M’sia Has S$459 Billion In Debt, Anwar Says Immediate Action Required

Malaysia Has S$459 Billion In National Debt, Exceeds 80% Of GDP

At Malaysia’s 2023 Budget Dialogue on Tuesday (17 Jan), Prime Minister (PM) Anwar Ibrahim said that the country’s debt has reached RM1.5 trillion (S$459 billion).

This number includes liabilities, and has already exceeded 80% of the country’s gross domestic product (GDP).

As such, PM Anwar emphasised that immediate action is needed to address the issue.

Malaysia’s national debt includes liabilities

During the dialogue, PM Anwar said that the country’s debt has reached RM1.5 trillion (S$459 billion).

According to the New Straits Times (NST), the figure includes liabilities, and has exceeded 80% of the country’s gross domestic product (GDP).

This also suggests that Malaysia’s budget deficit will increase. Previously, it was estimated to be about 5.8% of the GDP in 2022.

“The economic uncertainties are still not easing,” said PM Anwar, citing external factors such as the Ukraine-Russia conflict and post-pandemic recovery.

“The problem with our debt is it has already touched RM1.2 trillion and if includes liabilities, it is RM1.5 trillion.” he added.

Thus, PM Anwar stressed that the authorities would need to take immediate action to address the issue.

Previous PM revealed that Malaysia was in debt

Following the victory of the opposition in the 2018 General Election, then-PM Mahathir Mohamad revealed that Malaysia had over RM1 trillion (S$305 billion) in debt.

However, he attributed the debt to the previous government, which was led by former PM Najib Razak.

In 2022, former finance minister Tengku Zafrul Abdul Aziz also said that Malaysia was RM1.045 trillion in debt. This was in line with 63.8% of the country’s GDP at the time.

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Featured image adapted from Anwar Ibrahim on Facebook.