PETALING JAYA: Malaysia’s fiscal position strengthened last year as the federal deficit narrowed to RM79.17 billion in 2024, down from RM91.39 billion in 2023, according to the National Audit Report 3/2025 tabled in Parliament yesterday.
Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi said the reduction of RM12.22 billion reflects tighter control over spending and a more disciplined approach to managing public finances.
In a statement, she said the Federal Government’s 2024 financial statements “give a true and fair view” of the nation’s accounts. Her office issued an Unmodified Opinion – the highest level of assurance an auditor can give.
“The accounting records were properly maintained and updated, and overall, the government’s financial performance showed improvement.”
The deficit-to-GDP ratio also improved to 4.1% in 2024, down from 5.0% a year earlier and better than the 4.3% target set in the 2024 national budget.
According to the report, the improved figures provide a stronger base for Malaysia to meet its medium-term fiscal goals and reduce reliance on borrowing.
However, the audit also flagged long-standing weaknesses in several development projects that remain incomplete.
Among them was the Operational Forward Base Project in Pulau Mabul, Semporna, Sabah, which was originally slated for completion in November 2024 but still unfinished as of July this year.
Planned since 2016 under the Second Rolling Plan of the 11th Malaysia Plan, the project was delayed by issues such as incomplete housing, unfinished main buildings and a missing jetty.
The report urged stricter monitoring to ensure projects are delivered on time and within budget.
To enhance transparency and efficiency, the National Audit Department has widened its audit coverage to include 1,856 additional entities, including government-linked companies, through its new e-SelfAudit System.
The system leverages digital tools and data analytics to allow more frequent and accurate reviews of government-linked bodies.
Wan Suraya said the initiative reflects the department’s ongoing modernisation drive to improve accountability and ensure public funds are well spent.
“It enables us to track whether organisations are achieving their objectives, practising good governance and managing finances responsibly,” she said.
At the state level, the Auditor-General reviewed the 2024 financial statements of all 13 states. Four – Malacca, Pahang, Penang and Terengganu – received clean audits, while nine obtained clean opinions with minor notes, indicating generally sound financial management with room for reporting improvements. The audit report is available at lkan.audit.gov.my and agdashboard.audit.gov.my.