Malaysia’s parliament on Thursday passed a law aimed at strengthening government procurement processes, despite concerns from rights groups and some opposition lawmakers over potential loopholes and limited independent oversight.
The Southeast Asian nation has long faced challenges in preventing financial losses and corruption, most notably highlighted by the multibillion-dollar 1MDB scandal. Misappropriation of public funds, particularly through government contracts awarded via negotiations rather than open tenders, has been a persistent issue, News.Az reports, citing Reuters.
The Government Procurement Bill seeks to end such practices by providing a clear framework for all government agencies and local authorities using public funds. The law introduces penalties for wrongful practices, including rent-seeking, improper subcontracting, and interference in procurement processes.
“This bill places obligations and powers in government procurement matters according to uniform standards and procedures, thus reducing the room for different interpretations, non-compliance, or abuse of power,” said Finance Minister Amir Hamzah Azizan during the bill debate.
The law will next be sent to the Senate (upper house) for approval before being officially gazetted.
Some civil society groups, including the CSO Platform for Reform, and opposition lawmakers expressed concerns that certain provisions could give ministers too much control, allowing them to exempt entire programs from the new rules. Amir Hamzah defended the bill, stating that it limits rather than expands the finance minister’s powers, and noted that the ministry plans to update regulations to further restrict exemptions.
