PETALING JAYA: A total of 36 dormant federal companies, carrying net liabilities of RM1.248bil, require continued support from the government, agencies or parent companies to meet their financial obligations, reveals the Auditor-General’s Report 1/2026.
It said these companies were among 40 federal entities that still had financial obligations as of 2023.
“Of the 40, only four recorded net assets sufficient to fully settle their liabilities without relying on government or parent company support,” the report said.
Further analysis of the 36 companies that had been dormant for more than five years and carried net liabilities in 2023 showed their total recorded expenditure rose from RM34.74mil in 2022 to RM53mil in 2023.
“Finance costs were the largest expenditure component, amounting to RM30.1mil in 2022 and increasing to RM36.61mil in 2023,” it added.
The report also highlighted that 22 dormant companies without financial obligations continued to incur statutory and other expenses, even after being dormant for at least five years.
Of these, 18 had sufficient net assets to cover their costs independently, while four recorded net liabilities. It further revealed that 116 out of 641 federal companies, or 18.1%, declared themselves dormant in 2025 through the government’s e-SelfAudit system.
However, expenditure analysis was conducted on only 79 companies, based on verified audited financial statements for the financial years ending 2022 and 2023.
“The remaining 37 companies were not analysed as they were classified as dormant beginning in 2024 or 2025, did not declare their dormant status period in the system or failed to submit audited financial statements for 2022 and 2023 for verification,” it added.
“The audit analysis of the 79 companies, meanwhile, showed that 62 had been dormant for five years or more, while 17 had been dormant for less than five years.”
