Malaysia's Debt Has Crossed RM1.5 Trillion
That is about 80% of the country's gross domestic product (GDP).
By Yap Wan Xiang — 18 Jan 2023, 03:21 PM
Malaysia's national debt and liabilities have crossed RM1.5 trillion, said Prime Minister Datuk Seri Anwar Ibrahim
To put the figure into perspective, RM1.5 trillion is about 80% of the country's gross domestic product (GDP), reported New Straits Times.
The Prime Minister disclosed the latest national debt figure during the 2023 Budget dialogue yesterday, 17 January.
"The economic uncertainties are still not easing. The economy is still considered dim and this was also contributed externally, including the Ukraine-Russia conflict, as well as global recovery post-COVID," said Anwar, who is also the Finance Minister.
"The problem with our debt is it has already touched RM1.2 trillion, and if includes liabilities, it is RM1.5 trillion."
"We have to accept this reality. We cannot feel complacent, living with the culture of contentment as if there is no problem."
Economy Minister Rafizi Ramli said the current national debt level can be reduced by strengthening the country's fiscal position
Speaking while receiving a visit from Media Prima Bhd's senior management, he said the local economy would improve in the next two to three years if the national fiscal position was stronger, reported New Straits Times.
The fiscal position is the difference between total revenue and total expenditures.
"The government is not in a state of desperation, we just need to change the country's financial management now," he said.
"There are things that may not be comfortable, there are things that are less popular, there are things that require change at the government's level."
"We see this as a necessity because the national debt has indeed reached RM1.5 trillion."
Rafizi also laid out three different strategies that the government will be adopting to ensure efficient management of public spending.
The strategies include optimising the delivery and cost efficiency of government projects to cut wastage, finding ways to collect more revenue, and restructuring the country's economic activities to boost income.
The new Budget is expected to be tabled in parliament on 24 February
The Budget for the year 2023, also known as the Supply Bill, was first presented on 7 October last year by then finance minister Tengku Zafrul Abdul Aziz, but was not get approved due to the dissolution of parliament three days later.
Anwar said that the new government will look at the proposals in the Budget tabled by the previous government and make the necessary changes before tabling his administration's budget, reported New Straits Times.
