Govt failing to collect billions in outstanding debts, says PKR’s Hassan

Pasir Gudang MP Hassan Karim criticized the federal government for its weak debt collection practices, stating that only 5% of RM9.273 billion in outstanding debts were recovered last year. During a debate on the 2026 auditor-general’s report in the Dewan Rakyat, Karim pointed out that despite the government's ability to borrow, it struggled to recover debts.

The report highlighted that billions of ringgit owed to the federal government remained unpaid, with some cases dating back 40 years. Karim emphasized that the debt collection system had failed, urging the government to refrain from bailing out loss-making companies, especially considering the country's high debt levels. He cited MyEG Group's RM314 million in arrears to the road transport department as an example and urged against taxpayer-funded bailouts.