Budget 2027 boosts Bumiputera contractors’ procurement allocation to RM7.5 billion
THE government will increase the value of government procurement reserved for Bumiputera G1-G4 contractors to RM7.5 billion in 2027 from RM4 billion this year, alongside expanded financing and investment support for Bumiputera businesses under Budget...
The Malaysian government has announced a significant increase in the procurement allocation for Bumiputera contractors in the 2027 Budget, raising the value to RM7.5 billion from RM4 billion this year. Prime Minister Anwar Ibrahim stated that this move aims to address concerns raised by Bumiputera contractors and strengthen their business capacity.
The government will also raise the limit for direct appointments in government facility maintenance, repairs, and upgrading works to RM200,000, and allow quotation-based procurement for projects worth up to RM3 million. Additional financing of up to RM1 billion will be provided by Teraju to monitor 32 Bumiputera projects more effectively, and financing funds provided by PUNB will increase to RM500 million.
The government will also introduce a stamp duty concession of RM10 for loan and financing agreements under the Cakna II scheme, and update GLC procurement guidelines, which have not been revised since 2006.
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