Kuala Lumpur, The Europe Today – August 6, 2025: Prime Minister Datuk Seri Anwar Ibrahim has reaffirmed that Malaysia’s government debt remains under control and is being channeled towards long-term development rather than operating expenditures.
Addressing concerns raised during the Prime Minister’s Question Time in Parliament on Tuesday, Anwar emphasized the government’s responsible fiscal management, especially in light of recent increases in national debt.
“Borrowing is necessary, but it must be done with discipline and a long-term vision focused on infrastructure and social development,” he stated in response to a query from Datuk Iskandar Dzulkarnain Abdul Khalid (PN-Kuala Kangsar).
Anwar acknowledged that the country’s debt had grown in tandem with past deficits but assured that this trend is being reversed through strategic fiscal reforms. “As we approach the third year of this administration, our commitment to fiscal reform has led to a consistent reduction in the deficit — from 6.4% in 2021 to 5.5% in 2022, 5% in 2023, and an estimated 4.1% in 2024,” he said.
According to the Prime Minister, the government’s efforts to narrow the deficit have also reduced the scale of borrowings, with annual loans declining from RM100 billion in 2021 to RM99 billion in 2022, RM92.6 billion in 2023, and an estimated RM76.8 billion for 2024.
He reiterated the government’s strategy to reduce the deficit in stages to avoid jeopardizing essential services and social programs. “If we cut too abruptly, sectors such as education, healthcare, and the Sumbangan Tunai Rahmah (STR) cash aid initiative would be negatively impacted,” he cautioned.
Responding to criticism from the Opposition regarding the 13th Malaysia Plan (13MP) and claims of neglect towards bumiputra development, Anwar dismissed such allegations as unfounded. He highlighted the inclusion of the Bumiputra Economic Transformation Plan 2035 (PuTERA35) as a core component of 13MP, emphasizing the government’s unwavering commitment to bumiputra empowerment.
“We must read the Plan in its entirety. Otherwise, misconceptions arise — such as the claim that allocations only benefit Chinese new villages. It’s clear that critics haven’t reviewed the document thoroughly,” Anwar said, replying to remarks from Datuk Awang Solahuddin Hashim (PN-Pendang).
Anwar also pointed to inconsistencies in the Opposition’s stance, noting that critics remained silent when opposition-led states increased water tariffs. “Perlis, Kedah, Kelantan, and Terengganu all raised water tariffs. Because they’re Opposition-led, no one objected. If it were the Federal Government, the criticism would be harsh,” he remarked.
In conclusion, the Prime Minister urged Opposition lawmakers to move beyond political divisions and begin constructive negotiations with the government on matters such as parliamentary allocations. He reiterated that Deputy Prime Minister Datuk Seri Fadillah Yusof is ready to engage, but consensus within the Opposition bloc is a prerequisite for meaningful dialogue.
