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AG's Report: Malaysia's federal liabilities now at RM1.39 trillion [Updated]

KUALA LUMPUR: The Auditor General's Report revealed that federal liabilities was RM1.399 trillion at the end of 2022.

Auditor-General Datuk Wan Suraya Wan Mohd Radhi said debt increased by RM 94.1 billion last year, which is 7.2 per cent more compared to what was recorded in 2021.

"The federal liability ratio to gross domestic product (GDP) in 2022 was 78.1 per cent, which has decreased as compared to 84.3 per cent in 2021," she said in a report that was tabled in the Dewan Rakyat today.

Deliberating on liabilities, she said total liabilities were RM319.571 billion, down by RM5.661 billion (1.7per cent) from 2021's RM325.232 billion.

These liabilities include private financial initiative (PFI) debts (RM34.492 billion), guarantee commitments (RM224.116 billion), financial lease commitments (RM34.552 billion), tax refund commitments (RM25.721 billion), compensation commitments (RM0.535 billion), and various liabilities (RM0.155 billion).

"Federal liabilities, consisting of federal debt and financial liabilities, amounted to RM1.399 trillion, which increased by RM94.116 billion or 7.2 per cent compared to 2021's RM1.305 trillion. The federal liabilities-to-GDP ratio is 78.1 per cent, down from 84.3 per cent in 2021," she added.

Wan Suraya said expenditure linked to federal liabilities reached RM208.117 billion, accounting for 11.6 per cent of GDP. This covers the repayment of RM131.528 billion in matured loan principals, RM41.269 billion for national debt expenses, RM32.827 billion for guarantee commitment settlements, and RM2.493 billion for PFI liability settlements.

Federal Financial Assets, which encompass receivables and investments in 112 companies, five statutory bodies, and one international agency, amounted to RM139.554 billion.

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