Malaysia legislation

Section 37

of GOVERNMENT PROCUREMENT ACT 2026

Section 37

(2)

Any person making an application for a registration or any registered person making an application for a renewal or amendment of a registration under section 18 shall disclose to the Registrar—

(a)

any direct or indirect interest by himself, a member of his family or his associate in relation to any other registered person or person applying for a registration under section 18; and

(b)

the beneficial owner to any person making the application or any registered person, as the case may be.

(3)

The obligation under subsection (2) shall extend to—

(a)

in the case of a company, the directors, shareholders and senior management of the company;

(b)

in the case of a partnership, all the partners in the partnership; and

(c)

in the case of a co-operative society, any person holding the key responsibility in the management of the co-operative society.

Act 882

(4)

Any registered person participating or intending to participate in a Government procurement under this Act shall disclose to the procuring entity responsible for the Government procurement—

(a)

any beneficial owner of the registered person; and

(b)

any direct or indirect interest by himself, a member of his family or his associate in relation to—

(i)

any other registered person, whether or not the other registered person is participating or intends to participate in that Government procurement;

and

(ii)

any person under the purview of the procuring entity who is involved in the conduct of the

Government procurement.

(5)

Any person who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding five years or to both.

(6)

For the purposes of this section—

(a)

“a member of his family”, in relation to a person, member of a procurement board or member of a procurement committee, includes—

(i)

his spouse;

(ii)

his parent, including a parent of his spouse;

(iii)

his child, including an adopted child or stepchild;

(iv)

his brother or sister, including a brother or sister of his spouse; and

(v)

a spouse of his child, brother or sister;

Government Procurement 41

(b)

“associate”, in relation to a person, member of a procurement board or member of a procurement committee, means—

(i)

any person who is a nominee or an employee of such person;

(ii)

a firm of which such person or any nominee of his is a partner;

(iii)

a partner of such person;

(iv)

a trustee of a trust under which such person or a member of his family is a beneficiary;

(v)

any corporation within the meaning of the Labuan

Companies Act 1990 or the Companies Act 2016, as the case may be, of which or in which such person or any nominee of his or a member of his family is a director or has a substantial shareholding; or

(vi)

in the case of a co-operative society, includes any person holding the key responsibility in the management of the co-operative society.

Prohibition against intervention in Government procurement