KUALA LUMPUR: The contributions and deposits guaranteed by the government last year has reached RM1.287 trillion, which is an increase of 9.7 per cent compared with RM1.173 trillion in 2022.
According to the 2024 Auditor General's Report Series 3 (LKAN 3/2024) published today, the funds came from contributors and depositors of Bank Simpanan Nasional (BSN), the Employees Provident Fund (EPF), Lembaga Tabung Haji (TH) and the National Education Savings Scheme (SSPN) under the National Higher Education Fund Corporation (PTPTN).
The report also said that government-guaranteed loans provided to statutory bodies and companies, as permitted under the Loans Guarantee (Bodies Corporate) Act 1965, were showing an increasing trend annually.
"In 2023, there was an increase in guaranteed loans, specifically for the Armed Forces Fund Board (LTAT) and Digital Nasional Bhd (DNB).
"These guaranteed loans from the government amounted to RM2.0 billion and RM1.5 billion, respectively," the report revealed.
The report said DNB had been granted a guarantee of up to RM2 billion for short-term financing facilities this year for expenses related to the provision of 5G network infrastructure, which covered the repayment of principal and loan interest.
LTAT, meanwhile, had been provided with a statutory guarantee on loan instruments amounting to RM2 billion, which would be obtained from local financial institutions or the financial market.
"This guarantee also encompasses the repayment of principal and loan coupons or interest.
"The purpose of this guarantee is to purchase Boustead Holdings Bhd's shares in Boustead Plantations Bhd (BPlant) following the termination of the strategic collaboration agreement with Kuala Lumpur Kepong Bhd.
"Additionally, this guarantee aims to facilitate the general offer for shares held by minority shareholders in BPlant," said the report.