Asset Recovery Trust Account Funds Used To Repay 1MDB, SRC Debts - MoF

KUALA LUMPUR, July 16 (Bernama) -- The government stresses that the use of Asset Recovery Trust Account funds is made in accordance with the approved Trust Directive and only for authorised purposes, including to cover operating costs and repay 1Malaysia Development Bhd (1MDB) and SRC International Sdn Bhd debts. 

The Ministry of Finance (MOF) said the use of the funds also covers the repayment of shareholders’ advances to the Minister of Finance (Incorporated), which were advanced to meet the financial obligations of the two companies concerned.

“Accordingly, the allegation that there has been misuse of Asset Recovery Trust Account funds is unfounded given that all use of funds is made in accordance with the purpose, scope and governance set out under the Trust Directive currently in effect,” said the ministry in a written answer to the Dewan Rakyat published on the Parliament's website today. 

The MOF was replying to a question from Datuk Mohd Isam Mohd Isa (BN-Tampin), who asked the ministry to explain the extent to which allegations of fund misuse are true, considering that the funds in the Asset Recovery Trust Account are intended to meet the financial obligations arising from the debts and commitments of 1MDB and SRC. 

Replying to Mohd Isam’s question about the increase in non-tax revenue in the Malaysia Economic Report for the first quarter (1Q) of 2026, the ministry said the government's estimated revenue for 2026 is RM343.1 billion, comprising RM270.4 billion in tax revenue and RM72.7 billion in non-tax revenue.

The MOF said 1Q 2026’s non-tax revenue increased by 22.9 per cent to RM18.8 billion compared to RM15.3 billion for the same period in 2025. 

“Tax revenue includes direct tax and indirect tax collection, while non-tax revenue is receipts from collections including licences, registration and permit fees, service fees, revenue from the sale of goods, rent, interest and revenue from investment, fines and penalties as well as donations.

“The amount of non-tax revenue during that period was contributed by, among others, the receipt of licenses and permits, Petronas’ dividends and dividends from Bank Negara Malaysia,” said the ministry. 

-- BERNAMA