LEGAL REVIEW ON CPTPP AND ITS IMPLICATION ON BUMIPUTERA’S POLICIES IN MALAYSIA GOVERNMENT PROCUREMENT

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is an open and multi trade agreement that significantly liberalizes international procurement Trans-Pacific markets. Chapter 15 of the CPTPP is covers government procurement. Malaysia signed and eventually ratified CPT...

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Main Author: Muhammad Hanafi Haron
Format: Article
Language:English
Published: Bank Indonesia 2023-09-01
Series:Journal of Central Banking Law and Institutions
Subjects:
Online Access:https://jcli-bi.org/index.php/jcli/article/view/179
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author Muhammad Hanafi Haron
author_facet Muhammad Hanafi Haron
author_sort Muhammad Hanafi Haron
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description The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is an open and multi trade agreement that significantly liberalizes international procurement Trans-Pacific markets. Chapter 15 of the CPTPP is covers government procurement. Malaysia signed and eventually ratified CPTPP later in 2022 and needs to incorporate Chapter 15 into its government procurement regulations. Having said this, the question remains on how features of Chapter 15 will stand and comport with the existing protection mechanisms that are practiced by Malaysia in its government procurement regime, namely Bumiputera policy. Malaysia also has claimed some reservation and threshold amounts in the said Chapter under the Annexure 15-A of the State Schedule. Thus, the objective of this writing is, first, to review the existing legislation and regulations in Malaysia that cover government procurement. Then, it discusses how the ratification of the CPTPP will impact the existing Bumiputera policy practiced in government procurement ecosystems. Finally, this writing reviews the Government of Malaysia’s action and plan on government procurement post ratification of CPTPP. This study adopts a qualitative method that mainly relies on descriptive and analytical examinations of statutory provisions and relevant authorities. It concludes that Malaysia’s Bumiputera policy is still unflawed in the government procurement despite the ratification and adoption of Chapter 15 of the CPTPP. BNM as the financial policy advisor to the Government of Malaysia is not being statutorily vested with power to review and provide feedback on CPTPP to the government. This is due to the reservations and high price preferential system imposed by Malaysia for a much longer period before its finally fully incorporated and functional in Malaysia’s government procurement.
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spelling doaj-art-ecfd6608b975445cb771e21698dd2ae32025-08-20T03:11:18ZengBank IndonesiaJournal of Central Banking Law and Institutions2827-77752809-98852023-09-012354355610.21098/jcli.v2i3.179179LEGAL REVIEW ON CPTPP AND ITS IMPLICATION ON BUMIPUTERA’S POLICIES IN MALAYSIA GOVERNMENT PROCUREMENTMuhammad Hanafi Haron0Universiti Kebangsaan MalaysiaThe Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is an open and multi trade agreement that significantly liberalizes international procurement Trans-Pacific markets. Chapter 15 of the CPTPP is covers government procurement. Malaysia signed and eventually ratified CPTPP later in 2022 and needs to incorporate Chapter 15 into its government procurement regulations. Having said this, the question remains on how features of Chapter 15 will stand and comport with the existing protection mechanisms that are practiced by Malaysia in its government procurement regime, namely Bumiputera policy. Malaysia also has claimed some reservation and threshold amounts in the said Chapter under the Annexure 15-A of the State Schedule. Thus, the objective of this writing is, first, to review the existing legislation and regulations in Malaysia that cover government procurement. Then, it discusses how the ratification of the CPTPP will impact the existing Bumiputera policy practiced in government procurement ecosystems. Finally, this writing reviews the Government of Malaysia’s action and plan on government procurement post ratification of CPTPP. This study adopts a qualitative method that mainly relies on descriptive and analytical examinations of statutory provisions and relevant authorities. It concludes that Malaysia’s Bumiputera policy is still unflawed in the government procurement despite the ratification and adoption of Chapter 15 of the CPTPP. BNM as the financial policy advisor to the Government of Malaysia is not being statutorily vested with power to review and provide feedback on CPTPP to the government. This is due to the reservations and high price preferential system imposed by Malaysia for a much longer period before its finally fully incorporated and functional in Malaysia’s government procurement.https://jcli-bi.org/index.php/jcli/article/view/179cptppgovernment procurementprotectionism policybumiputeramalaysia
spellingShingle Muhammad Hanafi Haron
LEGAL REVIEW ON CPTPP AND ITS IMPLICATION ON BUMIPUTERA’S POLICIES IN MALAYSIA GOVERNMENT PROCUREMENT
Journal of Central Banking Law and Institutions
cptpp
government procurement
protectionism policy
bumiputera
malaysia
title LEGAL REVIEW ON CPTPP AND ITS IMPLICATION ON BUMIPUTERA’S POLICIES IN MALAYSIA GOVERNMENT PROCUREMENT
title_full LEGAL REVIEW ON CPTPP AND ITS IMPLICATION ON BUMIPUTERA’S POLICIES IN MALAYSIA GOVERNMENT PROCUREMENT
title_fullStr LEGAL REVIEW ON CPTPP AND ITS IMPLICATION ON BUMIPUTERA’S POLICIES IN MALAYSIA GOVERNMENT PROCUREMENT
title_full_unstemmed LEGAL REVIEW ON CPTPP AND ITS IMPLICATION ON BUMIPUTERA’S POLICIES IN MALAYSIA GOVERNMENT PROCUREMENT
title_short LEGAL REVIEW ON CPTPP AND ITS IMPLICATION ON BUMIPUTERA’S POLICIES IN MALAYSIA GOVERNMENT PROCUREMENT
title_sort legal review on cptpp and its implication on bumiputera s policies in malaysia government procurement
topic cptpp
government procurement
protectionism policy
bumiputera
malaysia
url https://jcli-bi.org/index.php/jcli/article/view/179
work_keys_str_mv AT muhammadhanafiharon legalreviewoncptppanditsimplicationonbumiputeraspoliciesinmalaysiagovernmentprocurement