KUALA LUMPUR, Oct 5 — All companies that have received a government guarantee have not failed to meet their debt obligations, according to Deputy Finance Minister I Mohd Shahar Abdullah.

As of June 30, 2021, the total debt guaranteed by the government amounted to RM300.44 billion, or equivalent to 19.84 per cent of Gross Domestic Product (GDP), he revealed.

The total debt guaranteed by the government comprised domestic loans of RM273.93 billion (91.2 per cent) and external loans of RM26.51 billion (8.8 per cent).

"The financial position of these companies is good whereby these companies have their own financial resources. Meanwhile, the government companies whose debts are guaranteed by the government are provided with an allocation based on the repayment maturity period of the debts,” he said during the winding-up session of the 12th Malaysia Plan (12MP) in the Dewan Rakyat today.

Meanwhile, until the end of August 2021, Mohd Shahar said the federal government’s debt position remained under control with RM965.3 billion, or 63.3 per cent of GDP.

Statutory debts, which include Malaysian Government Securities (MGS) instruments, Malaysian Government Investment Issues (MGII), and Malaysia Islamic Treasury Bills (MITB), comprised 59.2 per cent of GDP until August 2021, still below the 60 per cent of GDP limit, he revealed.

To drive the post-crisis fiscal consolidation measures, he said the government would implement fiscal reforms including the proposed enactment of the Fiscal Responsibility Act and the Medium-Term Fiscal Framework.

These initiatives include measures to rationalise and enhance spending efficiency through the Public Expenditure Review, in strengthening the financial position and as the government’s efforts to rebuild the fiscal space.

"Fiscal consolidation measures will also be supported through the Mid Term Revenue Strategy (MTRS) by reviewing and improving the existing taxation system; expanding the revenue base; harnessing the potential of the informal sector; reducing under-reporting and declaration practices; reducing tax leakages, as well as improving tax administration through effective data management and integrating data with relevant agencies,” he explained. — Bernama