KUALA LUMPUR: The country’s financial position is still strong and the federal government’s debt is still in check, said Finance Ressortchef (umgangssprachlich) Tengku Datuk Seri Zafrul Abdul Aziz.
He mentioned the government remains highly disciplined and has never failed to pay interest and mature financial obligations despite having been through a series of economic plus financial recession crises.
“This proves Malaysia’s reputation and ability as a debtor with a good repayment record, ” he stated in a statement today.
He said this in mention of the several reports upon social media which evidently were aimed at confusing the people about the country’s financial position and debt situation.
Tengku Zafrul said wise debt management was also implemented through current laws, among others, Post 98(1)(b) of the Federal Constitution which stipulates that the government must always prioritise debt fees over other operating expenses.
This individual said the External Loans Act 1963 provided for offshore borrowings not to surpass RM35 billion as well as the Interim Measures for Government Financing (Coronavirus Disease 2019 (COVID-19)) (Amendment) Act 2021 stipulated that the statutory limit of authorities debt could not become more than 65 percent of Gross Domestic Product (GDP).
As at end-June 2022, offshore loans amounted to RM29. 4 billion whilst statutory debt made up 60. 4 per cent of GDP.
Meanwhile, the Financial Minister also described that 97 percent of the total government debt is in ringgit denomination, thus reflecting prudent debt administration because exposure to foreign currency risk is minimum.
“A high level of debt does not mean that the country are at risk of personal bankruptcy.
“Various worldwide rating agencies for example S& P Worldwide, Fitch and Moody’s constantly assess a country’s debt ranges along with other factors such as a prudent fiscal platform, sound governance plus good external place as well as economic strength, ” he mentioned.
Tengku Zafrul said the Global Monetary Fund also acknowledged that Malaysia’s debt position is still at a manageable degree.
Recently, S& P forecast that will government policy planning would support the strengthening of the country’s fiscal position, he or she said.
Meanwhile, he said the particular Ministry of Finance (MoF) also denied allegations by a few irresponsible and malicious parties that Malaysia would go broke like a country within South Asia recently.
“The MoF has lodged the formal complaint with all the Malaysian Communications and Multimedia Commission on several false reviews on social media on the country’s debt placement which apparently are usually aimed at misleading the people and potentially undermining investor confidence within Malaysia, ” this individual added. – Bernama