Rising concerns over debt

Tax revenue: Shoppers at a supermarket in Bangsar, Kuala Lumpur. The reimposition of the GST may not happen so fast but some feel that the conversation should be started soon. — Bloomberg

WITH the Covid-19 pandemic, debt has become a worldwide phenomenon where growth has not been strong enough to bring the debt levels back to below pre-pandemic.

For Malaysia, the concern is over a long-term spiral in the debt-to-gross domestic product (GDP) as growth may not be strong enough to offset the debt, while spending cuts and tax increases are difficult to impose at this time.