Lim confirms country’s debt exceeds RM1 trillion

PUTRAJAYA: On his first day as Finance Minister, Lim Guan Eng confirmed that Malaysia’s debt was now above RM1 trillion but assured his countrymen that its economic fundamentals remained strong.

He said this figure was based on information consolidated from various ministries.

“I am able to confirm that the country’s debt is above RM1 trillion,” Lim told reporters after clocking in at the ministry here yesterday.

This debt, he said, was much higher than what was disclosed by the previous administration, adding that this was due to the 1MDB controversy and certain mega projects.

He said a clearer picture of the nation’s debt began to emerge after the relevant government departments started consolidating their funds.

Lim was also shocked to learn from Deputy Treasurer-General Datuk Siti Zauyah Mohd Desa and Auditor-General Tan Sri Madinah Mohamad that they could not access certain accounts and reports previously.

“There were also complaints that certain ‘red’ files were only accessible to certain people and this impeded officials and auditors from carrying out their professional responsibilities with integrity,” he said.

Lim said he had issued a directive to allow all accounts to be made accessible to both the Treasury and the Auditor-General in the interest of competency, accountability and transparency.

He said while some adjustments would have to be made, resulting in “temporary pains”, he was optimistic that the nation’s financial health would be restored.

“On a positive note, Malaysia’s financial and banking system remains robust and well capitalised.

“Non-performing loans also constitute less than 1% of the total loans portfolio,” he said.

Asked if action would be taken against officers who blocked or limited access to the “red files”, Lim said they were only operating under orders.

“I am not going to name who but I think you know under whose orders,” he said.

On Monday, Prime Minister Tun Dr Mahathir Mohamad said in his address to staff members of the Prime Minister’s Department that Malaysia’s debt had reached RM1 trillion.