Malaysia expands disclosure of government project contracts under new law

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Highlights

The Government Procurement Act 2027, which comes into force next year, requires the disclosure of government project contracts, contractor names and contract values.
The Government Procurement Bill, passed by Parliament and comprising 12 parts and 93 clauses, expands the scope of procurement to include ministries, GLCs and state governments.
The government is drafting a Government-Owned Entities Bill to standardise financial governance and reporting for statutory bodies and government-owned companies.

This article was translated from the original. Read the original version by our correspondent here.

Implementation of the Act and scope of disclosures

As reported by The Edge Malaysia, Second Finance Minister Datuk Seri Amir Hamzah Azizan said the government would disclose project information, including the contractors carrying out the work and the contract values, following the enforcement of the Government Procurement Act 2027 next year.

He made the remarks during the winding-up of the 2027 Budget debate in Parliament on Thursday. He said the move was part of broader efforts to strengthen transparency and accountability, drawing lessons from past controversies involving Felda, 1Malaysia Development Bhd (1MDB) and Tabung Haji.

Parliament passed the Government Procurement Bill last year to standardise public procurement. Prime Minister Datuk Seri Anwar Ibrahim said at the time that the bill was important to prevent a recurrence of financial scandals that had affected Malaysia over several decades, including the multibillion-ringgit 1MDB scandal and foreign-exchange losses at Bank Negara Malaysia several decades ago.

The legislation, comprising 12 parts and 93 clauses, establishes a legal framework for government procurement at both federal and state levels. It covers ministries, statutory bodies, government-linked companies and local authorities that use public funds.

The Yang di-Pertuan Agong, Sultan Ibrahim Sultan Iskandar, gave his assent to the bill in June this year, paving the way for its enforcement.

A second bill to govern government-owned entities

Separately, Amir Hamzah said the government was also drafting a Government-Owned Entities Bill to establish a clearer and more consistent financial governance framework for statutory bodies and government-owned companies.

He said these entities are currently subject to different regulations and reporting requirements, making comprehensive oversight and compliance more difficult. The proposed bill is expected to provide a more consistent framework, particularly for investment activities, procurement and asset disposals.

In our earlier article on the impact of the 1MDB scandal on corporate governance debates, we examined how failures in controls, audits and checks and balances shifted the focus to board accountability and more transparent appointment processes. We also discussed the importance of stronger whistleblower protections and a more proactive role for internal auditors in identifying risks early, rather than simply assessing past failures.

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