How much more will the government spend on the new vehicle supply deal?

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Government to Spend RM700 Million More on New Vehicle Supply Deal

The government has agreed to allocate RM700 million more than initially proposed in the joint venture's letter of intent for a vehicle supply contract. This increased expenditure is associated with a 15-year deal involving approximately 12,500 vehicles, which was estimated to be worth around RM300 million annually after its initial five-year phase.
Legal Action Over Contract Termination

A joint venture between Berjaya Corporation Bhd and Naza Corporation Holdings Sdn Bhd has initiated legal proceedings against the Ministry of Finance. This lawsuit stems from the government's termination of a letter of intent for a vehicle supply contract, a decision made in 2020.
Background of the Contract Bid

In August 2019, seven companies submitted bids for the fleet vehicle supply contract, which was set to commence upon the expiration of Spanco Sdn Bhd's existing agreement at the end of that year. The contract was planned to span 15 years and encompass a fleet of around 12,500 vehicles.
Original Bid and Estimated Value

The joint venture between Berjaya and Naza reportedly submitted the lowest bid among all competitors. The anticipated annual value of the contract, starting from the sixth year onwards, was estimated at RM300 million, covering vehicles for ministers, senior officials, departmental fleets, and police.

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How much more will the government spend on the new vehicle supply deal?

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