KUALA LUMPUR (Oct 9): Three government-linked entities involved in financing Malaysia's major rail infrastructure projects account for nearly 80% of the federal government's RM248.3 billion in committed guarantees as at end-June 2026.
The three entities — DanaInfra Nasional Bhd, Malaysia Rail Link Sdn Bhd (MRL) and Prasarana Malaysia Bhd — collectively accounted for RM195 billion, or 78.4%, of total committed guarantees, according to the Ministry of Finance's (MOF) 2027 Fiscal Outlook and Federal Government Revenue Estimates report.
Committed guarantees are government-backed financial commitments to support critical projects and programmes, including interest payments, working capital and temporary cash support.
Of the three, DanaInfra accounted for the largest share at RM92.1 billion, or 37.1% of total committed guarantees, followed by MRL at RM59 billion (23.7%) and Prasarana at RM44 billion (17.6%).
DanaInfra is a government-owned financing vehicle for major public infrastructure projects, particularly the Mass Rapid Transit (MRT) network, while MRL is the project owner of the East Coast Rail Link (ECRL), which connects the east and west coasts of Peninsular Malaysia.
Prasarana, meanwhile, is the government-owned public transport operator and asset owner responsible for urban rail and bus services, including the Klang Valley's light rail transit (LRT) and monorail networks.
Overall, committed guarantees increased marginally from RM245.8 billion at end-2025 to RM248.3 billion at end-June 2026, accounting for 55.5% of the federal government's total outstanding financial guarantees.
"This position remained broadly stable compared with end-2025, as additional financing requirements for the ECRL project and DanaInfra Nasional Bhd were offset by the redemption of financing obligations by GovCo Holdings Bhd, TRX City Sdn Bhd and the Federal Land Development Authority (Felda)," the MOF said.
The government's total outstanding financial guarantees, meanwhile, rose by RM4.7 billion, or 1.1%, to RM447.3 billion as at end-June 2026 from RM442.6 billion at end-2025.
Despite the increase, the guarantees accounted for a smaller share of gross domestic product (GDP) at 20.4%, compared with 21.8% at end-2025, remaining below the statutory ceiling of 25% under the Public Finance and Fiscal Responsibility Act 2023.
Of the total, RM354.4 billion comprised guarantees issued under the Loan Guarantee (Bodies Corporate) Act 1965 (Act 96), primarily to statutory bodies and government-linked companies, while the remaining RM92.9 billion fell under the Financial Procedure Act 1957 (Act 61).
Infrastructure accounted for the largest share of guarantees under Act 96 at 60.2%, mainly involving public transport projects such as the ECRL, MRT, Light Rail Transit 3 (LRT3) and highway networks.
The services sector accounted for another 30.4%, mainly comprising financing for civil servant housing and tertiary education loans, followed by utilities at 3.6% and investment holdings at 3.4%.
"These guarantees predominantly support capital-intensive infrastructures such as public transport and utilities, which typically involve long gestation periods and require partial government support to achieve financial viability," the MOF said.
"This approach enables the government to facilitate strategic investments while optimising financing costs to support national development," it added.
Fiscal Risk Statement in the works
Separately, the MOF said the government is working towards publishing a dedicated Fiscal Risk Statement (FRS) to provide a more comprehensive assessment of risks that could affect the country's fiscal position.
The statement, provided for under Section 37 of the Public Finance and Fiscal Responsibility Act 2023, will cover macroeconomic risks, government guarantees, other contingent liabilities and measures to mitigate potential fiscal exposure.
"The publication of the FRS represents an important step towards further improving Malaysia's fiscal risk management framework," the MOF said.
The ministry said the statement would be developed in phases, including the establishment of a centralised fiscal risk database, improvements in analytical capabilities and stronger coordination among government agencies.
However, the MOF did not specify a timeline for its publication, saying the initiative would be implemented progressively to strengthen fiscal transparency and the management of potential financial obligations.