By Danial Dzulkifly
KUALA LUMPUR, July 31 — Prime Minister Datuk Seri Anwar Ibrahim said the government has significantly reduced its new borrowings, bringing it down to RM76.8 billion last year from RM99.4 billion in 2023, as part of efforts to ensure sound fiscal governance.
Speaking at the 13th Malaysia Plan (13MP) tabling in the Dewan Rakyat today, Anwar said efforts to cut the deficit and raise revenue have paid off.
“We reduced it to RM92.6 billion in 2023, and for 2024, RM76.8 billion.
“Some are still confused about the (national) debt. The total debt we inherited, including interest, must be paid. What we must do is to reduce government debt, and we have brought it down from RM99 billion to RM76 billion,” he said.
Anwar, who also holds the finance portfolio, said the fiscal deficit is on a steady downward trend, having shrunk from 5.5 per cent of the GDP in 2022 to 5 per cent in 2023, and to 4.1 per cent last year.
The government is targeting a 3.8 per cent deficit for this year.
These improvements are the result of structural reforms under the Madani government, which include subsidy rationalisation, tighter spending rules, and new tax instruments.
Anwar said that despite a subdued global economy, Malaysia’s aggregate growth reached 5.2 per cent per annum between 2021 and 2024, driven by services, manufacturing, and construction.
On the demand side, private sector spending rose by 5.7 per cent annually.
Meanwhile, total approved investments hit RM1.29 trillion in the same period, with a historic high of RM384 billion recorded last year alone, and inflation remains stable at 1.1 per cent as of June this year.
