Audit Dept says 12MP development spending exceeds final allocation by RM6.08b

In a statement on the Auditor-General’s Report (LKAN) 2/2026, the department said an audit of the implementation of development projects under RMK-12 found that total development expenditure amounted to RM397.852 billion. — Bernama pic

By John Bunyan

First Published: Monday, 05 Oct 2026 1:09 PM MYT

KUALA LUMPUR, Oct 15 — Overall expenditure on development projects under the 12th Malaysia Plan (RMK-12) exceeded the final allocation of RM391.776 billion by RM6.076 billion, according to the National Audit Department.

In a statement on the Auditor-General’s Report (LKAN) 2/2026, the department said an audit of the implementation of development projects under RMK-12 found that total development expenditure amounted to RM397.852 billion.

However, the report said the amount remained within the approved expenditure ceiling.

“Additional allocations were approved for individual projects whose expenditure exceeded their initial allocations,” the report said.

As at Dec 31, 2025, 3,120 (32.6 per cent) of the 9,578 projects had been completed, while 4,057 (42.4 per cent) remained under implementation.

Meanwhile, 2,208 (23 per cent) projects were at the pre-implementation stage, while 193 (2 per cent) had been cancelled or placed under “keep in view” status.

The audit recommended that the ministries and agencies concerned take proactive measures to strengthen project risk management mechanisms and conduct closer, continuous monitoring to enable early intervention when weaknesses in project implementation are identified.

It also recommended that technical studies and comprehensive assessments of project sites be conducted at the early design stage to prevent changes in scope and increases in project costs.

The audit said these measures were important to ensure projects did not encounter problems during implementation, were completed according to schedule and delivered their intended benefits to target groups.