Six 12MP projects faced implementation issues, says A-G

Six projects under the 12th Malaysia Plan encountered implementation challenges, as revealed by the Auditor-General’s Report 2/2026. These issues included contract terminations, prolonged extensions of time (EoT), and delays. The RM20.4 million upgrade of Galeria Perdana in Langkawi was terminated on September 23, 2024, after four EoTs totaling 192 days.

The contractor was penalized with RM440,000 in liquidated and ascertained damages for a 136-day delay. The Galeria Perdana project was handed over to the Public Works Department (JKR) in January 2025 for further action, with the estimated completion cost rising to RM56.4 million from the original RM20.4 million.

The RM100 million Joint Task Force 2 RKAT project at Kukusan Camp in Tawau, Sabah, only achieved 28% physical progress by December 31, 2024. Its contract was terminated on May 23, 2025, due to the contractor's poor financial management and inability to complete the work on schedule, leading to a halt in site activities. The project was granted two EoTs totaling 418 days before termination. The Defence Ministry is set to reissue a tender document for a new contractor's appointment.

The RM63.25 million air force base RKAT project in Labuan faced four EoTs totaling 467 days up to 2025, followed by two more totaling 410 days in 2026, extending the completion date to November 17. Physical progress stood at 51% of the scheduled 54% as of July 30, 2026, with delays caused by labor shortages and the need to source raw materials from outside Labuan. The project's cost increased by RM36 million to RM56.4 million, and the tender process for a new contractor is expected in February 2027.

Other terminated projects include the RM23.7 million PPR housing project in Kampung Selagon, Beaufort, where all 67 units remained unoccupied due to structural damage from ground movement. The RM14.39 million Semporna firefighters' quarters project and the RM6.85 million Merotai fire and rescue station and quarters project were also terminated due to financial incapacity of contractors and poor project management.