Federal debt manageable – Najib

 |Oct 25, 2016
Najib said that the government is working to ensure the public debt level remains below 55% of GDP.
Najib said that the government is working to ensure the public debt level remains below 55% of GDP.

The government’s debt as of June 2016 is at RM655.7 billion or 53.2 percent of gross domestic product (GDP) said Prime Minister Najib Razak.

Najib who is also the Finance minister said that 95.9% of the amount, or RM628.8 billion is domestic debt and a total of 4.1 % or RM26.9 is offshore borrowing.

During Minister’s Question Time (MQT) session in Parliament today, Najib said the federal debt is in manageable position and are categorised as a moderate national debt.

On another matter, he said government-backed loans amounted to RM180.9 billion or 14.7% of gross domestic product (GDP) as of June 2016.

He said the loans are spent on infrastructure, PTPTN (National Higher Education Fund Corporation) and Prasarana .

Najib added that the government is working to ensure the public debt level remains below 55% of GDP.

“The government will take several measures to ensure our spending is not more than our income.

“We will make sure we have surplus and ensure that the loans are used to grow the economy.

“Priority will be given to internal borrowing, and we will also emphasis on prudent spending so that we can manage the debt,” he said.

DAP Kepong lawmaker Tan Seng Giaw asked Najib on where the RM26.9b billion offshore came from.

Najib replied that the money is coming mostly from sukuk published by Malaysia and subscribed by international community.

This is done to send a signal that they have a confidence in our economic management, added Najib.

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