KUALA LUMPUR (Nov 29): An audit on Aerodyne Ventures Sdn Bhd (AVSB) is not necessary as the 'flying car' project is not under the government, according to the Ministry of Entrepreneur Development (MED).

MED added that this project did not get any allocation from it, and the ministry is not responsible for any loss if the project does not go as planned.

As such, this was not brought to the National Development Council or the Cabinet as it does not require approval from the government, MED said in a statement today.

In a report yesterday, Parliament's Public Accounts Committee (PAC) found seven concerns in relation to the 'flying car' project, which has involved a RM20 million investment from public-private partnership Malaysian Industry-Government Group for High Technology (MIGHT) into its developer AVSB.

MED said the RM20 million fund has no relation with the development project of drone and air mobility by AVSB, as MED does not have the provision and power to approve the fund as investment in any project.

"The project is led by the private sector and is fully funded by AVSB," it said. Apart from AVSB, MED also works with other companies in the same sector.

MED said it is simply helping to facilitate the development of ecosystem industry in terms of industrial support and the capacity of local companies to grow the industry.

On Aug 9, the government approved a RM20 million investment to spur innovation, education and development of the New National Car Project (NNCP) with DreamEdge and MIGHT as the leader of NNCP.

Compared to NNCP, this drone project is not a national initiative and MED's role will only be supporting and facilitating the entrepreneurship development of small and medium enterprises (SMEs) that are innovative and in line with the National Entrepreneurship Policy 2030 (DKN2030).

"MED is aware of PAC's solutions and recommendations about air mobility. The ministry is preparing a comprehensive response on this matter.

"Information regarding action taken by other agencies will be reviewed by the ministry," it added.

The ministry said it will continue to work together with the local and international industry players to achieve the objective of DKN2030.