Prime Minister Anwar Ibrahim today defended Putrajaya’s borrowing strategy, emphasising that government loans are directed toward long-overdue development needs rather than operational expenses.
“We are not borrowing for operational costs. We are borrowing — at a reduced scale — strictly for development purposes,” Anwar told the Dewan Rakyat during Prime Minister’s Question Time.
“Why? Because of the state of our schools, our hospitals, rural communities, and flood-prone areas.”
He was responding to a question from Iskandar Dzulkarnain Abdul Khalid (PN–Kuala Kangsar) on whether the government was managing national debt responsibly, given its increase from RM1.079 trillion in 2022 to RM1.247 trillion by the end of 2024 — nearly 65% of Malaysia’s gross domestic product.
Development Priorities in the 13th Malaysia Plan
Anwar stressed that the government’s development priorities were clearly outlined in the 13th Malaysia Plan (13MP), urging Members of Parliament to review the document before criticising fiscal policies.
“These initiatives are already set out in the 13MP and must be understood in that context,” he said.
He also rejected allegations that the unity government was favouring specific communities in its allocations.
“If people claim we allocate funds for Chinese new villages but not for Bumiputeras, it means they have not read the plan,” Anwar said.
“In fact, allocations for Bumiputeras are among the highest — including provisions for Malay reserve land in urban areas. This is unprecedented since independence.”
Call for Fiscal Discipline and Reform
Anwar criticised previous administrations for making lofty promises to defend Malay interests without translating them into tangible policies, urging MPs to fully grasp government strategies before engaging in parliamentary debates.
He further underscored the need to reduce Malaysia’s fiscal deficit, warning that unchecked borrowing would be irresponsible and burden future generations.
“Popular policies without financial discipline will undermine the country’s long-term stability,” he cautioned.
Anwar noted that his administration was the first to implement concrete fiscal reforms, boosting investor confidence both domestically and internationally.
He also highlighted the government’s phased approach to narrowing the fiscal deficit, warning that failure to do so would risk spiralling debt and erode public confidence in Putrajaya’s financial management.
Targeted Subsidies Over Blanket Aid
Anwar reaffirmed that targeted subsidies, including for electricity and fuel, would continue to shield the public from economic pressures. At the same time, he criticised advocates of blanket subsidies that disproportionately benefit non-citizens.
“When subsidies are extended indiscriminately to foreigners, we must ask: whose interests are truly being represented?” he said.
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