Article Search By : Pn. Nurul Ezani Abdul Malek, Internal Audit Division UPM

Source : https://www.bharian.com.my/berita/nasional/2025/05/1393472/budaya-urus-kewangan-cekap-ganti-pembelian-penganjuran-gopoh

It is NOT an exaggeration for us to consider the actions of government agencies and departments racing to 'spend the budget' that is still left over at the end of the year as an unwritten culture. In fact, it is not only limited to what the Chief Secretary to the Government (KSN), Tan Sri Shamsul Azri Abu Bakar, has criticized, namely the practice of rush shopping or Christmas Shopping, but it also involves organising courses, work visits, workshops, seminars and various meetings outside the office.

Unfortunately, many of these are not implemented based on actual needs for national development and services to the people, but rather have become a culture to avoid having allocations 'withdrawn' or 'cut' in the following year's budget. In fact, this culture not only reflects weaknesses in financial planning, but also raises serious questions about the integrity of public service governance, as well as opening up space for waste and potential leakages, which are reprimanded every year in the Auditor General's Report (LKAN).

However, we should not blame only one party. This is because among the causes of hasty purchases or organizing programs at the end of the year are also due to delays in budget distribution and bureaucratic constraints that cause money to only be spent in the second half of the year. When pressure comes from two directions, namely the need to spend the allocation and concerns about future budget cuts, then hasty and unplanned financial decisions occur.

Therefore, the solution to this problem must be comprehensive. Of course, the Ministry of Finance (MoF) needs to ensure that the allocation flow is channeled earlier and in stages, while the ministries and agencies that receive it must strengthen their planning capacity so that every ringgit and sen spent is systematically planned with clear indicators of success for the country and the people.

The Malaysian Treasury Circular PS 1.3 and the Strategic Management Accounting and Reporting (SMARt) system, which is emphasized by the Accountant General's Department (ADG), must be adhered to so that efficiency and transparency become a strong culture in the public service. This kind of financial management is the key to reforming public sector fiscal governance, which is not just spending development and management allocations, but rather administering the country's revenue with full accountability, optimum and reaching the people.

We also urge that the adaptation of new technologies, including artificial intelligence (AI), smart automation and real-time data analytics, should also be part of the public sector financial management reform. This is because it can not only detect inappropriate spending early, but also help the government make decisions based on data, not assumptions. The time has come to end the 'end-of-year budget' culture that leads to the practice of purchasing or organizing programs in a hurry before the end of the financial year. Every ringgit belonging to the country is a trust of the people that must be managed wisely, planned carefully and spent prudently, while efficiency and transparency must become a work culture, not just a narrative on paper.

Date of Input: 24/07/2025 | Updated: 24/07/2025 | muhammad.isam