk Edward Linggu Bukut, who asked the Mindef to clarify the duration of the procurement freeze, the categories affected, and measures taken to ensure acquisitions remain transparent without undermining national security.

Khaled clarified that the reassesment exercise is targeted and does not apply across the board.

“The re-evaluation is focused on strategic acquisitions to ensure every proposal meets the strengthened governance requirements,” he said.

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