ASSET MANAGEMENT PRACTICES: MALAYSIAN GOVERNMENT DEPARTMENTS PERSPECTIVE

Abstract

The aim of this paper is to examine the factors that influence the asset management practices in Malaysian government departments. Over the years, the inefficient and ineffective of the mismanagement of the government’s asset had been highlighted in the Auditor General Report. However, now there is an increase of people’s awareness regarding the procedure taken by government in conducting procurement of assets. The main issue is increasing levels of misappropriation of assets in a government department. The people are aware because of the involvement of the public money in the procurement of assets. In fact, the credibility and accountability of the government’s civil service are the focus of the people in lieu with the asset management practices. This study uses the purposive sampling method with the population comprised of employees involved in asset management units. Questionnaires have been distributed to 200 public sector employees working with the Federal Government in Putrajaya. An ordinary linear regression model was used to analyse the data. The findings show that employees’ knowledge and internal control have significant positive influence on asset management practices. The results also indicate that there is no significant relationship between organizational culture and information system towards asset management practices. This study contributes to the financial reporting and public-sector accounting policies on asset management. The results of the study can also be generalized to the state government, statutory bodies and local authorities. Among the limitations of the study are concerns the influence factors of asset management practices among the public sector accounting areas.