Discusses the legal requirements for selling to the host gov't, including whether the gov't has agreed to abide by the WTO Government Procurement Agreement.
Selling to the Government
Government procurement is regarding the acquisition of supplies, services, and works following Malaysia’s current rules and regulations to achieve a set of objectives. In line with good governance practices, the government of Malaysia aims to implement good procurement practices for public accountability, transparency, best value for money, open and fair competition, and fair dealing.
Any individual, company, or corporate body wishing to participate in the Government procurement of supplies and services must register with the Malaysian Ministry of Finance. For infrastructure and engineering projects, bidding companies must register with the Contractors Service Centre Pusat Khidmat Kontraktor (PKK) and the Construction Industry Development Board Malaysia (CIDB), agencies under the Ministry of Works Malaysia.
U.S. companies bidding on government tenders may also qualify for Official Advocacy from the U.S. government. The Advocacy Center, a unit of the U.S. Commerce Department’s International Trade Administration, coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters bidding on public sector contracts with international governments and government agencies. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agencies expressing support for the U.S. bidders directly to the foreign government. Consult Advocacy for Foreign Government Contracts for additional information.
U.S. companies bidding on Government tenders may also qualify for U.S. Government advocacy. A unit of the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters bidding on public sector contracts with international governments and government agencies. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agencies expressing support for the U.S. bidders directly to the foreign government. Consult Advocacy for Foreign Government Contracts for additional information.
Financing of Projects
In Malaysia, government-initiated projects are usually funded by the Ministry of Finance. Though other ministries may implement the tender or oversee technical committees, the Ministry of Finance is the final decision maker in all significant projects. Government procurement is one of the areas that the recently launched National Anti-Corruption Plan to reform to improve efficiency and transparency.
The Islamic Development Bank (IsDB) finances a few projects in Malaysia, mainly in healthcare and university expansion. Malaysia is a high-or-mid-income country by the IsDB and a partner in providing technical expertise to other IsDB member countries.
The Asian Development Bank (ADB)
ADB’s assistance to Malaysia focuses on advancing regional cooperation and integration, providing advisory services, building institutional capacity, and promoting sustainable development and green growth. ADB targets sectors and identifies thematic priorities to help Malaysia achieve its development agenda.
The Export-Import Bank of the United States (Exim Bank)
For many U.S. exporters, a lack of financing can stand in the way of global growth. EXIM has several forms of support that can provide a solution, such as a working capital loan guarantee or export credit insurance.
U.S. International Development Finance Corporation (DFC)
The DFC is America’s development bank and partners with the private sector to finance solutions and invest across sectors, including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.
U.S. Trade and Development Agency (USTDA)
The USTDA helps companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies. The USTDA links U.S. businesses to export opportunities by funding project preparation and partnership building activities that develop sustainable infrastructure and foster economic growth in partner countries.
Some of USTDA’s tools include funds for early-stage project preparation activities such as feasibility studies, technical assistance, and pilot projects. These activities provide the analysis needed for projects to attract financing and reach implementation. Additionally, USTDA creates market access for U.S. companies, connecting them with key decision-makers in emerging economies by hosting reverse trade missions (RTM), conferences, workshops, and training. The Agency’s RTMs bring overseas decision-makers to the United States to introduce them to the design, manufacture, and operation of U.S. goods and services that can help advance their infrastructure development goals.
USTDA facilitates U.S. business participation in the preparation and execution of infrastructure development projects. The Agency helps build the infrastructure for trade, matches U.S. expertise with overseas development needs, and facilitates business partnerships between the U.S. industry and emerging markets. These partnerships allow the Agency to target its investments toward projects most likely to be implemented using U.S. goods and services.
To learn more about USTDA’s activities in Malaysia, contact the USTDA Country Representative in Malaysia, Murni Ali, at email@example.com