PETALING JAYA: A surge in stalled and uncompleted government projects has raised serious questions over the effectiveness of project management and accountability across ministries, particularly in the Education Ministry which recorded the highest number of incomplete initiatives.
According to the Auditor-General’s (AG) Report 3/2025, the ministry had 112 projects cancelled or deferred, 840 yet to begin, 554 still ongoing and 534 completed, painting a worrying picture of delays and inefficiency.
Economist Prof Geoffrey Williams said such setbacks not only tie up resources and inflate costs but also postpone public access to improved infrastructure, forcing communities to cope with outdated facilities and slowing national progress.
“The high number of stalled projects shows weaknesses in project management and accountability systems. While contractors are ultimately responsible, the bigger question is why they are not being held to account.”
Williams said prolonged delays hinder human capital development and weaken Malaysia’s competitiveness against regional peers.
“Reforms are needed mainly in project management, monitoring and accountability – these must happen at the earliest delivery points.
“Stricter penalties must also be applied, but ideally, such situations should be prevented through better governance of procurement processes. The best contractors must be hired through open competition, not direct contracts.”
Economist Dr Mohamad Idham Md Razak said the high number of stalled and cancelled education projects under the 12th Malaysia Plan (12MP) signals execution challenges rather than weak policy direction.
He said stronger coordination and monitoring mechanisms are crucial to ensure resources are used efficiently and deliver intended outcomes.
“From an economist’s perspective, such delays indicate governance gaps in managing public funds, especially in project delivery and oversight.
“Yet, they also create an opportunity for the government to reassess priorities, tighten financial controls and ensure that future allocations are linked to performance-based outcomes and improving fiscal discipline.”
Mohamad Idham said the delays exposed systemic weaknesses in procurement and project management, including poor contractor performance and bureaucratic hurdles.
“Stalled projects waste allocated funds and reduce value-for-money for taxpayers. But with proper recovery plans and by redirecting funds to high-impact initiatives, the government can improve fiscal efficiency and rebuild public trust.”
He warned that incomplete education infrastructure could disrupt access to quality learning environments in the short term and dampen human capital and productivity growth in the long run.
“These setbacks can widen regional disparities, but prompt intervention and completion of key projects could yield significant multiplier effects once operational.
“Project delays directly hinder Malaysia’s education and human capital targets under the 12MP by slowing progress toward equitable access and skill development.
“However, identifying and addressing these gaps now can strengthen the next phase of the plan, ensuring more inclusive and resilient growth in education outcomes.”
Mohamad Idham said enforcing stricter accountability measures, conducting independent audits and ensuring greater transparency in procurement would go a long way in improving project outcomes.
“Such reforms would deter mismanagement, enhance trust in government institutions and ensure that every ringgit spent delivers tangible results for students, educators and the broader economy.”
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