Malaysia Audit Report Highlights Rising Costs in Maritime and Vehicle Asset Maintenance
Malaysia’s National Audit Department has highlighted serious inefficiencies in the maintenance of federal government assets, with a particular focus on the Malaysian Maritime Enforcement Agency (MMEA) and government vehicle concessions. The findings, released in the Laporan Ketua Audit Negara (LKAN)...
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Malaysia’s National Audit Department has highlighted serious inefficiencies in the maintenance of federal government assets, with a particular focus on the Malaysian Maritime Enforcement Agency (MMEA) and government vehicle concessions. The findings, released in the Laporan Ketua Audit Negara (LKAN) 3/2025, underscore the challenges of sustaining ageing fleets while ensuring financial accountability.
According to the report, the MMEA managed a fleet of 166 vessels as of 31 December 2024, comprising 71 ships and 95 patrol boats. The government allocated RM530.84 million (USD 112.5 million) for maintenance in 2024, with RM521.39 million (USD 110.5 million) actually spent. Notably, the bulk of expenditure—RM229.93 million (USD 48.7 million), or 61.7%—was used to sustain ships over 30 years old. Boats aged between 11 and 20 years accounted for RM78 million (USD 16.5 million), representing 54.4% of costs.
The audit also revealed additional costs due to phased refits of five ships, amounting to RM8.88 million (USD 1.9 million). However, penalties for delayed maintenance work, totalling RM2.27 million (USD 480,000), had not been collected. Equally concerning were claims amounting to RM32.54 million (USD 6.9 million) for supplier invoices without proper documentation, equipment that was either undelivered or non-compliant with specifications. The report further found that critical technical tests, such as Harbour Acceptance Trials (HAT) and Sea Acceptance Trials (SAT), were not conducted before accepting certain vessels. As a result, one patrol boat (Bot Pengawal 26) was deemed inoperable.
For the MMEA, the report urged better planning of maintenance schedules, ensuring funds are optimally spent within the fiscal year, and mandatory HAT and SAT testing prior to asset acceptance.
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