KUALA LUMPUR: The Government Procurement Bill 2025 must be drafted with the highest integrity and must never compromise the autonomy of Sarawak and Sabah.
Senator Datuk Ahmad Ibrahim stressed that any law, including this Bill, must not undermine the states’ autonomy as guaranteed under the Malaysia Agreement 1963 (MA63).
He cautioned that the law should not be turned into a tool of “forced uniformity” that disregards state powers.
“The Government Procurement Bill 2025 is an important step towards strengthening national financial integrity, but it will only succeed if it is implemented firmly, respects state autonomy, and ensures fair opportunities for local contractors,” he said when debating the Bill in the Dewan Negara today (Sep 8).
Ahmad pointed out that weaknesses in the procurement system have long been linked to project delays, cost overruns, and leakages. Citing the Malaysian Integrity Institute’s 2023 study, he noted that nearly 35 percent of procurement-related complaints involved tender manipulation, price-fixing, and monopolisation by certain groups.
He highlighted three key issues requiring attention, particularly the overlap of jurisdiction between federal contracts and state laws.
“Federal project reimbursements advanced with Sarawak state funds must be settled within a reasonable period, not exceeding two years. In addition, local contractors — especially small and medium enterprises from Sarawak and Sabah — must not be sidelined by large companies from Peninsular Malaysia,” he stressed.
During the debate, Ahmad proposed several measures to strengthen the Bill, including explicit clauses recognising state autonomy and a minimum quota for local contractors in Sarawak and Sabah.
He also suggested establishing a reimbursement mechanism for federal projects with regular reviews, as well as a transparent digital procurement platform with equal access for state contractors.
He noted that the public has long demanded a procurement system that is transparent, efficient, and truly delivers value for money.
“This law should serve as a framework for Federal–State cooperation that respects Malaysia’s diversity, not as an instrument of uniformity. It must transform procurement from one based on connections to one rooted in merit, integrity, and results,” he said.
