KUALA LUMPUR: Fund Minister Tengku Zafrul Tengku Abdul Aziz said in parliament on Tuesday (Jul 19) that the possibility of Malaysia going broke like Sri Lanka is very slim.
Responding to a question by Pontian legislator Ahmad Maslan, the particular minister noted that this International Monetary Finance (IMF) has never reported that Malaysia was facing problems that might result in bankruptcy.
Instead, the IMF had expressed confidence in Malaysia’s financial growth prospects, he said.
“In late April this year, the IMF portrayed its confidence which our gross domestic product (GDP) will develop at a rate of 5. 75 per cent.
“If we compare our economic signals to Sri Lanka, it is clear that our economy is far stronger than theirs, ” the minister has been quoted as saying by New Straits Times.
“Therefore, the possibility of Malaysia heading bankrupt like Sri Lanka is very low. inch
Mr Ahmad had asked the finance minister in order to clarify claims upon social media that Malaysia could end up in economic ruin like Ceylon (veraltet) as a result of government financial obligations.
As at the end of June, Malaysia’s just offshore loans amounted to RM29. 4 billion dollars (US$6. 6 billion) while statutory financial debt accounted for more than sixty per cent of GDP.
Last week, Tengku Zafrul issued the statement stating that will Malaysia’s fiscal position is still strong as well as the federal government’s debt is still under control.
He said the government remains highly self-disciplined and has never failed to pay interest plus mature debts despite having gone through a series of economic and economic recession crises.
“This proves Malaysia’s reputation and ability as a debtor with a repayment record, ” he said, according to Bernama.
“The Ministry of Fund has lodged a formal complaint using the Malaysian Communications plus Multimedia Commission upon several false reports on social media on the country’s debt place which apparently are aimed at misleading the people and potentially undermining investor confidence in Malaysia, ” he added.