New procurement law to boost transparency with centralized public tender website

A new Public Procurement Law taking effect on September 1 will replace Macau’s four-decade-old procurement rules, requiring public entities to set clear bidding criteria and evaluation standards, a government official said on a radio program.

Fong Sio Peng, head of the Public Asset Management Department at the Financial Services Bureau (DSF), said during an appearance on public broadcaster TDM’s radio program that the new law is designed to establish a fair, just, transparent, clean and efficient public procurement system.

Under the new framework, all government entities will be required to conduct procurement activities in accordance with a range of key legal principles, including clearly defining the qualifications of candidates or bidders, specifying the requirements for goods or services, and establishing evaluation criteria.

She noted that the new law provides for two evaluation criteria: the “lowest price” criterion, which applies only when goods or services are of equal quality and delivery terms, and the “most advantageous tender” criterion, under which procuring entities must set scoring percentages based on factors such as price, quality, delivery time or proposals, with the evaluation committee scoring accordingly.

She stressed that the new law does not simply adopt a lowest-price approach, but rather ensures procurement effectiveness through a diversified evaluation mechanism.

To support the new law’s implementation, the government has launched a dedicated procurement portal and supplier database, with some 3,000 businesses already enrolled, according to Fong. She emphasized that there is no cap on registrations and that eligible suppliers may join at any time, with the system automatically matching businesses by industry and using random selection to invite quotations, thereby guaranteeing equal opportunities for all participants.

Businesses can sign up through the government’s “Business & Associations Platform” or “Macao One Account” apps – existing users can use facial recognition, while others need SMS verification and supporting documents.

On transparency, Fong said that key information – including tender documents, rules of participation, document clarifications, bid contents, award decisions and the reasons behind them – will be published centrally on the public procurement website in accordance with the law, replacing the previous fragmented practice of individual departments publishing separately and allowing the public to access information in one place.

Data will remain on the website for at least two years. However, lower-value procurements are exempt: goods and services valued below MOP750,000 and works below MOP2.5 million do not need to be uploaded.

The official also introduced the new law’s conflict-of-interest provisions, which require procurement personnel or committee members to recuse themselves if they have had an employment relationship with any candidate or bidder within the past three years. Bidders who disagree with award decisions may also inspect the relevant files and exercise their right to appeal in accordance with the law.

During the program, several listeners called in with concerns. Some questioned whether the implementation timeline was too tight, worrying that small- and medium-sized enterprises might not be able to adapt in time. Others raised concerns over whether the random draw mechanism would put smaller businesses at a disadvantage.

Authorities explained that the draw is conducted by industry category, rather than placing all companies in a single pool, meaning small and large firms have an equal chance of being selected.

Some listeners also expressed concern that excessive transparency could lead to the disclosure of trade secrets or allow competitors to copy their approaches. The authorities responded that the published information primarily covers quotes and award decisions, not every detail of the bidding process, and that the aim is to promote healthy competition rather than harm commercial interests.

The bureau also said that a supplier evaluation function would be introduced in the supplier database to record contract performance, serving as a reference for future direct negotiations. Suppliers were urged to honor their contracts to avoid jeopardizing future opportunities to participate in government procurement.

Listener slams ‘lowest-price-wins’ outsourcing, calls for 98% local hire rule

A radio listener has slammed the local government outsourcing model, arguing that the “lowest-price-wins” approach has fueled corruption and depressed local wages. Citing official statistics, she noted that the number of non-resident workers in non-professional roles had exceeded 148,000 in March, many of whom were employed in government outsourced projects. She urged the government to fundamentally reform its outsourcing model.

The listener proposed that all non-professional outsourced projects should require bidders to commit to hiring at least 98% local workers, stressing that “priority employment for Macau residents” should not remain an empty slogan. She described the current situation as one where many residents are kept in a “standby” state, receiving only a few hours of work per week — neither fully employed nor officially unemployed. She also raised concerns over possible conflicts of interest within the government, calling on Chief Executive Sam Hou Fai and lawmakers to take immediate action.