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Ministry of Finance is a Central Agency that sets out the Government's financial management policies including Government procurement. Section 6 (1) of the Financial Procedure Act 1957 [Act 61] empowers the Finance Minister to supervise and coordinate Government procurement. For the purpose of enhancing the efficiency of financial management of Government agencies, the Malaysian Treasury practices the concept of decentralization through delegation of power to the Controlling Officer to make decisions. In carrying out these obligations, the Malaysian Treasury has issued Treasury Instructions (TI), Treasury Circular (1PP) and relevant regulations.

For the purpose of considering and approving tenders, the authority as stipulated under Treasury Instructions (TI) 192 is define as below:


Member of the Federal Procurement Board is appointed by the Minister of Finance while member of the State Procurement Board is appointed by the Chief Minister. Membership shall be gazetted in Federal Government Gazette or State Government. The approving limit is set as follows:

Procurement Board
Goods/ Services
Consultancy Services

Procurement Board :

  1. Ministries
  2. PMO
  3. PWD
Tender : ≤ RM50 million Tender : ≤ RM100 million Physical Projects : ≤ RM300 million
Studies : ≤ RM5 million
Measuring Works: ≤ RM5 million
2. Federal State of Sabah/ Sarawak Tender : ≤ RM30 million
3. Statutory Bodies Tender : ≤ RM100 million
4. Government Linked Companies Tender : ≤ RM300 million