SERDANG: Prime Minister Datuk Seri Anwar Ibrahim said despite efforts to narrow the country’s fiscal deficit, allocations for the states and the welfare of the people will continue to see an increase.
“Some people may feel uneasy whenever I mention that the government inherited more than RM1 trillion in debt, but this is the reality.
“Will our children be able to pay if the debt keeps rising to RM1.5, RM1.7 or even RM1.8 trillion? They cannot. That is why governance must rest on strong foundations,” he said at the Amanat Perdana Hari Kebangsaan 2025 event yesterday.
Anwar said his administration had reduced the fiscal deficit which was 5.6% in 2022 to 3.8% this year.
He stressed that lowering the deficit is vital for sustaining prosperity, economic growth and investor confidence both locally and abroad.
“This is a record for any developing nation. And we did this while still raising salaries, increasing allocations including to states governed by the opposition such as Perlis, Kedah, Kelantan and Terengganu.
“Previously, new borrowings were RM100 billion. Now, only RM70 billion. Debt remains, but new borrowing is down. At the same time, salaries and allocations have gone up, and RM15 billion has been channelled in aid this year alone.”
Anwar reiterated that market-based pricing without subsidies applies only to foreigners and the affluent, while essential items for the people remain protected.
“Critics claim the government is cruel and oppressive. But whose subsidies have we withdrawn? Not from the people, but from wealthy corporations making RM200 million to RM1 billion in profits annually. For years, their power bills were subsidised. Now, no more.”
Anwar said the government had reduced RON95 petrol to RM1.99 per litre and lowered water tariffs at the government’s expense, but despite these efforts critics continue to claim the government is burdening the people.
“Show me another country that has done this. If someone earns RM50,000 to RM60,000 a month, surely they can afford to pay a little more. But farmers, fishermen, smallholders and low-income workers will not face higher fuel prices.”
Anwar said Malaysia recorded a 4.4% growth in the second quarter of 2025.
“Two weeks ago, I received a call from US President Donald Trump. Tomorrow, I will travel to China at the invitation of President Xi Jinping. This reflects Malaysia’s wisdom in safeguarding our people.”
