Govt's Pre-Q procurement method lacks transparency, Auditor General finds
Auditor General Datuk Wan Suraya Wan Mohd Radzi said the open tender process was more appropriate to ensure transparency and accountability in procurement.
The recommendation was made following findings in the Auditor-General's Report 2/2025, which uncovered manipulation and a lack of transparency in the Pre-Q process introduced by the Finance Ministry in 2023 and 2024.
"Some companies that failed to meet the initial evaluation criteria were still invited to participate and were even selected during the final round," she said in a statement.
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The Star
a day ago
- The Star
Rubber rebound? Still waiting for the bounce
MY world has long revolved around oil palm-rubber was merely a nodding acquaintance. I never tapped a tree or dreamt of latex. But someone tossed me a glove and asked, 'What about rubber?' I hesitated – until I remembered my roots. My mother was a rubber tapper. As a child, I trailed her in misty dawns, watching her draw life from trees with silent grit. That memory reshaped my view: rubber isn't just a fading commodity – it's a legacy. One cut, one cup, one unseen hero at a time. While policymakers debate if rubber belongs in the 'sunset' file, I see dawns - of nation-building, of quiet progress carved without slogans. Yes, rubber now faces twilight confusion. But what it needs isn't nostalgia – it's clarity. It deserves honest reckoning, not romanticism. We must ask: What does this legacy crop still mean – and what could it become if given its rightful due? Tapping into a shared responsibility The Plantation and Commodities Ministry has taken a positive step: proposing the consolidation of rubber smallholders as a national agenda under the budget. It's a promising move – though, as always, good ideas must queue behind competing priorities at the Finance Ministry. This renewed focus responds to a growing concern: over 420,000 ha of mature rubber trees – nearly half the size of Selangor – remain untapped. Labour shortages and ageing trees are part of the story, but deeper structural issues also hold back progress. Rubber smallholdings are fragmented and scattered, making them hard to manage and uneconomical to tap. It's a challenge we're also seeing in oil palm – suggesting broader systemic reform may be needed. Malaysia excels in downstream rubber, particularly gloves, which generate over RM12bil in exports (est. 2024). But the upstream segment continues to struggle. Though the government has opened quotas for foreign labour, uptake has been limited. There's growing consensus that modernising and consolidating smallholdings could offer a path forward. Clustering has been discussed for years, and it's encouraging to see traction at the policy level. Still, successful implementation will require more than intent – it needs coordination, strong institutional support and trust from smallholders. Other countries have addressed similar challenges. The US Farm Bill and the European Union's Common Agricultural Policy offer models of land consolidation and strategic public support. While Malaysia's context is unique, there's value in adapting lessons from elsewhere. This is a complex, political issue that demands resources and courage. Too often, we default to short-term subsidies that offer relief but no structural change. The real question is: will there be the will to take one bold step – difficult in the short term, but transformative in the long run? Ultimately, we share a common goal: to ensure the rubber sector remains resilient, inclusive and sustainable. With the right structures and collaboration, today's untapped potential can become tomorrow's opportunity. One tree, many stakeholders The governance of Malaysia's rubber sector reflects a rich institutional legacy shaped by different mandates and regional needs. In Peninsular Malaysia, about 90% to 95% of rubber is cultivated by smallholders supported by Risda, under the Rural and Regional Development Ministry. Broader commodity matters – such as research and development, upstream and downstream development – fall under the Malaysian Rubber Board, which reports to the Plantation and Commodities Ministry. In Sabah and Sarawak, there are also state-level agencies like Lembaga Industri Getah Sabah and Sarawak Rubber Industry Board. While this structure reflects Malaysia's federal and developmental history, it can also create challenges in coordination, especially where mandates overlap or where multiple agencies share responsibility across the value chain. This complexity can sometimes make it harder to align efforts, allocate resources efficiently and maintain clear accountability. As the sector adapts to evolving global trends – from market volatility to sustainability pressures – it may be timely to explore whether the current institutional setup best supports the future. Clarifying roles, enhancing inter-agency coordination or even streamlining oversight could help improve implementation on the ground – particularly for the smallholders who form the backbone of the industry. Rather than a call for wholesale change, this is an invitation to reflect: Are there ways to strengthen alignment across institutions to better support growth, innovation and resilience in the rubber sector? Leadership continuity One of the less discussed yet impactful challenges in the plantation sector is the frequent ministerial turnover. Between 2018 and 2023, the Plantation and Commodities Ministry saw five different Ministers. While driven by broader political shifts, this level of churn creates undeniable instability. Sectors like rubber and oil palm depend on long economic and biological cycles, tied to global trade and rural livelihoods. They don't thrive under short-term planning or inconsistent leadership. What's needed is policy consistency, institutional memory, and long-term engagement – hard to achieve with revolving-door leadership. This raises a larger question: is such volatility circumstantial, or does it reflect a deeper structural gap in how we steward strategic commodity sectors? Elevating the Ministry from a stop-gap appointment to a central pillar of national development could foster the stability essential for meaningful, lasting progress in agriculture and beyond. Rubber's reality check: Tapping out or stepping up? If rubber is to stay relevant, structural reforms and targeted research and development are essential. Let's face the rubbery truth with smallholders. They aren't bouncing back anytime soon if we keep slathering short-term subsidies like balm on a broken limb. For decades, price supports have been our reflex band-aid, yet the bleeding continues. Why? Because the real wound is technological stagnation. We talk big about latex premiums - especially with glove manufacturers importing truckloads from Thailand – yet most of our smallholders still produce low-value cup lumps. Why? Because they're ageing. Their kids have traded in tapping knives for TikTok and city jobs. Rubber tapping, once noble and dependable, is now a retirement endeavour for the over-60s. And can we blame them? Tapping latex is laborious. Labour-intensive tapping, often done before sunrise, deters new workers and risks bark damage. These are sustainability red flags. Cup lumps, on the other hand, are lazy-friendly – tap today, collect next week. But that convenience comes at a cost: low prices, zero premiums and economic limbo during market dips. Research into latex extraction, especially chemical stimulation for consistent yield, must accelerate. With synthetic alternatives rising, only bold, integrated research and development will secure natural rubber's future. So what's the real bounce-back plan? Stop cushioning decline with feel-good subsidies. Start investing in upstream tech adoption, rejuvenate interest through viable models for younger rural entrepreneurs, and don't forget the sleeper hit - rubberwood. If we treat those old trees as dual-income assets for latex and timber, maybe, just maybe, Malaysia's rubber story won't go the way of the dodo – or worse, get Thai-jacked. Coherence in the rubber roadmap This isn't a criticism. It's a call for clarity, coherence and long-term direction. The plantation sector, rubber included, needs more than fragmented solutions and overlapping mandates. It deserves a unified, data-driven vision aligned with national goals and grounded in the realities of smallholders. Leadership continuity is equally critical. Structural reforms in perennial crops need time and consistency. Current efforts, though well-meaning, may not match today's challenges. Rubber offers a simple truth: trees are either tapped – or they're not. The sector either advances or it falls further behind. Joseph Tek Choon Yee has over 30 years experience in the plantation industry, with a strong background in oil palm research and development, C-suite leadership and industry advocacy. The views expressed here are the writer's own.
Malaysiakini
2 days ago
- Malaysiakini
Govt scraps plans for high-value goods tax
The Finance Ministry has decided not to implement the high-value goods tax (HVGT), said Prime Minister Anwar Ibrahim in a written parliamentary reply from yesterday. He explained that the decision was made as the revision to the sales and service tax (SST), which has been expanded to between five and 10 percent, has taken into account luxury items.
Daily Express
2 days ago
- Daily Express
Government cancels tax on luxury goods
Published on: Thursday, July 31, 2025 Published on: Thu, Jul 31, 2025 By: Bernama Text Size: Kuala Lumpur: The government has decided not to proceed with the implementation of the high-value goods tax (HVGT), according to the Finance Ministry (MOF). In a written reply on the Parliament website, the MOF stated, however, that the principles of the HVGT have been incorporated into the revised sales tax structure, with luxury and discretionary items taxed at five or 10 per cent. The ministry said this in response to a question from Datuk Shamshulkahar Mohd Deli (BN-Jempol), who asked about the projected rise in national revenue resulting from fiscal reform measures, including the introduction of HVGT, the digital goods tax, capital gains tax (CGT), low-value goods tax, and the expansion of the SST tax and subsidy rationalisation that are being or will be implemented. The proposal to introduce HVGT was first announced at the revised presentation of Budget 2023 in February 2023. Initially planned to be implemented by May 2024, the government had expected to generate an additional RM700 million annually from it. However, the government at that time indicated that more time was needed to engage with relevant stakeholders to ensure its effective implementation without negatively impacting the economy. Meanwhile, the MOF said the government has taken several steps under direct and indirect taxation to strengthen national revenue collection. Among them is the implementation of the CGT, effective March 1, 2024. 'Based on the current transaction volume and value involving unlisted shares, the government estimates revenue collection of about RM800 million a year,' it said. The sales tax rate revision and the expanded scope of the service tax, effective July 1 2025, are also expected to contribute an additional RM5 billion revenue in 2025, doubling to RM10 billion in 2026. As for diesel subsidy targeting, it has so far generated RM600 million in monthly government savings. Additionally, the low-value goods tax, effective Jan 1, 2024, recorded a collection of about RM500 million for the year 2024. The government's decision to halt the proposed high-value goods tax (HVGT), formerly known as the luxury goods tax, will not affect the RM700 million tax revenue expected from its implementation, said an economist. Sunway University economics professor Dr Yeah Kim Leng said the move will instead ease concerns over the potential impact of the tax on consumer and tourist spending, as its incorporation into the existing expanded Sales and Service Tax (SST) has removed uncertainty over which items are subject to tax. He explained that since the principles of the HVGT have been integrated into the expanded SST structure, where luxury and discretionary items are now taxed at five or 10 per cent, the rates are effectively the same as those proposed for the HVGT in Budget 2023. 'The revenue target will not be affected as the same SST rate will be applied without the need to define which goods are considered high value,' Yeah told Bernama. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
