Consolidated TPP Text – Annex 15-A – Schedule of Malaysia

Section A: Central Government Entities

Thresholds:

Chapter 15 (Government Procurement) shall apply to the entities of Central Government listed in this Section where the value of the procurement is estimated to equal or exceed the following relevant thresholds:

Goods

1,500,000 SDR

From the beginning of the first year to the end of the fourth year following entry into force of this Agreement for Malaysia;

800,000 SDR

From the beginning of the fifth year to the end of the seventh year following entry into force of this Agreement for Malaysia; and

130,000 SDR

From the beginning of the eighth year following entry into force of this Agreement for Malaysia and thereafter.

Services

2,000,000 SDR

From the beginning of the first year to the end of the fourth year following entry into force of this Agreement for Malaysia;

1,000,000 SDR

From the beginning of the fifth year to the end of the seventh year following entry into force of this Agreement for Malaysia;

500,000 SDR

From the beginning of the eighth year to the end of the ninth year following entry into force of this Agreement for Malaysia; and

130,000 SDR

From the beginning of the 10th year following entry into force of this Agreement for Malaysia and thereafter.

Construction Services

63,000,000 SDR

From the beginning of the first year to the end of the fifth year following entry into force of this Agreement for Malaysia;

50,000,000 SDR

From the beginning of the sixth year to the end of the 10th year following entry into force of this Agreement for Malaysia;

40,000,000 SDR

From the beginning of the 11th year to the end of the 15th year following entry into force of this Agreement for Malaysia;

30,000,000 SDR

From the beginning of the 16th year to the end of the 20th year following entry into force of this Agreement for Malaysia; and

14,000,000 SDR

From the beginning of the 21st year following entry into force of this Agreement for Malaysia and thereafter.

List of Entities (Note 1):

1. Ministry of Agriculture and Agro-Based Industry (Kementerian Pertanian dan Industri Asas Tani) (Note 2)

2. Ministry of Communication and Multimedia (Kementerian Komunikasi dan Multimedia)

3. Ministry of Defence (Kementerian Pertahanan) (Note 3)

4. Ministry of Domestic Trade, Co-operatives and Consumerism (Kementerian Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan)

5. Ministry of Education (Kementerian Pendidikan) (Note 4)

6. Ministry of Energy, Green Technology and Water (Kementerian Tenaga, Teknologi Hijau dan Air)

7. Ministry of Federal Territories (Kementerian Wilayah Persekutuan)

8. Ministry of Finance (Kementerian Kewangan)

9. Ministry of Foreign Affairs (Kementerian Luar  Negeri)

10.  Ministry of Health (Kementerian Kesihatan)

11. Ministry of Higher Education (Kementerian Pendidikan Tinggi) (Note 7)

12. Ministry of Home Affairs (Kementerian Dalam Negeri)

13. Ministry of Human Resources (Kementerian Sumber Manusia)

14. Ministry of International Trade and Industry (Kementerian Perdagangan Antarabangsa dan Industri)

15. Ministry of Natural Resources and Environment (Kementerian Sumber Asli dan Alam Sekitar)

16. Ministry of Plantation Industries and Commodities (Kementerian Perusahaan Perladangan dan Komoditi)

17. Ministry of Rural and Regional Development (Kementerian Kemajuan Luar Bandar dan Wilayah)

18. Ministry of Science, Technology and Innovations (Kementerian Sains, Teknologi dan Inovasi)

19. Ministry of Tourism and Culture (Kementerian Pelancongan dan Kebudayaan)

20. Ministry of Transport (Kementerian Pengangkutan)

21. Ministry of Urban Wellbeing, Housing and Local Government (Kementerian Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan) (Note 9)

22. Ministry of Women, Family and Community Development (Kementerian Pembangunan Wanita, Keluarga dan Masyarakat)

23. Ministry of Works (Kementerian Kerja Raya)

24. Ministry of Youth and Sports (Kementerian Belia dan Sukan)

25. Prime Minister’s Department (Jabatan Perdana Menteri)

Notes to Section A

1. Chapter 15 (Government Procurement) shall cover only the entities listed under each Ministry and Prime Minister’s Department (Jabatan Perdana Menteri) including the subordinates of the listed entities, unless otherwise specified. Those subordinates that have separate legal status are not covered.

2.Ministry of Agriculture and Agro-Based Industry (Kementerian Pertanian dan Industri Asas Tani): Chapter 15 (Government Procurement) shall not cover any procurement and distribution of inputs for agro-food production in Malaysia.

3. Ministry of Defence (Kementerian Pertahanan): Chapter 15 (Government Procurement) shall cover the procurement of goods and services described in United States Federal Supply Code (FSC) classification (Version August 1998) listed below:

United StatesFederal Supply Code
FSCDescription
22Railway Equipment
23Ground Effect Vehicles, Motor Vehicles, Trailers and Cycles
24Tractors
25Vehicular Equipment Components
26Tires and Tubes
29Engine Accessories
30Mechanical Power Transmission Equipment
31Bearings
32Woodworking Machinery and Equipment
34Metalworking Machinery
35Service and Trade Equipment
36Special Industry Machinery
37Agricultural Machinery and Equipment
38Construction, Mining, Excavating and Highway Maintenance Equipment
39Materials Handling Equipment
40Rope, Cable, Chain and Fittings
41Refrigeration, Air Conditioning and Air Circulating Equipment
42Fire Fighting, Rescue and Safety Equipment
43Pumps and Compressors
44Furnace, Steam Plant and Drying Equipment
45Plumbing, Heating and Sanitation Equipment
46Water Purification and Sewage Treatment Equipment
47Pipe, Tubing, Hose and Fittings
48Valves
51Hand tools
52Measuring Tools
53Hardware and Abrasives
54Prefabricated Structures and Scaffolding
55Lumber, Millwork, Plywood and Veneer
56Construction and Building Materials
61Electric Wire, and Power and Distribution Equipment
62Lighting, Fixtures and Lamps
63Alarm, Signal and Security Detection Systems
65Medical, Dental and Veterinary Equipment and Supplies
67Photographic Equipment
68Chemicals and Chemical Products
69Training Aids and Devices
70General Purpose Automatic Data Processing Equipment, Software, Supplies and Support Equipment
71Furniture
72Household and Commercial Furnishings and Appliances
73Food Preparation and Serving Equipment
74Office Machines, Text Processing Systems and Visible Record Equipment
75Office Supplies and Devices
76Books, Maps and other Publications
77Musical Instruments, Phonographs and Home-Type Radios
78Recreational and Athletic Equipment
79Cleaning Equipment and Supplies
80Brushes, Paints, Sealers and Adhesives
81Containers, Packaging and Packing Supplies
83Textiles, Leather, Furs, Apparel and Shoe Findings, Tents and Flags
84Clothing, Individual Equipment, and Insignia
85Toiletries
87Agricultural Supplies
88Live Animals
91Fuels, Lubricants, Oils and Waxes
93Non-metallic Fabricated Materials
94Non-metallic Crude Materials
95Metal Bars, Sheets and Shapes
96Ores, Minerals, and their Primary Products
99Miscellaneous

4. Ministry of Education (Kementerian Pendidikan):

5. Ministry of Finance (Kementerian Kewangan): Chapter 15 (Government Procurement) shall cover all divisions under Federal Treasury of Malaysia (Perbendaharaan Malaysia) except Government Investment Company Division (Bahagian Syarikat Pelaburan Kerajaan).

6. Ministry of Health (Kementerian Kesihatan): For greater certainty, government hospitals and clinics are covered.

7. Ministry of Higher Education (Kementerian Pendidikan Tinggi): For greater certainty, community colleges and polytechnics are covered.

8. Ministry of Home Affairs (Kementerian Dalam Negeri): Chapter 15 (Government Procurement) shall not cover:

9. Ministry of Urban Wellbeing, Housing and Local Government (Kementerian Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan): Chapter 15 (Government Procurement) shall not cover procurement in relation to People’s Housing Programme (Program Perumahan Rakyat).

Section B: Sub-Central Government Entities

None.

Section C: Other Entities

Thresholds:

Chapter 15 (Government Procurement) shall apply to the entities listed in this Section where the value of the procurement is estimated to equal or exceed the following relevant thresholds:

Goods

2,000,000 SDR

From the beginning of the first year to the end of the fourth year following entry into force of this Agreement for Malaysia;

1,000,000 SDR

From the beginning of the fifth year to the end of the seventh year following entry into force of this Agreement for Malaysia; and

150,000 SDR

From the beginning of the eighth year following entry into force of this Agreement for Malaysia and thereafter.

Services 2,000,000 SDR

From the beginning of the first year to the end of the fourth year following entry into force of this Agreement for Malaysia;

1,000,000 SDR

From the beginning of the fifth year to the end of the seventh year following entry into force of this Agreement for Malaysia;

500,000 SDR

From the beginning of the eighth year to the end of the ninth year following entry into force of this Agreement for Malaysia;

150,000 SDR

From the beginning of the 10th year following entry into force of this Agreement for Malaysia and thereafter.

Construction Services

63,000,000 SDR

From the beginning of the first year to the end of the fifth year following entry into force of this Agreement for Malaysia;

50,000,000 SDR

From the beginning of the sixth year to the end of the 10th year following entry into force of this Agreement for Malaysia;

40,000,000 SDR

From the beginning of the 11th year to the end of the 15th year following entry into force of this Agreement for Malaysia;

30,000,000 SDR

From the beginning of the 16th year to the end of the 20th year following entry into force of this Agreement for Malaysia;

14,000,000 SDR

From the beginning of the 21st year following entry into force of this Agreement for Malaysia and thereafter.

List of Entities (Note 1):

1. Malaysia External Trade Development Corporation (Perbadanan Pembangunan Perdagangan Luar Malaysia)

2. Malaysia Productivity Corporation (Perbadanan Produktiviti Malaysia)

3. Malaysian Investment Development Authority (Lembaga Pembangunan Pelaburan Malaysia)

4. Small and Medium Enterprises Corporation Malaysia (Perbadanan Perusahaan Kecil dan Sederhana Malaysia)

Notes to Section C:

1. Chapter 15 (Government Procurement) shall cover only the entities listed including the subordinates of the listed entities, unless otherwise specified. Those subordinates that have separate legal status are not covered.

Section D: Goods

Chapter 15 (Government Procurement) shall apply to all goods, as described in the United Nations Provisional Central Product Classification (CPC), procured by the entities listed in Section A and Section C, unless otherwise specified in Chapter 15 (Government Procurement) and subject to Section G and the Notes to the respective Sections.

Notes to Section D:

1. Chapter 15 (Government Procurement) shall not cover the procurement of:

CPC CodeDescription Code
0113Rice, not husked
0114Husked rice
171Electrical energy
180Natural water
23160Rice, semi- or wholly milled
239Food products, n.e.c.

Section E: Services

Chapter 15 (Government Procurement) shall apply to services listed below, as described in the United Nations Provisional Central Product Classification (CPC), procured by the entities listed in Section A and Section C, unless otherwise specified in Chapter 15 (Government Procurement) and subject to Section G and the Notes to the respective Sections.

CPC CodeDescription
61Sale, maintenance and repair services of motor vehicles and motorcycles
62Commission agents' and wholesale trade services, except of motor vehicles and motorcycles
63Retail trade services; repair services of personal and household goods
71Land transport services
72Water transport services
732Freight transportation by air
74Supporting and auxiliary transport services (except for CPC 747 - Travel agency, tour operator and tourist guide services)
75Post and Telecommunications Services (except for CPC 7511 - Postal services)
83Leasing or rental services without operator (except for CPC 83101 - Leasing or rental services concerning private cars without operator)
84Computer and Related Services
862Accounting, auditing and book-keeping services
863Taxation services
864Market research and public opinion polls
865Management consulting services (except for CPC 86502 - Financial management consulting services (except business tax))
86601Project management services other than for construction
867Architectural, engineering and other technical services
871Advertising services
872Placement and supply services of personnel
874Building-cleaning services
875Photographic services
876Packaging services
87905Translation and interpretation services
884Services incidental to manufacturing, except to the manufacture of metal products, machinery and equipment
885Services incidental to the manufacture of metal products, machinery and equipment
886Repair services incidental to metal products, machinery and equipment (except for CPC 8867 - Repair services n.e.c. of motor vehicles, trailers and semi-trailers, on a fee or contract basis)
92Education services
93Health and social services
94Sewage and Refuse Disposal, Sanitation and Other Environmental Protection Services (except for CPC 9401 - Sewage services and CPC 9403 - Sanitation and similar services)
95Services of membership organizations (except for CPC 95910 - Religious services)
96311Library services
9641Sporting services
97Other services (except for CPC 97030 - Funeral, cremation and undertaking services and CPC 97090 - Other services n.e.c.)
98Private households with employed persons
99Services provided by extraterritorial organizations and bodies

Notes to Section E:

1. Chapter 15 (Government Procurement) shall not cover procurement of cabotage services for the shipment of goods from any port or place in Malaysia to another port or place in Malaysia; or from any port or place in Malaysia to any place in the exclusive economic zone or vice versa, that form a part of, or are incidental to a procurement contract.

2. For CPC 75 and CPC 84, Chapter 15 (Government Procurement) shall not cover any procurement that will affect Malaysia’s essential security interest, as determined by the procuring entities.

3. Chapter 15 (Government Procurement) shall not cover plasma fractionation services.

Section F: Construction Services

Chapter 15 (Government Procurement) shall apply to all construction services, as described in the United Nations Provisional Central Product Classification (CPC) 51, procured by the entities listed in Section A and Section C, unless otherwise specified in Chapter 15 (Government Procurement) and subject to Section G and the Notes to the respective Sections.

Notes to Section F:

1. Chapter 15 (Government Procurement) shall not cover procurement of dredging services.

2. Chapter 15 (Government Procurement) shall not cover construction services that is carried out to maintain or improve the existing slope (hillside surfacing) conditions through periodic maintenance; or to reconstruct or improve existing slopes or construct new slopes due to natural disaster, flood, landslide ground subsidence and other emergency and unforeseen circumstances.

Section G: General Notes

Unless otherwise specified, the following General Notes shall apply without exception to Chapter 15 (Government Procurement), including to all Sections of this Schedule.

1. Chapter 15 (Government Procurement) shall not apply to:

2. Malaysia reserves the right to adopt or maintain any measure that confers safeguards, provides preference or renders assistance, benefits or other forms of rights or interests to Bumiputera in relation to government procurement not covered by Chapter 15 (Government Procurement). For procurement covered by Chapter 15 (Government Procurement), Malaysia reserves the right to accord Bumiputera status to eligible companies and shall apply the following measures under the Bumiputera policy:

Procurement ValuePercentage of price preference for Category 1
Above RM500,000 up to RM1,500,0007%
Above RM1,500,000 up to RM5,000,0005%
Above RM5,000,000 up to RM10,000,0003%
Above RM10,000,000 up to RM15,000,0002.5%
Above RM15,000,0000
Procurement ValuePercentage of price preference for Category 2
Above RM500,000 up to RM1,500,0003.5%
Above RM1,500,000 up to RM5,000,0002.5%
Above RM5,000,000 up to RM10,000,0001.5%
Above RM10,000,000 up to RM15,000,0001.25%
Above RM15,000,0000
Procurement ValuePercentage of price preference for Category 3
Up to RM10,000,00010%
Above RM10,000,000 up to RM100,000,0005%
Above RM100,000,0003%

3. Procuring entities shall accord price preference for Category 2 to Malaysian suppliers (other than Bumiputera) and suppliers of other Parties providing goods and services originating from any Party.

4. Malaysia reserves the right to adopt or maintain any measure in relation to the procurement of items under Central Contract as described below:

5. Panel Contract shall be applied in a manner consistent with obligations under Chapter 15 (Government Procurement) with respect to the covered procurement set out in this Schedule.

6. Any measure to benefit micro, small and medium enterprises (SMEs) shall be applied in a manner consistent with obligations under Chapter 15 (Government Procurement) with respect to the covered procurement set out in this Schedule.

7. For greater certainty, Chapter 15 (Government Procurement) shall not apply to:

Section H: Threshold Adjustment Formula

1. The thresholds shall be adjusted in every even-numbered year with each adjustment taking effect on January 1, beginning on January 1 of the first even-numbered year after the date of entry into force of this Agreement for Malaysia.

2. Every two years, Malaysia shall calculate and publish the value of the thresholds under Chapter 15 (Government Procurement) expressed in Malaysian Ringgit (RM). These calculations shall be based on the conversion rates published by the International Monetary Fund in its monthly International Financial Statistics.

3. The conversion rates shall be the average of the daily values of the Malaysian Ringgit in terms of the Special Drawing Rights (SDR) over the two-year period preceding October 1 of the year before the adjusted thresholds are to take effect and rounded to the nearest Malaysian Ringgit.

4. Malaysia shall notify the other Parties of the current thresholds in Malaysian Ringgit immediately after the date of entry into force of this Agreement for Malaysia, and the adjusted thresholds in Malaysian Ringgit thereafter in a timely manner.

5. Malaysia shall consult if a major change in Malaysian Ringgit relative to the SDR or to the national currency of another Party were to create a significant problem with regard to the application of Chapter 15 (Government Procurement).

Section I: Procurement Information

All information on government procurement is published on the following websites:

Ministry of Finance Malaysia: www.treasury.gov.my

ePerolehan: www.eperolehan.gov.my

Section J: Transitional Measures

Thresholds

1. Transitional thresholds for goods, services and construction services:

Economic Stimulus Package

2. Chapter 15 (Government Procurement) shall not apply to any procurement funded by an economic stimulus package in response to a severe nationwide economic crisis implemented within 25 years after the date of entry into force of this Agreement for Malaysia.

Domestic Review Procedures

3. Notwithstanding Article 15.19 (Domestic Review), Malaysia may delay application of its obligations under Article 15.19 for three years after the date of entry into force of this Agreement for Malaysia. During this transitional period, Malaysia shall use existing internal administrative procedures to address complaints, provided that it complies with Article 15.4.1 (General Principles) and Article 15.4.2. Suppliers of any Party may submit complaints to the Ministry of Finance at the address below:

Under Secretary of Government Procurement Division
Government Procurement Division
Ministry of Finance
Ministry of Finance Complex
Precinct 2
62592 Putrajaya
Malaysia
Email: gpcompliance@treasury.gov.my
Tel: +603-8882 4376
Fax: +603-8882 4290

Dispute Settlement Mechanism

4. Notwithstanding Chapter 28 (Dispute Settlement), Malaysia shall not be subject to dispute settlement with respect to its obligations under Chapter 15 (Government Procurement) for a period of five years following the date of entry into force of this Agreement for Malaysia. During this transitional period, Malaysia shall enter into consultations with any Party that raises concerns with Malaysia’s implementation of these obligations.

Offsets

5. Notwithstanding Article 15.4.6 (General Principles), Malaysia may delay application of its obligations under Article 15.4.6 on offsets for a period of 12 years following the date of entry into force of this Agreement for Malaysia.

6. During the transitional period, offsets may be applied as follows:

7. From the 13th year following the date of entry into force of this Agreement for Malaysia, the requirement for offsets will not be applied with regard to covered procurement.

8. Malaysia will ensure that its procuring entities clearly indicate the existence of any offsets requirements in the tender notices and specify the offsets programme required in the tender documentation.

Date Modified: