An Overview of Asset Management in Malaysian Government Agencies

Abstract

Asset management is a "joined-up" organizational activity that entails many disciplines such as engineering, operations, management and maintenance. The Malaysian government is committed to improving asset management performance to ensure that assets are managed in a systematic, holistic, and sustainable manner. However, the Auditor-General Reports from 2014 to 2020 discovered that the majority of government entities are incapable of adequately managing their assets. The issues concerning their weak asset management performance have also been raised repeatedly by the Auditors-General, indicating the problem’s seriousness. Thus, this study seeks to investigate the current asset management and the factors affecting asset management performance in government agencies. A total of five officers from the government department responsible for making policy for management procedures and examining asset management performance in government agencies have been interviewed. Findings showed that government agencies' asset management practice and performance were generally satisfactory. The government's asset management policies and processes were adequate and updated. However, several government agencies still do not comply with asset management procedures resulting in their asset management performance being affected. Accounting practice, training policy, asset misappropriation and information systems were identified as significant contributors to levels of asset management performance.