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Image credit: The Edge Malaysia

The Small and Medium Enterprises Association of Malaysia (SAMENTA) has welcomed the passing of the Government Procurement Bill 2025 at the Dewan Rakyat, describing it as a much-needed reform that will transform the way public contracts are awarded.

SAMENTA National President, Datuk William Ng, pointed out that despite making up more than 97% of businesses, SMEs continue to face barriers in accessing government and government-linked company (GLC) projects.

He stressed that this is particularly frustrating given that many SMEs are more than capable of supplying to the government, including taking part in major infrastructural projects.

He observed that while most tenders and procurement notices are now publicly available and submissions are often online, many SMEs still lose out without knowing the reasons. Worse still, some of these tenders are awarded to bidders previously unheard of in the industry, or to those with known political connections.

According to Ng, such practices create strong aversions among SMEs toward government and GLC procurement, erode trust in the system, and handicap SMEs from tapping into an important source of revenue and growth.

He emphasised that the Bill’s provisions on open tenders, preference for local products and services, and emphasis on fair competition are timely steps to ensure that genuine SMEs are given a fairer chance to participate in the nation’s growth.

Ng added that a transparent and rules-based procurement system will strengthen the SME ecosystem, encourage innovation, and ensure that public spending directly supports local SMEs and communities.

At a time when SMEs are under immense pressure to remain competitive, this reform has the potential to unlock new opportunities and level the playing field.

He also noted that some concerns have been raised regarding certain provisions of the Bill, including SAMENTA’s own concern that any public procurement law must also cover GLCs and government-linked investment companies (GLICs).

While these concerns are crucial, he maintained that they should not overshadow the greater goal of passing a modern, transparent, and accountable procurement law.

Ng therefore called for bipartisan support of the Bill. He highlighted that there are already sufficient checks and balances for any potential abuse, including through Parliament, the State Legislative Assemblies, and the Public Accounts Committee.

He affirmed that SAMENTA stands ready to work with the government, Parliament, and all stakeholders to ensure that the Bill delivers on its promise of a procurement system that is transparent, competitive, and inclusive of SMEs.

Source: https://sme.asia/samenta-urges-bipartisan-support-for-government-procurement-bill-2025/