Govt Procurement Bill 2025 Limits Finance Minister's Powers Via Stronger Checks And Balances -- Amir Hamzah
KUALA LUMPUR, Aug 28 (Bernama) -- The Government Procurement Bill 2025 does not increase the powers of the finance minister but instead limits them by introducing a stronger system of checks and balances, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said the powers of the finance minister in procurement matters are already provided under Section 6(1) of the Financial Procedure Act 1957, which grants broad authority over policies, approvals, and exemptions related to government procurement.
“Under the Government Procurement Bill, there are clear legal provisions on the responsibilities and powers of the finance minister in procurement matters. Unlike the current situation, the decisions of the finance minister can now be challenged and reviewed through a review panel process, and subsequently by an independent procurement appeal tribunal,” he said today.
He said this when wrapping up the debate on the Government Procurement Bill 2025, which was tabled for the second reading at the policy level in the Dewan Rakyat.
Amir Hamzah said the Bill also introduces punitive actions for any breach, and even the finance minister is not exempt from accountability for failure to declare interests or interference in the procurement process.
He explained that under the Bill, the power to determine methods other than open and competitive procurement is granted to the finance minister under Clause 28(2) through Regulations.
“However, the finance minister, in establishing regulations for methods other than open and competitive procurement, must include the criteria, eligibility, conditions, and limitations.
“If there is non-compliance in using methods other than open and competitive procurement, the procurement decision can be brought to the review panel and tribunal by any aggrieved party,” he said.
He emphasised that the Bill does not stand alone, but is supported and complemented by procurement directives and circulars that detail procurement policies.
“The main objective of drafting this Bill is to strengthen the effectiveness of governance through legal principles.
“The principles in the Bill are elaborated in government procurement regulations, while procurement policy statements will be cited in directives based on key national policies including the Bumiputera development agenda,” he said.
Amir Hamzah added that the Bill imposes uniform standards and procedures for procurement responsibilities and powers, thereby reducing the room for differences in interpretation, non-compliance, or abuse of power.
Yesterday, Prime Minister Datuk Seri Anwar Ibrahim, during the tabling of the Bill’s second reading, said the Bill is a continuation of the Public Finance and Fiscal Responsibility Act 2023 (FRA), which complements the Financial Procedure Act 1957, to further strengthen fiscal management.
He said the bill is intended to address leakages and optimise national resources to continue driving economic reforms and improve the people’s quality of life.
-- BERNAMA