Malaysia’s debt reaches RM630.5bil


The Ringgit is spreading thinner after breaching the RM4.00 mark against the US dollar the lowest level since September 1998. MUHAMAD SHAHRIL ROSLI/SThe Star. (Stand Alone)
KUALA LUMPUR: The Federal Government’s debt has reached RM630.5bil, representing 54.4% of gross domestic product (GDP), as at December 2015, the Finance Ministry (MoF) said. 

Of this amount, 96.6% or RM609.1bil was domestic debt, while the rest was offshore debt, the MoF said in a written reply to the Dewan Rakyat on Thursday. 

“The Government is committed to ensure that the Federal Government’s debt does not exceed 55% of GDP. 

“Fiscal consolidation plans will be continuously carried out to reduce the deficit level in phases,” it said. 

According to the MoF, as at the end of last year, the Government provided guarantees for RM177.7bil loans or 15.4% of GDP, mainly to public entities to implement infrastructure and transport projects. 

The Federal Government, from time to time, gives loan guarantees to statutory bodies and government corporations to borrow funds for development projects for the benefit of the people, the MoF said. 

In addition, the Government issued two letters of support until the end of 2015; one for US$3bil (RM12.4bil) and another for US$150mil (RM620.12mil). 

“The loan repayment performance is good and on time without any arrears,” it added. - Bernama

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