Malaysia's Ministry of Finance (MOF) confirmed that funds from the Asset Recovery Trust Account have been used strictly according to the approved Trust Directive, covering operating costs and repaying debts of 1Malaysia Development Bhd (1MDB) and SRC International Sdn Bhd [1, 2, 3]. The ministry also states that repayments included shareholders’ advances to the Minister of Finance (Incorporated) which were provided to meet the financial obligations of 1MDB and SRC [1, 2, 3].
In response to allegations of fund misuse, the MOF dismissed such claims as unfounded. The ministry emphasized that all fund disbursements comply with the purpose, scope, and governance detailed in the Trust Directive currently in effect. "Accordingly, the allegation that there has been misuse of Asset Recovery Trust Account funds is unfounded given that all use of funds is made in accordance with the purpose, scope and governance set out under the Trust Directive," the MOF said [1, 2, 3].
Concerning Malaysia's financial outlook, the government estimates total revenue for 2026 at RM343.1 billion, comprising RM270.4 billion in tax revenue and RM72.7 billion in non-tax revenue [1, 2, 3]. Non-tax revenue for the first quarter of 2026 rose 22.9% to RM18.8 billion from RM15.3 billion in Q1 2025, driven by collections from licenses, permits, service fees, sales, rents, interest, investment income, fines, penalties, and donations [1, 2, 3]. Key contributors to non-tax revenue include license and permit fees, dividends from Petronas, and dividends from Bank Negara Malaysia [1, 2, 3].
On July 16, 2026, the MOF published a written reply on the Parliament website rebutting allegations of misuse relating to the Asset Recovery Trust Account [1, 2]. This was followed by a report on July 17 by Malay Mail confirming the MOF’s statement and government revenue figures [3].
