KUALA LUMPUR, June 5 — Majlis Amanah Rakyat (MARA) will continue taking loan defaulters to court as the agency grapples with RM893 million in unpaid loans, nearly half of its total loan portfolio.
MARA chairman Datuk Asyraf Wajdi Dusuki said the agency recorded a non-performing loan (NPL) rate of 49.6 per cent last year, prompting tougher enforcement measures against borrowers who fail to repay their loans.
“Sorry, but some people are questioning why MARA is taking defaulters to court. A loan is a loan, which means it must be repaid. MARA will never compromise with borrowers who deliberately default. This is not personal money, but the people’s money,” he said on his Facebook page.
Asyraf said recovering overdue loans had been one of his priorities since taking over as MARA chairman to ensure public funds could be recycled to benefit others in need.
He said the MARA Council had issued clear instructions to management not to entertain requests for exemptions, including those backed by influential individuals regardless of their status.
Separately, Harian Metro yesterday reported that 97,866 of MARA’s 197,348 active borrowers had been blacklisted as of October 2024 as part of efforts to strengthen loan repayment compliance.
Asyraf said the blacklist applies to borrowers who fail to make repayments for three consecutive months and is limited to MARA’s internal management system without involving other agencies or ecosystems.
He said the agency’s firm stance formed part of the ongoing MARA Transformation programme aimed at strengthening financial discipline and safeguarding public funds.
He added that MARA would not entertain letters from borrowers attempting to invoke the names of VIPs to avoid repaying business loans provided by the agency.
“The MARA Council’s instruction to management is very clear — do not entertain exemption letters, even from influential figures no matter how high their position,” he said.
Asyraf was responding to criticism from certain quarters over MARA’s decision to pursue legal action against loan defaulters.
