PRESS STATEMENT
For Immediate Release
19 October 2025
Transparency International Malaysia (TI-M)
Oversight Must Be Embedded in the Foundation of Kota Madani
Transparency International Malaysia (TI-M) takes note of the Prime Minister’s announcement to expedite the Kota Madani smart city project in Putrajaya. At an estimated value of RM4 billion and structured through a public-private lease model, Kota Madani is projected as a national example of sustainable and inclusive urban development.
While the government’s aspirations for modern, people-first cities are clear, TI-M emphasizes that no large-scale public project should proceed—let alone be accelerated—without robust oversight mechanisms in place. Governance must be proactive, not reactive. The scale and complexity of Kota Madani demand that transparency and accountability be embedded at every stage, not applied after the fact.
The Government Procurement Act 2025 proposes a unified legal framework that is intended to promote transparency, competition and accountability in public procurement. It introduces uniform rules across federal, state and statutory bodies, reinforces conflict-of-interest disclosure, and introduces criminal penalties for bid manipulation and contract flipping. It also creates a Procurement Appeal Tribunal to independently review procurement disputes.
However, while the GPA provides an important structural foundation, it does not yet mandate external oversight such as independent monitoring. This presents a critical governance gap—particularly for high-risk, high-value projects like Kota Madani.
TI-M therefore urges the government to adopt Integrity Pacts coupled with Independent Expert Monitors (IEMs) in this project. These measures were proposed in the UNODC-commissioned report “Strengthening Integrity Pacts in Malaysia Through Independent Expert Monitors,” authored by TI-M President Raymon Ram. Independent monitors are neutral professionals with access to procurement records, empowered to identify early warning signs of corruption or irregularities and report them to relevant authorities.
Kota Madani fits the profile of a high-risk procurement: its project value exceeds RM1 billion, it is structured through a public-private partnership, and it carries both strategic significance and public interest. For a development of such symbolic and material importance, real-time oversight is not a luxury—it is a necessity.
Malaysia has the legal and institutional building blocks to support this recommendation. Treasury Circular PK 1.6 already outlines the use of Integrity Pacts in procurement. The GPA 2025 offers the legislative space to operationalise them. The National Anti-Corruption Strategy (NACS) 2024–2028 calls for preventive controls and integrity compliance in procurement processes. Bringing these frameworks together in a flagship project like Kota Madani would signal the government’s seriousness about procurement reform.
Malaysia’s track record in public procurement remains under close scrutiny. The MACC reports that procurement-related complaints constituted the majority of public grievances in 2024. Past high-profile scandals have revealed what happens when oversight is weak, fragmented or delayed. Embedding IEMs from the start would strengthen governance, mitigate risk, and help rebuild trust in government-led development.
TI-M reiterates that governance innovation must accompany technological and urban innovation. Oversight does not slow development; it strengthens outcomes and enhances legitimacy.
Kota Madani offers a clear and timely opportunity to pilot the integration of Independent Expert Monitors within an Integrity Pact framework. The government should seize this opportunity—not as a concession to critics, but as a confident step toward restoring public faith in how national projects are conceived, contracted, and delivered.
Issued by:
Raymon Ram
President
Transparency International Malaysia (TI-M)
