ID :
119614
Sat, 05/01/2010 - 08:56
Auther :

PARTICIPATION OF FOREIGN SUPPLIERS MAY BE POSSIBLE FOR GOVT PROCUREMENT



KUALA LUMPUR, April 30 (Bernama) -- The government, via the Finance
Ministry, is studying the possibility of allowing foreign companies to
participate in government procurement contracts.

International Trade and Industry Minister Mustapa Mohamed said this would
enable Malaysia to participate in the Trans-Pacific Partnership (TPP)
agreement.

Participation by foreign suppliers in government contracts is one of the
three criterias Malaysia must fulfill if the country wants to join the trade
cooperation pact.

The other criterias include the need to have in place a competition policy
and labour laws.

Mustapa said in several procurement contracts, the government did not allow
the participation of foreign suppliers as Malaysia was policy bound to support
local entreprenuers, including Bumiputeras.

"The government is reviewing a way where it could continue to give some
preference to locals, which is important. Within this preference system,
perhaps there is role to play by foreign suppliers," he told a media conference
on the Southeast Asia Economic Ministers Roadshow to the United States between
May 3 and 8.

Mustapa said a comprehensive study of the matter is being undertaken by the
Finance Ministry.

"This is a step forward. The government has approved a policy which is
related to the competition policy (to attract more private sector participation
in competitive areas).

"This was not made clear previously during the free trade agreement (FTA)
negotiations with the United States," he added.

The TPP is a multilaterial initiative to establish a free trade area among
member countries by 2015.

Current members of the TPP are Australia, Brunei, Chile, New Zealand, Peru,
Singapore, the United States and Vietnam.
-- BERNAMA


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