How can Malaysia save RM10 billion from government procurement leakages?

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Malaysia can save up to RM10 billion by stopping leakages through anti-corruption and procurement reform

Malaysia can save up to RM10 billion from leakages in the government procurement system by eradicating corruption at all levels and changing long-standing procurement practices. Prime Minister Datuk Seri Anwar Ibrahim said that, within less than two months at the Ministry of Finance, RM3 billion to RM4 billion had been identified as savings. He also linked the reduction of leakages to removing political interference and the interests of big businessmen from government procurement.
Eradicate corruption across all levels and change old procurement practices
Anwar said leakages can be stopped if corruption is eradicated at all levels. He pointed to the need to change the “old way of doing things,” including procurement practices that allow political interference and the interests of big businessmen to influence government purchasing.
Reduce leakages quickly by targeting the Ministry of Finance
Anwar, who is also the Minister of Finance, said he had identified RM3 billion to RM4 billion that can be saved in less than two months at the Ministry of Finance. He framed this as part of addressing “high leakages” in the procurement system.
Hand procurement matters to capable parties for operational issues like floods
From his experience, Anwar said leakages could be reduced when procurement matters are handed over to parties capable of dealing with issues such as floods. This approach was presented as a way to improve how procurement decisions are managed, particularly for time-sensitive or specialised needs.
Speed up approvals and hold department heads accountable for delays
Anwar said Budget 2023 should focus on restoring confidence of domestic and foreign investors and expediting investment approvals. He cited an example where a proposal to introduce an organic farm by a company took two years to be approved, and he said approvals should be faster while heads of departments are held fully accountable for delays that affect the national economy. The revised Budget 2023 is set to be presented in Parliament on February 24.

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How can Malaysia save RM10 billion from government procurement leakages?

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