National debt still above RM1 trillion, says Guan Eng

KUALA LUMPUR: Malaysia's national debt still remains above the trillion-ringgit level, says Finance Minister Lim Guan Eng.

This includes financial commitments needed to be paid by the government, such as the 1Malaysia Development Bhd (1MDB) payments.

Lim, however, said the government managed to reduce the national debt figure from the previous RM1.087 trillion.

"But let me get the details. It is still at the trillion-ringgit level. We are talking about the obligations that we have to pay up," he said at a press conference after witnessing the Novation Agreement for the LRT3 work package contractors (WPC) contract on Friday (Feb 22).

Lim said the figures included payments where the government was listed as the guarantor to service existing debts "because the primary borrowers cannot pay.

"1MDB is a very good example. So we have managed to reduce the debt figure from the previous RM1.087 trillion," said Lim.

Last May, Prime Minister Tun Dr Mahathir Mohamad said the Pakatan Harapan administration expected to reduce the national debt through various approaches, including dissolving some agencies and cancelling mega projects.