PETALING JAYA: Prime Minister Datuk Seri Najib Tun Razak must explain how he plans to carry out measures to avoid Malaysia’s credit rating from being cut by Fitch Ratings, said Lim Guan Eng.
The Penang Chief Minister asked Najib to clarify how he aimed to cut subsidies, broaden the country’s tax base and manage spending prudently.
“Is Najib talking about further increases in petrol, sugar and food prices when he talked of cutting state subsidies?” he asked in a statement yesterday.
He stressed that promises of prudent management were meaningless when no action was taken against those responsible for the excesses, wastages and financial wrongdoings amounting to RM6.5bil that were highlighted in the Auditor-General’s 2012 report.
Lim also asked whether Najib was talking about broadening the tax base through the implementation of Goods and Services Tax.
Lim said Malaysia’s debt-to-GDP ratio of 53.5% was the highest among 12 emerging Asian markets after Sri Lanka, while household debt-to-GDP ratio stood at 83% this year, up from 66.7% in 2004.
“Fitch Ratings cut Malaysia’s credit outlook from stable to negative in July, citing rising debt levels and a lack of budgetary reform,” he said.