Reforming the procurement system: What the new act gets right - and what it doesn't

C4 Center

On 25 August, the Government Procurement Bill was tabled for its first reading in the House of Representatives.

Within a short span of time, it proceeded through its second and third readings and was subsequently passed by both Houses of Parliament. The resulting Government Procurement Act 2025 (GPA) now awaits gazetting before it comes into force.

The passage of the GPA marks a significant development in Malaysia’s procurement framework. The legislation introduces a formalised structure for complaints, objections and appeals, including the establishment of a Government Procurement Appeal Tribunal.

This represents a shift from a system historically governed by treasury circulars towards a more rules-based framework.

At the same time, the introduction of a statutory appeals mechanism raises a number of important questions. These relate not only to the design and scope of the tribunal but also to how it will operate in practice, the extent of its independence, and the types of remedies it is able to provide.

As the GPA has not yet been brought into force, and subsidiary legislation has not yet been developed, there remains a degree of uncertainty over to how these mechanisms will be implemented.

Hence, the Center to Combat Corruption and Cronyism (C4 Center) published Searching for a Remedy: Assessing Malaysia’s Government Procurement Appeal and Grievance Mechanism: an exploratory assessment of this evolving procurement regulatory framework.

Instead of providing a definitive evaluation of the GPA, it identifies key issues, situates Malaysia’s approach within broader international standards and comparative practices, and outlines areas for further consideration as the system develops.

In line with Malaysia’s international obligations under the UN Convention against Corruption and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Malaysian government is bound to implement domestic review mechanisms within the procurement system which are credible, transparent and accountable.

The report recommends that:

We hope this report shall form the foundation for further constructive debates and ideation to develop a more comprehensive procurement framework that is able to meaningfully address the problems of corruption and public financial mismanagement in Malaysia. – C4 Center