Asset Risk Management and Immovable Asset Management of Malaysian Government: Towards Digitalization

Asset risk management is the process of identifying, assessing, and mitigating risk associated with an organization's asset. This research examines the intersection of asset risk management and Immovable Government Asset Management, highlighting the transformative potential of digitalization. A survey of 303 asset managers and practitioners evaluates existing practices, including Project Risk Plans, Facility Risk Plans, and Asset Immovable Risk Plans, within the context of physical asset life cycle management. The findings underscore the need for digital integration to address challenges and enhance government performance. By elucidating the direct and indirect effects of risk management practices on organizational outcomes, this study lays the groundwork for developing forward-looking digitalization strategies, enabling more resilient and effective public asset management. Hypotheses of this study is the integration of digital systems into government asset management significantly improves operational efficiency and stakeholder satisfaction. Furthermore, this study contributes to a better understanding of how the government could achieve higher performance results by implementing digitalization risk management practices. The results of this study can help the manager identify key asset risk management practices. By analyzing the 303 respondents between asset risk management practices and their direct and indirect effects (20 generic risks) on government performance, the study provides important insights into the development of digitalization strategies to promote the novel and important discipline of asset management. This proactive approach helps optimize asset utilization, extend lifespan, minimize financial risk and operational disruptions, ultimately maximizing asset value and reducing overall risks.