KUALA LUMPUR (Oct 5): The federal government's statutory guarantees rose by 9.8% to RM1.921 trillion as at Dec 31, 2025, from RM1.749 trillion a year earlier, according to the latest auditor general’s report on Monday.

Of the total RM1.921 trillion in statutory guarantees, RM1.568 trillion covers contributors' and depositors' funds at four bodies: Bank Simpanan Nasional, the Employees Provident Fund (EPF), Lembaga Tabung Haji and the National Education Savings Scheme (SSPN-i) under the National Higher Education Fund Corp. This was up by 10.7% to RM151.95 billion.

The remaining RM352.86 billion is guaranteed loans, up 6%, or RM20.04 billion, from RM332.82 billion. These cover five federal statutory bodies, whose guaranteed loans rose 8.9% to RM110.91 billion, and 21 companies, whose guaranteed loans rose 4.8% to RM241.95 billion.

These guarantees are contingent liabilities, which become actual liabilities of the government if the entities concerned fail to meet their obligations.

Separately, guarantee commitments, reported among the government's financial commitments, stood at RM245.78 billion for 14 agencies, up RM9.55 billion, or 4%.

The agencies are 13 companies and one statutory body. DanaInfra Nasional had the largest amount at RM92.40 billion, up from RM85.10 billion, followed by Malaysia Rail Link Sdn Bhd at RM54.26 billion, Prasarana Malaysia Bhd at RM42.65 billion and Urusharta Jamaah Sdn Bhd at RM24.79 billion. 

The 1Malaysia Development Bhd guarantee was unchanged at RM5 billion.

By maturity, RM78.05 billion (31.7%) of the guaranteed loans under these commitments fall due in one to five years, RM38.74 billion (15.8%) in six to 10 years and RM128.98 billion (52.5%) in 11 years or more.

The Cabinet approved new guarantees of RM24.17 billion for DanaInfra Nasional Bhd in 2025. Of this, RM17.67 billion is for financing the Pan Borneo Highway Sabah Phase 1B, the Sarawak-Sabah Link Road Phase 2 and the Trans Borneo Highway, and RM6.5 billion is for the Mass Rapid Transit (MRT) project, including refinancing of maturing sukuk. 

DanaInfra issued RM4.5 billion of MRT sukuk on Dec 17 and no sukuk for Pan Borneo during the year. 

A RM513.6 million guarantee for PR1MA Malaysia was used in full when the agency issued sukuk on Nov 14 for a land transaction involving the Armed Forces Fund Board (LTAT) in Bukit Jalil, Kuala Lumpur.

The government also paid grants to help agencies repay guaranteed loans. These fell 53.2% to RM5.31 billion in 2025 from RM11.34 billion and went to nine companies and one statutory body, compared with 12 companies and one statutory body in 2024. DanaInfra received none after RM5.31 billion in 2024.

The report said the priority in 2025 was payments to companies including Jambatan Kedua Sdn Bhd (RM1.58 billion) and MKD Kencana Sdn Bhd (RM1.19 billion), so that loans could be repaid on schedule and defaults avoided.

Of the 2025 total, RM287.50 million, paid from the Assets Recovery Trust Account, covered coupon payments on 1MDB sukuk.

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