Allocation for 1MDB loan repayment surges to RM17.064 bil: A-G’s report

Petronas remained the biggest contributor of dividends to the government, providing RM50 billion in 2022 compared to RM25 billion in 2021.

(Scoop) – The government has allocated RM17.064 billion for the repayment of loans linked to 1Malaysia Development Bhd (1MDB) in 2022, marking a sizable increase from the RM1.699 billion allocated in 2021.

Public Accounts Committee (PAC) member Vivian Wong Shir Yee said this figure was based on the Auditor-General’s Report on the matter, which was presented to the committee.

The report highlighted that two 1MDB bonds, namely 1MDB Energy Ltd and 1MDB Energy (Langat), matured in 2022 with a combined principal amounting to USD$3.3 billion, equivalent to RM15.524 billion.

“As of the end of 2022, 1MDB’s company loan guarantees total RM18.17 billion, comprising bonds worth USD$3 billion, or RM13.17 billion, which are due for repayment in 2023, and bonds worth RM5 billion maturing in 2039,” the Sandakan MP told a press conference in Parliament this afternoon.

The report also revealed that government subsidies in 2022 ballooned to RM55.443 billion compared to RM13.134 billion in 2021, marking a rise of RM42.309 billion or 322.1%.

The largest portion of these subsidy expenses was allocated to petroleum products, amounting to RM45.184 billion.

Meanwhile, Petronas remained the biggest contributor of dividends to the government, providing RM50 billion in 2022 compared to RM25 billion in 2021.

The total investment dividends received from 16 government-related companies and two statutory bodies amounted to RM55.815 billion.

In addition to the financial figures, Auditor-General Datuk Wan Suraya Wan Mohd Radzi highlighted three key recommendations, comprising the enhancement of fiscal discipline in operating expenses, strengthening revenue generation efforts, and closely monitoring loan repayment commitments, to further reduce the national debt in the future.

“This strategic approach is crucial to increase surplus revenue, which can be allocated for development expenses, reducing reliance on new loans,” she said.

“It is also important that Development Fund allocations align with projects outlined in the five-year Malaysia Development Plan.”

She added that expenses directed towards loan repayment must be rigorously monitored to prevent unchecked growth in the future, ensuring that all financial reporting and changes in financial statement items adhere to Government Accounting Standards and financial regulations.