Contracts without open tenders - ceiling lifted to RM500,000

Finance Minister Najib Abdul Razak today said that government contracts valued up to RM500,000 can now be applied by Class E contractors by submitting a quotation rather than fishing from open tenders.

After a two-hour Economic Planning Unit (EPU) meeting at Parliament, Najib said that prior to this, only contracts awarded under the value of RM200,000 could be obtained by submitting a quotation.

Najib said this when asked about the measures being taken to ensure that funds allocated under the up- coming mini-budget are efficiently spent, especially in light of complaints that the RM7 billion stimulus package, introduced last year, was implemented too slowly.

"One way that we can quicken the pace of the implementation is by increasing the limit of contracts offered via quotation from RM200,000 to RM500,000.

"Therefore, ministries and agencies undertaking small-scale projects can accept submissions through quotations rather than open tenders," said Najib.

Najib, who is also the deputy prime minister, added that the new scheme would be enforced from today and a new circular would be sent out by the finance ministry soon, making the change official.

More comprehensive budget

The mini-budget which is expected to tabled in Parliament on March 10, is "expected to be bigger and more comprehensive", said Najib.

Prime Minister Abdullah Ahmad Badawi, who chaired the EPU meeting today, said the main agenda of the day was the state of the country’s economy and the introduction and implementation of a good stimulus package.

"Ideas have been given by those who attended the council. There is a lot of expectation that the stimulus package which is going to be introduced will help the economy to remain resilient," said Abdullah.

The prime minster added that among the other things discussed today were the status of small and medium scale entrepreneurs and free trade agreements.