Auditor General (AG) Datuk Nik Azman Nik Abdul Majid has urged Putrajaya to impose a ceiling on the government guarantee the latter is allowed to provide in future.

"My advice, as an auditor, is on top of the 55% debt-to-GDP ceiling, we could add another 10 percentage points of ceiling for government guarantee to viable projects, and another five percentage points of ceiling for riskier debts from government-owned companies.

AG urges Putrajaya to cap govt guarantee

The Malaysian government should develop a policy that can limit government guarantees on a case-by-case basis to contain its debt burden.

That is the recommendation put forward by the Auditor-General's Report 2018 for the recently released Federal Government's Financial Statement 2018.

AG audit proposes cap on Putrajaya debt guarantees

There are some issues of ineffectiveness, weaknesses and non-compliance in managing programmes, projects and activities, according to the Auditor-General’s report.

Auditor-General highlights issues on weaknesses, ineffectiveness in managing projects

(July 15): Budget constraints are causing over a fifth of the Rumah Keluarga Angkatan Tentera (RKAT) homes to be unfit for occupation, forcing thousands of armed forces personnel to seek pricier homes elsewhere for their families, according to an audit finding.

As of Dec 2018, 12,261 (22.5%) of existing 54,497 RKAT units in 100 locations nationwide are unfit for occupation either due to damages, lack of maintenance, or safety reasons. Another 2,212 had been renovated for other purposes.

That leaves only 40,024 or 73.4% RKAT units occupied, noted the Auditor-General 2018 Report Series 1, released today.

Funding shortage sends army housing into spiral of disrepair

(July 15): The construction of the Perlis Sports School (SSM Perlis) has been delayed for nearly five years since it was first approved under the 9th Malaysia Plan, says the Auditor General's Report 2018 Series 1.

Worse, the government's attempt to revive the botched construction is again facing delays, as the contract was given to the same contractor that undertook the project originally, the report said.

The audit suggested that the failure to complete the Phase 1 project was due to “the appointment of the incompetent contractor for the construction work and the reappointment of the same contractor to complete the abandoned project of Phase 1 of SSM Perlis”.

Incompetent contractor reappointed to complete abandoned sports school project 

(July 15): The emergency and trauma department (ETD) at Malaysian hospitals are understaffed, overcrowded, underfunded and do not have enough equipment to provide proper levels of care.

The latest audit report by the National Audit Department also flagged the issue with funding for ETD, which it deemed “insufficient”.

“The provision of financial allocation which is insufficient, may affect the ETD’s service efficiency,” the audit report released today stated.

Audit finds Malaysian hospitals understaffed, underfunded and overcrowded

(July 15): Only a tenth of the budget allocated for the ‘Film in Malaysia Incentive’ or FIMI went to local filmmakers from 2016 up to Aug 2018, with lack of domestic promotion of the incentive affecting participation from the local industry.

The actual impact from the incentives to the creative industry also could not be gauged, because there was no outcome evaluation, according to the Auditor-General 2018 Report Series 1.

The FIMI programme was managed by the National Film Development Corporation Malaysia (Finas), an agency under the Multimedia and Communications Ministry.

Foreign filmmakers benefited more from filming incentives than locals

(July 15): Unused research and development (R&D) funds totalling RM31.66 million held by Akademi Sains Malaysia (ASM) have yet to be returned to the government, according to Auditor-General’s Report 2018 Series 1. 

An audit conducted between November 2017 and April 2018 found the amount was not utilised by the previous government during the 10th Malaysia Plan (2011-2015) period as intended, the report said. 

“The balance of the unused funds was kept by ASM and was not distributed to other applicants, thus failing to provide benefits for the intended purpose,” it said.

Science Academy yet to return RM31.66m unused funds to govt

Fraudulent approvals were found in the existing Malaysia Immigration System (MyIMMs) for foreign workers quota through manipulation.

In the findings of the Federal Ministries/Departments section under the Auditor General's Report 2018 series 1, audit analysis results showed a quota of 32,424 foreign workers was created and approved to 123 employers, as well as first-time levy payments amounting to RM40.79 million were done in an unorganised and dubious manner.

Suspected fraud found in MyIMMs system, to be replaced by new system

(July 15): A radar facility that only went operational almost three years after its original completion deadline, had posed risks to national security.

The project, awarded for an original contract value of RM289.8 million via direct negotiation, saw four extensions of time (EOT) totalling 602 days, according to the Auditor-General 2018 Report.

While the project was completed in Oct 2017, it was not operational until January this year, the report said, due to delays in relocating radar equipment to the site.

National security found at risk due to operational delay of RM290m radar faciltity

Malaysia's Auditor-General Datuk Nik Azman Nik Abdul Majid said spot audits or checks on government entities' financial management during 2018 showed that compliance with financial rules is "still unsatisfactory".

Spot checks show financial compliance 'unsatisfactory' among govt entities

The Malaysian government lost out on a total of RM4.89 billion worth of excise duty on completely-knocked-down (CKD) vehicles from 2015 to 2017 due to the various types of exemptions, including for State Assemblymen, Members of Parliament, embassies, and the government.

Govt lost out on RM4.89b excise duty on CKD cars from 2015 to 2017

More than a quarter of the funds allocated to the 1Malaysia Training Scheme (SL1M) were invested by TalentCorp without the knowledge of the scheme's secretariat.

"SL1M is not informed of any investment using the SL1M Program provision by TalentCorp," according to the findings of the Federal Ministries/Departments 2018 section under the auditor general's report 2018 series 1, adding that the actual progress of the scheme in connecting unemployed graduates to jobs remains unclear.

SL1M's budget invested without its knowledge

Malaysia's Auditor-General Datuk Nik Azman Nik Abdul Majid said that during 2018, a total of 16 out of 24 ministries achieved the "excellent" level under the National Audit Department's accountability index assessment while eight were rated "good".

16 of 24 ministries rated 'excellent' under accountability index assessment

The US benchmark yield climbed to the highest since 2002 with persistent inflation, massive government borrowing and strong economic growth keeping interest-rate expectations elevated.

US benchmark yield hits highest since 2002 as bonds sell off

Malaysian Border Control and Protection Agency (AKPS) director general Datuk Seri Mohd Shuhaily Mohd Zain has left it to the government to decide on any further action against him over a viral video showing him reprimanding an individual at the Kuala Lumpur International Airport (KLIA) Terminal 1.

Viral KLIA reprimand video: Border control director general leaves it to govt to decide action against him

SINGAPORE (Oct 1): Three Liberian-flagged oil tankers were struck by unknown projectiles when transiting the Strait of Hormuz on Tuesday, shipping intelligence service Marisks said.

Three oil tankers hit by projectiles in Hormuz strait on Tuesday, Marisks says

The European Central Bank asked the region’s leaders to start choosing a successor to Isabel Schnabel, initiating a likely package deal over jobs including that of Christine Lagarde.

ECB seeks Schnabel successor in first move to post-Lagarde era

Emerging Asian currencies made a subdued start to October as rising global bond yields continued to erode the region's rate advantage, while Indonesian assets held onto losses after inflation accelerated as expected.

Emerging Asian currencies start October weaker as US yield pressure persists

BENGALURU (Oct 1): Indian automakers posted higher sales in September as dealers stocked up ahead of the festive season.

Indian automakers log stronger September sales ahead of festive season

KUALA LUMPUR (Oct 1): Klanggroup Development Sdn Bhd (Klanggroup) has delivered vacant possession (VP) in September 2026 for two industrial developments in Kapar and Jenjarom, Selangor with a combined gross development value (GDV) of RM1.74 billion.

Klanggroup reaches vacant possession for RM1.74 bil industrial projects in Selangor

BENGALURU (Oct 1): California and six other states filed a lawsuit against the Trump administration on Wednesday, accusing it of withholding federal funds approved by Congress, including about US$810 million the White House moved to cancel before the fiscal year ended.

California, six other states sue Trump administration over federal funds

Housing and Local Government Minister Nga Kor Ming has called for every innovation developed by ministry personnel to translate into tangible benefits for the people by saving time and costs, optimising resources, and improving the speed and effectiveness of service delivery.

Nga calls for ministry innovations to be scaled up for greater benefits

Building climate resilience is no longer just about recovering from the next massive flood or enduring another scorching heat wave. It requires fundamentally rethinking how our cities grow, fund and protect their most vulnerable populations, according to experts from government planning agencies,...

Planning cities that last

A former chief executive officer of UiTM Holdings Sdn Bhd (UHSB) has been charged with criminal breach of trust (CBT) for misappropriating RM37.4 million earmarked for solar power development.

Former UiTM Holdings CEO charged with CBT of misappropriating RM37 mil

THIS commentary attempts to answer this question.

Opinion: Can the Yang di-Pertuan Besar of Negeri Sembilan revoke the appointments of the members of the State Executive Council?

KUALA LUMPUR (Oct 1): The three co-founders and executive directors of Main Market-listed MN Holdings Bhd (KL:MNHLDG) have made a combined net gain of nearly RM45 million after converting company warrants into shares at just 20 sen apiece and offloading a chunk of those shares to institutional investors at RM3.91 per share.

MN Holdings founders make windfall from selling 20 sen warrant-converted shares at RM3.91

Malaysia Aviation Group (MAG) has entered into a sale and purchase agreement with Airbus Group to acquire its wholly owned subsidiary, Sepang Aircraft Engineering (SAE), at an undisclosed value.

Malaysia Aviation Group to acquire Sepang Aircraft Engineering by 2027

The EY Entrepreneur of the Year 2026 Malaysia awards has shortlisted 12 top nominees across four entrepreneur categories — Emerging, Technology, Woman and Master.

EY Entrepreneur of the Year 2026 Malaysia names its 12 top nominees

PETRONAS said on Thursday the Songkhla export pipeline has been shut down temporarily after finding an issue during a routine inspection.

PETRONAS shuts down Songkhla pipeline temporarily

PT AirAsia Indonesia is considering restructuring some liabilities and selling shares as the low-cost carrier seeks to repair a balance sheet that has kept its shares suspended since July.

AirAsia Indonesia mulls share sales, liability restructuring

Moody’s Ratings has assigned a first-time A3 issuer rating to PETRONAS International Corporation Ltd (PICL), with a stable outlook, citing its strategic importance to parent Petroliam Nasional Bhd (PETRONAS).

PETRONAS’ international arm gets first 'A3' rating from Moody’s

KUALA LUMPUR (Oct 1): GB Bond Holdings Bhd (KL:GBBOND) was barely higher in its ACE Market debut on Thursday before the industrial adhesive maker slipped below the listing price.

GB Bond opens barely higher, slips immediately in ACE Market debut

Advertising expenditure pressures at Astro Malaysia Holdings Bhd (KL:ASTRO) show no sign of easing after the pay-TV operator reported a weaker-than-expected quarter, TA Securities said in its final report on the company before ceasing coverage.

TA Securities says adex pressures at Astro show no sign of easing, keeps ‘sell’ call as it ceases coverage

Former prime minister Tun Dr Mahathir Mohamad on Thursday visited the grave of his wife, Tun Dr Hasmah Mohamad Ali, at Pusara Negara, three days after her death.

Mahathir visits Hasmah's grave

KUALA LUMPUR (Oct 1): IOI Properties Group Bhd (KL:IOIPG) said Bursa Malaysia Securities has approved the listing of its proposed RM7.58 billion IOIPG Malaysia Real Estate Investment Trust (IOIPG REIT) on the Main Market.

IOI Properties gets Bursa Securities approval for RM7.58b REIT listing

SINGAPORE (Oct 1): Asian stocks were subdued on Thursday and global bonds remained under pressure after a brutal September as investors weighed a slower-than-expected rise in US inflation in August that lessens the probability of a rate hike later this month.

Asian stocks dip, bonds in focus after torrid September 

WASHINGTON (Sept 30): US President Donald Trump unveiled plans on Wednesday for South Korea to invest some US$200 billion in US projects, but Seoul quickly suggested one key element, a US$54 billion pipeline for an LNG project in Alaska, was not yet set in stone.

Trump unveils US$200 bil South Korean investment in US; Seoul hedges on Alaska pipeline

Digital Nasional Bhd (DNB) has completed a RM5.2 billion syndicated Islamic term financing exercise, which it said will strengthen its financial position and support its next phase of growth.

DNB completes RM5.2 bil syndicated Islamic financing ahead of ownership transition

KUALA LUMPUR (Oct 1): Malaysia’s manufacturing sector ended the third quarter broadly stable, with softer new orders and output offset by rising employment and easing inflation.

Malaysian manufacturing ends 3Q broadly stable as orders soften, hiring rises, inflation eases — PMI data

Oil prices fell 1% on Thursday as recovering crude exports from the Gulf and a surprise rise in US inventories eased supply concerns, while investors weighed renewed US-Iran diplomatic efforts to end their conflict in the Middle East.

Oil dips as recovering Gulf exports ease supply fears, US-Iran diplomacy in focus

A Federal Court judge has ruled that the decision on whether a preliminary issue raised by the Sarawak government should be heard first&nbsp;can only be made by a full Federal Court bench, and not just one judge.

PETRONAS to submit first over its petition on oil and gas rights in Sarawak, but...

Newly listed GB Bond Holdings Bhd (KL:GBBOND) plans to increase its annual industrial adhesive production capacity by about 35% to 31,971.3 tonnes as it sets up a new factory near its headquarters in Bukit Panchor, Penang.

GB Bond to boost adhesive production capacity by 35% with new Penang factory

German chipmaker Infineon Technologies AG sees the potential to eventually start making semiconductors in Thailand, following an investment of 48 billion baht (US$1.44 billion or RM5.84 billion) to expand its assembly and packaging footprint in the country.

AG's Report 2018

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AG's Report 2018

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