KUALA LUMPUR, Feb 23 — The strategic objectives of research, development, commercialisation and innovation under the 12th Malaysia Plan have yet to be achieved, despite significant allocations, the Auditor-General’s Report 2025 revealed today.
The report said the plan aimed to accelerate the adoption of technology and innovation to strengthen Malaysia’s science, technology and digital economy ecosystem.
Although Malaysia ranks among the best in Asean and within the upper middle-income category, the Auditor-General noted that the country’s research and development investment and outcomes remain low.
The report also highlighted that the commercialisation of innovation and intellectual property has had limited impact.
The audit was conducted at the four implementing ministries that received the highest allocations: the Ministry of Higher Education, the Ministry of Science, Technology and Innovation (Mosti), the Ministry of Investment, Trade and Industry, and the Ministry of Agriculture and Food Security.
It also involved the Ministry of Economy and the Ministry of Finance as central agencies responsible for approving research, development, commercialisation and innovation allocations.
The audit extended to implementing agencies and research institutions, including five research universities, five public and private higher education institutions, six government agencies, eight government-linked companies, and three technical agencies.
The audit analysis found that only 2,915 projects, or 34.1 per cent, had been successfully completed.
Meanwhile, 5,539 projects, or 64.7 per cent, were still under implementation as of June 30, 2025.
The report said 1,476 of the ongoing projects, or 26.7 per cent, had been granted extensions of time.
It also revealed that outstanding research grants amounting to RM183.11 million involving 7,904 projects had not been returned across the four ministries.
The report said this indicated weaknesses in financial control management, project monitoring and project closure procedures, as well as inefficient utilisation of research funds to achieve the intended impact.
The audit highlighted governance issues at Mimos Berhad, which did not establish a separate bank account for allocations received from Mosti.
“Nevertheless, Mosti had channelled RM65.78 million into Mimos’ existing account up to August 2024.
“As of June 30, 2025, a balance of RM20.17 million for projects remained unspent,” the report read.
The audit also found that the Malaysian Agricultural Research and Development Institute had utilised RM33.80 million, or 29.6 per cent, of the allocation received from the Ministry of Agriculture and Food Security for operating expenditure purposes, out of RM114.15 million that had been spent.
The report noted this was contrary to the operating expenditure and development expenditure provisions stipulated under the 12th Malaysia Plan preparation guidelines.
It added that the failure to complete projects on schedule resulted in increased project costs amounting to RM3.04 million and additional costs of RM1.81 million.
The delays also affected the performance of 251 research projects at Universiti Kebangsaan Malaysia, valued at RM41.06 million.
