The Malaysian government has built up a debt of almost RM600 billion as of March this year, but the Finance Ministry assures that it is still a moderate amount, and everything’s under control.
Deputy Finance Minister Chua Tee Yong asserted that the Federal Government’s debt, which at RM596.8 billion makes up a little more than half of the Gross Domestic Product (GDP), remained manageable, and that Malaysia was still considered a nation with a moderate level of debt.
“Our national debt is at RM596.8bil as of March 2015, which is 52.1% of the Gross Domestic Product,” he said in Parliament today, in response to a question from Taiping MP Nga Kor Ming of the DAP.
“Of this, 97% or RM579.2bil is domestic debt, while the remaining RM17.6bil is offshore loans.”
Chua stated also that Putrajaya was committed to keeping the national debt below 55% of the GDP.
“To ensure the debt level remains low and manageable, we will continue to practice fiscal consolidation to reduce deficit in stages.
“By doing this, it will reduce the Government’s need to take loans, further reducing the debt amount,” he said, as quoted by The Star Online‘s Loshana K Shagar.
“We also have to ensure the Federal Government’s foreign debt remains under RM35bil.
“As of March 2015, our offshore loans are at RM17.6bil, far lower than the limit allowed under the External Loans Act 1963,” he added.
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