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BusinessToday
2 days ago
- Business
- BusinessToday
Anwar: Fiscal Discipline Is Working, New Debt Down To RM77 Billion
Credits to PMO FB Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim reaffirmed that his administration has successfully reduced the country's annual new debt to RM77 billion in 2024, a significant drop from RM99 billion in 2022, signalling stronger fiscal prudence. Speaking at the monthly gathering of the Prime Minister's Department in Putrajaya today, he clarified that only the interest payments on legacy debt remain burdensome. 'The new debt taken by the government was RM99 billion in 2022, reduced to RM93 billion in 2023, and in 2024, the total is RM77 billion… that's a reduction,' he said. Criticising misleading claims circulating publicly, Anwar pointed out that some parties continue to accuse the government of increasing debt, despite the data. 'They say the overall debt is higher, including legacy debt and interest payments, but I've stated clearly that the government pledged to reduce new debt, and we've delivered. 'However, what's being spread around suggests that we're increasing the debt, as if we're deceiving the people. If you look at these figures, who's really lying?' he asked. He also underscored that this debt reduction aligns with efforts to narrow the country's fiscal deficit. The government aims to bring the deficit down to 3.8% in 2025 from 4.1% this year and 5.5% in 2022. Anwar explained that the government opted for a gradual reduction approach to avoid disrupting development and market confidence. 'We took over in 2022, and at the time, the fiscal deficit was 5.5%. What is a deficit? It means spending exceeds the country's revenue, which means we are borrowing,' he said. 'We manage the national economy like a household. If your income is RM5,000 but you spend RM7,000, that's a deficit. So now we're reducing expenses to RM6,500, RM6,000, RM5,500, but if we cut too fast, development would stall.' The Prime Minister also credited the civil service's efforts, highlighting Malaysia's 11-spot jump in the IMD World Competitiveness Ranking 2025 to 23rd place, up from 34th last year, the country's best showing since 2020. The rise, announced by the Ministry of Investment, Trade and Industry (MITI) in June, was attributed to improvements in economic performance and government efficiency. He further noted that the International Monetary Fund (IMF), in its Article IV Mission report for 2025, commended Malaysia's fiscal reform agenda, particularly the introduction of the Public Finance and Fiscal Responsibility Act (FRA). 'What does that mean? It means the Finance Minister has handed over part of his powers to Parliament to assess if targets are not being met. That's what we've done,' he said. Related
The Sun
3 days ago
- Business
- The Sun
Malaysia reduces new debt to RM77 billion in 2024, says PM Anwar
PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim revealed that the government has successfully lowered annual new debt to RM77 billion in 2024, a significant drop from RM99 billion in 2022. Speaking at the Prime Minister's Department monthly assembly, he emphasised that this achievement aligns with the administration's commitment to prudent fiscal management. 'The new debt incurred was RM99 billion in 2022, dropping to RM93 billion in 2023 and further to RM77 billion in 2024. The government promised to reduce new debt, and we have fulfilled that,' Anwar stated. He dismissed claims that the government was increasing overall debt, clarifying that only interest payments on older debts remain unchanged. Anwar, who also serves as Finance Minister, highlighted the gradual reduction in the fiscal deficit from 5.5 per cent in 2022 to 4.1 per cent in 2024, with a target of 3.8 per cent this year. He explained that a measured approach ensures development projects and market confidence remain unaffected. 'We manage the national economy like a household. If income is RM5,000 but spending is RM7,000, that's a deficit. Now, we're reducing expenditure step by step,' he said. The Prime Minister also commended Malaysia's improved global competitiveness, noting an 11-place jump to 23rd in the IMD World Competitiveness Ranking 2025. This progress, driven by economic reforms and administrative efficiency, supports the MADANI Economy Framework's goal of placing Malaysia among the top 12 competitive economies by 2033. Anwar cited the International Monetary Fund's (IMF) approval of Malaysia's fiscal reforms, including the Public Finance and Fiscal Responsibility Act (FRA), as evidence of the government's disciplined approach. – Bernama
New Straits Times
3 days ago
- Business
- New Straits Times
Govt succeeds in reducing new debt
PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim said the government has succeeded in reducing annual new debt to RM77 billion in 2024 from RM99 billion in 2022. 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
Barnama
3 days ago
- Business
- Barnama
Govt Succeeds In Reducing New Debt
BUSINESS PUTRAJAYA, July 21 (Bernama) -- Prime Minister Datuk Seri Anwar Ibrahim said the government has succeeded in reducing the annual debt to RM77 billion in 2024 from RM99 billion in 2022. This thus fulfills the commitment of more prudent fiscal management, and only the interest payments on old debts have not yet been reduced, he said. '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 asked 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 reduction in the deficit, while giving the commitment that the government would reduce the fiscal 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 has chosen a 'gradual' approach so that deficit reduction does not sacrifice development needs and market confidence. Anwar said the move was in line with economic principles that emphasise financial discipline in the economic management of an entity, including the country.
New Straits Times
4 days ago
- Business
- New Straits Times
Don't worry 'we have RM40 million in the bank', says OCM supremo
KUALA LUMPUR: Olympic Council of Malaysia (OCM) president Tan Sri Norza Zakaria has assured that the umbrella body has solid financial footing ahead of their move to Bukit Jalil. OCM has inked a land swap deal with Malaysian Resources Corporation Berhad (MRCB) to build their new headquarters - dubbed the Olympic House - on a 5.38 acre plot of land that will be leased (30 years) from the government. In return, MRCB will take ownership of OCM's current headquarters — Wisma OCM (0.73 hectare) at Jalan Hang Jebat - in return for building a new RM93 million state of the art facility for OCM. Certain quarters recently questioned OCM's decision as the latter will not get any cash out of the deal, adding that it could potentially strain OCM financially in the future once the 30-year lease in Bukit Jalil expires. Norza said the move is part of their plans to modernise OCM and assured that they have a "healthy balance sheet". "We have received criticism with some saying it is not a good business decision," said Norza yesterday (July 19). "We are, however, not sacrificing anything. We will get a better building in a better location close to our stakeholders. We will not be stuck in traffic between a school and Petaling Street anymore. "As I have said before, we could just take RM20 to RM30 million and build a small office in Balakong or Bukit Beruntung and keep the rest of the money, but do we really want that? "Our balance sheet is healthy, we have RM40 million in the bank. We are also under the International Olympic Committee (IOC). Every year we get (RM) three to five million in funding coming in through sponsorships and so on, so we are okay (financially). "Our objectives and our core business are different (from other organisations). We are in the process of modernising OCM and we want to establish a well respected organisation. We have to lead by example. "This issue has been addressed with our affiliates and they are fully supporting the move to Bukit Jalil." Norza added that a hotel will also be incorporated into the Olympic House project to generate recurring income for OCM. The new headquarters will also feature offices for over 32 national sports associations, an auditorium, a media conference room as well as various other modern facilities. OCM yesterday announced that a committee has been formed to oversee the Olympic House project to ensure that OCM receives a facility worthy of the RM93 million valuation. The committee is led by OCM secretary-general Datuk Nasir Ali with Squash Racquets Association of Malaysia (SRAM) president Gerard Monteiro as deputy chairperson. Datuk Amarjit Singh Gill (cycling), Datuk Awalan Abdul Aziz (lawn bowls) and Akhramsyah Sanusi (chess) will serve as committee members. The Olympic House is expected to be completed by the end of 2027 at the earliest.
