Firming governance in Federal Port Authority Malaysia (FPA): insights from audit practices, compliance frameworks and operational management

Port governance is vital to Malaysia’s economic development, as the country depends heavily on seaborne trade. The FPA regulates and oversees federal ports, yet governance challenges continue to affect its effectiveness. This study explores current FPA governance practices through qualitative analysis of nineteen in- depth interviews with officers, auditors, board members, and port stakeholders. Using thematic analysis, three central themes emerged: audit practices and financial transparency, governance and compliance, and port operations and management. The findings show that while formal structures such as audit units, compliance procedures, and operational frameworks are in place, their implementation is often undermined by political influence, bureaucratic delays, overlapping jurisdictions, and weak stakeholder engagement. To explain these dynamics, the study applies agency theory, institutional theory, and stakeholder theory. The analysis establishes that governance frameworks alone are insufficient without independent audits, merit-based leadership, and meaningful stakeholder participation. By drawing on grounded perspectives from Malaysia’s federal ports, this chapter contributes to the literature on public sector port governance in Southeast Asia. It also offers practical suggestions for policymakers seeking to improve transparency, accountability, and efficiency in strategic maritime infrastructure.

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