Household financial assets are double debt levels, Dewan Rakyat told
This is despite debt levels reaching RM1.65 trillion, equivalent to 84.3% of the nation's gross domestic product (GDP), as at the end of March, said Deputy Finance Minister Lim Hui Ying.
She added that while household debt levels are significant, they must be assessed alongside the size of financial assets owned.
'Household debt must be viewed in tandem with financial assets, which are substantially larger.
'In aggregate, household financial assets continue to exceed debt by 2.1 times, providing a strong buffer for households,' she told Datuk Awang Hashim (PN-Pendang) who asked about Malaysia's high debt-to-GDP ratio.
In a reply to Datuk Ngeh Koo Ham (PH-Beruas), Lim added that the government remains committed to optimising public expenditure.
She said this will be achieved through subsidy rationalisation, a review of statutory bodies and a comprehensive reassessment of government spending as part of broader fiscal management efforts.
Among the measures being pursued are the gradual implementation of fiscal consolidation, broadening the revenue base and ensuring sustainable revenue collection, she added.
'Government borrowings are strictly for financing development expenditure projects and programmes that generate long-term returns for the nation and its people,' she said.
Lim pointed out that the government has capped financial guarantee exposure at 25% of GDP under the Public Finance and Fiscal Responsibility Act 2023 to ensure exposure remains within limits aligned with current economic and fiscal capacity.
In addition, she said, the government is prioritising user-pay projects through the 2030 Public-Private Partnership Master Plan (Pikas 2030) to reduce the fiscal burden.
She added that the government is also reviewing the use of off-budget mechanisms for project implementation and will only consider development projects that fall within the scope and ceiling of the country's five-year Malaysia Plans.
Lim also highlighted that key national strategies – including the National Energy Transition Roadmap (NETR), the New Industrial Master Plan 2030 (NIMP 2030), the Governance, Empowerment and Accountability Reform-Up (GEAR-uP) programme and policy enhancements such as minimum wage adjustments – are expected to stimulate economic activity, strengthen government revenue and reduce reliance on borrowing.
'The government is also committed to implementing institutional reforms to support national development, including the tabling of the Government Procurement Bill aimed at improving procurement processes and governance,' she said.
This includes drafting legislation related to government-linked companies (GLCs) to enhance corporate governance, improve accountability and optimise GLC performance, she added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
10 minutes ago
- New Straits Times
Mandatory speed limiters for commercial vehicles begin Oct 1
KUALA LUMPUR: Commercial vehicles not equipped with a Speed Limitation Device (SLD) will not be allowed on the roads as they will fail vehicle inspections once the phased enforcement of the system begins on Oct 1. Transport Minister Anthony Loke said the implementation of the SLD is a crucial step in controlling the speed of heavy vehicles and reducing the risk of fatal accidents, particularly involving buses and lorries, adding that such systems have long been mandatory in European countries and Singapore. "Although I am aware that some industry players may push back, citing additional costs and so on, when it comes to ensuring road safety, human lives must take precedence. "I hope all Yang Berhormat will support the government's efforts to ensure smooth implementation. "Any opposition should be addressed by making it clear that safety must take priority over costs and business profits," he said during the question-and-answer session in the Dewan Rakyat yesterday. He was responding to a supplementary question from Datuk Dr Richard Rapu @ Aman Begri (GPS-Betong), who asked about the impact of SLD enforcement, its cost and maintenance, the implications of system failure and whether other countries have made SLD mandatory. Loke said the enforcement of SLD installation will be carried out in three phases, beginning this October. Phase 1, starting Oct 1, involves the verification of SLD functionality for all commercial vehicles manufactured after Jan 1, 2015. Phase 2, effective from Jan 1, 2026, involves the activation of SLD within the Electronic Control Unit (ECU) for commercial vehicles built before Jan 1, 2015. Phase 3 will require the retrofit installation of SLDs (with approval from the Road Transport Department) on any commercial vehicles not already equipped with the system. This phase will be enforced from July 1, 2026. He was responding to the question from Fathul Huzir Ayob (PH-Gerik) on whether the ministry intends to mandate automatic 'cut-off' systems on buses and lorries to limit speed or stop the vehicle if safety rules are ignored. SLD is an automatic speed control system that electronically limits a vehicle's speed through its ECU to regulate speed without shutting off the engine, thereby maintaining operational safety. Loke said the system applies to all commercial vehicles, specifically goods vehicles with a gross vehicle weight (GVW) exceeding 3,500kg and passenger vehicles with a GVW exceeding 5,000kg and carrying more than eight passengers. To Fathul Huzir's supplementary question regarding the integration of safety systems such as Automatic Emergency Braking (AEB), Electronic Stability Control (ESC), and real-time monitoring systems alongside the SLD, as well as the introduction of black boxes for commercial vehicles, Loke said the ministry is considering the proposals. He said stakeholder engagement sessions will be necessary to ensure any implementation is carried out efficiently and in an orderly manner.
Free Malaysia Today
2 hours ago
- Free Malaysia Today
Federal debt at RM1.3tril as of end-June
Deputy finance minister Lim Hui Ying said the government remains committed to achieving a fiscal deficit target of below 3% of the GDP, and keeping the debt-to-GDP ratio under 60% in the medium-term. (Bernama pic) KUALA LUMPUR : Malaysia's federal debt rose to RM1.3 trillion at the end of June, largely driven by continued fiscal deficits to fund public development spending, says deputy finance minister Lim Hui Ying. Speaking in the Dewan Rakyat today, Lim said the increase from RM1.25 trillion at the end of last year was to support strategic development expenditure, including infrastructure, education, healthcare, and social protection programmes. She said the fiscal deficit reduced from 5.5% of the gross domestic product (GDP) in 2022 to 4.1% last year, and is projected to fall further to 3.8% in 2025. Debt growth is also slowing, from 10.2% in 2022 to 6.4% in 2024, with a further drop to around 6% projected for 2025. 'This is in line with the government's commitment to achieving a fiscal deficit target of below 3% of GDP, and keeping the debt-to-GDP ratio under 60% in the medium-term, as provided under the Public Finance and Fiscal Responsibility Act,' Lim said in response to a question from Ngeh Koo Ham (PH-Beruas) during an oral question-and-answer session. Lim also outlined several control measures to curb debt growth, including broadening revenue base, rationalising subsidies, and enforcing strict guidelines for government guarantees and public-private partnerships. She said future borrowings would also be limited to high-impact development projects, while government guarantees would be capped at 25% of the GDP under the Public Finance and Fiscal Responsibility Act. To strengthen governance, enhance accountability, and improve institutional efficiency, the government is in the process of drafting the Government Procurement Bill and another bill to regulate state-owned enterprises, she added. BMI, a Fitch Solutions company, previously reported that Malaysia would likely miss its fiscal deficit target this year, as spending was seen exceeding projections and revenue might fall. Separately, Lim said household debt in Malaysia stood at RM1.65 trillion as at the end of March 2025, or 84.3% of the GDP. She said this should be viewed in the context of household financial assets remaining significantly higher than the total debt, indicating that the public's overall financial position remained strong. 'On aggregate, household financial assets continue to exceed debt by 2.1 times, providing a solid buffer for households,' she said in response to Awang Hashim (PN-Pendang), who inquired about the debt-to-GDP ratio. She added that the government and Bank Negara Malaysia remained committed to assisting credit users who faced financial difficulties.
New Straits Times
3 hours ago
- New Straits Times
Dewan Rakyat passes Fisheries Bill amendment to curb illegal fishing
KUALA LUMPUR: The Fisheries (Amendment) Bill 2025, aimed at strengthening enforcement against illegal, unreported, and unregulated (IUU) fishing and the intrusion of foreign vessels, was passed in the Dewan Rakyat today. In his winding-up speech, Deputy Agriculture and Food Security Minister Datuk Arthur Joseph Kurup said the Bill had undergone an inclusive and holistic review process and had been carefully refined. "It not only addresses domestic needs but also aligns Malaysia with international standards, including the requirements of the Food and Agriculture Organisation (FAO) and the recommendations of the European Commission, positioning the country as one that takes a firm stance against such fishing activity. "This Bill is not merely a legal amendment, but a reform initiative to enhance the governance of the national fisheries sector, ensure resource sustainability, and protect the rights of fishermen, including small communities in rural and island areas," he said. A total of 29 Members of Parliament took part in the debate on the Bill. Touching on the leakage of national resources and losses due to encroachment by foreign fishermen between 2020 and 2024, Arthur said the estimated losses amounted to around RM823 million. These included lost commercial fish catches, the destruction of marine habitats, and pressure on local fishery resources. "This is also related to the intrusion of foreign fishermen into Malaysian waters. The Fisheries Act 1985 already provides authority under subsection 15(1) to act against such intrusions. In 2019, amendments were introduced to raise the maximum fine from RM1 million to RM6 million for vessel skippers, and from RM100,000 to RM600,000 for crew members. "Section 52 also provides for the forfeiture of vessels upon conviction in court. From 2020 to 2024, a total of 515 foreign vessel intrusion cases were recorded, of which 367 involved vessels from Vietnam," he said. He added that Section 25 has been amended to increase the general penalty from RM20,000 to RM100,000. Section 26 raises the maximum fine for fishing offences involving explosives, poisons, or similar substances from RM20,000 to RM250,000, along with imprisonment of up to five years. He said the Bill also addresses ongoing encroachments into restricted fishing zones by trawlers where Subsection 13(3) empowers the Director-General to suspend, revoke, or reject renewal applications of licences belonging to individuals who commit offences in coastal zones. Penalties under this subsection include licence suspension of up to one year, compound fines, and the confiscation of equipment. "Furthermore, subsection 13(3a) allows the Director-General to bar individuals whose licences have been revoked from reapplying for up to five years. This serves as a preventive and deterrent measure to protect national fishery resources and is considered a severe penalty to curb repeat offences," he said. The Bill also introduces amendments to Section 31, aiming to strengthen the compounding mechanism in a way that is fairer to small-scale fishermen. "The minimum compound amount has been reduced from RM500 to RM100, and the cap on the number of compoundable offences has been lifted. "Offences such as fishing without a vessel licence under paragraph 8(a) may now be compounded if they involve traditional fishing methods that do not damage resources or cause encroachment. "Compound regulations are detailed under Section 61. These amendments represent a firm yet compassionate enforcement approach where it is strict on serious offences, but considerate towards minor infractions, reflecting the aspirations of the Madani Government," Arthur said. Arthur also noted that the Bill strengthens joint legal and operational coordination through amendments to Sections 46 to 56, which streamline collaboration between the Department of Fisheries (DOF), the Malaysian Maritime Enforcement Agency (MMEA), the police, and the Royal Malaysian Navy. KW: Passed, fisheries, enforcement, IUU, foreign vessels, penalties, Malaysia, The Fisheries (Amendment) Bill 2025
