GOVT COMMITTED TO FURTHER REDUCING NEW DEBT IN 2025 AT RM75 BLN -- PM ANWAR

KUALA LUMPUR, Dec 2 (Bernama) -- The government is committed to further reducing new debt in 2025, projected at about RM75 billion, said Prime Minister Datuk Seri Anwar Ibrahim.

“The deficit rate has shown a consistent year-to-year downward trend, and this deficit reduction indicates that new government borrowing has also decreased,” he said during the Minister’s Question Time (MQT) in the Dewan Rakyat today.

Anwar said new government borrowing has decreased to approximately RM100 billion (2021), RM99 billion (2022), RM92 billion (2023) and RM77 billion (2024).

“The reduction in the fiscal deficit and annual new debt will enable the debt growth rate to be reduced to 10.2 per cent (2022), 8.6 per cent (2023), 6.4 per cent (2024) and around 6.0 per cent (2025). 

“This trend is clear evidence that the government has ensured that the national debt is managed responsibly and utilised to fund productive investments,” he said. 

Commenting on the deficit borne by the government, Anwar said the government has never failed to meet its debt’s interest and principal payment obligation schedule, and has always ensured that the debt level remains below the statutory limit. 

“This proves the government’s financial capacity to manage debt prudently,” he said.

As of the end of September 2025, the total federal debt stood at RM1.32 trillion, or 65.3 per cent of gross domestic product (GDP).

On offshore loans, Anwar said that currently, offshore loans amount to RM22.4 billion, which is also below the RM35 billion level stipulated under the External Loans Act 1963.

“The Malaysian Treasury Bills (MTB) amount to RM4 billion, staying below the RM10 billion level under the Treasury Bills (Local) Act 1946,” he added.

Anwar stressed that the government aims to stabilise the debt-to-GDP ratio, with projections for it to decrease in the medium term from 2027 or 2028, due to the challenging global economic environment. 

-- BERNAMA