.png)
FEDERAL agencies recorded a notable strengthening of their asset base in 2024, with total assets rising by 5.5 per cent, or RM0.148 trillion, to RM2.838 trillion compared with RM2.69 trillion the previous year, according to the Auditor-General’s Report 1/2026.
The report, published on Monday, indicates that 143 out of 145 federal agencies registered asset growth.
An audit comparison of total assets against liabilities revealed that 139 of the 143 agencies assessed, equivalent to 97.2 per cent, held assets exceeding their liabilities in 2024.
“An audit analysis comparing total assets against total liabilities for 2024 revealed that 139 out of 143 federal agencies (97.2%) had assets exceeding their liabilities,” the report stated.
However, the broader picture remains tempered by liability pressures.
The same financial statement analysis showed that liabilities across the 143 agencies stood at RM0.871 trillion as of 2024, marking a RM1 billion or 0.1 per cent increase from 2023.
Four agencies were identified as having liabilities exceeding their assets, among them PR1MA Corporation Malaysia and the Malaysian Highway Authority.
According to the report, PR1MA recorded net liabilities of RM747.16 million, largely attributable to sukuk obligations due for settlement by 2031.
The Malaysian Highway Authority posted net liabilities of RM353.28 million, linked to unspent highway development funds and outstanding government loans.
Grant dependence remains a defining feature of federal agency financing. In 2024, 100 of the 143 agencies received federal grants amounting to RM30.49 billion.
Of that total, 87 agencies were allocated RM16.609 billion for management purposes, while 84 agencies received RM13.881 billion for development activities.
The five agencies receiving the largest federal grants were Majlis Amanah Rakyat, Universiti Teknologi Mara, Perbadanan Tabung Pendidikan Tinggi Nasional, Perbadanan Pengurusan Sisa Pepejal dan Pembersihan Awam and Lembaga Pertubuhan Peladang.
“Federal agencies have used operating grants for operating expenses in the current year and development grants to implement obligations set by the federal government.
“But, by the end of 2024, there was a balance in development grants due to unresolved implementation obligations. These grants are in the process of being returned or used for other purposes, subject to federal government approval,” the report said.
Borrowings also remain substantial.
Twenty-one of the 143 federal agencies carried loans totalling RM130.188 billion. Of these, six agencies secured new loans amounting to RM8.09 billion in 2024, sourced from the federal government and financial institutions.
Among them were the Malaysian Timber Industry Board, which borrowed RM50 million from the federal government; the Public Sector Housing Financing Authority (LPPSA) with RM4.85 billion; PR1MA with RM1 billion; the Inland Revenue Board with RM87 million; Bank Simpanan Nasional with RM2.1 billion; and Perwira Niaga Malaysia with RM7 million.
The agencies with the highest outstanding loan balances were LPPSA at RM66.44 billion, PTPTN at RM41.45 billion, Felda at RM7.347 billion, the Port Klang Board at RM3.268 billion and PR1MA at RM3.03 billion.
The report underscored that loans were taken to finance statutory functions and operational activities.
“New loans obtained by federal agencies are secured from the federal government and financial institutions, with guarantees from the government or through collateral without government guarantees,” it added.
While the aggregate asset growth suggests improved fiscal positioning across much of the federal agency landscape, the data also reveal structural reliance on grants and borrowing, as well as pockets of financial vulnerability.
The balance between expansion, debt management and operational efficiency will remain central to ensuring long-term sustainability within Malaysia’s public sector institutions. - February 23, 2026