KUALA LUMPUR, July 22 — Malaysia’s sovereign debt has been trending downwards in the past three years, fro, RM100 billion in 2021 and 2022 to RM93 billion in 2023.
But Prime Minister Datuk Seri Anwar Ibrahim is confident his government can reduce it further to RM86 billion this year to ensure financial stability.
“As prime minister, I must honour prior decisions. Therefore when making choices with my colleagues, I must consider not only current circumstances but also future impacts on the administration.
“Our goal is to reduce borrowing despite existing debt. For example, the debt was RM100 billion in 2021 and 2022.
“In 2023, we reduced it to RM93 billion, and for 2024, we aim to lower it further to RM86 billion. This gradual reduction is crucial for continuing our development efforts,” he said in his speech at the National Tax Conference 2024 here today.
He said the government is taking prudent steps to ensure its spending is only used when necessary as funds for development or to settle existing debts.
He stressed the importance of plugging potential financial leakages and for taxpayers in fulfilling their obligations.
“What I want is that those who should pay, must pay. I don't care when this happens, but there must be stricter efforts. Ensure that those who are obligated to pay must pay, and there should be no leakage,” he said.
Anwar, who is also finance minister, said that subsidies are an important part of government spending that needs to be rationalised.
He added that efficient law enforcement and taxation as well as strict measures to curb corruption will help Malaysia stabilise its financial standing.
