Govt expects to receive RM766.5m in loan repayments

11 Oct 2019 / 16:36 H.

KUALA LUMPUR: The government is estimated to receive loan repayments amounting to RM766.5 million in 2020.

In its Fiscal Outlook and Federal Government Revenue Estimates 2020 report released today, the Ministry of Finance (MoF) said a total of RM448 million in repayments is expected from the state governments, with the highest repayments from Sarawak and Sabah.

“Companies are expected to repay a total of RM240.3 million, while the rest of the loan repayments are anticipated from local governments (RM6.9 million), statutory bodies (RM63.9 million), and other organisations (RM7.4 million),” it said.

According to the report, the government is expected to receive RM900.3 million in total loan repayments in 2019 from companies, state governments, statutory bodies and other organisations.

The repayments from state governments are estimated at RM598.6 million or 66.5 per cent of total loan repayments.

“Sarawak and Sabah are expected to be the highest contributors to the loan repayments received from state governments for 2019,” it said.

It added that a sum of RM159.3 million of total loan repayments is estimated to be from companies including Yayasan Tekun Nasional, Projek Lintasan Kota Sdn Bhd and Syarikat Bekalan Air Selangor Sdn Bhd with total repayments of RM60.1 million.

“The repayments from the statutory body and local governments are forecast at RM128.8 million and RM6.9 million respectively, while the repayments from other organisations such as clubs and associations are expected at RM6.7 million,” it said.

As at Dec 31, 2018, the total outstanding Federal Recoverable Loans disbursed through the development fund was RM43.2 billion or 3.0% of gross domestic product.

Out of the total, RM22.4 billion are loans to companies, loans to state governments (RM15.3 billion), mainly for water supply projects, loans to statutory bodies (RM5.1 billion), local governments (RM0.2 billion), other organisations (RM0.2 billion) and cooperatives (RM6.9 million).

In 2019, loan disbursements via development expenditure (DE) is estimated at RM2 billion.

For 2020, the government will continue to provide loans that are charged under DE from the Development Fund which is expected to amount to RM2.5 billion. — Bernama

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