The Federation of Malaysian Manufacturing (FMM) urged the Malaysian government to enforce the Government Procurement Act (GPA) 2025 immediately, citing growing urgency from global disruptions, including ongoing conflicts in West Asia that have increased pressure on manufacturers relying on imports [1, 2].
The GPA was passed by the Dewan Rakyat in August 2025 and by the Dewan Negara in September 2025, making it Malaysia’s first dedicated legislation governing public procurement [1, 2]. The Act replaces a patchwork of treasury instructions, circulars, and financial regulations to establish a clear legal framework [1, 2].
However, enforcement depends on the Finance Minister appointing a commencement date through notification in the Federal Gazette, which has not yet been done [1, 2]. FMM is calling for this step to be taken without delay.
FMM president Jacob Lee highlighted the Act’s role in creating legally binding standards for transparency, fair competition, and accountability across federal and state procuring entities [1, 2]. He said, "Government procurement, as one of the largest areas of public expenditure, plays a critical role in infrastructure development, public services and national competitiveness. A statutory framework mandating open and competitive tendering as the primary procurement method, with documented justification for every award decision, raises the baseline for governance across ministries, agencies and government-linked companies (GLCs)" [2].
The Act requires open and competitive tendering with documented award decisions to increase governance standards throughout government bodies and linked entities [1, 2]. This measure is intended to improve transparency and reduce risks of mismanagement.
Global factors driving the urgency include disruptions in shipping routes and rising freight and insurance costs caused by geopolitical tensions in West Asia, which have increased costs for Malaysian import-dependent manufacturers [1, 2].
FMM also called for clarity on subsidiary regulations, approval thresholds, agency transition plans, and the readiness of the Government Procurement Appeal Tribunal (GPAT) to handle disputes [2].
The timeline shows the GPA’s legislative passage in August and September 2025, followed by FMM’s public call for enforcement on May 21, 2026 [1, 2]. With no commencement date set yet, enforcement remains pending.
The next key step is publication of the commencement notification by the Finance Minister in the Federal Gazette, which will activate the full application of the Government Procurement Act 2025.
