KAJANG: Claims that government debt is increasing are inaccurate, says Prime Minister Datuk Seri Anwar Ibrahim, as it had in fact declined although the country was still burdened by interest payments.
He said this is because Malaysia is still paying for past financial mismanagement, including the 1Malaysia Development Bhd (1MDB) scandal, with the government having to service billions of ringgit in inherited obligations.
"People say the debt is increasing. No, it is now decreasing. But the total amount of debt has increased because interest rates are high.
"What are we paying interest for? We are paying for old debts. We are paying for 1MDB's debt. How can we deny this?" he said during a meet-and-greet session with the Universiti Islam Selangor community here on Monday (July 20).
Anwar, who is also Finance Minister, said the government is also still bearing the cost of past decisions involving several institutions, including the Federal Land Development Authority (Felda) and Lembaga Tabung Haji (Tabung Haji), which had resulted in significant financial obligations.
On Felda, Anwar said the agency had previously been managed by capable leaders such as Tan Sri Raja Muhammad Alias Raja Muhammad Ali and Tan Sri Taib Andak, who were committed to the organisation and its settlers.
However, he said subsequent decisions, including the transformation of Felda Global Ventures Holdings Bhd (FGV), had resulted in financial losses that the government was now required to address.
Anwar said the government was currently paying RM980mil annually to service past financial obligations.
He said the issue was not about race, but about values, integrity and corruption.
"Our problem is not Chinese, Indian or Malay. The problem is one of integrity, corruption and failing to uphold values," he said.
