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Deputy finance minister says Bumi firms given price priority for procurement and services under trans Pacific trade deal

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Publish date: Wed, 29 Nov 2023, 05:46 PM

KUALA LUMPUR, Nov 29 — Bumiputera companies will be given priority based on category, acquisition value and priority percentage under the Comprehensive and Progressive Agreement for Trans-Pacific (CPTPP), in a move to help Malaysian businesses, including enterprises and small-medium enterprises (SMEs).

The priority is among several flexibilities within the Government Procurement Chapter of the CPTPP negotiated by Putrajaya, Deputy Finance Minister II Steven Sim said in Parliament today.

“This priority will also be extended to other local companies that supply goods and services from CPTPP countries.

“In addition to that, Malaysia has also received relaxation to develop local companies and Bumiputera companies in the construction sector.

“Among the relaxations, the government is allowed to allocate up to 30 per cent of the annual value of covered procurement — works subject to CPTPP — to Bumiputera contractors for work contracts that exceed the threshold value,” Sim said during Question Time in the Dewan Rakyat.

He added that the acquisition value involving contractors in categories G1 to G6 are not subjected to the Government Procurement Chapter.

He was responding to Bayan Baru MP Sim Tze Tzin from PKR who asked the government about the impact of the CPTPP on the SMEs to secure government contracts and the government's measures to ensure the survival of SMEs amid competition from large foreign companies.

“In general, local companies including SMEs can still participate in the procurement of supplies, services and works below the Government Procurement Chapter CPTPP value,” Sim said.

Last month, national news agency Bernama reported the Ministry of Investment, Trade and Industry (Miti) saying it is ready to increase efforts and strategies to ensure Bumiputera entrepreneurs and government-linked companies enjoy the benefits of the CPTPP.

According to Miti, various short-term and long-term initiatives have been designed and implemented, such as the exporter development programme and export promotions open to local companies through its agency, the Malaysia External Trade Development Corporation.

 

https://www.malaymail.com/news/malaysia/2023/11/29/deputy-finance-minister-says-bumi-firms-given-price-priority-for-procurement-and-services-under-trans-pacific-trade-deal/104842

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