The Dewan Rakyat witnessed heated exchanges this week as the long-awaited Government Procurement Bill 2025 was tabled for its second reading. Prime Minister Datuk Seri Anwar Ibrahim and his allies in DAP lauded it as a milestone reform, while dissenting voices – including backbencher Hassan Karim, opposition MPs, civil society groups and think tanks – warned that the bill risks concentrating excessive power in the hands of the finance minister.
Anwar: No more 1MDBs
Anwar, who tabled the bill, framed it as a safeguard against Malaysia’s history of financial scandals, from the 1MDB debacle to Bank Negara’s forex losses.
“The culture of awarding contracts through direct negotiation cannot continue,” he declared. “This law will cancel the absolute discretion of the finance minister or any authority to award contracts without transparent procedures, public disclosure and open tender.”
The proposed law, comprising 12 parts and 93 clauses, sets out a legal framework for procurement across ministries, statutory bodies, GLCs and local authorities. It mandates supplier registration, establishes procurement boards and a tribunal, and introduces penalties of up to RM1 million and five years’ jail for corruption or misconduct – extending even to retired ministers and officials.
Anwar insisted efficiency would not be compromised, with exemptions allowed only for national security, urgent crises like natural disasters, or international obligations.
DAP hails the bill as overdue reform
Former finance minister Lim Guan Eng (Bagan-DAP) threw his full support behind the law, calling it a step towards international best practices.
“With this bill, Malaysia’s ranking in Transparency International’s Corruption Perceptions Index will improve,” Lim said. He argued that by shifting procurement decisions back to parliament, the bill strengthens democracy and accountability.
Lim also highlighted potential savings of up to 35% in procurement costs: “Imagine how many more projects we could deliver for the people if we stop overpaying.”
Yeo Bee Yin (Puchong-DAP) dismissed critics as being unfair. “To claim this bill maintains the status quo is like an ostrich burying its head in the sand,” she said, pointing to new checks, oversight layers and the tribunal process.
Backbench rebellion: Hassan Karim sounds the alarm
But not all Pakatan Harapan MPs were convinced. Pasir Gudang MP Hassan Karim blasted the bill as a “threat to reform,” accusing the government of rushing it through.
“One section of the law effectively puts the finance minister above the law,” Hassan said, warning that parliament would lose the ability to debate tenders and purchases.
His criticism was echoed by PN’s Saifuddin Abdullah (Indera Mahkota), who argued that the bill should have been referred to a select committee. He cautioned about confusion with state procurement laws and questioned how the bill would interact with the current e-Perolehan system.
Civil society: ‘Institutionally dangerous’
Outside parliament, watchdogs were scathing. The Center to Combat Corruption and Cronyism (C4) said the bill was “institutionally dangerous,” embedding conflicts of interest and giving ministers “excessive discretion.”
C4 noted that Clause 10(1)(a) empowers ministers and chief ministers to approve contracts above RM50 million (goods and services) or RM100 million (works), with no upper limit – and without being bound by procurement boards’ recommendations. The watchdog also criticised the appeals tribunal, whose members are appointed by the finance minister, as lacking independence.
Transparency International Malaysia (TI-M) went further, condemning the “reckless” speed with which the bill was being bulldozed. President Raymon Ram said CSOs had not been shown the draft until it was tabled:
“Consultations without the bill in hand are not real consultations. Malaysians deserve genuine participation, not empty gestures.”
Think tank IDEAS also urged that the bill be sent to the parliamentary select committee, citing “serious gaps” and warning that ministers could still bypass competitive bidding. “A law rushed through without consultation, riddled with discretionary loopholes, will not clean up procurement. It will only create a hollow reform,” Aira Azhari, CEO of IDEAS, said.
The crossroads of reform
The Government Procurement Bill 2025 seeks to regulate how billions of ringgit in taxpayer money are spent, and its implications will shape Malaysia’s governance for decades.
Supporters like Anwar, Lim Guan Eng and Yeo Bee Yin hail it as Malaysia’s best chance to end leakages and restore trust. Critics like Hassan Karim, the opposition, C4, TI-M and IDEAS warn it risks entrenching power where abuse has historically flourished.
For now, the government appears determined to press ahead. Whether parliament will temper speed with scrutiny – or rubber-stamp what critics call a dangerous law – remains to be seen.
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