Latest news with #13th Malaysia Plan
Malay Mail
7 hours ago
- Business
- Malay Mail
Deputy minister: Boeing aircraft deal won't push up national debt
KUALA LUMPUR, Aug 19 — The second phase purchase of Boeing aircraft valued at US$9.5 billion (US$1 = RM4.22) will not impact Malaysia's debt levels nor affect its fiscal deficit, said Deputy Finance Minister Lim Hui Ying. Lim said that the aircraft purchase is part of the plan outlined in the 13th Malaysia Plan (13MP). 'At present, everything is within our expectations,' Lim said during a question-and-answer session in the Dewan Rakyat today. She was responding to a supplementary question from Datuk Nik Muhammad Zawawi Salleh (PN-Pasir Puteh), who asked about the government's contingency measures to control the national debt burden after Malaysia committed to buying aircraft from the United States (US. In response to Nik Muhammad's initial question about the government's justification for allowing the national debt to remain high amid geopolitical uncertainties, Lim stated that the increase in government debt is due to the need to finance the fiscal deficit to cover development expenditures (DE). 'This financing will directly increase the government's debt level as long as the government's financial position remains in deficit,' she elaborated. Lim also clarified that the government does not rely solely on debt to finance DE, which is also funded by various other sources such as tax revenue and non-tax income. 'To date, the government has never borrowed beyond the statutory limits allowed under the relevant federal government debt laws. As of the end of June 2025, Malaysia Government Securities, Government Investment Issues, and Malaysian Islamic Treasury Bills stand at 62.7 per cent, which does not exceed the 65 per cent Gross Domestic Product (GDP) limit set under Act 637 and Act 275,' she said. Lim added that offshore borrowings amounted to RM22.8 billion and remained below the RM35 billion limit set under Act 403, while Malaysian Treasury Bills totalling RM2 billion are within the RM10 billion limit set under Act 188. — Bernama
Free Malaysia Today
05-08-2025
- Business
- Free Malaysia Today
Borrowing only for development, not operating expenses, says Anwar
Prime Minister Anwar Ibrahim said the development priorities have already been listed in the 13th Malaysia Plan, which he urged all MPs to read before criticising. (Bernama pic) PETALING JAYA : Prime Minister Anwar Ibrahim today defended Putrajaya's borrowing strategy, stressing that government loans are being channelled towards long-overdue development needs and not for operational expenditure. 'We are not borrowing for operating expenses. We are borrowing, and at a reduced amount, for development expenditure. 'Why? Because of the condition of our schools, our hospitals, the rural areas, and flood-prone zones,' he told the Dewan Rakyat during Prime Minister's Question Time today. Iskandar Dzulkarnain Abdul Khalid (PN-Kuala Kangsar) had asked Anwar whether the government was managing the national debt responsibly, given that it had risen from RM1,079.1 billion in 2022 to RM1,247.6 billion by the end of 2024 – almost 65% of the country's gross domestic product Anwar said the development priorities had been listed in the 13th Malaysia Plan (13MP), which he urged all MPs to read before criticising. 'These items have already been outlined in the 13MP and must be read.' He also dismissed claims that the unity government was favouring certain communities over others in its allocations. 'If they say we are allocating for Chinese new villages, but not for Bumiputeras, it means they haven't read it,' he said. 'Because if you read the plan, Bumiputera allocations are among the highest – including for Malay reserve land in urban areas. This has never happened before, since independence.' Criticising previous administrations for making grand claims about defending Malay interests without taking any real action, he urged MPs to fully understand government policies before debating them in Parliament. Anwar also said that reducing the national fiscal deficit was essential, and warned that continued excessive borrowing would be irresponsible and unfair to future generations. He also said popular policies without financial discipline would damage the country's long-term stability. He said his administration was the first to take concrete steps toward fiscal reform, leading to improved investor confidence both domestically and internationally. Anwar also touched on the government's phased plan to reduce the fiscal deficit, saying that failure to do so would cause debt to spiral out of control and public confidence in Putrajaya's fiscal policies to erode. He said the government would continue to provide targeted subsidies, such as for electricity and fuel, to avoid burdening the people. Anwar also criticised those defending blanket subsidies that benefit foreigners, asking whether they truly represented Malaysians.
