Politics · Malaysia Bureau
Private firms lead Malaysia's loan arrears at RM8.08 billion
Malaysia's outstanding loan arrears reached RM8.08 billion as of end-2025, with private companies accounting for the largest share of unpaid obligations, according to the Deputy Finance Minister.
LSN Malaysia ·
Private companies and corporations topped the list of debtors owing the Malaysian government money, followed by state governments, Deputy Finance Minister Liew Chin Tong disclosed. The total outstanding loan arrears across all categories stood at RM8.08 billion as of December 31, 2025.
The disclosure provides a snapshot of Malaysia's loan recovery challenges across different sectors of the economy and levels of government. Companies' prominence in the arrears data underscores ongoing difficulties in debt collection from the private sector.
State governments' ranking as the second-largest category of outstanding loan arrears highlights fiscal pressures faced by regional administrations. The composition of arrears figures reflects broader economic conditions affecting both private enterprises and state-level finances.
The government's loan portfolio encompasses advances made to various entities for development projects, operations and other purposes. The arrears situation has implications for federal finances and the management of public funds extended to borrowers across different sectors.