A national audit reveals RM183.11 million in unreturned research grants across four ministries, with nearly half outstanding for over five years due to weak financial controls.
KUALA LUMPUR: The National Audit Department has reported unreturned research grant balances totalling RM183.11 million across four key ministries as of 30 June 2025.
The finding, detailed in the Auditor-General’s Report (LKAN) 1/2026 tabled in parliament, highlights systemic weaknesses in financial control and project monitoring.
The audit covered 7,904 projects under the Ministry of Higher Education, the Ministry of Investment, Trade and Industry, the Ministry of Science, Technology and Innovation, and the Ministry of Agriculture and Food Security.
It concluded that poor financial management, inadequate monitoring, and flawed closure procedures led to inefficient use of research funds.
The Ministry of Higher Education recorded the largest unreturned balance at RM110.67 million across 7,823 projects.
These projects were spread across five research universities: UKM, UTM, USM, UPM, and Universiti Malaya.
MITI’s implementing agencies held RM55.64 million in unreturned grants, while MOSTI recorded RM14.33 million and the agriculture ministry RM2.47 million.
Alarmingly, RM9.72 million, or 5.3% of the total, has been outstanding for over a decade.
A further RM89.82 million, representing 49%, has been unreturned for between five and nine years.
The report warned that unmonitored grant balances risk being diverted from their originally approved purposes.
It specifically noted that MITI’s RM55.64 million in unreturned grants were linked to the 11th Malaysia Plan.
The funds were held by the Malaysian Investment Development Authority and Malaysian Industrial Development Finance Bhd.
Auditors found agencies used leftover funds to finance new 12th Malaysia Plan projects without approval from the finance and economy ministries.
