Malaysia Reduces “Sick Projects” to 5.2% as Government Tightens Construction Oversight

Malaysia Reduces “Sick Projects” to 5.2% as Government Tightens Construction Oversight

The Malaysian government has reported that only 44 out of 851 ongoing public infrastructure projects are currently classified as “sick projects”, accounting for 5.2% of total developments under construction, according to Deputy Works Minister Ahmad Maslan.

The update was shared during a monitoring visit in Taiping, Perak, where he reviewed ongoing infrastructure works under the Ministry of Works.

Ahmad said the majority of project delays were linked to contractor-related weaknesses, particularly in scheduling, planning and cash flow management. He stressed that improving contractor performance remains key to reducing project delays nationwide.

Out of the 851 active projects, 241 (28%) are still at early stages, while 213 projects (25%) are progressing according to schedule. Only a small portion has been classified as problematic or “sick”.

He added that the government aims to recover most of these delayed projects, with some potentially being terminated and reassigned to new contractors through a “rescue contractor” mechanism to ensure completion.

The total value of the 851 ongoing projects stands at RM49.5 billion. In addition, 351 projects worth RM15.48 billion have already been completed and are currently under the defect liability period (DLP), where contractors remain responsible for rectifying defects.

Ahmad highlighted that certain ministries recorded higher numbers of delayed projects, including the Ministry of Education with 14 sick projects, followed by the Ministry of Rural and Regional Development (eight), Ministry of Home Affairs (five) and Ministry of Defence (four).

He also noted that not all “sick projects” are severely problematic. In some cases, delays are caused by administrative or technical issues, such as the relocation of utility infrastructure like electricity poles, which can temporarily stall construction progress.

However, he confirmed that around eight projects are considered seriously delayed and may require contract termination before being reassigned to ensure continuity of work.

Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.

Posted by Yao Mu Realty Sdn Bhd on 19 May 26