Assessment on Factors Affecting Asset Management Performance in Malaysian Government Agencies: A Concept Paper

Abstract

Asset management is a "joined in" organisation activities to realise value from its controlled resource. Asset management evolved from simple maintenance, which was treated as a "necessary evil" in the 1970s, to the current position that is the core functions of organisational strategies. In Malaysia, the government is committed to enhancing asset management quality to ensure it is managed in a systematic, holistic, and sustainable manner; thus, policies and procedures regarding asset management have been issued since 1967. However, the Auditor-General Report found out that most government agencies are unable to manage their assets efficiently. This study focuses on analysing factors affecting asset management performance in government agencies in Malaysia. This study will look at the issues commonly raised by the Auditor-General Report, particularly on asset management, and identify the factors affecting asset management performance. The conceptual part consists of an extensive search and analysis of secondary sources of information through references and reviews of academic articles, Auditor-General's Report, news, and publications related to asset management. The literature review's analysed data indicate that three issues can be underlined: ineffective maintenance practice, misused and theft of government assets, and inadequate asset management knowledge. Accordingly, to clarify the factors leading to the said problems, a conceptual structure has been proposed based on previous studies. The identified factors leading to asset management issues in the public sector are maintenance practice, asset misappropriation, and training policy. This study has also analysed the gaps in past studies regarding asset management research. This concept paper provides a valuable addition to the current knowledge base, particularly on how factors affecting asset management performance in government agencies and hindering the government from delivering an efficient service to the public. The implications and recommendations for future research are also discussed.