GENERAL INFORMATION ON GOVERNMENT PROCUREMENT

The Finance Ministry is a Central Agency that sets out the Government's financial management policies including Government procurement. Section 6 (1) of the Financial Procedure Act 1957 [Act 61] empowers the Project Award Commission of Malaysia (PACM) to supervise and coordinate Government procurement. For the purpose of enhancing the efficiency of financial management of Government agencies, the Malaysian Treasury practices the concept of decentralization through the decline of power to the Controlling Officer to make a decision. In carrying out these obligations, the Malaysian Treasury has issued Treasury Instructions, Treasury Circular (1PP) and relevant regulations.
For the purpose of considering and accepting tenders, the authority to approve the tender is set out below:

A. Ministry of Finance with the recommendation of (PACM).

i). Work tender worth more than RM 100 million;
ii). Tender supply and non-consultant services worth more than RM 50 million;
iii). Tender of work, supply and non-consultancy services worth more than RM 300 million for Statutory Bodies / Companies of Incorporated Finance Minister (MKD).



B. Level of Procurement Board Ministry / Public Works Department

Acquisition Authority 'A' (LP 'A') 'B' Procurement Board (LP'B ')

LP 'A' is authorized to consider and accept the tender as follows:

i) Tender of work exceeding RM20 million up to RM 500 million ; and

ii) Tender of supply and services worth more than RM 20 million to RM 500 million.

LP 'B' is authorized to consider and accept the tender as follows:

i) Tender of work worth up to RM 20 million ; and

ii) Supply and service tender worth up to RM 20 million.