Treasury assures procurement bill will not make it difficult for business community to work with government

A new law on procurement in the country will not make it more difficult for the business community to do business with the government.

This was the assurance given by Treasury secretary-general Datuk Johan Mahmood Merican regarding the new Government Procurement Bill 2025, which was passed in the Dewan Rakyat yesterday.

Speaking during a briefing session today, Johan assured that the new legislation will not make it more tedious for businesses when it comes to tenders and procurement.

“The new law will strengthen governance and the procurement process. It will, in fact, ensure there is less paperwork as we move towards a more digitised system,” he said.

“They (the business community) only need to be worried if there is non-compliance, including committing offences under the new law.”

Offences under the new law include totally subcontracting government projects, failure to declare an interest, interfering in the procurement process, and providing false documentation and information.

“Unlike current practices, which only warrant disciplinary action to be taken against civil servants, under the new law, punitive action can also be taken against retired government officers guilty of non-compliance. Others who will be subjected to punitive action include individuals, companies and contractors,” Johan added.

He also said there is much work to be done on the government’s side as all previous circulars regarding procurement must be aligned with the new law. The new procurement law, he stressed, will not stand alone but will be supported by existing procurement directives and circulars. The current practice under the e-Perolehan system will also remain unaffected.

During the session, Johan was asked about the Government Procurement Appeal Tribunal, which will hear complaints from parties dissatisfied with any procurement process.

He explained that although the appointment of tribunal members is done by the minister (or chief minister and menteri besar at the state level), the requirement that the chairman and deputy chairman be judicial officials rather than civil servants ensures fairness.

He also dismissed concerns that the credibility of complainants under the new process would be undermined, despite the requirement for complainants (who were not awarded contracts) to first lodge grievances with the same agencies they are challenging.

“I don’t see an issue here. Decisions can be challenged,” he said.

Asked about a provision under the new law that allows ministers to exempt entire programmes from procurement rules by issuing “public interest certificates” to override objections and appeals, Johan said these would only apply in special circumstances, such as emergencies.

He cited Covid-19 as an example, where government departments and agencies found it difficult to comply with procurement policies, SOPs, and rules due to restrictions during lockdowns.