Anwar says legacy debts like 1MDB pushed up Malaysia’s debt, cautions that corruption ruins nations

Résumé détaillé

Prime Minister Datuk Seri Anwar Ibrahim today sought to correct claims that Malaysia’s debts had increased under his management as finance ...

KUALA LUMPUR, Nov 14 — Prime Minister Datuk Seri Anwar Ibrahim today sought to correct claims that Malaysia’s debts had increased under his management as finance minister.

He attributed the rise to debts inherited from previous governments, such as those linked to 1Malaysia Development Berhad (1MDB).

Anwar said the federal government tries its best to fulfil the needs of all but has limited finances.

“Now, among big issues, they say Anwar manage the economy, the debt increases,” he said during a meet-up before over 200 female trainees at the National Service programme’s Camp 515 here, rejecting the claim.

Anwar said the government had steadily reduced its budget deficit since he became finance minister in 2022, cutting the gap between spending and revenue from about RM100 billion that year to around RM90 billion, RM80 billion and RM70 billion in the following years.

“It increased because have to pay old debts — 1MDB debt, Felda debt, I have to pay RM980 million per year; Tabung Haji debt, RM10 billion have to pay,” he said.

He added that the government sometimes also had to pay other debts, such as those for weapons procurement.

The federal government’s fiscal deficit has narrowed from 5.5 per cent of gross domestic product in 2022 to 3.7 per cent in 2025, and is projected to ease to 3.6 per cent this year and 3.3 per cent next year.

The gap between government expenditure and revenue fell from RM100.84 billion in 2022 to RM92.44 billion in 2023, RM80.9 billion in 2024 and RM76.6 billion in 2025, but is projected to rise to RM80.5 billion this year before easing to around RM79 billion next year.

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