
Modernising the Ledger: Malaysia’s Accounting Regulator Pushes Profession Toward Transparency and Tech
In 2025, the Malaysian Institute of Accountants (MIA) has sent a clear message: the accounting profession must evolve — or risk becoming obsolete. With artificial intelligence (AI) accelerating, sustainability reporting frameworks on the horizon, and an increasingly digital economy, the old ways of doing accounting no longer suffice.
Two recent releases by MIA — a technical alert on service concession arrangements and the 4th edition of its Technology Adoption Survey — reveal not just a profession in flux, but one struggling to keep up. Beneath the surface of compliance lies a deeper story of missed disclosures, slow tech integration, and an industry caught between tradition and transformation.
Concession Accounting: Red Flags in Plain Sight
Malaysia’s infrastructure boom — from tolled expressways to government hospitals — relies heavily on service concession arrangements (SCAs). These complex deals involve private entities building and operating public infrastructure before transferring ownership back to the government.
But recent reviews by MIA’s Financial Statements Review Committee (FSRC) uncovered a worrying trend: many firms are either misclassifying or omitting key disclosures related to these concessions. On July 3, 2025, MIA published a technical paper titled “Financial Reporting of Service Concession Arrangements”, calling attention to these gaps.
“There is growing concern that some companies are treating concession assets as regular property, plant, and equipment (PPE), without referencing IC Interpretation 12 or 129,” the report noted. “This creates confusion for investors and regulators alike.”
Some entities were found depreciating toll highway assets using straight-line methods over 15–21 years — a mismatch with real usage patterns. Others failed to disclose legal rights under concession agreements, a key tenet of infrastructure accounting.
Why It Matters:
These missteps have material consequences: inconsistent financials, under-reported liabilities, and blind spots in long-term public-private partnerships — often worth billions.
With Bursa Malaysia-listed GLCs and concession-heavy entities in the spotlight, MIA is now pushing for:
- Transparent classification (intangible vs tangible assets)
- Disclosure of amortisation methods
- Clear terms of concession agreements in financial statements
Tech Adoption: Mainstream on the Surface, Stalled Underneath
While financial reporting is under scrutiny, MIA also looked inward to assess the profession’s digital maturity. On June 19, 2025, it released its latest survey titled “Technology in Motion”, canvassing 713 accountants across sectors.
The headline? Adoption of cloud software, automation tools, and collaborative platforms like Microsoft 365 is now mainstream, with over 65% of firms using them regularly.
But dig deeper, and a different story emerges:
- Only 26% have adopted advanced cloud-native platforms
- Just 23% use data analytics tools frequently
- Less than 5% are experimenting with AI or sustainability-focused tools
What’s holding them back? Not cost — but clarity.
“For the first time, price is not the barrier,” noted one MIA analyst. “It’s the lack of a clear business case. Many practitioners still don’t know where these tools fit in their revenue model.”
The upcoming National Sustainability Reporting Framework is expected to shift this. Already, 41% of firms plan to adopt ESG reporting tools within three years. Generative AI and predictive automation also rank high on the radar for future investment.
What’s Next for Malaysia’s Accountants
These two reports tell a shared story: a profession at a crossroads.
The choice is no longer whether to modernise — it’s how fast and how deeply.
In the months ahead, observers can expect:
- Closer scrutiny of SCAs, particularly in GLC disclosures
- Increased CPE offerings focused on IFRS S1 & S2, tech literacy, and digital workflows
- A profession increasingly expected to demonstrate both technical accuracy and digital fluency
With AI tools like Copilot entering mainstream accounting software and sustainability disclosures becoming mandatory, the role of the accountant is being redefined. Malaysia’s accounting firms — large and small — will need to move beyond compliance and embrace capability-building.
As global investors eye the transparency of Malaysian capital markets, the accounting profession must now rise to meet a new standard — one built on clarity, innovation, and public trust.
Key Takeaways
- MIA flags systemic issues in service concession reporting, with implications for GLCs and long-term infrastructure deals.
- Technology adoption is growing, but true digital transformation remains slow, especially in AI and ESG reporting.
- The accounting profession faces a pivotal moment to redefine its value in a tech-driven, sustainability-focused economy.
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Shukri Yusof & Co. (Synco) is a member firm of the Malaysian Institute of Accountants, also known as the Malaysian Institute of Chartered Accountants. Our commitment is to deliver results that exceed expectations with utmost effectiveness and efficiency.

