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THE Ministry of Finance (MOF) delivered a detailed account of the 2024 financial audits covering federal agencies, ministries, statutory bodies, and government-linked companies, following the tabling of the Auditor General’s Report 1/2026.
Deputy Finance Minister Liew Chin Tong focused on the management of Research, Development, Commercialisation, and Innovation (R&D&C&I) programmes, stressing the importance of continuous, outcome-oriented monitoring to ensure that projects meet their stated objectives.
He noted that while innovation initiatives may require extended testing periods, any unutilised funds must be reported to the Ministry of Finance or the Ministry of Economy for further action.
“Any balance that cannot be optimised must be declared, and decisions on these funds are at the discretion of the Finance Minister, whether to be returned to the government, repurposed, or otherwise utilised,” he said.
The Ministry welcomed recommendations to strengthen the Centralised Research Management Unit and introduce national guidelines, while encouraging the sharing of facilities, analytical services, and technical expertise to maximise national assets and reduce research costs.
Turning to corporate performance, Liew addressed concerns over dividend payments from government-linked subsidiaries, including Petronas, Cenviro Sdn. Bhd., Cradle Fund Sdn. Bhd., IJN International Sdn. Bhd., and SIRIM entities.
He explained that decisions to withhold dividends were guided by cash flow considerations, ongoing investment commitments, and asset maintenance.
PETRONAS, however, paid RM32 billion in dividends to the government for the 2024 financial year, underscoring the group’s overall contribution.
Dividend decisions in other subsidiaries reflected operational requirements, capital management, and internal governance frameworks.
On the issue of dormant companies exceeding five years, Liew noted that certain entities could not be dissolved immediately due to outstanding financial obligations or ongoing legal proceedings.
“Once these issues are resolved, the dormant companies will be formally wound up,” he stated.
Addressing subsidiary losses, Liew provided detailed explanations for financial results in the Employees Provident Fund (KWSP) and the Retirement Fund Incorporated (KWAP) portfolios.
He clarified that reported losses often stemmed from accounting treatments such as early investment phases known as the “J-curve,” unrealised fair value adjustments, financial structuring, or operational cash flow issues, rather than actual depreciation of assets.
He outlined proactive measures, including asset marketing, operational optimisation, and long-term disposal planning, to restore financial performance.
Liew reaffirmed the Ministry of Finance’s commitment to acting on all audit findings, stating that improvements would be implemented through a “whole of Ministry, whole of Government, and whole of Nation” approach to strengthen governance and performance across all federal agencies and government-linked companies.
Liew expressed his appreciation to Members of Parliament for their contributions during the parliamentary debate and congratulated the Auditor General and the National Audit Department on the report, which for the first time audited entities benefiting from government guarantees and applied the “Follow the Public Money” methodology.
This broader mandate was made possible through amendments to the Audit Act 1957 (Act 62) in 2024. - February 24, 2026