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Govt Fleet: RM1.75b Spent, RM54m Unclaimed — Will EVs Break the Cycle?

Kumeran Sagathevan

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Govt-Fleet-Caricarz-(5).jpg


Malaysia’s federal government operates one of the largest fleets in the country, with 14,459 vehicles supplied under concession contracts for ministries, agencies and official use. But the 2025 Auditor-General’s Report (Series 3) has found that the way these vehicles are managed is costing taxpayers heavily.

The audit revealed that 6,028 vehicles were delivered late between 2021 and 2024, in some cases more than 500 days after the order date. Although delays beyond 60 working days should have triggered financial penalties, none were imposed, leaving an estimated RM54.51 million in uncollected claims.


Govt-Fleet-Caricarz-(7).jpg


Ministries also continued to use cars with expired lease periods instead of replacing them on schedule, resulting in another RM28.79 million in unnecessary costs. In total, the government spent RM1.75 billion over three years on leasing, repair, maintenance and ancillary fees, with the concession structure pushing costs higher as vehicles age.

The fleet is managed under the Second Concession Agreement (CA2), signed in 2022 and running until 2037. It replaced the first agreement, which had already been extended four times. Under CA2, monthly payments cover leasing charges as well as a rising schedule of repair and maintenance fees.


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While the arrangement ensures a steady supply of vehicles, it raises questions about efficiency and accountability, especially when compared with outright purchase or alternative leasing models. The Finance Ministry has since formed a penalty committee and working group to review claims and ensure recoveries are made.


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The findings point to a bigger issue: how Malaysia manages its official fleet and whether taxpayers are getting value from a system that locks in costs for 15 years. 

With the country also pushing for wider electric vehicle adoption, the audit results pose a crucial question. If inefficiencies already exist in the current petrol and diesel fleet, what safeguards will prevent the same costly mistakes from repeating in the transition to EVs?


Source: FMT

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JPJ Running Numbers

KUALA LUMPUR

VQT2420

SELANGOR

BSP108

JOHOR

JYU4311

PULAU PINANG

PSB2687

PERAK

APG4941

PAHANG

CFG1524

KEDAH

KGF1925

NEGERI SEMBILAN

NEJ9813

KOTA KINABALU

SJR2795

KUCHING

QAB5250N

Last updated 11 Apr, 2026

Fuel Price

Petrol

RON 95

RM 2.59

+0.05

RON 97

RM 3.15

+0.05

RON 100

RM 5.00

VPR

RM 6.23

Diesel

EURO 5 B10

RM 3.04

+0.05

EURO 5 B7

RM 3.24

+0.05

Last updated 26 Feb, 2026

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