Kuala Lumpur, 16 June 2023 – The Institute for Democracy and Economic Affairs (IDEAS) welcomed the announcement by Prime Minister Datuk Seri Anwar Ibrahim that the Government Procurement Act (GPA) would be tabled by year-end.

The institute also applauded the effort by the Ministry of Finance to start the consultation process for the drafting of the Act. IDEAS with some civil society organisations were invited yesterday to provide feedback on the broad parameters of the Act. However, IDEAS also called upon the government to ensure the GPA draft is shared to the public before tabling, to enable stakeholders to provide input. The government should adhere to standards of public engagement in the National Policy on Good Regulatory Practice that it has adopted.

“The enactment of GPA would demonstrate the government’s commitment towards greater fiscal responsibility and adherence to stringent governance controls. It would also institutionalize the current political commitment to improve procurement processes in this country. The act should adopt high standards of transparency, wide-ranging procurement methods that are competitive and cater to the complexities of procurement exercises, as well as  a robust domestic review system,”  Sri Murniati Yusuf, IDEAS Deputy Director says.

“In terms of scope, we hope the legislation can cover various government entities including statutory bodies and government linked companies, as well as government projects that are procured through concession and public-private partnership”, Sri adds.

“IDEAS previous research and dialogues indicated that procurement legislation is not a panacea for all governance problems related to procurement. The current non-compliance problem could be caused not only by unwillingness to comply, but also by the limited knowledge and understanding of procurement regulations. Systematic training and career progression of procurement officers needs to be built into the current reform initiatives. This will help to reduce the problem of non-compliance with future legislation.”

“Our research also indicates that procurement legislation needs a supportive environment to achieve its objective. Freedom of Information law, free and responsible press, greater parliamentary scrutiny, public participation and a wide use of technology and open data in procurement processes can provide such an environment,” she adds.

“We are encouraged by the invitation to provide inputs to develop this legislation and  look forward  to being involved in the future consultation meetings.”

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For enquiries, please contact:
Aira Azhari
Senior Manager
Democracy and Governance Unit
T: +603 2070 8881/8882 | E: aira@ideas.org.my

Alissa Rode
Manager, Public Finance Unit
T: +603 2070 8881/8882 | E: alissa@ideas.org.my