GOVERNMENT CONTRACTS ACT 1949

GOVERNMENT CONTRACTS ACT 1949 - Act 120
ARRANGEMENT OF SECTIONS
1. Short title
2. Contracts on behalf of the Government
3. Contracts on behalf of a State Government
4. (Repealed)
5. Contracts made outside Malaysia
6. No other contracts to be deemed Government contracts
7. Validation of contracts entered into before commencement of Act
8. Limitation of personal liability of public officer
9. Form of authorization
10. Provision in respect of land
SCHEDULE
An Act for the making of contracts on behalf of the Government, and the Governments of the
States, and for matters connected therewith.
West Malaysia—31 December 1949; East Malaysia—16 September 1963, L.N. 108/64
1. Short title
This Act may be cited as the Government Contracts Act 1949.
2. Contracts on behalf of the Government
All contracts made in Malaysia on behalf of the Government shall, if reduced to writing, be
made in the name of the Government of Malaysia and may be signed by a Minister or by any
public officer duly authorized in writing by a Minister, either specially in any particular case, or
generally for all contracts below a certain value in his department or otherwise as may be
specified in the authorization.
3. Contracts on behalf of a State Government
(1) All contracts made in Malaysia on behalf of a State Government shall, if reduced to
writing, be made in the name of the Government of that State, and may be signed by the Chief
Minister of the State, or by any public officer duly authorized in writing by the Chief Minister,
either specially in any particular case, or generally for all contracts below a certain value in his
department or otherwise as may be specified in the authorization.
(2) In the application of this to Sabah and Sarawak "Chief Minister" includes any State
Minister.
4. (Repealed by L.N. 284/58).
5. Contracts made outside Malaysia
All contracts made outside Malaysia on behalf of the Government or any State Government by a
person either generally or specially authorized in writing in that behalf by the Yang di-Pertuan
Agong shall, so far as they come within the jurisdiction of the courts of Malaysia, be deemed to
be contracts made on behalf of that Government.
6. No other contracts to be deemed Government contracts
No contracts made after the commencement of this Act except those made in the manner
hereinbefore provided shall be deemed to be made by the authority of the Government or of a
State Government, as the case may be.
7. Validation of contracts entered into before commencement of Act
All contracts entered into in good faith on or after the first day of February 1948, and before the
commencement of this Act, and purporting to be made on behalf of the Government of the
Federation of Malaya or the Government of any State or Settlement thereof, as the case may
be—
(a) in the Federation of Malaya by any public officer;
(b) in the United Kingdom by the Secretary of State or the Crown Agents; or
(c) elsewhere outside the Federation of Malaya by any person either generally or
specially authorized in writing in that behalf by the High Commissioner,
shall be deemed to be contracts duly entered into on behalf of the Government of the Federation
of Malaya or the Government of that State or Settlement, as the case may be.
8. Limitation of personal liability of public officer
No public officer shall be liable to be sued personally upon any contract which he makes in that
capacity; but a public officer shall be personally liable when he expressly pledges his personal
credit, or where he contracts otherwise than as the agent of the Government or of a State
Government.
9. Form of authorization
Any authorization made under section 2 or 3 shall be in the appropriate form set out in the
Schedule.
10. Provision in respect of land
(1) Nothing in this Act shall be deemed to affect the provisions of the National Land Code
[Act 56 of 1965] or of the Land Ordinances of Sabah [Cap. 68] or Sarawak [Cap. 81] as to the
use or occupation of State land.
(2) (Omitted).
Schedule
[Section 9]
AUTHORIZATION UNDER SECTIONS 2 AND 3


A
I Minister/Chief Minister ……………………………………………… hereby
authorize ………………………………………………………………… to sign the contract
between the Government of Malaysia/the Government of the State of
……………………………………… and ……………………… for
………………………………………………………………………………..…
……………………………………………………………………………………..
(Here briefly describe the particular contract)
Signed.......................................................................
Minister/Chief Minister/Minister, State of ...............



B
I Minister/Chief Minister ………………………………………… hereby authorize
……………………………………………………………… to sign on behalf of the
Government of Malaysia/the Government of the State of
………………………………………………………………………any contracts (in his
department) below a value of RM ………………………………
Signed ....................................................................................
Minister/Chief Minister/Minister, State of ..............................