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Malaysia granted govt procurement flexibility under CPTPP, says Sim

Publish date: Wed, 29 Nov 2023, 03:30 PM

KUALA LUMPUR (Nov 29): Malaysia has successfully negotiated for government procurement flexibility under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), according to Deputy Finance Minister II Steven Sim Chee Keong.  

He said the flexibilities are part of efforts to continue with the agenda of helping local companies, including small and medium enterprises (SMEs), to obtain government contracts.

 Sim noted that Malaysia had obtained price preference for the procurement of supplies and services subject to the CPTPP, where Bumiputera companies will be given priority based on categories, procurement value and priority percentage.

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

“Malaysia has also been given the flexibility to develop local companies and Bumiputera companies in the construction sector,” he said during an oral question-and-answer session in the Dewan Rakyat on Wednesday.

Sim was responding to Sim Tze Tzin (Bayan Baru-Pakatan Harapan) about the impact of the CPTPP on small- and medium-sized industries to obtain government contracts, and how the government could ensure that SMEs survive in the competitive environment among large foreign companies.

The deputy minister said that some of the flexibilities include allowing the government to allocate up to 30% of the annual value of covered procurement contracts related to the CPTPP to Bumiputera contractors for contracts that exceed the threshold value.

“Furthermore, the procurement value involving work contractors of grade G1 to G6 is not subject to government procurement. 

“In general, local companies, including SMEs, can still participate in CPTPP procurement for supplies, services, and works below government thresholds,” said Sim.

He added that Malaysia had also successfully negotiated a number of exemptions in an effort to continue providing opportunities for SMEs to participate in government procurement.

These include public-private partnerships, build-operate-transfer projects, and public works concessions, among others.

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