KUALA LUMPUR, Nov 27 — The Federal government's total liabilities are RM390.4 billion as of the end of June 2025 compared to RM384.8 billion at the end of 2024.
The Finance Ministry (MOF) said this includes guarantee commitments of RM237.1 billion (2024: RM236.2 billion) as well as other liabilities of RM153.3 billion (2024: RM148.6 billion).
The ministry was responding in a reply posted on the Parliament website today to Shah Alam MP Azli Yusof's query on the Federal government's total current debt, including contingent liabilities, the expected reduction in the debt, and the steps taken to ensure that debt management remains sustainable.
It added that the Federal government's debt stood at RM1,304.2 billion as of end-June 2025, compared to RM1,247.6 billion at end-2024, due to the need to finance the fiscal deficit to cover development expenditure (DE).
Government borrowing was used prudently and focused on financing strategic development projects in the areas of infrastructure, education, health, and social protection.
“This financing plays an important role in stimulating long-term economic growth and improving the well-being of the people, especially the low and middle income groups,” the MOF said.
To control the increase in debt and liabilities, the government is implementing continuous fiscal management measures, including continuing the gradual fiscal consolidation measures as well as broadening the revenue base and strengthening sustainable revenue collection, including through the expansion of the Sales and Service Tax (SST).
It is also optimising public expenditure through the implementation of targeted diesel and RON95 subsidies as well as rationalising statutory bodies and ensuring that government loans are only used to finance development projects and programmes that provide long-term socio-economic returns to Malaysia and the people.
