AG's Report: Govt accounts receivable down 1.1 per cent to RM102bil in 2025
KUALA LUMPUR: The Federal Government’s Accounts Receivable (AR) fell by 1.1 per cent to RM102.032 billion in 2025 from RM103.158 billion the previous year, according to the Auditor General's Report 2/2026.
The Federal Government's Accounts Receivable (AR) declined by 1.1% to RM102.032 billion in 2025, according to the Auditor General's Report 2/2026. This reduction from the previous year's RM103.158 billion was influenced by write-offs totalling RM1.207 billion, including RM1.126 billion from revenue AR and loan interests, and RM603 million in discontinued guarantee fees.
The AR was divided into RM50.845 billion for Claimable Loans and Advances, and RM51.187 billion for Miscellaneous AR, which saw a 1.3% and 0.9% drop respectively compared to 2024. Non-compliance with repayment schedules led to RM8.084 billion in arrears and an additional RM578.32 million in write-offs. The report highlighted RM90.50 million in government's share of utility relocation costs, which should not have been counted as outstanding AR.
It advised the government to enhance its revenue collection methods to fund development expenses more sustainably, lower the fiscal deficit, and lessen dependence on new borrowings. The report also advocated for more active enforcement and monitoring to expedite AR collection, decrease arrears, and diminish the requirement for write-offs.
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