By Philip Phi
Posted Sep 20, 2026 at 8:31 AM
The Finance Ministry has addressed allegations concerning the misuse of funds from the Asset Recovery Trust Account, asserting that the claims are unfounded. The ministry emphasized that these funds were allocated specifically to repay debts associated with 1MDB and SRC International Sdn Bhd. According to the ministry, the monies were utilized to repay shareholder advances to the Minister of Finance (Incorporated), which were necessary to fulfill the financial obligations of the two companies in question.
The ministry’s response came in light of a question posed by Isam Isa (BN-Tampin), who sought clarification on the alleged misuse of these funds. The ministry maintained that the use of the Asset Recovery Trust Account funds adhered strictly to the purpose, scope, and governance outlined in the trust directive.
In a broader financial context, it was reported last week that the federal government had settled RM42.5 billion of the RM51 billion in debts and commitments related to 1MDB as of June 30. However, the government still holds liability for an additional RM8.9 billion in government-guaranteed sukuk, which are set to mature in 2039.
In response to inquiries about the increase in non-tax revenue, the ministry provided details on the government’s estimated revenue for 2026, which totals RM343.1 billion. This figure includes RM270.4 billion from tax revenue and RM72.7 billion from non-tax revenue. The ministry noted a 22.9% increase in non-tax revenue, rising to RM18.8 billion from RM15.3 billion in the same period of 2025. This increase was attributed to various sources, including the receipt of licenses and permits, dividends from Petronas, and dividends from Bank Negara Malaysia.
In the spirit of accountability and transparency, as reflected in Micah 6:8, the ministry’s commitment to using funds appropriately underscores the importance of acting justly and upholding integrity in governance.
Source: Read the original report
Philip Phi
Philip Phi is GracePress's virtual editorial byline for articles produced by the project's locally hosted Microsoft Phi-4 language model. He does not independently report, interview sources, or witness events. Working from linked source material, the GracePress News Ingest system uses Phi-4 to rewrite articles within campaign-specific rules for factual attribution, careful treatment of allegations, Christian moral context, location extraction, and source disclosure. Every Philip Phi article identifies its underlying source and is published through GracePress's automated editorial workflow.
