Finance Ministry to strengthen oversight of public funds through amended Audit Act, new procurement law

KUALA LUMPUR, Oct 12 — The Finance Ministry will use amendments to the Audit Act 1957 and the Government Procurement Act 2026 to strengthen oversight of public funds and improve transparency in government spending.

Treasury secretary-general Tan Sri Johan Mahmood Merican said the amended Audit Act gives the Auditor-General greater scope to trace funds across government agencies and examine how the money is used.

“The government has also approved the Government Procurement Act, which enables the government to tighten oversight in terms of transparency and value for money in the procurement process.

“The Act will be enforced next year, where the government will also share details on companies receiving the contracts,” Johan said.

The Government Procurement Act 2026 was gazetted on May 26 and is expected to come into operation in 2027, subject to a commencement date appointed by the Finance Minister through a gazette notification.

Johan said governance would be further strengthened through a proposed Government-Owned Entities Bill, which is intended to improve oversight of procurement and investment by government-owned entities, including government-linked companies and statutory bodies.

Prime Minister Datuk Seri Anwar Ibrahim had previously said the proposed Bill was intended to prevent major financial scandals, including 1Malaysia Development Berhad (1MDB), and mismanagement involving Tabung Haji and Felda, from recurring.

Separately, Anwar said the Government Procurement Act would improve transparency through the publication of project details, including the names of contractors and contract values, once it comes into force in 2027.

“When governance is corrected, the benefits resulting from the change will contribute to the people’s welfare,” Anwar said previously.