Malaysia’s government debt equal to nearly 64% of GDP: finance minister
Malaysia’s Finance Minister Zafrul Aziz has recently revealed that the country’s government debt amounted to 1.045 trillion RM (234.4 billion USD) or 63.8% of its gross domestic product (GDP), but does not include the contingent liabilities of entities such as 1Malaysia Development Bhd (1MDB), its subsidiaries, SRC International Sdn Bhd and Suria Strategic Energy Resources Sdn Bhd (SSER).
Malaysia's Finance Minister Zafrul Aziz (Photo: thestar.com.my)
Kuala Lumpur (VNA) - Malaysia’s Finance Minister Zafrul Aziz hasrecently revealed that the country’s government debt amounted to 1.045 trillionRM (234.4 billion USD) or 63.8% of its gross domestic product (GDP), but doesnot include the contingent liabilities of entities such as 1MalaysiaDevelopment Bhd (1MDB), its subsidiaries, SRC International Sdn Bhd and SuriaStrategic Energy Resources Sdn Bhd (SSER).
Debts of 1MDB, SRC and SSER in general do not directly increasethe total debt of the government, said Zafrul Aziz.
But as 1MDB, SRC and SSER are entities that receivegovernment guarantees, the government is exposed to contingent liability risks solong as their debt commitments are yet to be resolved, he added.
The remaining debt commitments of 1MDB involving principalpayments and interest on two bonds and one sukuk issuance stand at 32.08 billionRM. The remaining SSER debt commitments involving principal and interestpayments amounted to 8.78 billion RM.
SRC's debt commitment had already been completed on March28, 2022, said the minister./.
Malaysia's state energy firm Petroliam Nasional Bhd (Petronas) is forecast to contribute to around 59 billion RM (13.25 billion USD) to the government budget this year, a year-on-year rise of about 12%.
Malaysia's economy is on a recovery path, but ongoing inflation is inflicting hardship on certain segments, including low-income households who have been disproportionately affected by rising price pressures, said Bank Negara Malaysia (BNM).
Malaysia’s foreign trade rose nearly 25% in 2021 to hit the 2 trillion RM (nearly 450 billion USD) mark for the first time after recording negative growth for two consecutive years, said the Department of Statistics Malaysia (DoSM).
The Chemical Industries Council of Malaysia (CICM) on August 2 called on the country’s Government to soon ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to bring about benefits for its chemicals companies.
