Govt succeeds in reducing new debt
This, he said, fulfils the government's commitment to more prudent fiscal management, with only the interest payments on old debts yet to be reduced.
"The new debt that the government has incurred was RM99 billion in 2022, dropping to RM93 billion in 2023, and in 2024 the total is RM77 billion... that is less.
"They say the total amount (of debt) is more, added with the old debt and the interest that we have to pay, but I said the government promised to reduce new debt – we have fulfilled that.
"But what is being spread around... we are increasing (the debt), so it is as if we are deceiving the people. If you look at these figures, who is deceiving?" he said when speaking at the Prime Minister's Department monthly assembly here today.
Anwar, who is also the Finance Minister, said annual new debt had been successfully reduced in line with the drop in the fiscal deficit, while giving the commitment that the government would continue reducing the deficit in stages and responsibly, without affecting national development.
He said the government had reduced the country's fiscal deficit from 5.5 per cent in 2022 to 4.1 per cent in 2024, with a target of 3.8 per cent for this year.
He explained that the government had opted for a gradual approach so that deficit reduction would not come at the expense of development needs or market confidence.
"We took over in 2022. The fiscal deficit at that time was 5.5 per cent. What is a deficit? It means spending exceeds national income, which means we are in debt.
"We manage the national economy like a household economy. If the income is RM5,000 but the expenditure is RM7,000, that is a deficit.
"So now we are reducing the expenditure to RM6,500, RM6,000, RM5,500. If it drops suddenly, then (development) cannot proceed," he said.
The Prime Minister also praised the civil service for its contributions that helped Malaysia jump 11 places in the IMD World Competitiveness Ranking 2025 to 23rd position, up from 34th in 2024, driven by improved economic performance and administrative efficiency.
In June, the Ministry of Investment, Trade and Industry (MITI) announced that Malaysia had achieved its best performance since 2020 in the World Competitiveness Ranking (WCR), reflecting progressive momentum in the country's economic recovery and reform agenda.
MITI said Malaysia is on track to be among the world's 12 most competitive economies by 2033, in line with the MADANI Economy Framework.
Anwar added that the International Monetary Fund, in its Article IV consultation for 2025, had praised Malaysia's commitment to implementing fiscal reforms, including the Public Finance and Fiscal Responsibility Act (FRA).
"What does that mean? It means the Finance Minister has handed over some of his powers to Parliament to assess if the target has been met," he said.
— BERNAMA
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
an hour ago
- New Straits Times
Cambodia PM agrees to ceasefire proposed by Anwar
PHNOM PENH: Cambodian Prime Minister Hun Manet has agreed to the ceasefire proposal with Thailand suggested by Malaysian Prime Minister Datuk Seri Anwar Ibrahim. In a Facebook post today, Manet said he agreed to the ceasefire because Cambodia did not initiate the fighting. "The key to resolving the current armed conflict between Thailand and Cambodia is the genuine willingness of the Thai side to accept a ceasefire, which is the first step towards finding further solutions between the two countries," Manet said in his posting. Manet clarified that there was unclear reporting by various international media regarding the proposed ceasefire talks initiated by Anwar, the current Asean chair. Manet said he only agreed to the ceasefire after hearing from Anwar that Thailand's acting Prime Minister, Phumtham Wechayachai, agreed to peace talks. But regrettably, the Thai side changed their position on the issue, he said in his posting. "However, it is regrettable that just over an hour later, the Thai side informed that they had reversed their position from agreeing to the ceasefire," said Manet. Anwar said he spoke to both prime ministers on resolving the ongoing conflict on Thursday. The border conflict between Cambodia and Thailand escalated after soldiers from both sides engaged in a clash on Thursday morning along the Oddar Meanchey and Preah Vihear areas. The two neighbours have been quarrelling over an 817-km undemarcated border for decades, which has harmed diplomatic ties. - Bernama
New Straits Times
an hour ago
- New Straits Times
Anwar: Malaysia won't ignore Thai-Cambodia conflict
ALOR STAR: Prime Minister Datuk Seri Anwar Ibrahim says the government is not taking lightly the ongoing conflict between Thailand and Cambodia and its impact on Malaysia. Anwar said that although the situation in Malaysia remained stable and calm, the country must learn from the experiences of its neighbours. "I believe, as of now, the leaders of both countries appear ready (to cease attacks), but we must remain vigilant as the Asean region is geopolitically very strategic. "We in Malaysia do not take it lightly even though the situation in our country is stable and calm; we learn from the experiences of our neighbouring countries," he said when met by reporters after attending a closed-door meeting with PKR leaders from Perlis, Kedah and Penang here today. He said the conflict should also be addressed through diplomatic efforts, and both leaders had, in principle, agreed to halt the fighting, although there appeared to be some violations at the border. Anwar said he had contacted the leaders of Thailand and Cambodia and was optimistic that both countries would stop the attacks to allow a peace process to take place. "They (the leaders of Thailand and Cambodia) have given very good cooperation…. Both prime ministers told me, 'Anwar, thank you very much, we accept your role and we want you to carry on'," said Anwar. The Prime Minister said he had also asked Foreign Minister Datuk Seri Mohamad Hasan to contact the foreign ministers of Thailand and Cambodia regarding the issue. Yesterday, Bernama reported that Anwar welcomed the positive signals and willingness shown by Bangkok and Phnom Penh in considering a ceasefire to prevent further conflict at the border of the two countries. Anwar was reported to have contacted Cambodian Prime Minister Hun Manet and Thailand's acting Prime Minister Phumtham Wechayachai on Thursday afternoon to express Malaysia's concern over the escalating tensions. The media previously reported that Thai and Cambodian troops clashed on Thursday in a disputed border area, with both sides accusing each other of sparking the latest confrontation. Tensions between the two Southeast Asian nations have risen since May 28 following a bloody incident in the Preah Vihear area that claimed the life of a Cambodian soldier.
New Straits Times
2 hours ago
- New Straits Times
Thailand open to ceasefire but seeks clarification from Cambodia
BANGKOK: Thailand has no objection to a ceasefire in its ongoing border clashes with Cambodia but is seeking greater clarity on the terms, acting Prime Minister Phumtham Wechayachai said Friday. Phumtham, who is also Interior Minister, said he spoke with Malaysian Prime Minister Datuk Seri Anwar Ibrahim, who called on Thursday evening and has offered to act as a mediator for a ceasefire between Thailand and Cambodia. Thailand, he said, agrees in principle with the offer but stressed that Cambodia must first demonstrate a clear and sincere commitment. "We have no objection, but for a ceasefire to happen, there must be clarity. We've been trying to achieve this all along, but to no avail," Phumtham said at a press conference on the Thailand-Cambodia border situation on Friday. He revealed that he had asked Anwar to ensure there is a concrete commitment and guarantees that similar incidents would not recur. "Only then can we consider the next steps. For now, our military remains on high alert," he said. On Thursday, Anwar in his capacity as current Asean Chair has called Phumtham and Cambodian Premier Hun Manet, appealing to them for an immediate ceasefire and return to peaceful dialogue to resolve the ongoing border dispute. Anwar said Malaysia stands ready to assist and facilitate this process in the spirit of Asean unity and shared responsibility. Thai and Cambodian forces clashed early Thursday in a disputed border area, with both sides accusing each other of initiating the latest round of violence. The latest round of hostility followed a skirmish between troops of the two countries near the Preah Vihear area on May 28. A Cambodian soldier was killed in the shootout. The two neighbouring countries have been locked in recurring diplomatic spats over a long-standing border dispute. - Bernama
