AG Report: 36 Dormant Companies Hold RM1.25 Bln In Liabilities, Still Reliant On Govt Support
KUALA LUMPUR, Feb 23 (Bernama) -- A total of 36 dormant companies with net liabilities amounting to RM1.248 billion require continued support from the government, agencies, or parent companies to settle their respective financial obligations, according to the Auditor-General’s Report 1/2026 released today.
Overall, 116, or 18.1 per cent of the 641 federal companies were identified as dormant.
“A total of 62 companies have been dormant for five years or more. An analysis of the audited financial statements for 2022 and 2023 for these 62 companies found that total expenses recorded amounted to RM92.06 million, namely RM35.32 million in 2022 and RM56.74 million in 2023,” the report stated.
The report also noted that expenditure analysis was conducted only on 79 dormant companies based on verification of the audited financial statements for the financial years and 2023.
“Expenses for the other 37 companies were not analysed because they became dormant starting in 2024 or 2025, or their dormant status period was not declared in the e-SelfAudit system, or the audited financial statements for 2022 and 2023 were not submitted for verification,” the report explained.
Of the 79 companies analysed, 62 had been dormant for five years or more, while 17 had been dormant for less than five years. A total of 27 companies have been dormant since their incorporation.
Total statutory expenses involving audit fees paid to comply with the requirements under the Companies Act 2016 amounted to RM550,000, comprising RM290,000 in 2022 and RM260,000 in 2023.
Further analysis found that 22 federal companies had no financial obligations, while 40 companies still had financial obligations involving outstanding loans to the government, private financial institutions, parent companies, subsidiaries and other related companies, as well as other creditors involving interest charges.
For 2023, of the 22 companies, 18 had net assets enabling them to cover expenses without relying on government support, while four companies recorded net liabilities.
The report recommended that supervising ministries, as well as agencies or parent companies, give due attention to the financial position of dormant companies, including considering whether to reactivate or dissolve the companies concerned.
“For companies that have been dormant for five years or more but still have financial obligations, the government or agencies/parent companies must ensure that these obligations are settled within the stipulated period,” the report added.
-- BERNAMA