On 28 August 2025, the Dewan Rakyat passed the Government Procurement Bill 2025, billed as a major reform that will strengthen transparency and accountability in the procurement system. This follows decades of high-profile scandals that have seen huge financial and infrastructural losses and wastage, such as procurement scandals involving Scorpene submarines, littoral combat ships, and defective ventilators during the Covid-19 pandemic.
The Government Procurement Act is pending gazettement before it comes into legal force. The Act is Malaysia’s first attempt at creating a legally binding procurement regime. While the Act contains provisions that are aimed at regulating and streamlining the procurement process, its flaws potentially outweigh its benefits. Many of these flaws have been highlighted extensively by C4 Center in the past – having entered into consultations with the Ministry of Finance between 2023 and 2024.
To support greater understanding of the Act, C4 Center has prepared the briefing note below. It outlines various pre-existing issues with Malaysia’s procurement system, highlights major provisions included in the law, and raises a number of concerns related to these included provisions.
