Asset Recovery Trust Account only used to service 1MDB, SRC International debts, says Finance Ministry


KUALA LUMPUR: Putrajaya has dismissed allegations that the Asset Recovery Trust Account has been misused, adding that disbursements have only been made for authorised purposes including servicing 1Malaysia Development Bhd (1MDB) and SRC International Sdn Bhd's debts.

The Finance Ministry said all disbursements are made in accordance with the purpose, scope and governance framework stipulated under the prevailing Trust Deed.

"The funds have been used only for purposes permitted under the Trust Deed, including to finance operational costs and to settle the debts of 1MDB and SRC," it said in a parliamentary written reply dated July 16 in response to a question from Datuk Mohd Isam Mohd Isa (BN-Tampin).

It said this included repayment of shareholder advances made by the Minister of Finance (Incorporated) (MOF Inc), which had been provided to fulfil the financial obligations of these companies.

The ministry also said that the Federal government's revenue projection for 2026 is estimated at RM343.1bil.

It said this comprises RM270.4bil in tax revenue and RM72.7bil in non-tax revenue.

"Tax revenue consists of direct and indirect tax collections, while non-tax revenue comprises receipts from licences, registration fees and permits, service charges, proceeds from the sale of goods, rentals, interest and investment income, fines and penalties, as well as contributions," it said.

Non-tax revenue for the first quarter of 2026 increased by 22.9% to RM18.8bil, compared to the corresponding period last year, when the government registered RM15.3bil.

"During this period, non-tax revenue was contributed, among other sources, by receipts from licences and permits, dividends from Petronas and Bank Negara Malaysia," it said.

 

 

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