KUALA LUMPUR, Feb 27 — Finance Minister II Datuk Seri Amir Hamzah Azizan has said that based on the analysis of the Auditor-General's Report, 97 agencies showed a total increase in the current surplus after tax and zakat of RM73.9 billion in 2023 from RM55.8 billion in 2022.
The four Federal agencies with the highest current surplus that contributed to the achievement in 2023 were the Employees Provident Fund (EPF), which recorded RM41.3 billion, and the Retirement Fund (Incorporated) or KWAP with RM9.6 billion.
"Bank Negara Malaysia (BNM) contributed RM7.2 billion while the Public Sector Home Financing Board (LPPSA) contributed RM3.1 billion," he said when winding up the motion for the Auditor-General's Report 1/2025 on the Federal Government's Financial Statements 2023 in the Dewan Rakyat today.
The report was published on Monday (February 24).
Responding to Tebrau MP Jimmy Puah Wee Tse, who raised the matter of investment losses involving KWAP, Amir said 15 of its 17 subsidiaries are special purpose vehicles (SPVs) established for property investment in the country and abroad.
"The purpose of the establishment of these SPVs is to transfer investment-related risks from KWAP to the SPVs as well as to be able to optimise overseas investment results, including through effective capital structure from a tax perspective," he said.
The total loss recorded by seven subsidiary companies in 2023 was RM80 million, and KWAP classified the loss into three categories: capital structure, the decline in the value of commercial property 100 Cheapside in London, the United Kingdom; and the decrease in the occupancy rate in the Menara Capsquare building, Kuala Lumpur.
Other real estate investment assets held by KWAP recorded good occupancy rates and gave positive net returns and the KWAP management constantly monitors the performance of the company's subsidiaries.
Commenting on Jerlun MP Abd Ghani Ahmad's debate, which touched on the Internal Revenue Board (LHDN) recording a current deficit of RM735 million in 2023, Amir said the shortfall was not a worrisome loss but arose following the decision of the Finance Ministry (MOF) to reduce the distribution of agency fees to the LHDN from RM3.2 billion in 2022 to RM2.1 billion in 2023.
"The MOF's move was made after taking into account the position of LHDN's cash reserves that are sufficient to partially finance its expenditure for 2023. For the start of 2023, LHDN has an initial cash balance of RM1.12 billion.
"With that, the total deficit in 2023 can be covered through internal sources without affecting the operation of LHDN in terms of cash needs.
"LHDN still has a positive accumulated surplus of RM104.55 million and a net asset value of RM279.66 million as of December 31, 2023," he said.
The MOD is responsible for managing the country's cash flow position and will ensure that IRB's cash needs are sufficient to ensure the continuity of IRB's operations and sufficient to meet its task of achieving the national tax collection target.
Meanwhile, commenting on questions from several MPs related to the EPF, the minister said the agency had categorised the losses suffered by the nine subsidiaries into the same three categories as KWAP: capital structure, deterioration in the value of commercial properties, and declining occupancy rate.
Amir added that 18 MPs participated in the debate involving agencies and companies under the MoF as reported in the Auditor-General's Report.
— Bernama
