BANGI: The Housing and Local Government Ministry has disputed claims that local authorities owe nearly RM500 million to the Solid Waste Management and Public Cleansing Corporation (SWCorp), saying the figure has been significantly reduced through proactive measures.
Its minister Nga Kor Ming (pic) said the figure cited in recent reports was inaccurate, stressing that outstanding debts had fallen to around RM200 million.
“The amount previously mentioned was close to RM500 million, but through active intervention and recovery steps, this has been reduced by about 60% to RM200 million,” he told the reporters after officiating the fourth SWCorp convocation ceremony here, today.
Nga reminded local authorities that they were legally bound to honour service contracts, citing the Contracts Act 1950, and warned that late payments would affect service delivery.
“All local councils (PBT) must respect and comply with agreements signed between the federal and state governments.
“Failure to make payments will directly impact the quality and efficiency of public cleansing services, which are essential to community wellbeing,” he said.
Reports in August had claimed that local councils had accumulated nearly RM500 million in arrears to SWCorp for waste collection and public cleansing services.
The Auditor-General’s Report earlier this year also highlighted concerns over SWCorp’s financial position, citing large receivables from local councils as a key challenge.
Nga said the ministry was stepping up efforts to resolve outstanding debts and improve financial discipline among local councils to safeguard service quality nationwide.
He added that waste management and cleanliness were central to Malaysia’s image ahead of Visit Malaysia Year 2026, and ensuring reliable service was a government priority.
“The welfare of the people is our foremost responsibility, and financial commitments must be respected to ensure that services to the public are not compromised,” he added.