KUALA LUMPUR — A total of 157 federal development projects have been officially classified as “projek lewat jadual (sakit)” or critically delayed as of December 31, 2024, according to the latest Auditor General’s Report under the Twelfth Malaysia Plan (RMKe-12).
These delays span across 18 ministries, with the Education Ministry leading the list with 46 stalled projects. The Rural and Regional Development (KKDW) ministry follows with 34 projects, while the Energy Transition and Public Utilities Ministry (Petra) and the Housing and Local Government Ministry (KPKT) recorded 12 and 11, respectively.
The “sakit” designation, based on Treasury Circular PK 4.5, indicates that a project is critically delayed when physical progress is more than two months or 20 percent behind the contractual timelines. These classifications were drawn from the MyProjek system, which monitors real-time implementation data for federal development projects.
Among the most severely delayed were four projects with physical progress setbacks exceeding 20 percent. Each of these projects has received between two and ten extensions of time (EOT), with delays stretching up to 785 days.
The most protracted case involved the construction of a new school in Belaga, Sarawak, which includes classrooms, dormitories, and teacher housing. Initially slated for completion in August 2023, the project has been granted ten EOTs due to utility issues and structural changes. The Education Ministry now expects the school to be handed over before the January 2026 school term.
Other notable delays include the RM100 million military housing project at Kem Kukusan, Tawau, which was halted due to contractor financial mismanagement and inactivity on site.
The Public Works Department (JKR) terminated the contractor in May 2025 and is expected to appoint a replacement by December. The project will now be carried over into RMKe-13, with an additional RM4.5 million in costs.
Similarly, the RM63.25 million housing project at Pangkalan Udara Labuan was delayed by 467 days due to incompetent labour, weather disruptions, and logistical challenges.
JKR issued a second warning letter and deployed an intervention team in June 2025. Completion is now expected in RMKe-13.
In Langkawi, the RM20.4 million upgrade of Galeria Perdana saw cost overruns of RM40.2 million due to contractor shortcomings. The Home Ministry submitted a Notice of Change to the Ministry of Economy in August 2025, bringing the revised total to RM60.6 million.
The report also revealed that, as of mid-2025, only 71.3 percent of the 9,355 RMKe-12 development projects were on schedule. Nearly half were still in active implementation, while 33.5 percent remained in pre-execution. Critically delayed projects accounted for 3.6 percent, with an additional 2 percent experiencing general delays, and 6.5 percent showing no progress at all.
While the report does not offer formal recommendations, several remedial actions were noted. Ministries responded with contractor terminations, cost revision submissions, and project reclassifications into RMKe-13.
JKR deployed intervention teams to accelerate progress on high-risk projects, and the Economy Ministry received multiple Notices of Change to reflect increased costs and revised timelines.
The findings highlight the pressing need for stricter procurement controls, more rigorous contractor vetting, and performance-based governance across ministries. As numerous projects extend into the next development cycle, Parliament is expected to scrutinise fiscal discipline and execution reform in upcoming debates.
Meanwhile, the Financial Statements of the Federal Government for the year ended December 31, 2024, were found to be adequately maintained and updated, according to a statement issued by Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi.
In a statement following the tabling of the Auditor-General’s Report (LKAN) 3/2025 in the Dewan Rakyat, Wan Suraya noted improvements in the Federal Government’s overall financial performance for 2024, evidenced by a reduction in both the fiscal deficit and the deficit-to-GDP ratio compared to 2023.
She stated that the Federal Government’s Financial Statements presented a true and fair view of its financial position for the year.
Consequently, the Auditor-General’s Certificate with an Unmodified Opinion, accompanied by a Paragraph on Other Matters, was issued.
“Last year, the Federal Government’s deficit decreased by RM12.224 billion to RM79.166 billion, compared with RM91.390 billion in the previous year,” she said.
“The deficit-to-GDP ratio also declined to 4.1 percent, from 5 percent in 2023, outperforming the 4.3 percent target set under the 2024 Budget. This achievement provides a strong foundation towards meeting the medium-term fiscal deficit target of below 3 percent.”
Among the issues highlighted in the report was the forward operating base (FOB) project off Pulau Mabul, Semporna, Sabah.
Despite being planned since 2016 and approved under the Second Rolling Plan of the 11th Malaysia Plan, the project had yet to be completed as of July 2025, with its original completion date set for November 16, 2024. The main issues identified included delays in constructing the resettlement building (BPS), with the main building, apart from the BPS, still incomplete. The construction of the jetty had yet to begin.
Additionally, the National Audit Department has expanded its auditing coverage to 1,856 entities, including companies, through the e-SelfAudit System. This digitalisation initiative allows all companies to be audited annually, starting this year.
“The three main elements audited are the achievement of the entity’s mandate and objectives, compliance with governance aspects, and financial performance,” she explained.
As of December 31, 2024, the Financial Statements of 13 state governments had been completed, with the Auditor-General’s Certificate with an Unmodified Opinion issued to four states — Melaka, Pahang, Penang, and Terengganu.
The Auditor-General’s Certificate with an Unmodified Opinion, accompanied by a Paragraph on Other Matters, was issued to nine states — Johor, Perak, Kedah, Kelantan, Sarawak, Sabah, Negeri Sembilan, Perlis, and Selangor.
The LKAN 3/2025 report, tabled in the Dewan Rakyat today after receiving the consent of His Majesty Sultan Ibrahim, King of Malaysia, comprises 14 reports, including the Federal Government’s Financial Statements for 2024, as well as reports on the activities of federal ministries, departments, and companies.
The remaining 13 reports are state-level LKANs on the financial statements of respective state governments and their agencies.
The federal-level LKAN 3/2025 will be available to the public on the National Audit Department website starting at 10 a.m. today at http://lkan.audit.gov.my and https://agdashboard.audit.gov.my. Public inquiries or feedback may be directed to [email protected]. – October 6, 2025