Evolution of Public Procurement in Malaysia from The British Colonial Era To The Period Of The New Economic Policy

This article is an analysis of the evolution and changes that occurred in public procurement in Malaysia from two eras, namely the era of British colonialism and the era of the implementation of the New Economic Policy (NEP). The targeted objective is to examine the changes that occurred in public procurement during the period, analyze the reasons and factors why those changes occurred and then the impact that was left behind. This is important because the public procurement policy in those two periods has become the basis of the government procurement system in Malaysia today. Political and the direction of the government were found to play a role in shaping the form of public procurement in both eras and it was systematically legitimized. The British have made public spending run according to their mold and direction even though the sultan is still the supreme ruler of a state. Through the term "advising" versus "directing" in managing the administration, the British established the Federal Assembly as a legitimate control tool to govern and dominate the financial administration in their colonial states. Crown agents played an important role in public procurement representing the supreme British government in London and this continued until after independence. NEP which was launched in 1971 witnessed an important transition where there was a clear role for the government by being more actively involved in the national development agenda through public procurement. This happens through affirmative policies in the form of legislation, bureaucratic frameworks and quota systems. This has had an impact on the country's public procurement policy until now.