Kuala Lampur:The Federal Government's Accounts Receivable (AR) decreased by 1.1 percent to RM102.032 billion in 2025, down from RM103.158 billion the previous year, as stated in the Auditor-General's Report (LKAN) 2/2026.

According to BERNAMA News Agency, The report attributed the RM1.126 billion decrease to several factors, including the write-off of revenue AR and loan interests that totaled RM1.207 billion, as well as RM603 million in guarantee fees no longer reported as AR.

Out of the total AR, RM50.845 billion was made up of Claimable Loans and Advances, while RM51.187 billion was Miscellaneous AR. These figures represent decreases of 1.3 percent and 0.9 percent, respectively, compared to 2024.

Non-compliance with the repayment schedule for Claimable Loans led to RM8.084 billion in arrears, with RM578.32 million being written off as stated in the report.

Additionally, the report confirmed that the 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 enhance its revenue collection mechanism through more strategic and effective measures to fund development expenditure sustainably, reduce the fiscal deficit, and decrease reliance on new borrowings. It also suggested implementing more proactive enforcement and monitoring actions to accelerate AR collection, reduce arrears, and minimize the need for write-offs.