Malaysia

Reduced 1MDB debt servicing boosts Federal Trust Funds, Audit reveals

Auditor-General’s Report attributes rise in public trust fund balances to lower repayments and increased contributions from PETRONAS

Updated 10 months ago · Published on 06 Oct 2025 4:15PM

Reduced 1MDB debt servicing boosts Federal Trust Funds, Audit reveals
The balance of the Asset Recovery Trust Account rose to RM1.785 billion as of 31 December 2024—an increase of RM440 million - October 6, 2025

A SIGNIFICANT reduction in debt payments for 1Malaysia Development Berhad (1MDB) has contributed to a notable increase in the balance of Malaysia’s Federal Public Trust Funds, according to the Auditor-General’s Report 3/2025.

The report, which presents the financial analysis of the Federal Government for 2024 and was published on the Auditor-General’s website today, revealed that the balance of the Asset Recovery Trust Account rose to RM1.785 billion as of 31 December 2024—an increase of RM440 million or 32.7 per cent compared to RM1.345 billion the previous year.

“This was due to a reduction in payments made towards settling 1MDB’s debt, which amounted to RM2.822 billion in 2024, compared to RM4.513 billion in 2023,” the report stated.

The Asset Recovery Trust Account is one of two trust accounts under the Federal Public Trust Funds that recorded gains. The other, the Federal Government Special Fund Trust Account, saw its balance rise to RM1.226 billion—an increase of RM189 million or 18.2 per cent from RM1.037 billion in 2023.

According to the report, this increase was driven by higher receipts from Petroliam Nasional Berhad (PETRONAS), which contributed RM2.209 billion in 2024 compared to RM1.986 billion the previous year.

The Federal Public Trust Funds were established under Section 9 of the Financial Procedure Act 1957 to manage contributions from entities and individuals to the Federal Government for specific purposes. These funds must be administered in accordance with relevant Trust Instructions.

The overall balance of the Federal Public Trust Funds, which include both General and Special Trust Accounts, also showed positive growth.

As of end-2024, the General Trust Account stood at RM5.951 billion—up RM447 million or 8.1 per cent from RM5.504 billion in 2023—while the Special Trust Account reached RM3.670 billion, rising RM113 million or 3.2 per cent from RM3.557 billion previously. - October 6, 2025

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