Prime Minister Datuk Seri Anwar Ibrahim has reaffirmed that the MADANI Government will not take on additional national debt, despite the country’s debt ratio continuing to improve.
Speaking at a dialogue session with civil servants from the Central Zone at Universiti Islam Selangor on Monday, Anwar said the government remains committed to prudent fiscal management, even though it is still burdened by substantial interest payments on debts accumulated under previous administrations.
Anwar, who also serves as Finance Minister, said the government is still servicing liabilities linked to 1Malaysia Development Berhad (1MDB), Lembaga Tabung Haji (TH) and the Federal Land Development Authority (FELDA).
“I do not want to continue increasing the country’s debt. Some people claim the government’s debt is growing.
“The reality is that our debt-to-GDP ratio is declining, but debt repayments remain high because we still have to pay interest on old borrowings. We are still paying debts related to 1MDB. How can anyone deny that?” he said.
He explained that while the government has managed to reduce the debt ratio through various fiscal measures, large financial commitments inherited from previous administrations continue to place pressure on public finances.
According to Anwar, past investment decisions and administrative mismanagement have left the government paying billions of ringgit each year, limiting its fiscal space to fund development projects and improve public welfare.
As an example, he cited the purchase of a hotel for RM400 million despite its estimated actual value being only about RM160 million.
“I know because the report came to me. When I took over, I became the one responsible for resolving it.
“Now, even if we sell it, it may only fetch around RM100 million. That is the reality,” he said.
Anwar acknowledged that revisiting issues from previous administrations may not be politically popular, but insisted that the public deserves to understand why the government continues to face significant financial obligations.
“Will I become popular by talking about this? Of course not. People get angry and say we should stop bringing up the past.
“But who has to pay for it now? The government of today,” he said.
He added that the financial burden is also reflected in the government’s commitment to FELDA, which currently costs nearly RM1 billion annually.
