{
  "id": 12601634,
  "title": "Govt to make viability checks mandatory for federal loans",
  "url": "https://urgent.news/2026/10/07/govt-to-make-viability-checks-mandatory-for-federal-loans",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-07T09:46:38.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/news/nation/2026/10/1549822/govt-make-viability-checks-mandatory-federal-loans"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR: The Malaysian government intends to make viability assessments obligatory for approval of new Federal Government loans, with the loan amount limited based on the borrower's capacity to repay. Deputy Finance Minister Liew Chin Tong announced the move as part of strengthening the government's loan assessment framework and averting the buildup of repayment arrears. The current loan assessment model will be enhanced by implementing a mandatory viability assessment prior to any approval. Loan approvals will be restricted to the borrower's actual repayment ability if repayment capacity is constrained, with the rest of the project financing to be provided as grants, according to Liew in his concluding remarks. The proposal emerges due to worries about the government's collection of outstanding recoverable loans. Liew revealed that the government collected only RM465 million, or 5 percent, of the RM9.273 billion in outstanding recoverable loans in 2025. Additionally, RM578.32 million in repayment arrears involving 23 loans were written off during the year. Liew stated that loan write-offs would only be considered after all recovery attempts, including legal proceedings, had been unsuccessful. Only interest on loans will be eligible for write-off, and only for companies deemed insolvent based on a report from the Companies Commission of Malaysia, after consulting the Finance Ministry's Legal Division, he added.",
  "summary": "KUALA LUMPUR: The government plans to make viability assessments mandatory before approving new Federal Government loans, with the amount capped according to borrowers’ ability to repay.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}