Tuesday 06 Oct 2026
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KUALA LUMPUR (Oct 5): Malaysia’s auditor general has flagged weak recovery of federal government loans, with only 5% of RM9.273 billion in arrears collected in 2025.

A total of RM578.32 million in repayment arrears involving 23 loans were also written off by the federal government, comprising RM127.33 million in outstanding principal and RM450.99 million in interest and late-payment interest, according to the latest auditor general’s report released on Monday.

New arrears continued to accumulate even after the loans had been restructured, the report noted.

The auditor general recommended that the Finance Ministry strengthen monitoring and enforcement, tighten risk assessments and review the effectiveness of loan restructuring.

Click here for more news on AG's Report 2026.

Edited ByIsabelle Francis
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