PAC Reveals Multiple Issues in Malaysia’s Flying Car Project

KUALA LUMPUR – The Public Accounts Committee (PAC) has revealed that Malaysia’s flying car project, which was previously claimed to be a private sector initiative, actually received RM20 million in government funding through the Malaysian Industry-Government Group for High Technology (MIGHT).

According to the PAC’s latest report, MIGHT, an agency under the Prime Minister’s Department, approved a RM20 million investment into Aerodyne Ventures Sdn Bhd (AVSB) via its wholly owned subsidiary, VentureTech Sdn Bhd (VTSB).

“Although the Minister of Entrepreneur Development, Datuk Seri Mohd Redzuan Md Yusof, publicly stated that the flying car project was a private initiative with no government funding, PAC found that MIGHT approved an investment of RM20 million in AVSB,” the statement said.

The Economic Affairs Ministry confirmed that the funds were transferred from VTSB to AVSB on 1 November 2019.

PAC also noted that the project was prematurely announced by Mohd Redzuan without proper planning or Cabinet notification. Despite being promoted as a national project, it was essentially a private commercial venture.

“Redzuan openly promoted AVSB as early as February, even though the government had not yet assessed the company’s compliance with financial standards, intellectual property ownership, expertise, or technical capacity to develop a flying car,” the report stated.

It also revealed that AVSB built its prototype in Japan, taking advantage of that country’s ecosystem and infrastructure for flying car development, while Redzuan had claimed that the project was based on local technology.

The report further criticized the lack of coordination, stating that the Ministry of International Trade and Industry (MITI) and MIGHT were not consulted on the strategic direction of Malaysia’s air mobility ambitions. Moreover, Malaysia currently lacks legal frameworks to regulate the operation and use of flying cars.

PAC Recommendations
PAC made six key recommendations, including:
• An audit by the National Audit Department on the RM20 million investment.
• Closer monitoring by VTSB to ensure funds are used solely for their intended purpose and not for the flying car project.
• All public projects must undergo thorough study and strategic planning before public announcements to avoid negative perception and public backlash.

Additionally, the Ministry of Entrepreneur Development was advised to strengthen collaboration with other ministries and agencies and to ensure full compliance with technical standards before making public announcements or policy decisions.

The committee also emphasized that a complete Cabinet paper should be prepared and presented to the Cabinet for approval on any matter involving national interest.

–Source