Laws specifically for government open tenders to be formulated

KUALA LUMPUR - The government plans to enact new laws specifically for government open tenders, Deputy Finance Minister I Datuk Seri Ahmad Maslan told the Dewan Rakyat today.

The deputy minister said the Government Procurement Act, which will cover the open tenders, is expected to be tabled in Parliament by the second quarter of 2024.

He said this during the winding up debate on the Public Finance and Fiscal Responsibility Bill 2023 (KATF Bill 2023) in parliament. Therefore, Ahmad said all matters relating to government open tenders do not need to be included in the KATF Bill 2023.

Meanwhile, he said enacting KATF Bill 2023 will be positive for the stability of Malaysia’s sovereign credit rating as the bill will introduce limits to reduce risk exposure, overcome weaknesses and increase fiscal capacity to withstand any shocks.

"Among the criteria rating agencies use to increase a country’s rating include revenue, debt reduction, and the ability to reduce (fiscal) deficit.

While tabling the bill, Ahmad said the government had set a target of annual development expenditure as a percentage of gross domestic product (GDP) of at least 3.0 per cent and a fiscal deficit of 3.0 per cent or less within three to five years.

The targets would also ensure that the debt level as a percentage of GDP will be at 60 per cent or less within three to five years and financial guarantees as a percentage of GDP not exceeding 25 per cent.

He said emphasis would also be given concerning the Ministry of Finance’s accountability to parliament in its duty to enact fiscal policies and manage public finances.

"This includes ensuring the sustainability of revenue policies, effective spending and prudent management of debts and fiscal risks,” he said.

The KATF Bill 2023 was passed by the Dewan Rakyat today, with 17 members of Parliament taking part in the debate. - BERNAMA