The 2025 Auditor-General’s Report Series 3, tabled in the Dewan Rakyat today, revealed that 157 projects across 18 ministries were delayed as of Dec 31, 2024.
The rural and regional development ministry recorded 34 critically delayed projects, followed by the energy transition and water transformation ministry with 12, and the housing and local government ministry with 11.
Four critically delayed projects showed physical progress lagging by more than 20%, with two to 10 extensions of time (EOTs) granted, some stretching up to 785 days.
For projects delayed by more than 20%, the construction of a new six-classroom school, hostel and teachers’ quarters at SK Metalun, Sarawak, under the education ministry, recorded the longest delay with 10 EOTs totalling 785 days.
“The delay was attributed to utility issues and demolition recommendations. The project is expected to be handed over before the new school term begins in January 2026, according to the public works department (JKR),” the report said.
Meanwhile, the RM100 million Armed Forces Joint Task 2 family housing project at Kem Kukusan, Sabah, under the defence ministry, was delayed due to the contractor’s financial and management problems, which led to work stoppages.
The ministry, in its response to the national audit department, said that JKR terminated the contractor’s services on May 23, 2025. An additional RM4.5 million is needed to complete the project, with a new contractor expected to be appointed in December.
Another delayed project – a RM63.25 million family housing for the Labuan Air Base – also under the defence ministry, received four EOTs totalling 467 days due to unskilled workers, bad weather, logistics issues and imported material delays.
“JKR issued a second warning to the contractor for failing to meet progress targets and carried out an intervention on June 13, 2025. The project will continue under the 13th Malaysia Plan,” it said.
Meanwhile, the RM20.4 million upgrade of Galeria Perdana in Langkawi, under the national unity ministry, was delayed due to contractor issues.
“Four EOTs totalling 192 days were granted and a notice of change was submitted to the economy ministry on Aug 15, seeking an additional RM40.2 million, bringing the total cost to RM60.6 million,” the ministry said in its response.
The implementation coordination unit under the Prime Minister’s Department said that as of June 30, 4,528 (48.4%) of 8,355 projects under the 12MP Rolling Plan 5 were at the implementation stage, 3,136 (33.5%) were at pre-implementation, 1,526 (16.3%) at post-implementation, and 165 (1.8%) on hold or cancelled.
By comparison, at the end of 2024, records showed 3,829 projects (43.7%) under implementation, 2,400 (27.4%) at pre-implementation, 2,355 (26.9%) at post-implementation, and 171 (2%) cancelled or under review.
Between 2021 and 2024, development spending reached RM315.93 billion, exceeding the approved RM307.91 billion and accounting for 76.1% of the RM415 billion ceiling under the 12MP Mid-Term Review.
The auditor-general urged ministries and departments to act immediately to resolve delayed projects and ensure all 12MP projects are completed by the end of 2025.