Financial Risk:
Very High
Score:
30/100
Asset Disposals
Q24
17/100
How effective are controls over the disposal of assets, and is information on these disposals, and the proceeds of their sale, transparent?
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There are policies and directives issued by the Ministry of Finance on the procedures for asset disposals. Disposal of military hardware is technically covered…
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Public Asset disposals at the Ministry are related only to non-sensitive defence items like trucks, cars, outdated computers etc. There is no information on…
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It is not a practice of any ministries in Malaysia to disclose the amount of money received from disposal exercises. But the money is…
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Q25
42/100
Is independent and transparent scrutiny of asset disposals conducted by defence establishments, and are the reports of such scrutiny publicly available?
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There is no parliamentary or independent body to scrutinise asset disposals conducted by the defence establishment, but the disposals must be recorded in the…
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Asset disposals have to adhere to the procedures issued by the Finance department’s directive. But there is no proof that the Public Asset Management…
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No reports or information on asset disposals are made public. [1] [2]
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Secret Budgets
Q26
0/100
What percentage of defence and security expenditure in the budget year is dedicated to spending on secret items relating to national security and the intelligence services?
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There are several intelligence agencies that are related to defence and security. Their functions may overlap. The military has the National Defence Intelligence Centre…
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Q27
0/100
Is the legislature (or the appropriate legislative committee or members of the legislature) given full information for the budget year on the spending of all secret items relating to national security and military intelligence?
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Members of Parliament are not informed of the breakdown of the budget that is allocated for security and military intelligence. The intelligence budget is…
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Q28
0/100
Are audit reports of the annual accounts of the security sector (the military and intelligence services) subject to parliamentary debate?
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Audit reports are not subject to parliamentary debate unless misappropriations are reported by whistleblowers. Intelligence expenses does to appear in the audit report. But,…
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There was no official or non-official report which suggests a situation whereby intelligent military services were subject to parlimentary debate [1] As such, this…
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Q29
42/100
In law, are off-budget military expenditures permitted, and if so, are they exceptional occurrences that are well-controlled? In practice, are there any off-budget military expenditures? If so, does evidence suggest this involves illicit economic activity?
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There are occasions where off-budget expenditures have occurred due to several unexpected situations. The most common way for the Ministry of Defence to receive…
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Off-budget procedures are clearly recorded during a special meeting chaired by the Ministry’s Secretary General. The process needs approval from the Finance Ministry. But…
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According to Dr Kogila, the need for off-budget expenses rarely arises, but if it does, there are procedures to be followed, with a fast…
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Q30
50/100
Are mechanisms for accessing information from the defence sector effective?
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In Malaysia, the Official Secrets Act 1972 (Act 88) prohibits the dissemination of information classified as an official secret. [1] The OSA outlines that…
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This indicator is not assigned a score in the GDI. Information is classified as outlined in the General Circular No.1/2015 on Implementation of Open…
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Access to information can be obtained through the Ministry of Defence (MINDEF)’s official website [1] or the national open data website. [2] However, key…
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Q31
38/100
Do national defence and security institutions have beneficial ownership of commercial businesses? If so, how transparent are details of the operations and finances of such businesses?
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Defence institutions and the military are involved indirectly in business through Lembaga Tabung Angkatan Tentera (LTAT) or Armed Forces Fund Board. LTAT is established…
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These businesses are publicly declared. Some of these military-majority owned companies are traded on the Kuala Lumpur Stock Markets (BSKL). These are subject to…
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Military-owned Businesses
Q32
63/100
Are military-owned businesses subject to transparent independent scrutiny at a recognised international standard?
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Some of the Lembaga Tabung Angkatan Tentera (LTAT, or Armed Forces Fund Board)’s majority-owned companies are traded on the Kuala Lumpur Stock Markets (BSKL).…
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LTAT’s full audit reports are tabled in parliament and can be debated by members of parliament. In addition, full audit reports are available to…
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Illegal Private Enterprise
Q33
75/100
Is there evidence of unauthorised private enterprise by military or other defence ministry employees? If so, what is the government’s reaction to such enterprise?
View QuestionActual Military Spending
Q77
0/100
Is comprehensive data on actual spending on defence published during the budget year?
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The Defence Budget is presented to Parliament without detailing or itemising specific spending. Spending is never published for public consumption but is subject to…
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No information on actual spending is publicly available, as such this indicator is scored Not Applicable. Defence spending is considered restricted information. [1] The…
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No information on actual spending is publicly available, as such this indicator is scored Not Applicable. It is not normal practice for the Malaysian…
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No information on actual spending is publicly available, as such this indicator is scored Not Applicable. Information on variances between the published budget and…
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