Malaysia’s ability to increase debt level limited


Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said that the country’s ratio of debt service payments to revenue reached 16.3% in 2021 and based on Budget 2022, it is expected to exceed 18%. “This means that for every RM1 of government revenue, almost 20 sen is used for paying interest on debts, and this is apart from the ability to repay the principal amounts on loans taken by the government,” he said during the Minister’s Question Time session at the Dewan Rakyat yesterday. (File pic)

KUALA LUMPUR: Malaysia’s ability to increase its level of indebtedness is limited, compared to developed nations, with much lower debt service ratios.

This was announced by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, who added that the country’s ratio of debt service payments to revenue reached 16.3% in 2021 and based on Budget 2022, it is expected to exceed 18%.

Get 20% OFF The Star Digital Access

Monthly Plan

RM 13.90/month

RM 11.12/month

Billed as RM 11.12 for the 1st month, RM 13.90 thereafter.

Best Value

Annual Plan

RM 12.33/month

RM 9.87/month

Billed as RM 118.40 for the 1st year, RM 148 thereafter.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Business News

CIMB in strategic partnership with China Merchants Bank to expand cross-border banking solutions
Rohas to acquire 51% stake in M&E firm for RM14mil
FBM KLCI extends losses amid weaker regional markets, cautious sentiment
SC enhances primary market framework to improve public listing access for issuers
UOA Group co-founder Kong Chong Soon passes away
Asian stocks slip from records as US-Iran strikes jolt markets
Bitcoin falls to six-week low amid war jitters, ETF outflows
Gold hits two-month low as US-Iran tension stokes inflation fears
PBOC tells Chinese banks to boost May lending as credit weakness persists, sources say
Dollar climbs to one-week high as Gulf tensions flare

Others Also Read