Prime Minister Anwar Ibrahim refuted claims that the Madani government is responsible for Malaysia’s rising national debt, asserting that the increase primarily stems from obligations inherited from previous administrations. Addressing the Dewan Negara while tabling the 13th Malaysia Plan (13MP), Anwar emphasized that his government has reduced new borrowings and narrowed the fiscal deficit, contrary to critics’ accusations.
Reduced Borrowing Under Madani Government
Anwar clarified that the growing total debt largely reflects interest accrued on legacy borrowings rather than new loans. “As long as there is a fiscal deficit, the country’s total debt will continue to rise,” he explained. He highlighted that annual borrowing has decreased significantly under his administration, from RM100 billion previously to as low as RM70 billion in recent years. “The total debt, including interest on what we inherited, has increased. But it’s wrong to claim this government is creating new debt,” he stated, addressing misconceptions about the debt figures.
Call for Transparent and Responsible Discourse
Anwar stressed the importance of transparency in presenting financial data, noting that figures are often misrepresented to fuel misleading narratives. “What matters is speaking the truth with fairness and precision,” he said. “We must examine the figures carefully and avoid careless rhetoric.” He urged for mature, calm, and responsible national debates on the issue, cautioning against emotionally charged or baseless accusations that distort the government’s fiscal efforts.
Commitment to Fiscal Prudence
The prime minister underscored his administration’s commitment to fiscal discipline, highlighting the reduction in borrowing as evidence of prudent financial management. By addressing the inherited debt burden transparently, Anwar sought to shift the focus toward constructive dialogue and accurate representation of Malaysia’s economic challenges.
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