Govt gives AP182 exemption to ministries/agencies with immediate effect

KUALA LUMPUR - The government has agreed to provide relaxation in the procurement method for all small projects, including exemptions to Treasury Instruction (AP) 182 to all ministries/executing agencies up to the state and district levels with a value limit of up to RM1 million for minor maintenance and repair projects, the Finance Ministry said.

It said that all federal government projects that include maintenance and repairs worth RM1 million can be implemented directly by the ministry and relevant agencies including at the state/regional level without the need to go through the technical department (including the Public Works Department (JKR) and the Irrigation and Drainage Department (JPS).

"Verification of completed work can be done by the head of department or delegated officials at the state and district executing agency level by complying with the completion of the work in accordance with good governance.

"Another relaxation is to create a project monitoring team either at the state or district level with the involvement of several agencies/officials from various departments to help monitor the implementation of maintenance and minor repair projects to meet the set objectives," the ministry said in a press release today.

This relaxation is effective immediately until Dec 31, 2023.

This is to ensure that these works are completed in the current year. Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim had during the presentation of Budget 2023 emphasised efforts to speed up the implementation of the people's infrastructure projects, especially school and clinic projects.

"The Unity Government will continue to uphold and stick to the principles of good governance in administration.

"At the same time, the government will continue to ensure that the government's acquisitions, especially those involving people's money projects such as the repair and maintenance of schools, clinics and potholed roads will be implemented as soon as possible,” it said.

Meanwhile, the Finance Ministry said the government also agreed to relax procurement methods for all maintenance and minor repair projects implemented by all ministries/user agencies up to the state and district levels.

For this purpose, the quote value limit for work procurement is increased to RM1 million from RM500,000 and the limit for procurement by drawing lots is increased to RM200,000 from RM100,000.

Apart from that, the government also provides financing facilities to contractors, where in order to increase the involvement of small contractors from various classes to be equally involved in implementing small-scale projects, it introduces financing facilities in the form of ‘financial close’.

"This is to ensure that the contractor has no cash flow problems and that the work is completed according to schedule. More details related to this programme will be announced in the near future,” it said.

For further inquiries regarding AP182, please refer to [email protected] or call 03-8882 3232/4476/3225. - BERNAMA