Govt failing to collect billions in outstanding debts, says PKR’s Hassan

Govt failing to collect billions in outstanding debts, says PKR’s Hassan

3 hours ago

Elill Easwaran

Pasir Gudang MP Hassan Karim says some debts owed to the government have remained unsettled for as long as 40 years.

Pasir Gudang MP Hassan Karim said the government’s weak debt collection was particularly concerning given that federal debt rose by 5.9% last year to RM1.321 trillion.

PETALING JAYA:

The federal government is failing to collect billions of ringgit owed to it, with only 5% of RM9.273 billion in outstanding debts recovered last year, says Pasir Gudang MP Hassan Karim.

Debating the 2026 auditor-general’s report in the Dewan Rakyat, Hassan said the government’s weak debt collection was particularly concerning given that federal debt rose by 5.9% last year to RM1.321 trillion.

“The government is quite good at borrowing but not good at recovering debts,” he said.

“What is the evidence? The auditor-general’s report shows that billions of ringgit in debts owed to the federal government by various parties have not been paid.

“Some debts have gone on for as long as 40 years without being settled… The report reveals that the federal government’s debt collection system has failed.”

Hassan’s remarks come amid scrutiny over outstanding payments owed to government agencies.

On Monday, Zetrix AI Bhd, a subsidiary of MyEG Group, said it had submitted a proposed solution to the government to address RM314 million in arrears owed to the road transport department.

Transport minister Loke Siew Fook said the arrears involved fees and summonses collected by the company since May, adding that the ministry and JPJ would set a deadline for the amount to be settled and take appropriate steps to recover the funds.

Don’t bail out struggling companies

Hassan also urged the government not to use taxpayers’ money to bail out loss-making government-linked companies or private firms, given the country’s high level of debt.

He alluded to a major national airline, saying he was informed that the company had RM18.4 billion in short-term debt and quarterly losses of RM830 million.

Hassan said the government should reject any request for financial assistance from the company.

“If this company knocks on the finance ministry’s door and asks for help, I hope the government rejects it because the government itself is in debt,” he said.

“The government has other matters to deal with.”

Hassan’s remarks appeared to refer to AirAsia, which last month denied that it was seeking a government bailout.

AirAsia Group co-founder and adviser Tony Fernandes said the airline’s operations remained sustainable and that it had never sought government assistance throughout its 25 years of operations.

He also dismissed reports that the government had approached rival carriers about absorbing some of AirAsia’s domestic routes, saying Putrajaya had confirmed to him that no such discussions took place.