Up to RM10 billion can be saved by plugging leakage in govt procurement, says Anwar

Prime Minister Anwar Ibrahim today said the country could save up to RM10 billion by plugging the leakage that occurs in the government procurement system.

Anwar, who is finance minister, said such leakage could be stopped if corruption was eradicated at all levels, including by changing the old way of doing things, to do away with political interference and protecting the interests of businessmen in government procurement. 

"We are experiencing high levels of leakage. In less than two months at the finance ministry, I have identified RM3 billion to RM4 billion that can be saved," he said at the 2023 Budget Dialogue Council in Putrajaya.

Also present were Deputy Finance Ministers Ahmad Maslan and Steven Sim Chee Keong, Chief Secretary to the Government Mohd Zuki Ali and deputy treasury secretary-general (policy) Johan Mahmood Merican.

Anwar said from his experience, leakage could be reduced if procurement matters are handed over to parties capable of dealing with issues such as floods.

Meanwhile, he said Budget 2023 should focus on restoring the confidence of domestic and foreign investors, as well as expediting the approval of investments.

"For example, a proposal to introduce an organic farm by a company took two years to be approved.

"Granting approval should be faster, and the heads of departments should be held fully accountable in the event of delays, and face action for affecting the national economy," he said.

The government will present the revised budget for 2023 in Parliament on Feb 24.