The Malaysian government is committed to reducing new debt as a short term fiscal policy to improve the country’s financial capacity and they hope to achieve this by managing all the nation’s resources well.

In the years 2021 and 2022, new debt was approximately RM100 billion each year, and the amount was reduced to RM93 billion in 2023 and this year so far it stands at RM86 billion and should see it only increase marginally.

This is a result of the government’s efforts to reduce its fiscal deficit which is projected to decrease to 4.3 percent of the Gross Domestic Product (GDP) with the fiscal deficit last year at five percent and in 2022 at 5.6 percent.

This has boosted the government’s drive to lowering the national debt from 64 percent to 60 percent of GDP by managing the country well and ensuring no leakages or misappropriation of the nation’s wealth.

Malaysian prime minister, Datuk Seri Anwar Ibrahim, stated that he is resolute in wanting to see no more wastage of public funds because, if not, it is the people and the nation that will bear the burden.

He urged the Inland Revenue Board to improve tax collection as it played a big role in ensuring financial stability although the tax base was small at 11.7 percent of GDP, compared with Vietnam at 17 percent, the Philippines at 18 percent and Singapore at 13.8 percent.

-THE MALAYSIA VOICE