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Malaysia's debt reaches RM630.5 billion

Malaysia's debt reaches RM630.5 billion
The federal government's debt has reached RM630.5 billion. - Filepic
KUALA LUMPUR: The federal government's debt has reached RM630.5 billion, representing 54.4 per cent of gross domestic product (GDP), as at December 2015, the Ministry of Finance (MoF) said.

Of this amount, 96.6 per cent or RM609.1 billion is domestic debt, while the rest is offshore debt, the MoF said in a written reply to the Dewan Rakyat today.

"The government is committed to ensure that the federal government’s debt does not exceed 55 per cent of GDP.

"Fiscal consolidation plans will be continuously carried out to reduce the deficit level in phases," it said.
According to the MoF, as at the end of last year, the government provided guarantees for RM177.7 billion loans or 15.4 per cent of GDP, mainly to public entities to implement infrastructure and transport projects.

The federal government, from time to time, gives loan guarantees to statutory bodies and government corporations to borrow funds for development projects for the benefit of the people, the MoF said.
In addition, the government issued two Letters of Support until the end of 2015; one for US$3 billion (RM12.4 billion) and another for US$150 million (RM620.12 million).

"The loan repayment performance is good and on time without any arrears," it added.