Kuala Lumpur: Federal agencies have been advised to enhance their revenue generation strategies to ensure operational sustainability and reduce their dependency on government grants.
According to BERNAMA News Agency, which was presented in the Dewan Rakyat today, this recommendation aims to improve the financial management of the concerned agencies. The report emphasized the importance of optimizing the use of government grants to enhance the efficiency of federal agency services.
Additionally, the report urged agencies to reassess the direction and business plans of subsidiary companies that have recorded losses for three consecutive years and have not yielded appropriate returns. It suggested that these agencies consider closing subsidiary companies with dormant or inactive statuses for more than five years to avoid burdening the federal agencies.
The report detailed that as of December 31, 2023, advances and grants provided by 39 federal agencies to 94 subsidiary companies amounted to RM16.849 billion. This included advances to 81 subsidiary companies totaling RM14.105 billion and grants to 13 subsidiary companies totaling RM2.744 billion.
The report identified five federal agencies with the highest advances and grants to subsidiary companies in 2023, namely the Employees' Provident Fund (EPF), Lembaga Tabung Haji (LTH), Federal Land Development Board (FELDA), PR1MA Corporation Malaysia (PR1MA), and Malaysian Timber Industry Board (MTIB).
The A-G's Report revealed that 97 out of 142 federal agencies recorded a current surplus after tax and zakat, amounting to RM73.886 billion, while 45 federal agencies recorded a current deficit totaling RM2.011 billion. The audit analysis indicated an increase in the total current surplus after tax and zakat from RM55.842 billion in 2022 to RM73.886 billion in 2023, involving 97 agencies compared to 89 in 2022.
The report highlighted the five federal agencies with the highest current surplus in 2023, which included EPF with RM41.335 billion, Kumpulan Wang Persaraan (Diperbadankan) (KWAP) with RM9.651 billion, Bank Negara Malaysia (BNM) with RM7.162 billion, the Public Sector Housing Financing Board (LPPSA) with RM3.084 billion, and LTH with RM2.330 billion, along with 92 other agencies totaling RM10.324 billion.
The audit analysis also showed a reduction in the current deficit from RM3.635 billion in 2022 to RM2.011 billion in 2023, involving 45 agencies compared to 53 in 2022. The five federal agencies with the highest current deficit in 2023 were the Inland Revenue Board (LHDN) with RM0.735 billion, PR1MA with RM0.217 billion, Universiti Teknologi MARA (UiTM) with RM0.212 billion, Universiti Malaysia Sabah (UMS) with RM0.141 billion, and Universiti Putra Malaysia (UPM) with RM0.128 billion, along with 40 other agencies totaling RM0.578 billion.
The report also listed five federal agencies that suffered losses for three consecutive years from 2021 to 2023, namely UMS, UPM, Universiti Sains Islam Malaysia (USIM), Universiti Malaya Medical Centre (PPUM), and Solid Waste Management and Public Cleaning Corporation (SWCorp). The current surplus of federal agencies is attributed to income generation from main activities, the addition or repayment of federal government grants, and investment interest. In contrast, the current deficit is due to decreased revenue, increased operating expenses, and impairment of the value of investments, loans, and assets.