The fragmented landscape of Macau’s public procurement laws – which for decades has consisted of Decree-Law 122/84/M, general administrative law principles, and other very specific pieces of legislation – is about to change with the entry into force of Law 10/2025 (the Public Procurement Law) on September 1 2026.
Approved in July 2025, this reform was explicitly presented by the Macau government as a long-awaited upgrade aimed at increasing transparency, competition, and efficiency in the use of public resources through the creation of a holistic regulation of procedures and principles.
Until September 1 2026, Decree-Law 122/84/M, the most detailed legal framework currently in force, remains applicable to expenses incurred for carrying out public works and acquiring goods and services by all public entities. But while its provisions set expense limits, it does not offer a systematic discipline of procurement procedures, principles, and governance structures. Instead, public tenders must follow the procedures set out in the applicable legislation. This includes, in particular, Decree-Law 74/99/M, which contains the legal framework of procurement for public construction works, such as provisions on pre-award negotiation, administrative procedures, and contractual performance.
By replacing Decree-Law 122/84/M, among others, the Public Procurement Law offers public entities a more organised legal framework in which to operate, excluding only certain contracts governed by specific regulatory instruments (such as the aforementioned Decree-Law 74/99/M) and those related to financial services, investment advisory, and currency management services.
Core principles of transparency and publicity, hitherto dispersed through different pieces of legislation, have finally been codified. In tandem, awarding authorities now must promote fair competition among bidders and allow the broadest possible access to procedures for interested parties, with all acts that obstruct, restrict, or otherwise create the appearance of competition expressly prohibited.
With regard to the acquisition of goods or services, the Public Procurement Law lists the following options:
Public tender;
Limited public tender;
Competitive bidding;
Consultation; and
Direct award.
As with Decree-Law 122/84/M, public tender is open to any interested entity that meets the legal and tender requirements, unlike limited public tender and competitive bidding (the latter introduced by the Public Procurement Law), in which only entities previously selected by the awarding authority may submit bids. In consultation procedures, only entities enrolled in the official register and invited by the awarding authority may take part, save where otherwise provided by law. Finally, direct award consists of an invitation sent to a single entity, which should preferably be in the official register.
The Public Procurement Law notably introduces the concept of centralised procurement, whereby public entities needing to stock up on disposable, everyday goods may refer to a public register of companies pre-selected by the Macau government’s Financial Services Bureau. This removes the burden of launching a tender procedure, although these entities retain the power to authorise expenditures that do not exceed their annual budget.
In practical terms, the Public Procurement Law is expected to have its most visible effects in areas where public assets and large-scale projects intersect with private operators (such as urban development and renewal) and the outsourcing of public services and infrastructure management.
While the real economic and financial impact of the reform will only be known years from now, the new framework clearly indicates a policy choice in favour of transparency, publicity, fair competition, impartiality, and sound financial management in the use of public resources.
