KUALA LUMPUR (Feb 24): Federal government agencies’ loans guaranteed by the government amounted to RM99.06 billion in 2023, according to the Auditor General’s Report.

The report issued on Monday, covering 142 of 145 government agencies, said five agencies had loans guaranteed by the government.

This comprised the Public Sector Housing Financing Board (LPPSA) with RM45.25 billion, the National Higher Education Fund Corporation (PTPTN) with RM41.13 billion, the Federal Land Development Authority (Felda) with RM6.93 billion, PR1MA Corporation Malaysia with RM3.75 billion, and the Armed Forces Fund Board (LTAT) with RM2 billion.

Overall, 20 federal government agencies had loans from the government and financial institutions totalling RM126.56 billion as at end-December 2023.

Five agencies made up 94.7% or RM119.84 billion of total loans: LPPSA with RM64.09 billion, PTPTN with RM41.13 billion, Felda with RM7.46 billion, PR1MA with RM3.79 billion, and the Port Klang Authority with RM3.37 billion.

In terms of new loans taken out in 2023, this comprised LPPSA with RM5 billion, LTAT with RM2.23 billion (inclusive of the aforementioned RM2 billion guaranteed by the government), the Malaysian Timber Industry Board with RM50 million, and Perwira Niaga Malaysia with RM29 million.    

“Overall, federal government agencies that have borrowed to finance operational expenses need to review their activities to ensure they are viable, generate revenue and reduce reliance on new loans,” the report said.

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