Tawau:Six development projects in Malaysia under the 12th Malaysia Plan have encountered significant implementation issues, including contract terminations, prolonged extensions of time, delays, and completed housing projects that remain unoccupied. This information comes from the Auditor-General's Report (LKAN) 2/2026.

According to BERNAMA News Agency, the six projects include two Armed Forces Family Housing (RKAT) projects, an upgrade of the Galeria Perdana in Langkawi, a People's Housing Programme (PPR) project, and two fire station quarters projects in Sabah.

One of the major projects, the RM100 million Joint Task Force 2 (ATB 2) RKAT at Kukusan Camp in Tawau, Sabah, was originally slated for completion in July 2024. However, it achieved only 28 percent physical progress by the end of December 2024, leading to the termination of its contract on May 23, 2025. The project's delays were attributed to poor financial management by the contractor and halted site activities. By July 30, 2026, the Public Works Department had prepared tender documents for a new completion contractor, with an additional RM3.90 million approved for the project by the Ministry of Economy.

Another project, the RM63.25 million Air Force Base Quarters (RKAT) in Labuan, faced multiple extensions of time, totaling 877 days, pushing the completion date to November 17, 2026. As of July 2026, only 51 percent of the work was completed, lagging behind the scheduled 54 percent. Delays were caused by a shortage of skilled workers and the necessity to source materials from outside Labuan.

The RM20.40 million Galeria Perdana Upgrading Project in Langkawi had its contract terminated on September 23, 2024, after four extensions totaling 192 days. Liquidated and Ascertained Damages of RM440,000 were imposed due to a 136-day delay. The project's completion costs have risen by RM36 million to RM56.40 million, with a tender process for a new contractor expected in February 2027.

The PPR project in Kampung Selagon, Beaufort, valued at RM23.70 million, remains unoccupied since its completion in 2017 due to structural damage from ground movement. A contract for demolition and reconstruction was mutually terminated in March 2025 after minimal progress.

In Semporna, a RM14.39 million fire and rescue station quarters project ended on March 11, 2025, with only 25 percent progress. The termination was due to the contractor's financial incapacity and poor project management. The project has since been retendered and is under evaluation as of June 2026.

The RM6.85 million Merotai Fire Station and quarters project, despite achieving 96.6 percent progress, was terminated on November 5, 2025, after seven extensions.

In response to these findings, the Auditor-General has advised that immediate action be taken by the relevant ministries and departments to ensure the completion of the projects to fulfill their developmental objectives and benefit the targeted groups.