Auditor-General's Report: Govt Accounts Receivable Down 1.1 Per Cent To RM102 Bln In 2025

KUALA LUMPUR, Oct 5 (Bernama) -- 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 (LKAN) 2/2026.

The report stated that the RM1.126 billion decrease was partly due to the write-off of revenue AR and loan interests amounting to RM1.207 billion, as well as RM603 million in guarantee fees no longer reported as AR.

Of the total, RM50.845 billion comprised Claimable Loans and Advances, while RM51.187 billion was Miscellaneous AR, down by 1.3 per cent and 0.9 per cent respectively, compared to 2024.

The report noted that non-compliance with the repayment schedule for Claimable Loans resulted in RM8.084 billion in arrears and RM578.32 million being written off.

The report also confirmed that total outstanding AR for utility relocation costs amounted to RM90.50 million. This amount includes RM30.46 million borne by the government, which should not have been recorded as outstanding AR.

The report recommended that the Federal Government strengthen its revenue collection mechanism through more strategic and effective measures.

This, it said, would help fund development expenditure more sustainably, reduce the fiscal deficit and decrease reliance on new borrowings.

It also suggested that the government take more proactive enforcement and monitoring actions to accelerate AR collection, reduce arrears and minimise the need for write-offs.

-- BERNAMA