Audit report: MaGIC is financially sound

KUALA LUMPUR, July 15 — Malaysian Global Innovation & Creativity Centre Bhd (MaGIC) is financially stable with the company recording a pre-tax surplus for three years in a row, according to the Auditor General’s Report 2018 Series 1 on the management of federal government companies.

The report, released today, said the company’s surplus was RM0.70 million in 2015, RM1.11 in 2016 and RM1.29 million in 2017.

“The liquidity of current assets compared to its current liabilities is at a ratio of 2.34:1, indicating the company’s ability to pay short-term obligations through internally generated funds,” it said.

The report also said MaGIC had cash and cash equivalents totalling RM69.70 million as at end-2017.

On the performance of MaGIC programmes between 2015 and 2017, it said the entrepreneurship programme was effectively and efficiently managed in terms of output and outcome, in line with the company’s key performance indicator (KPI) of over 90 per cent for the three years.

It noted however that for 2018 output performance was not efficient while outcome performance was ineffective, with a KPI of only 68.8 per cent.

It also pointed out that overall, grant performance was not efficient as grants were not spent optimally for 2015 and 2017, at only 73.1 per cent and 76 per cent of total grants received respectively.

For the period from 2014 to 2018, MaGIC received grants totalling RM216.95 million from the Ministry of Finance for entrepreneurship programmes and operating expenses.

MaGIC also received a special grant totalling RM59.26 million for the 2016 to 2018 period from the ministry for organising special programmes. — Bernama

Related Articles