KUALA LUMPUR: Funds from the Asset Recovery Trust Account are used only for authorised purposes, including servicing the debts of 1Malaysia Development Bhd (1MDB) and SRC International Sdn Bhd, says the Finance Ministry.
The ministry said all disbursements were made in accordance with the purpose, scope and governance framework set out in the trust deed.
“The government wishes to emphasise that the use of funds from the Asset Recovery Trust Account is subject to the approved trust deed.
“Accordingly, the funds have been used only for purposes permitted under the trust deed, including financing operational costs and settling the debts of 1MDB and SRC,” it said in a parliamentary written reply, denying allegations that the account had been misused.
The ministry was responding to a question from Tampin MP Datuk Mohd Isam Mohd Isa, who sought clarification over allegations of misuse involving the fund, which was established to meet the financial obligations arising from the debts and commitments of 1MDB and SRC.
It added that the account had also been used to repay shareholder advances made by the Minister of Finance (Incorporated), which were provided to fulfil the financial obligations of the two companies.
In a separate written reply, the ministry said the Federal Government’s revenue for 2026 is projected at RM343.1bil, comprising RM270.4bill in tax revenue and RM72.7bil in non-tax revenue.
The ministry said tax revenue comprises direct and indirect taxes.
Non-tax revenue, it added, includes 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 added that non-tax revenue for the first quarter of 2026 rose 22.9% to RM18.8bil, compared with RM15.3bil in the corresponding period last year.
“During this period, non-tax revenue was contributed by, among other sources, receipts from licences and permits, dividends from PETRONAS and dividends from Bank Negara.”
