He told the media recentlythat Malaysia’s debt has reached the ceiling and should gradually go down.
The countryhad raised the debt limit to 60% of gross domestic product (GDP) from 55% in2020 in the early days of the COVID-19 pandemic, and lifted it further to 65%in 2021 to make room for additional borrowings to fund fiscal stimulus.
Thelaw under which the ceiling was raised lapsed on December 31, 2022. Malaysia’sactual debt is at 61% of GDP.
While Malaysia remainsA-rated by credit agencies Moody’s Investors Service and S&P GlobalRatings, a reduction in government debt ratio will be key to winning a highercredit score from Fitch Ratings Ltd., which is currently the only one of thethree main rating companies to have a lower BBB+ rating on the country.
Addressing adialogue session on budget on January 17, the PM said Malaysia’s national debtincluding liabilities has reached 1.5 trillion RM (about 346 billion USD),equivalent to 80% of GDP./.