Government procurement, explained
Government procurement (perolehan kerajaan) is how ministries and agencies spend public money to buy goods, services and construction. How they buy depends on how much it costs.
Updated 1 July 2026 · Ministry of Finance / MyProcurement
The four ways the government buys
Federal procurement is set by the Ministry of Finance under Treasury circulars (Pekeliling Perbendaharaan). The method is decided mainly by the value of the purchase:
1. Direct purchase — up to RM20,000. Small, everyday buys. The department simply issues a government order to a registered supplier.
2. Quotation (sebut harga) — RM20,000 to RM500,000. The agency invites quotes from suppliers registered with the Ministry of Finance. Bumiputera-registered firms are invited in certain value bands.
3. Open tender — above RM500,000. Must be advertised publicly so any eligible company can bid. Bids are evaluated on price and capability.
4. Direct negotiation (rundingan terus) — special approval only. Award to a single party without open competition, used in limited cases (e.g. proprietary or urgent needs). Still published for transparency.
Thresholds follow Treasury Instructions and circulars, which are reviewed periodically — always check the current circular for exact bands.
Where it all happens
ePerolehan (eperolehan.gov.my) is the government's e-procurement system — where suppliers register and where tenders are run. MyProcurement (myprocurement.treasury.gov.my) is the public window: it publishes tender notices, quotation results and even direct-negotiation awards, so anyone can see how public money is spent.
Who can supply the government
To sell to the government you generally need to be registered — with the Ministry of Finance (MOF) for goods and services, or with CIDB for construction works. Many higher-value opportunities also give preference to Bumiputera-registered companies. Registration sets your field codes and grade, which decide which tenders you're eligible for.
Why it matters
Procurement is one of the biggest ways the government spends — a large share of the country's RM407 billion in annual spending flows through it. Because it's public money, the notices and awards are meant to be open, which is what makes transparency and competition possible.
Common questions
What is government procurement in Malaysia?
It's how ministries and agencies buy goods, services and works using public money, governed by the Ministry of Finance. Most opportunities are published on MyProcurement and run through ePerolehan.
What are the procurement methods and thresholds?
By value: direct purchase up to RM20,000; quotation (sebut harga) from RM20,000 to RM500,000; and open tender above RM500,000. Direct negotiation is used only with special approval.
What is the difference between a tender and a sebut harga?
A sebut harga (quotation) is for mid-value buys (~RM20k–RM500k) and invites quotes from registered suppliers. An open tender is above RM500,000 and must be advertised publicly.
What is direct negotiation (rundingan terus)?
An award made to a single party without open competition. It needs special approval and is used only in limited cases. Awards are still published on MyProcurement.
Where are Malaysian government tenders published?
On MyProcurement (myprocurement.treasury.gov.my) and through ePerolehan (eperolehan.gov.my).
Want to bid for government work?
See our step-by-step guide on how to find tenders you're eligible for and submit a bid.
How to find & bid for a tender →Malaysia, decoded weekly
One email a week — the numbers that run the country, straight from the source. No spam.