Kuala Lumpur: The practice of hasty end-of-year spending in the civil service, which often leads to waste of resources, must be avoided entirely, said Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar. He emphasized that poor expenditure management not only undermines the efficient use of resources but also risks creating negative perceptions about the government’s integrity and governance.
According to BERNAMA News Agency, Shamsul Azri highlighted that although the Auditor-General’s Report (LKAN) continues to raise issues on the government’s financial management, misappropriation and wastage of public funds still occur. He warned that if left unaddressed, this issue could become increasingly complex and, without firm solutions, it will affect the credibility and public perception of civil servants in general. His remarks were made during his speech at the opening of the 2025 Management Accounting Seminar organized by the Accountant General’s Department of Malaysia (AGD), with the text read out by Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi.
Shamsul Azri stressed the importance of ensuring that transparency, integrity, and accountability remain central to the principles of governance and ethics. He noted that the MADANI government is focused on optimizing public spending by reviewing expenditure policies and the allocation of limited resources to ensure efficiency, effectiveness, and value for money.
Continuing to implement policies geared towards targeted subsidies allows the government to reduce wastage and leakage while creating fiscal space to improve assistance for vulnerable groups, he added. Additionally, the government has amended the Audit Act 1957 to enhance audit scope in relation to public fund management, ensuring that audit recommendations are taken seriously and acted upon by all entities receiving public funds.
Shamsul Azri mentioned that the AGD has introduced the Treasury Circular PS 1.3 – Implementation of Management Accounting, which outlines the policy and implementation of management accounting via the introduction of Strategic Management Accounting and Reporting (SMARt). This initiative aims to enhance the efficiency, effectiveness, and accountability of ministries in managing finances, risks, resources, and performance.
He urged all ministry secretaries-general, who also serve as controlling officers, to ensure the effective implementation of management accounting and SMARt to improve transparency and accountability in financial decisions. Civil servants must proactively acquire increasingly complex technical competencies in finance and accounting, while also equipping themselves with non-financial intelligence to enhance management accounting practices in the public sector.
The adoption of technologies based on big data analytics, artificial intelligence (AI), and smart automation can assist government agencies in collecting, analyzing, and interpreting financial information in real time, Shamsul Azri concluded.