Malaysia won't add to national debt, PM says

Prime Minister Anwar Ibrahim declared that Malaysia's government will not add to the nation's debt, even as existing debt ratios decline. He clarified that while the debt-to-GDP ratio has decreased, the country remains burdened by substantial interest payments on past borrowings.

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I do not want to continue increasing the country's debt. Some say government debt is increasing. The reality is, the government's debt ratio to GDP is decreasing, but the amount of debt repayment is still high because we still have to pay interest on debts incurred previously.

Anwar, who also serves as Finance Minister, pointed to liabilities from entities like 1Malaysia Development Berhad (1MDB), Lembaga Tabung Haji (TH), and Felda as contributing to the ongoing financial strain. "I do not want to continue increasing the country's debt," he stated during a session with civil servants in Selangor. "Some say government debt is increasing. The reality is, the government's debt ratio to GDP is decreasing, but the amount of debt repayment is still high because we still have to pay interest on debts incurred previously."

The Prime Minister elaborated that the current administration is grappling with significant financial burdens stemming from investment decisions and mismanagement by previous governments. He cited instances of asset purchases at prices far exceeding their actual value, such as a hotel bought for RM400 million when its real worth was estimated at around RM160 million. "I know because the report reached me. When I took over, I had to resolve it," he said, adding that selling the asset now might yield only about RM100 million.

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I know because the report reached me. When I took over, I had to resolve it. Now we want to sell it again, it might only be worth around RM100 million. That's the reality.

Anwar acknowledged that discussing these past issues might displease some, but stressed the necessity of addressing them. "Will I be popular when I talk about this? Of course not. People get angry. They say don't bring up old stories. But who has to pay now? The current government," he asserted. He also noted the government's commitment to Felda, which amounts to nearly RM1 billion annually, as another example of the financial weight inherited.

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Will I be popular when I talk about this? Of course not. People get angry. They say don't bring up old stories. But who has to pay now? The current government.