SHAH ALAM, July 20 — Prime Minister Datuk Seri Anwar Ibrahim today dismissed claims that government debt is rising, saying the country’s debt position is better despite interest pressures for liabilities accumulated in the past.
He said the government is responsible for servicing debts inherited from previous administrations, including payments in the billions of ringgit linked to the 1Malaysia Development Bhd (1MDB) scandal.
“People say the debt is increasing. No, it is now decreasing, but the total amount of debt has increased because interest rates are high.
“We are paying for old debts. We are paying for 1MDB’s debt. How can we deny this?” he told reporters during a meet-and-greet with Universiti Islam Selangor students and staff in Kajang.
Anwar added that the government is shouldering commitments from past decisions involving several institutions, including the Federal Land Development Authority (FELDA) and Lembaga Tabung Haji (Tabung Haji).
When touching on FELDA, Anwar said the agency used to be led by capable figures like Tan Sri Raja Muhammad Alias Raja Muhammad Ali and Tan Sri Taib Andak, who were dedicated to safeguarding settler and organisational interests.
Later decisions, including the corporatisation of Felda Global Ventures Holdings Bhd (FGV), resulted in financial losses that the current government is now working to resolve, he explained.
He revealed the government is paying RM980 million annually to meet these inherited obligations.
“Our problem is not Chinese, Indian or Malay; the problem is one of integrity, corruption and failing to uphold values,” Anwar said.
