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Thursday, March 17, 2016

At RM630b, Malaysia’s debt nearly hitting ceiling

KUALA LUMPUR - The Ministry of Finance (MOF) disclosed today that the sovereign debt level is at a staggering RM630.5 billion, which stands at 54.5 per cent of Gross Domestic Product (GDP) and very close to government’s self-imposed 55 per cent limit.

“The Federal Government’s latest debt amount for the year ending December 31 2015 is RM630.5 billion, or 54.5 per cent of the GDP.

“Of this amount, 96.6 per cent or RM609.1 billion is domestic debt, while RM21.5 billion or 3.4 per cent is offshore debt,” the ministry said in its written reply to Parliament.

However, the MOF said the debt is still manageable.

“The government is committed to ensure that the Federal Government’s debts do not exceed 55 per cent of the GDP.

“To ensure the Federal Government’s debt limit remains low and managed, fiscal consolidation plans will be continuously executed to reduce the deficit level in phases,” it said.

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