The Ministry of Investment, Trade and Industry (MITI) has utilised RM335 million, or 89.6% of the RM374 million allocated for research and development, commercialisation and innovation (R&D&C&I) programmes as of June 30, 2025.
Deputy Investment, Trade and Industry Minister Sim Tze Tzin said the total expenditure ceiling approved for MITI under the 12th Malaysia Plan (12MP) up to that date stood at RM402 million.
He noted that RM55.64 million in unreturned grants remains outstanding. This consists of RM33.97 million under the High Impact Project Fund (HIF) managed by MIDA, and RM21.67 million under the High Value Added and Complex Product Development (HVAD) programme, which is a continuation initiative by the Ministry of Economy as approved in the MyProjek system.
Sim explained that the unreturned RM55.64 million was retained to meet ongoing project commitments. Of the amount, RM33.97 million under HIF is being used to fund approved projects that are still under implementation. Meanwhile, the remaining HVAD allocation is financing 28 new projects approved under the 12MP through Oct 31, 2025, involving about RM20.7 million, which are also currently in progress.
He was responding to a question from Mohd Hasnizan Harun (PN-Hulu Selangor) regarding the status of the outstanding grants during the winding-up session of the Auditor-General’s Report on the 2024 financial statements of federal agencies in the Dewan Rakyat.
Sim added that MITI acknowledges weaknesses in approvals processed through the MyProjek system and said governance improvements are needed in line with Treasury Circular PA3.2, as recommended by the National Audit Department.
To address this, MITI will seek special approval from the Ministry of Economy and the Ministry of Finance to treat the HIF and HVAD programmes as extension projects. This will allow payments for existing commitments that extend beyond the Malaysia Plan period. Any remaining allocation will be returned once the programmes are fully completed, he said.
