Country's debts at RM1.045 trillion as of June, says Finance Ministry

KUALA LUMPUR: Malaysia's debts now stand at RM1.045 trillion or 63.8% of the gross domestic product as of the end of June this year, the Dewan Rakyat was told.

The Finance Ministry said the Federal Government's debt service payment stood at RM43.1bil or 18.4% of the government's revenue.

It added that RM19.8bil has been spent towards the end of June to service interest payments incurred by Putrajaya's total debts.

ALSO READ: Malaysia not on verge of bankruptcy

"The government is always committed to ensuring interest payments are made in accordance with payment schedules," it said in a written reply dated July 20.

The Finance Ministry said debt servicing payments are classified as liability item T13, one of the liability expenses that is prioritised over other expenditure items, as stipulated under Article 98(1)(b) of the Constitution, that all debt charges are the responsibility of Putrajaya.

The reply was to Karupaiya Mutusami (PH-Padang Serai), who asked about the country's latest debts and the amount paid in interest.

It was reported on July 15 that Malaysia's offshore loans stood at RM29.4bil and statutory debt amounted to more than 60% of GDP.

ALSO READ: Malaysia’s ability to increase debt level limited

Under the Temporary Measures for Government Financing (Coronavirus Disease 2019)(Amendment) Act 2021, it is stipulated that the statutory debt limit should not exceed 65% of GDP.

Last week, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia was not on the verge of bankruptcy and Putrajaya has always been disciplined in managing its debt levels.

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