KUALA LUMPUR, Feb 23 — An audit analysis of five federal agencies with the highest investments in subsidiary companies reveal that 66 subsidiaries recorded profits of RM3.886 billion in 2024.

According to the Auditor-General’s Report (LKAN) 1/2026 on the Financial Statements of Federal Agencies tabled in the Dewan Rakyat today, the subsidiaries are under the Employees’ Provident Fund (EPF), the Armed Forces Fund Board (LTAT), the Federal Land Development Authority (Felda), the Pilgrims’ Fund Board (TH), and the Retirement Fund (Incorporated) (KWAP).

The report said 35 EPF subsidiaries recorded profits totalling RM2.412 billion, followed by seven LTAT subsidiaries (RM570 million), six Felda subsidiaries (RM376 million), nine TH subsidiaries (RM276 million), and nine KWAP subsidiaries (RM252 million).

Meanwhile, 42 subsidiaries recorded losses totaling RM1.771 billion during the year, comprising 20 subsidiaries operating domestically and 22 operating abroad.

A total of 21 EPF subsidiaries recorded losses of RM1.431 billion, two Felda subsidiaries (RM149 million), 10 KWAP subsidiaries (RM93 million), six TH subsidiaries (RM83 million), and three LTAT subsidiaries (RM15 million).

The report also stated that 24 subsidiaries of the five federal agencies suffered losses for three consecutive years from 2022 to 2024.

“In 2024, 24 subsidiaries recorded losses of RM466.57 million, comprising 10 subsidiaries operating domestically and 14 operating overseas,” the report said.

Based on the audited financial statements of the subsidiaries for the financial year 2024, the reported losses took into account impairment charges or write-downs as well as interest payments to the parent agencies, in compliance with the accounting standards.

According to the report, subsidiaries that recorded losses for three consecutive years from 2022 to 2024 involved 12 EPF companies, six KWAP companies, three TH companies, two LTAT companies, and one Felda company.

The report said in 2024, a total of 58 federal agencies had 211 subsidiaries, of which 127 (63.2 per cent) recorded profits totaling RM4.371 billion, while 74 (36.8 per cent) recorded losses totaling RM1.819 billion. Another 10 subsidiaries were dormant.

To improve financial governance in federal agencies, the audit recommended a review of the direction and business plans of subsidiaries that have suffered losses for three consecutive years and failed to provide reasonable returns.

Additionally, it recommended evaluating and considering the closure of subsidiaries that have been dormant or inactive for more than five years so as not to continue burdening federal agencies and to enable resources to be redirected to more productive activities. — Bernama

 Malay Mail – Malaysia