KUALA LUMPUR, Oct 11 — The government plans to enact new laws specifically for government open tenders, said Deputy Finance Minister I Datuk Seri Ahmad Maslan.
The Government Procurement Act, which will cover the open tenders, is expected to be tabled in Parliament by the second quarter of 2024.
He was speaking at the windup debate on the Public Finance and Fiscal Responsibility Bill 2023 (KATF Bill 2023) in the Dewan Rakyat today.
Therefore, Ahmad said all matters relating to government open tenders do not need to be included in the KATF Bill 2023.
Meanwhile, enacting the KATF Bill 2023 will be positive for the stability of Malaysia’s sovereign credit rating. The bill will introduce limits to reduce risk exposure, overcome weaknesses, and increase fiscal capacity to withstand shocks.
“Among the criteria rating agencies use to increase a country’s rating include revenue, debt reduction, and the ability to reduce (fiscal) deficit,” he said.
While tabling the bill, the deputy minister said the government had set a target of annual development expenditure as a percentage of gross domestic product (GDP) of at least 3.0 per cent and a fiscal deficit of 3.0 per cent or less within three to five years.
The targets will also ensure the debt level as a percentage of GDP will be at 60 per cent or less within three to five years, and financial guarantees as a percentage of GDP will not exceed 25 per cent.
Emphasis will also be given on the Ministry of Finance’s accountability to Parliament to enact fiscal policies and manage public finances.
“This includes ensuring the sustainability of revenue policies, effective spending, and prudent management of debts and fiscal risks,” Ahmad said.
The KATF Bill 2023 was passed by the Dewan Rakyat today, with 17 MPs taking part in the debate.
— Bernama
