FMM president Jacob Lee said the Iran war had disrupted shipping routes and driven up freight and insurance costs, leading to direct cost pressures for Malaysian manufacturers that depend on imported input.

Global trade shifts have also intensified trade diversion pressures across the region, raising the risk of government procurement channels being used to supply goods that do not meet local content requirements, he said.

Lee said the robust verification mechanisms in the GPA 2025 were essential to protecting the integrity of the “Buy Malaysian” policy.

“Against this backdrop, building domestic manufacturing capacity and channelling public procurement towards Malaysian-made goods and services is both an economic and a strategic priority.

“FMM requests that the government confirm the specific commencement date and timeline for the publication of subsidiary regulations,” he said in a statement.

The GPA 2025, Malaysia’s first dedicated legislation governing public procurement, was passed by the Dewan Rakyat in August 2025 and the Dewan Negara in September 2025.

Lee said government procurement was one of the largest areas of public expenditure where public funds are channelled into infrastructure, services, and programmes that directly affect the competitiveness of Malaysian industry and domestic supply chains.

“For investors, both foreign and domestic, a transparent and credible procurement system signals that Malaysia awards contracts on merit, reduces the risk of rent-seeking, and reinforces Malaysia’s standing as a reliable investment destination.

“For the Malaysian public, greater transparency and fair competition strengthen value for money in public spending and free up resources for the effective delivery of infrastructure and public services,” he said.