Pasir Gudang MP Hassan Karim said the government’s weak debt collection was particularly concerning given that federal debt rose by 5.9% last year to RM1.321 trillion.

PETALING JAYA: The federal government is failing to collect billions of ringgit owed to it, with only 5% of RM9.273 billion in outstanding debts recovered last year, says Pasir Gudang MP Hassan Karim.

Debating the 2026 auditor-general’s report in the Dewan Rakyat, Hassan said the government’s weak debt collection was particularly concerning given that federal debt rose by 5.9% last year to RM1.321 trillion.

"The government is quite good at borrowing but not good at recovering debts," he said.

"What is the evidence? The auditor-general’s report shows that billions of ringgit in debts owed to the federal government by various parties have not been paid.