Don't downplay seriousness of national debt

The Star

7 days ago

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim must cease using selective framing and misrepresenting concepts to downplay the seriousness of the national debt or to claim undue credit.
The public deserves transparency, especially amid rising inflation, an increasing cost of living, and growing economic hardship. Urgently needed are concrete, revenue-generating economic policies, not a continued reliance on tax increases and subsidy reductions that add financial pressure on the rakyat.
Recently, the Prime Minister stated that Malaysia's new borrowings have decreased annually, from RM100bil in 2022 to RM80bil in 2024.
He also claimed that consistent efforts have been made since 2022 to reduce the fiscal deficit from 5.5% to a projected 3.8% this year. However, this narrative attempts to obscure the actual increase in overall national debt by focusing only on the decline in new borrowing.
The claim of a RM20bil drop in new debt over three years does not reflect the full picture. According to the latest fiscal and debt data released by Bank Negara Malaysia, the national debt continues to rise.
Official reports, such as the Government Finance Statistics and the Economic Outlook Report, show that federal government debt exceeded RM1.17tril at the end of 2023. This figure rose to RM1.6324tril in 2024 and remained high at RM1.2476tril as of the first quarter of 2025.
These numbers directly contradict the Prime Minister's claims and reveal a clear attempt to present a misleading version of the national debt status by selectively using statistics.
National debt cannot be assessed by focusing solely on new borrowings. The total size of the debt, the debt-to-GDP ratio, refinancing obligations, and interest liabilities are all key structural factors that must be addressed.
Suggesting that borrowing slightly less this year indicates meaningful fiscal improvement underestimates the public's understanding and concern.
What matters most to the people is the actual debt burden carried by the country, not how the government chooses to interpret the data. If the debt continues to grow and interest payments increase, then the Prime Minister's remarks amount to self-deception and risk eroding public trust.
Despite repeated assurances of fiscal reform and financial discipline, the Unity Government has yet to demonstrate genuine progress in reducing national debt or budget deficits over the past two years. Instead, it has expanded the Sales and Services Tax (SST) and reduced subsidies, effectively shifting the fiscal burden onto the public while failing to rein in government expenditure.
Balancing the national budget should not come at the expense of ordinary Malaysians.
The real crisis today lies in inflation and the rising cost of living. Yet the government has failed to introduce any substantial, revenue-boosting economic policy or reform plan.
What the country truly needs are forward-looking policies that raise incomes, encourage investment, and create employment opportunities. Fiscal reforms must not be used as an excuse to add to the public's burden. Malaysians do not need more political packaging.
What is urgently required are real, effective solutions that provide relief and restore confidence.
Saw Yee Fung
MCA Youth Secretary General