ENZHMS
Link Copiedcheck_circle
Auto News

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

Kumeran Sagathevan

Share via

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.


Govt-Fleet-Caricarz-(2).jpg


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.


Govt-Fleet-Caricarz-(3).jpg


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

Share This Article

More then half his life spend being obsessed with all thing go-fast, performance and automotive only to find out he's actually Captain Slow behind the wheels...oh well!

Share via

JPJ Running Numbers

KUALA LUMPUR

VRN9254

SELANGOR

BST4679

JOHOR

JD6417J

PULAU PINANG

PSF3432

PERAK

APL2657

PAHANG

CFH6326

KEDAH

KGH8755

NEGERI SEMBILAN

NEL7031

KOTA KINABALU

SJT9124

KUCHING

QAB5213P

Last updated 04 Sep, 2026

Fuel Price

Petrol

RON 95

RM 3.97

+1.38

RON 97

RM 4.90

+1.75

RON 100

RM 7.20

+2.20

VPR

RM 8.23

+2.00

Diesel

EURO 5 B10

RM 5.12

+2.08

EURO 5 B7

RM 5.32

+2.08

Last updated 30 Apr, 2026

Related News

Auto News

Resignation Chaos: PADU, Govt. EV Transition in Limbo?

Leadership change shouldn’t mean policy reset, but Malaysia has seen it happen before. Will history repeat?

Latest News

Auto News

Will "Made-in-Malaysia" BYD EVs Become A Reality Soon?

Discover what Sime Motors' Shenzhen trip signals for local assembly (CKD) in Malaysia.

04-09-2026
Auto News

Kids Spotted Sitting on Moving Alphard Roof in Ipoh: Police Launch Investigation Under Child Act

Ipoh police are tracking a Toyota Alphard driver after a viral video showed two kids sitting on the roof via the sunroof.

03-09-2026
Auto News

"Traffic Was Slow Before The Tanker Struck": Horrific 11-Vehicle LPT1 Crash Claims 4 Lives Near Temerloh

Four people, including Kuantan’s Secangkir Cafe founders and their 4-year-old son, were killed after an out-of-control cement tanker triggered an 11-vehicle crash on LPT1 near Temerloh. Read the latest police updates.

01-09-2026
Auto News

Perodua's Supplier Just Dropped A Huge RM54Mil Clue About A Secret New Model Launching In 2027

Perodua supplier MCE Holdings drops an RM54M clue about a secret 2027 model. Read about the upcoming next-gen Myvi, Bezza facelift, and local ADAS tech.

27-08-2026
Auto News

Proton Almost Built A RM150,000 Mid-Engined Sports Car Using Lotus Tech & Wira Parts

Did you know Proton almost built a RM150k mid-engined sports car? Discover how 'Project Sepang' combined Lotus engineering, Wira parts, and Petronas tech.

26-08-2026
Auto News

RM1,000 Trade-In Subsidy For Old Motorcycles: Transport Ministry Considers New Scheme

Got an old motor? MOT is considering a RM1,000 trade-in subsidy to help Malaysian riders upgrade to new CKD bikes. Here is how the proposed scheme works.

26-08-2026
Auto News

Do You REALLY Have To Give Way To Every Siren? What Experts Say About VIP Convoys vs. Emergencies

Do you legally have to give way to VIP convoys in Malaysia? Here is what traffic laws and safety experts say about sirens, outriders, and RM10k fines.

26-08-2026
Auto News

"Can I Pass My Diesel Quota To My Family?" — 3 Big Changes Coming To Malaysia’s Diesel Subsidy System

KPDN & MOF to launch 3 diesel subsidy updates in less than a month, covering family quota transfers, sambung bayar eligibility, and easier applications.

24-08-2026

Show More

trending_flat
About Us

CarzAutoMedia: Stay connected to the latest car news! Get instant updates on new releases, industry trends, and automotive innovations. Your go-to source for 24/7 coverage of everything automotive.

© 2026 CariCarz.com. All Rights Reserved.