7. Exemptions to Competitive Bidding
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7. Exemptions to Competitive Bidding Start Comparison
a. Are there any exemptions to competitive bidding, i.e. under what conditions is a direct award/single sourcing permissible?

Yes. Pursuant to the Treasury Instruments, procurement worth less than RM 20,000 can be made by way of direct purchase. Additionally, there are various exemptions under the Treasury Instruments to competitive bidding including instances where, among others, there is an urgent need for the procurement and any delay would prejudice and negatively affect the public interest, the supply is so specialised that only one company is able to make such supply and the procurement involves security devices or certain strategic projects that have to be kept confidential. 

As per our response to question 1(a) above, kindly note that the Treasury Instruments do not have a force of law as a matter of prevailing jurisprudence.

b. What are the consequences for violation of the competitive bidding requirement?

Violations of the bidding requirements under the Treasury Instruments by public agencies may result in any decision made by the public agency being subjected to judicial review although we have not seen any cases in this regard.