Latest news with #RM77
New Straits Times
14 hours ago
- Business
- New Straits Times
Malaysia on track to cut debt-to-GDP to 60pct
KUALA LUMPUR: Malaysia is on track to reduce its debt-to-GDP ratio to 60 per cent over the medium term, backed by disciplined fiscal management and lower annual borrowings. Treasury secretary-general Datuk Johan Mahmood Merican said the country's fiscal consolidation efforts are bearing fruit, with the budget deficit narrowing from 5.5 per cent of gross domestic product (GDP) in 2022 to 4.1 per cent last year and further targeted to reach 3.8 per cent in 2025. Concurrently, annual new borrowings have declined significantly, from RM99 billion in 2022 to RM77 billion in 2024, reflecting the government's commitment to long-term fiscal sustainability, Johan said in an interview with TV3. "This shows that each year, the level of new debt is being lowered. This is consistent with the government's target to reduce the national debt level to 60 per cent of GDP. "Currently, it stands at around 64 per cent, but the reduction in annual deficit and new borrowings will support the achievement of the 60 per cent target. "So far, the government is on track, and what has been implemented is aligned with what was targeted under the fiscal responsibility legislation," he said. He said certain parties may attempt to distort the narrative around the government's financial management, but international bodies such as the International Monetary Fund have acknowledged Malaysia's commitment to fiscal reforms, particularly through the implementation of the Fiscal Responsibility Act. Prime Minister Anwar Ibrahim said the government has successfully lowered annual new borrowings, marking progress toward its commitment to more responsible fiscal management with only interest payments on existing debt yet to be reduced. He said the decline in new debt aligns with the government's efforts to narrow the fiscal deficit, adding that the administration remains committed to reducing the deficit gradually and responsibly, without disrupting national development. Anwar, who also serves as finance minister, said the government has deliberately taken a phased approach to ensure that deficit reduction does not compromise development priorities or undermine investor confidence. Progressive tax reform protects rakyat. Johan said the government's expansion of the Sales and Services Tax (SST) was part of a progressive and targeted tax approach, one designed to avoid overburdening the rakyat and support sustainable growth. "If we were to reintroduce the Goods and Services Tax (GST) using the same parameters as SST, it would generate more than double the tax revenue. But this could be too heavy a burden on the economy," he said. Instead, Johan said SST is structured to exempt essential items such as basic food and focus taxation on non-essential or premium goods. "For example, service tax is applied to industrial buildings but not to residential homes. This ensures that those with higher purchasing power contribute more," he shared. He added that additional revenue collected would go towards improving core public services. In 2025, welfare assistance under Sumbangan Tunai Rahmah (STR) will increase from RM10 billion to RM13 billion. Meanwhile, allocations for education and healthcare have also been raised. The Education Ministry will receive RM74 billion, up from RM59 billion, and the Health Ministry RM45 billion, up from RM41 billion. "These funds will be used to repair schools and clinics, fix road conditions, and upgrade basic infrastructure, ensuring the rakyat enjoys better quality of life through responsible and equitable fiscal measures," Johan said.
The Star
2 days ago
- Business
- The Star
Rampant abuse of subsidised cooking oil
PETALING JAYA: Subsidised cooking oil meant for household usage has been sold in bulk to restaurants and caterers, with over 50 tonnes of the product diverted. The Auditor-General's report series 2/2025 revealed that as much as 55,167kg of subsidised cooking oil was sold to these quarters, in breach of official guidelines. In the report published yesterday, it said this did not align with the standard operating procedures of the Cooking Oil Price Stabilisation Scheme (COSS) guidelines issued by the Domestic Trade and Cost of Living Ministry. An audit at a Kelantan-based retailer last July found a business, which operated as a restaurant, had stored up to 204kg of subsidised cooking oil. In 2024, the company had purchased 11,390kg of subsidised oil from five manufacturers. CLICK TO ENLARGE An unrecorded sale of 561kg between the retailer and a manufacturer was also flagged. In Terengganu, a wholesaler was found to have sold cooking oil to multiple caterers between January 2023 and June 2024. Audit checks revealed 189 cash transactions worth RM77,657.50 involving subsidised oil. A separate case in Miri, Sarawak, found that a supplier had distributed RM5,700 worth of subsidised cooking oil to unlicensed individuals for free between April and July last year. The supplier claimed to represent an NGO. Following these findings, the ministry confirmed that the Kelantan company's controlled goods licence had been revoked and its eCOSS account deactivated to prevent further supply. The unrecorded transaction will meanwhile be referred to the ministry's enforcement division. The wholesaler's account in Terengganu has also been deactivated pending investigations. The report also revealed cases of retailers selling more than three packets of subsidised oil per customer. This includes a case in Selangor where a retailer sold 170 packets worth RM425 to a catering company, and a separate case in Terengganu where a trader made two transactions of subsidised cooking oil totalling RM57.50. The report also revealed discrepancies in how subsidised cooking oil stocks were recorded and kept in the inventory. 'Lack of effective enforcement will open opportunities for companies to manipulate sales in their stock books,' the Auditor-General's report said. It also said there were no clear guidelines for managing spoiled cooking oil nor its sale, resulting in two companies storing 942kg of the product for sale to used cooking oil collectors. The report said a total of 16 companies were involved in this. To this, the Domestic Trade and Cost of Living Ministry said its COSS guidelines would be reviewed to include a procedure for this. To plug leakages, the Auditor-General recommended that the COSS scheme be overhauled. 'There must also be targeted distribution schemes to ensure only eligible households can purchase the subsidised product, and limit it from being sold to foreigners and commercial entities. 'The purchase limit should also be reviewed,' it stated. It said the COSS system must be used holistically to prevent any leakages. The A-G's report also proposed that targeted initiatives such as the Sumbangan Asas Rahmah (Sara) programme be expanded.
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
Malaysiakini
2 days ago
- Business
- Malaysiakini
Govt succeeds in reducing new debt
Prime Minister Anwar Ibrahim said the government has succeeded in reducing the annual debt to RM77 billion in 2024 from RM99 billion in 2022. This thus fulfils the commitment of more prudent fiscal management, and only the interest payments on old debts have not yet been reduced, he said.
The Sun
2 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
