ENZHMS
Link Copiedcheck_circle
Auto News

Govt Fleet: RM1.75b Spent, RM54m Unclaimed — Will EVs Break the Cycle?

Kumeran Sagathevan

Share via

Govt-Fleet-Caricarz-(5).jpg


Malaysia’s federal government operates one of the largest fleets in the country, with 14,459 vehicles supplied under concession contracts for ministries, agencies and official use. But the 2025 Auditor-General’s Report (Series 3) has found that the way these vehicles are managed is costing taxpayers heavily.

The audit revealed that 6,028 vehicles were delivered late between 2021 and 2024, in some cases more than 500 days after the order date. Although delays beyond 60 working days should have triggered financial penalties, none were imposed, leaving an estimated RM54.51 million in uncollected claims.


Govt-Fleet-Caricarz-(7).jpg


Ministries also continued to use cars with expired lease periods instead of replacing them on schedule, resulting in another RM28.79 million in unnecessary costs. In total, the government spent RM1.75 billion over three years on leasing, repair, maintenance and ancillary fees, with the concession structure pushing costs higher as vehicles age.

The fleet is managed under the Second Concession Agreement (CA2), signed in 2022 and running until 2037. It replaced the first agreement, which had already been extended four times. Under CA2, monthly payments cover leasing charges as well as a rising schedule of repair and maintenance fees.


Govt-Fleet-Caricarz-(2).jpg


While the arrangement ensures a steady supply of vehicles, it raises questions about efficiency and accountability, especially when compared with outright purchase or alternative leasing models. The Finance Ministry has since formed a penalty committee and working group to review claims and ensure recoveries are made.


Govt-Fleet-Caricarz-(3).jpg


The findings point to a bigger issue: how Malaysia manages its official fleet and whether taxpayers are getting value from a system that locks in costs for 15 years. 

With the country also pushing for wider electric vehicle adoption, the audit results pose a crucial question. If inefficiencies already exist in the current petrol and diesel fleet, what safeguards will prevent the same costly mistakes from repeating in the transition to EVs?


Source: FMT

Share This Article

More then half his life spend being obsessed with all thing go-fast, performance and automotive only to find out he's actually Captain Slow behind the wheels...oh well!

Share via

JPJ Running Numbers

KUALA LUMPUR

VQC7594

SELANGOR

BSK6752

JOHOR

JYM4329

PULAU PINANG

PRW4139

PERAK

APD2017

PAHANG

CFE3907

KEDAH

KGD3488

NEGERI SEMBILAN

NEH8169

KOTA KINABALU

SJP1955

KUCHING

QAB7089M

Last updated 07 Dec, 2025

Fuel Price

Petrol

RON 95

RM 2.66

+0.03

RON 97

RM 3.29

+0.03

RON 100

RM 5.00

VPR

RM 6.23

Diesel

EURO 5 B10

RM 3.08

EURO 5 B7

RM 3.28

Last updated 04 Dec, 2025

Related News

Auto News

Resignation Chaos: PADU, Govt. EV Transition in Limbo?

Leadership change shouldn’t mean policy reset, but Malaysia has seen it happen before. Will history repeat?

Latest News

Auto News

LRT3 Might Be Delayed Again As Testing Encounters Issues - Report

The LRT3, expected to open early next year, may face further delays due to ongoing signalling system issues.

07-12-2025
Auto News

RON95 Subsidy Could Save Govt RM4B Without Raising Debt - MOF

RON95 subsidy rationalisation could save the government up to RM4 billion a year while keeping national debt stable.

05-12-2025
Auto News

Malaysia-Singapore Cross-Border Taxis Quota Rises To 500

Licensed cross-border taxis between Malaysia and Singapore will increase from 200 to 500 per country, with drop-offs allowed anywhere.

05-12-2025
Auto News

Maxim Cleared To Resume E-Hailing Operations Nationwide

Maxim Malaysia has officially received approval from APAD to continue its e-hailing services.

05-12-2025
Auto News

Malaysia–Singapore Ink Additional Agreement for RTS Link

Malaysia–Singapore reaffirm RTS Link with an Additional Agreement to enable single-point immigration clearance.

Auto News

US Embracing Compact Cars: Opportunities for Malaysian Automakers?

As the US embraces compact cars, new opportunities are emerging for automakers worldwide.

Auto News

Honda Malaysia Rewards 25th Anniversary Campaign Winners

First two lucky winners in Honda Malaysia 25th Anniversary Campaign effort take delivery of their grand prize cars.

04-12-2025
Auto News

UMW Toyota Motor Hits 8,574 Sales In November

UMWT sold 8,574 vehicles in Nov, bringing its year-to-date total to 88,133.

04-12-2025

Show More

trending_flat
About Us

CarzAutoMedia: Stay connected to the latest car news! Get instant updates on new releases, industry trends, and automotive innovations. Your go-to source for 24/7 coverage of everything automotive.

© 2025 CariCarz.com. All Rights Reserved.