Malaysia's national debt has reached RM1.24 trillion by September this year, reflecting an increase of RM66 billion from RM1.17 trillion at the end of last year.
Prime Minister Datuk Seri Anwar Ibrahim, who also serves as Finance Minister, explained that the increase in debt was mainly due to the need to finance development projects while managing the fiscal deficit.
The government's liabilities are reported to be RM369 billion as of June 2024, including RM231 billion in government-backed loans and RM137 billion in other liabilities.
Despite this increase, Malaysia has maintained its debt repayment commitments.
When speaking in parliament, Anwar outlined the government's strategy to manage this debt.
Efforts include reducing the level of new borrowing, which was very high during the COVID-19 pandemic, and narrowing the fiscal deficit.
The deficit decreased from 6.4% of GDP in 2021 to 5% in 2023 and is projected to continue to fall in the coming years.
To help control debt, the government is also increasing revenue through new tax measures and optimizing spending.
By 2026, Malaysia aims to reduce the fiscal deficit to 3% of GDP, signaling stronger financial stability.
