Govt recovered 5% of RM9.27 billion in loans last year, says A-G

The Auditor-General's Report for 2025 revealed that the federal government successfully recovered just 5% of the RM9.27 billion in outstanding loans, amounting to RM465 million. The report suggested legal action against borrowers who defaulted on their loans without a valid reason. Despite restructuring these loans up to five times, fresh arrears totaling RM16.15 million persisted.

Loan repayment periods were extended by 10 to 40 years, resulting in the government forfeiting RM127.33 million in principal balances and RM450.99 million in interest and late-payment revenue due to write-offs. The report urged the finance ministry to enhance its monitoring and enforcement of loan repayments, including issuing warnings, and conducting rigorous financial capacity assessments and risk evaluations before issuing new loans or restructuring existing ones.

As of December 31, 2025, the recoverable loans balance was RM49.22 billion, down from RM49.62 billion in 2024, primarily due to repayments and write-offs.