By P Prem Kumar
KUALU LUMPUR
Malaysia's national debt stood at $167.05 billion or RM596.8 billion as of March 31 this year, representing 52.1 percent of the country's gross domestic product (GDP).
Deputy Finance Minister Chua Tee Yong said the debt is still at a moderate level and reflects the government's commitment to ensure it does not exceed 55 percent of GDP.
He said the Federal Government's debt level remained manageable, and Malaysia was categorised as a country with moderate debts.
From the total debt, 97 percent- or RM579.2 billion - is domestic, while the remaining RM17.6 billion is offshore loans.
"To ensure the debt level remains low and manageable, we will continue to practice fiscal consolidation to reduce deficit in stages. By doing this, it will reduce the Government's need to take loans, further reducing the debt amount," he said.
Among other steps taken to keep national debt in check were ensuring a balanced expenditure with focus on the outcomes, restricting loan-taking to development projects only, and prioritising domestic loans that do not lead to inflation.
"We also have to ensure the Federal Government's foreign debt remains under RM35 billion. As of March 2015, our offshore loans are at RM17.6 billion, far lower than the limit allowed under the External Loans Act 1963," said Chua.
The federal government has been under pressure over the stalling economy caused by sharp declines in oil prices since last year, and the controversy surrounding 1Malaysia Development Bhd (1MDB), the state-owned investment firm that has amassed a massive RM42 billion debt pile since its inception in 2009.
The financial woes of 1MDB has also prompted demands for a leadership change, with calls for Prime Minister Mohd Najib Razak's resignation.
